VOLTA FINANCE - APRIL MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 17 May 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 31.03.11 | At 31.03.11 | At 29.04.11 |
+-----------------------------+---------------+-------------+-------------+
| Gross Asset Value (GAV / ?) | 139,641,509 * | 146,414,238 | 143,302,466 |
+-----------------------------+---------------+-------------+-------------+
| GAV per share (?) | 4.54 * | 4.76 | 4.65 |
+-----------------------------+---------------+-------------+-------------+
* taking into account the ?0.22 per share dividend payment
At the end of April 2011, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?143.3m or ?4.65 per
share, an increase of ?0.11 per share from ?4.54 post dividend GAV per share at
the end of March 2011.
The April mark-to-market variations* of Volta Finance's asset classes have been:
+1.5% for ABS investments, +3.3% for mezzanine of CDO investments, +5.9% for
residuals of CDO investments and +7.2% for Corporate Credit investments. The
increase of the GAV in April reflected the general decrease in credit spreads
that occurred following the March tensions
Volta's assets have generated the equivalent of ?2.4m of cash flows in April
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 ?11.1m. This amount can be compared with
the amount of ?10.2m for the previous six-month period ended in October 2010
(the most recent period which is comparable considering the seasonality of
payments).
In April, the Company bought one tranche of CLOs for ?2.8m (Adagio III - E).
At the end of April, Volta held ?3m in cash excluding ?1.1m received from margin
calls in respect to its currency hedge positions. Considering the pace at which
cash flows are generated Volta has close to ?3m available for investment at the
end of April.
MARKET ENVIRONMENT
In April, credit spreads tightened in Europe and in the US despite some
volatility during the month. It reflects some cool down on the perception of
potential risks coming from current geopolitical instability in or near oil-
producing countries and on the uncertainties coming from the painful situation
of Japan. The spread of the 5y European iTraxx index and of the 5y iTraxx
European Crossover Index (series 15) went, respectively, from 101 and 384 bps at
the end of March to 97 and 353 bps at the end of April. During the same period,
credit spreads in the US modestly widened as illustrated by the 5y CDX main
index (series 16) that went from 96 to 88 bps at the end of April 2011.
According to the CSFB Leverage Loan Index, the average price for US liquid first
lien loans was almost unchanged from 95.86% to 95.92%.**
Overall, the tensions that appeared in March somewhat relaxed in April and both
the prices and the number of transactions in structured finance markets returned
to end of February levels. It confirms the renewed appetite from large
institutional investors for this asset class for several quarters now.
VOLTA FINANCE PORTFOLIO
In April, 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 April, 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)) modestly increased from an average price of 48.4% to
48.9%.
As regards the Company's investments in residual and mezzanine debt of CLOs, at
the end of April, from a total of 51 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 48 other positions are
currently paying. As already mentioned, according to the latest report of
Alpstar 2, the E tranche held by Volta should resume paying its coupon for the
next payment in May.
At the end of April the mezzanine debt tranches of CLOs, totalling the
equivalent of ?90.7m of principal amount, were valued at an average price of
74.2% of par; the classic residual tranches of CLOs, totalling the equivalent of
?48.7m of principal amount, were valued at an average price of 64.4%; the rest
of the bucket, one loan fund, for the equivalent of ?11m of principal amount,
was valued at 92% of par.
As regards the Company's ABS investments, in April, no particular event
materially affected the six UK non-conforming residual holdings nor the position
held by Volta in Promise Mobility 2006-1. The company has no more investment in
short-term euro ABS senior tranches.
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 rally in prices that occurred in the previous
months, the Company may be in a position to sell some assets at yields below
Volta's target in order to reinvest the sale proceeds depending on 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 ?516
billion in assets under management as of the end of December 2010. AXA IM
employs approximately 2,438 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.
*****
April Monthly Report:
http://hugin.info/137695/R/1516670/452992.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#1516670]
Unternehmensinformation / Kurzprofil:
Datum: 17.05.2011 - 18:49 Uhr
Sprache: Deutsch
News-ID 54753
Anzahl Zeichen: 13307
contact information:
Town:
Guernsey
Kategorie:
Business News
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