VOLTA FINANCE - SEPTEMBER MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 21 October 2013 - Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") has published its monthly report. The full report is
attached to this release and is available on Volta Finance Limited's financial
website (www.voltafinance.com).
Gross Asset Value
+-------------------------------------+-------------+-------------+
| | At 30.09.13 | At 30.08.13 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 256.1 | 252.3 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 7.19 | 7.14 |
+-------------------------------------+-------------+-------------+
At the end of September 2013, the Gross Asset Value* (the "GAV") of Volta
Finance Limited (the "Company", "Volta Finance" or "Volta") was ?256.1 m or
?7.19 per share, modestly up from the end of August 2013 GAV.
Year to date 2013 performance is +17.7%.
It should be noted that ?5.4m, relating to the Investment Manager's Management
and Performance Fees for the semi-annual period ended 31 July 2013 (see 2013
Annual Report for more details) have been subtracted from the GAV. Without this,
the GAV per share would have been ?7.35, a monthly performance of +2.9%.
Approximately ?2.0m of the ?5.4m are in the form of newly issued Class C shares,
whilst the remainder is payable in cash. Please note that going forward all fees
to the Manager will be paid in cash.
The September mark-to-market variations* of Volta's asset classes have been:
+9.8% for Synthetic Corporate Credit deals, -0.3% for CLO Equity tranches;
+0.6% for CLO Debt tranches, +1.4% for Cash Corporate Credit deals and +3.1% for
ABS. The positive performance of assets in September is explained by positive
credit markets.
Volta's assets generated the equivalent of ?3.8m cash flows in September 2013
(non-Euro amounts converted to Euro using end-of-month cross currency rates and
excluding principal payments from debt assets) bringing the total cash generated
during the last six months to ?15.7m compared with ?16.2m for the previous six-
month period ended in March 2013.
In September the Company took advantage of the tightening in credit spreads to
sell 7 CLO debt positions for a total of ?14.8m and purchase one euro BB CLO
debt for ?2.6m (projected IRR of purchase was 8.9% under standard assumptions).
At the end of September, subtracting the amounts mentioned above in relation to
the Investment Manager fees (to be paid in the coming weeks), Volta held ?21.9m
in cash, including ?0.3m in relation to the Liquidity Enhancement Contract and
?0.9m received in relation to its currency hedge positions and T-Notes
positions. Volta could be considered to have approx ?16m available to invest.
MARKET ENVIRONMENT
In September 2013, credit spreads tightened significantly in Europe and in the
US. The 5 year iTraxx European Main index and 5 year iTraxx European Crossover
Index (series 19) spreads went respectively, from 107 and 434 bps at the end of
August 2013 to 94 and 378 bps at the end of September 2013. During the same
period, credit spreads in the US, as illustrated by the 5y CDX main index
(series 20) went from 84 to 73 bps. According to the CSFB Leverage Loan Index,
the average price for USA liquid first lien loans was roughly unchanged from
97.91% at the end of August 2013 to 97.81% at the end of September 2013. In
Europe: the price of the S&P European Leveraged Loan Index increased
significantly from 92.93% to 93.97% at the end of September 2013.**
VOLTA FINANCE PORTFOLIO
In September 2013, no particular event materially affected the situation of the
Synthetic Corporate Credit deals. 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.
Regarding the Cash Corporate Credit Deals, no particular event or information
materially affected the situation of the positions in this bucket during the
month.
Regarding the Company's investments in Equity or Debt tranches of CLOs, in
September 2013, no particular event materially affected the situation of the
positions in this bucket. All the positions are currently paying coupons.
Regarding the Company's ABS investments, no particular event affected the
situation of these investments
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, RMBS tranches as well as tranches of Cash or Synthetic
Corporate Credit portfolios could be considered for investment.
The Company took the opportunity of this summer's increases in US government
rates to put in place a long position on US T-notes futures. At the end of
September the position is equivalent to a USD20M nominal position and has
generated a gain of USD0.8m. The aim of this position is to transform part of
the USD floating rate positions of Volta into fixed .
Considering Volta's present cash position, we intend to purchase some new assets
in the coming weeks.
* "Mark-to-market variation" is calculated as the Dietz-performance of the
assets in each bucket, taking into account the Mark-to-Market of the assets at
month-end, payments received from the assets over the period, and ignoring
changes in cross currency rates Nevertheless, some residual currency effects
could impact the aggregate value of the portfolio when aggregating each bucket.
** Index data source: Markit, Bloomberg.
(Full monthly report in attachment or on www.voltafinance.com)
*****
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
Sanne Group (Guernsey) Limited
voltafinance(at)sannegroup.com
+44 (0) 1481 711822
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
*****
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.
*****
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.
*****
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.
*****
September Monthly Report:
http://hugin.info/137695/R/1737108/582336.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#1737108]
Unternehmensinformation / Kurzprofil:
Datum: 21.10.2013 - 19:05 Uhr
Sprache: Deutsch
News-ID 307723
Anzahl Zeichen: 12861
contact information:
Town:
St Peter Port
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 188 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"VOLTA FINANCE - SEPTEMBER MONTHLY REPORT"
steht unter der journalistisch-redaktionellen Verantwortung von
Volta Finance Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
