VOLTA FINANCE - JANUARY MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 11 February 2011 - 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 31.01.11 | At 31.12.10 | At 31.12.10 |
+-----------------------------+-------------+-------------+-------------+
| Gross Asset Value (GAV / ?) | 140,603,324 | 130,094,813 | 130,094,813 |
+-----------------------------+-------------+-------------+-------------+
| GAV per share (?) | 4.57 | 4.12* | 4.29 |
+-----------------------------+-------------+-------------+-------------+
* taking into account shares issued following the scrip dividend payment in
january
At the end of January 2011, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?140.6m or ?4.57 per
share, an increase of ?0.45 per share from ?4.12 per share at the end of
December 2010.
The January mark-to-market variations* of Volta Finance's asset classes have
been: +4.1% for ABS investments, +11.0% for mezzanine of CDO investments,
+17.2% for residuals of CDO investments and +11.3% for Corporate Credit
investments. The increase of the GAV in January reflected an increase in prices
of most of Volta's assets in line with the improving outlook from market
participants on these assets and the overall tightening of credit spreads in
January.
Volta's assets have generated the equivalent of ?1.4m of cash flows in January
2011 (non-euro amounts converted into 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 ?10.3m. This amount can be compared with
the amount of ?9.5m for the previous six-month period ended in July 2010 (the
most recent period which is comparable considering the seasonality of payments).
In January, the Company bought just one asset for ?2m of cash : a structured
note giving access to the performance of a portfolio made up of 30 residual
positions in USD CLOs (Prelude). No asset was sold and the Company received
?0.3m of principal payment from one of its mezzanine positions in CLOs.
At the end of January, Volta had ?2.4m in cash including ?0.9m posted for margin
calls in respect to its currency hedge positions.
MARKET ENVIRONMENT
In January, credit spreads tightened in Europe and were almost stable in the US.
It mostly reflects the softening of the sovereign crisis in the Euro zone. The
spread of the 5y European iTraxx index (series 14) and the 5y iTraxx European
Crossover Index (series 14) decreased respectively from 105 and 437 bps at the
end of December to 98 and 415 bps respectively at the end of January. During the
same period, credit spreads in the US stabilized as illustrated by the 5y CDX
main index (series 15) that went from 85 to 84 bps at the end of January 2011.
According to the CSFB Leverage Loan Index, the average price for US liquid first
lien loans significantly increased from 94.11% to 95.64%.**
Overall, in line with what already happened in December, January was a month of
significant increases in the number of transactions in structured finance
markets echoing the renewed appetite from some investors for this asset class.
CLO tranches were leading the way.
VOLTA FINANCE PORTFOLIO
In January, no particular event materially affected the situation of the
Corporate Credit holdings. However, it should be mentioned that the first-loss
positions in Jazz III and ARIA III remain highly sensitive to any credit event
that could occur. At the end of January, the average price of all the assets in
this bucket (the first loss positions plus three other corporate credit
positions (initially rated AAA and A tranches)) increased from an average price
of 41.3% to 45.6% reflecting the tightening of corporate credit spreads and the
tightening of discount margin for structured finance assets.
As regards the Company's investments in residual and mezzanine debt of CLOs, at
the end of January, from a total of 52 positions in residual or mezzanine debt
of CLOs, one of the mezzanine positions (Alpstar 2A E) and two of the residual
positions (Carlyle IX and Northwoods VIII) are still unable to pay their coupon
due to over collateralisation test breaches. The 49 other positions are
currently paying. According to the latest report of Alpstar 2, the E tranche
held by Volta should resume paying its coupon for the following payment in May.
At the end of January the mezzanine debt tranches of CLOs, totalling the
equivalent of ?94.2m of principal amount, were valued at an average price of
71.6% of par; the classic residual tranches of CLOs, totalling the equivalent of
?51.9m of principal amount (including the January purchase of Prelude), were
valued at an average price of 57.1%; the rest of the bucket, one loan fund, for
the equivalent of ?11m of principal amount, was valued at 93.8% of par.
As regards the Company's ABS investments, in January, no particular event
materially affected the six UK non-conforming residual holdings nor the position
held by Volta in Promise Mobility 2006-1. One investment in short-term euro ABS
senior tranches held by the Company to enhance its cash management amounted to
?1.7m.
The Company considers that opportunities could arise in several structured
credit sectors in the current market environment. Amongst others, mezzanine
tranches of CLOs and of European ABS or senior tranches of Corporate Credit
portfolios could be considered for investments. Potential investments could be
made depending on the pace at which market opportunities could be seized and
cash is available. Thanks to the recent rally in prices, the Company could be
expected to sell some assets at yield below Volta's target in order to reinvest
the sale proceeds according to current market opportunities.
* "Mark-to-market variation" is calculated as the Dietz-performance of the
assets in each bucket, taking into account the MtM 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 ?522
billion in assets under management as of the end of September 2010. AXA IM
employs approximately 2,441 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
*****
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 press release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
with the United States Securities and Exchange Commission or an exemption from
registration under the U.S. Securities Act of 1933, as amended (the "Securities
Act"). Volta Finance has not registered, and does not intend to register, any
portion of any offering of its securities in the United States or to conduct a
public offering of any securities in the United States.
*****
This document is being distributed by Volta Finance Limited in the United
Kingdom only to investment professionals falling within article 19(5) of the
Financial Services and Market Act 2000 (Financial Promotion) Order 2005 (the
"Order") or high net worth companies and other persons to whom it may lawfully
be communicated, falling within article 49(2)(A) to (E) of the Order ("Relevant
persons"). The shares are only available to, and any invitation, offer or
agreement to subscribe, purchase or otherwise acquire the shares will be engaged
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.
*****
January Monthly Report:
http://hugin.info/137695/R/1488359/423787.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#1488359]
Unternehmensinformation / Kurzprofil:
Datum: 11.02.2011 - 19:36 Uhr
Sprache: Deutsch
News-ID 51403
Anzahl Zeichen: 13520
contact information:
Town:
Guernsey
Kategorie:
Business News
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