VOLTA FINANCE - INTERIM MANAGEMENT STATEMENT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
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Guernsey, 24 May 2013 - Volta Finance Limited (the "Company" or "Volta Finance"
or "Volta") has published its Interim Management Statement. The full report is
attached to this release and is available on Volta Finance Limited's financial
website (www.voltafinance.com).
Dear Shareholders and Investors,
During the quarter, from the end of January 2013 to the end of April 2013, the
Gross Asset Value* (the "GAV") of Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") went from ?212.4m or ?6.60 per share, to ?212.7m or ?6.57
per share**. During the period the Company paid a ?31 cents per share dividend.
It reflects a positive 4.2% quarterly performance in its per share value.
It should be noted that the Company decided to subtract from the end of April
GAV ?3.7m of expenses not yet settled at this time (?0.12 per share), relating
to the Investment Manager's Performance Fees for the semi-annual period ended
31 January 2013 (see Annual Report recently published for more details) in order
to better reflect in its GAV the value of assets per share.
During the quarterly period, the Company purchased one debt of ABS as well as 2
debt tranches of CLO and one bank balance sheet transaction for the equivalent
of ?9.0m and sold a portion of its position in a corporate credit asset as well
as 3 CLO Debt tranches for the equivalent of ?8.1m.
During the quarter, cash flows generated by the Company's assets, excluding
asset sales and principal payments from assets, amounted to ?9.7m (non euro
amounts being translated in euro using the end of month currency rate). This
amount could be compared to ?9.6m for the most recent comparable 3-month period
(from the end of July 2012 to the end of October 2012). The cash generated by
the assets, during the quarter under review, is rather significant, being close
to an annual rate of 19% of Volta's asset valuation, excluding cash, at the
beginning of the period (?207.4m).
The cash position in the Company's accounts went from ?5.3m at the end of
January 2013 to ?0.8m at the end of April 2013, including ?0.4m received in
respect to the currency hedge transactions as well as ?0.3m in relation with the
Liquidity Enhancement Contract which the company established in 2012 and
excluding the ?3.7m of fees not yet settled. Considering the pace at which cash
flows are generated and the necessity to finance the next dividend payment as
well as a recent capital raising of ?16.3m, Volta could be considered as being
able to invest ?18m at the time of writing this statement.
The increase in the GAV during the quarter is due to decreases in discount
margins attached to structured credit products as well as to the high level of
cash flows generated by Volta's assets.
MARKET ENVIRONMENT AND LATEST DEVELOPMENTS
From the end of January 2013 to the end of April 2013, the 5y European iTraxx
index (series 18) and the 5y iTraxx European Crossover index (series 18)
tightened significantly, from respectively 111 and 439 bps to respectively 89
and 337 bps. During the same period, credit spreads in the US also tightened, as
illustrated by the 5y CDX main index (series 19) that reduced from 89 to 66 bps
at the end of April 2013. According to the CSFB Leverage Loan Index, the average
price for USA liquid first lien loans increased from 97.50% at the end of
January 2013 to 98.43% at the end of April 2013. The increase in price was more
pronounced in Europe: the price of the S&P European Leveraged Loan Index went
from 91.40% to 92.81% at the end of April 2013.***
VOLTA FINANCE PORTFOLIO
Synthetic Corporate Credit
During the quarter, no material event affected the Synthetic Corporate Credit
holdings. However, the first loss positions in this bucket (ARIA III and the
residual positions in JAZZ III) remain highly sensitive to any new credit event,
especially to debt of financial institutions considering the significant
exposures to banks held through these positions.
During the quarter, the value of the Equity positions went from ?16.3m to
?16.4m. They generated ?2.2m of interest or coupons during the quarter.
The value of the debt tranches went from ?20.3m to ?21.3m (?23.3m of principal
amount) and generated ?0.1m of coupons during the quarter.
The value of the Bank Balance Sheet transactions went from ?11.7m to ?14.3m at
the end of April 2013, including one new asset for ?2.5m and generated ?0.2m of
coupons during the quarter.
CLO Equity and Debt tranches
During the quarter, on average, defaults and rating chnages in the underlying
loan portfolios continued to occur, albeit at a slower pace than in the most
recent quarters which remained low compared to historical average for USD deals
but at a pace that continued to be above historical average rates for European
deals. This situation had no material consequences for Volta over the quarter.
Over the quarter, the value of the CLO equity tranches went from ?40.8m to
?40.3m. They generated the equivalent of ?4.1m of cash flows.
The value of the CLO Debt tranches went from ?93.5m to ?95.0m despite ?2m of net
sales (3 debt tranches sold and 2 tranches purchased during the period). They
generated the equivalent of ?1.1m of cash flows.
Cash Corporate Credit
During the quarter, one deal in this bucket (Promise Mobility) was priced down
in order to take into account a small resumption of credit events at the
underlying loan level. No material event affected the other positions in this
bucket during the quarter.
The value of the Cash Corporate Credit positions went from ?15.0m at the end of
January 2013 to ?13.7m at the end of April 2013. They generated ?1.5m of
interest and coupons during the quarter.
ABS
During the quarter, no material event affected the ABS holdings.
During the quarter the value of the positions in this bucket went from ?8.6m to
?10.7m including one new asset for ?1.2m and generated ?1.4m of cash flows.
The Company considers that opportunities could arise in several structured
credit sectors in the current market environment. Amongst others, mezzanine or
Equity tranches of CLOs, European or US ABS as well as tranches of Cash or
Synthetic Corporate Credit portfolios could be considered for investment.
Potential investments could be done depending on the pace at which market
opportunities could be seized and cash is available. Depending on market
opportunities, the Company may aim to take advantage of the current compression
on discount margins to sell some assets in order to reinvest the sale proceeds
on assets representing, at the time of purchase, those which the Company
considers a better opportunity.
Unless stated otherwise, the figures in this Interim Management Statement are as
at the end of April 2013 as valuations are available only on a monthly basis
with some delays. Between the end of April 2013 and 24 May 2013, the date of
publication of this Interim Management Statement, the Company is not aware of
any significant event, materially affecting the Company's financial position or
the Company's controlled undertaking. Note that the company raised ?16.3m of
capital at the beginning of May, this amount should be invested in the coming
weeks.
* GAV : In order to give a better indication of the value of assets for
shareholders the GAV has been diminished by Management and Incentive Fees due
for the financial period recently closed but not yet settled at the end of the
reported period
** From end of January to end of April 2013 the outstanding number of shares
increased from 32 188 109 to 32 359 991
*** Index data source: Markit, Bloomberg
(Full Interim Management Statement attachment on www.voltafinance.com)
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ABOUT VOLTA FINANCE LIMITED
Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey)
Laws, 1994 to 1996 (as amended) and listed on Euronext Amsterdam. Its investment
objectives are to preserve capital and to provide a stable stream of income to
its shareholders through dividends. For this purpose, it pursues a multi-asset
investment strategy targeting various underlying assets. The assets that the
Company may invest in either directly or indirectly include, but are not limited
to: corporate credits; sovereign and quasi-sovereign debt; residential mortgage
loans; automobile loans. Volta Finance Limited's basic approach to its
underlying assets is through vehicles and arrangements that provide leveraged
exposure to some of those underlying assets.
Volta Finance Limited has appointed AXA Investment Managers Paris, an investment
management company with a division specialised in structured credit, for the
investment management of all its assets.
ABOUT AXA INVESTMENT MANAGERS
AXA Investment Managers (AXA IM) is a multi-expert asset management company
within the AXA Group, a global leader in financial protection and wealth
management. AXA IM is one of the largest European-based asset managers with ?553
billion in assets under management as of the end of December 2012. AXA IM
employs approximately 2,450 people around the world and operates out of 21
countries.
CONTACTS
Company Secretary
State Street (Guernsey) Limited
volta.finance(at)ais.statestreet.com
+44 (0) 1481 715601
Portfolio Administrator
Deutsche Bank
voltaadmin(at)list.db.com
For the Investment Manager
AXA Investment Managers Paris
Serge Demay
serge.demay(at)axa-im.com
+33 (0) 1 44 45 84 47
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This press release is for information only and does not constitute an invitation
or inducement to acquire shares in Volta Finance. Its circulation may be
prohibited in certain jurisdictions and no recipient may circulate copies of
this document in breach of such limitations or restrictions.
This document is not an offer for sale of the securities referred to herein in
the United States or to persons who are "U.S. persons" for purposes of
Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), or otherwise in circumstances where such offer would be restricted by
applicable law. Such securities may not be sold in the United States absent
registration or an exemption from registration from the Securities Act. The
company does not intend to register any portion of the offer of such securities
in the United States or to conduct a public offering of such securities in the
United States.
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This communication is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (iii) high net worth
companies, and other persons to whom it may lawfully be communicated, falling
within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as "relevant persons"). The securities referred to herein are only
available to, and any invitation, offer or agreement to subscribe, purchase or
otherwise acquire such securities will be engaged in only with, relevant
persons. Any person who is not a relevant person should not act or rely on this
document or any of its contents.
Past performance cannot be relied on as a guide to future performance.
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This press release contains statements that are, or may deemed to be, "forward-
looking statements". These forward-looking statements can be identified by the
use of forward-looking terminology, including the terms "believes",
"anticipated", "expects", "intends", "is/are expected", "may", "will" or
"should". They include the statements regarding the level of the dividend, the
current market context and its impact on the long-term return of Volta's
investments. By their nature, forward-looking statements involve risks and
uncertainties and readers are cautioned that any such forward-looking statements
are not guarantees of future performance. Volta Finance's actual results,
portfolio composition and performance may differ materially from the impression
created by the forward-looking statements. Volta Finance does not undertake any
obligation to publicly update or revise forward-looking statements.
Any target information is based on certain assumptions as to future events which
may not prove to be realised. Due to the uncertainty surrounding these future
events, the targets are not intended to be and should not be regarded as profits
or earnings or any other type of forecasts. There can be no assurance that any
of these targets will be achieved. In addition, no assurance can be given that
the investment objective will be achieved.
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Interim Management Statement:
http://hugin.info/137695/R/1704629/563654.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Volta Finance Limited via Thomson Reuters ONE
[HUG#1704629]
Unternehmensinformation / Kurzprofil:
Datum: 24.05.2013 - 19:10 Uhr
Sprache: Deutsch
News-ID 263388
Anzahl Zeichen: 15123
contact information:
Town:
Guernsey
Kategorie:
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