VOLTA FINANCE - NOVEMBER MONTHLY REPORT
(Thomson Reuters ONE) - NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, INOR INTO THE UNITED STATES*****Guernsey, 15 December 2009 - Volta Finance Limited (the "Company" or"Volta Finance" or "Volta") has published its November monthlyreport. The full report is attached to this release and is availableon Volta Finance Limited's financial website (www.voltafinance.com).Gross Asset Value+---------------------------------------------------------+| | At 30.11.09 | At 30.10.09 ||-----------------------------+-------------+-------------|| Gross Asset Value (GAV / ?) | 77,312,000 | 76,368,834 ||-----------------------------+-------------+-------------|| GAV per share (?) | 2.55 | 2.52 |+---------------------------------------------------------+At the end of November 2009, the Gross Asset Value (the "GAV") ofVolta Finance Limited (the "Company", "Volta Finance" or "Volta") was?77.3 million or ?2.55 per share, an increase of ?0.03 per share from?2.52 per share at the end of October 2009.The November mark-to-market variations* of Volta Finance's assetclasses have been: +1.1% for ABS investments, +4.1% for mezzanine ofCDO investments, +2.7% for residuals of CDO investments and +7.6% forCorporate Credit investments.Excluding principal payments from short term ABS investments, Volta'sassets have generated the equivalent of ?0.8m of cash flows duringNovember 2009 (non-euro amounts converted into euro usingend-of-month cross currency rates) bringing the total cash generatedfor the current semi-annual period that begun on the 1st of August2009 to ?5.2m (excluding principal payments from short term ABS),compared with ?8.5m for the same four-month period in 2008.In November the Company invested a total of ?14.1m in six deals: asenior tranche of a Corporate Credit portfolio (Jazz III AB), fourmezzanine tranches of CLO (RMFE V, OHECP 2007, LAURELIN 2 and ADAGIOIII) and one currently first-pay tranche of European ABS (RMAC 2004).MARKET ENVIRONMENTIn November, credit spreads were almost unchanged. The muted economicrecovery that started to materialise in the recent months is expectedto be prolonged over next year according to most of the institutionalsources that provide economic forecasts. However evidences thatdomestic consumption without government stimuli is able to progressin US or in Europe are still rare, but sentiment has significantlyrebounded and it should push into the right direction.The 5y European iTraxx index (series 12) was unchanged at 89 bps fromend of October to end of November. During the same period, the 5yiTraxx European Crossover Index (series 12) widened modestly from 517bps to 540 bps. According to the CSFB Leverage Loan Index, theaverage price for US liquid first lien loans increased very modestly,from 84.76% to 84.96%.**VOLTA FINANCE PORTFOLIOAs regards the Company's Corporate Credit holdings, no particularevent materially affected their situation in November. However, thetwo first-loss positions in Jazz III and ARIA III remain highlysensitive to any credit event that could occur. These two first-losspositions represented 56% of the ?16.3m Corporate Credit bucket, theremaining portion being composed of 3 senior tranches.As regards the Company's investments in residual and mezzanine debtof CLOs, defaults and downgrades in underlying portfolios continuedto occur, albeit at a slower pace than in the previous months. Thenumber of residual tranches suffering at least a partial diversion ofcash flows remained almost stable but overcollateralisation testscontinued to improve modestly as it was the case for several monthsnow. As a consequence, quarterly payments from residual positions inCLO are expected to increase in the coming months.The mezzanine debt tranches portfolio held by Volta is now made off18 different positions, representing 34% of the end of month GAV,relative to 20.1% at the end of October. Nothing material occurredduring the month regarding those assets. Two of those positions(Alpstar 2A E and Cheyne Credit Opp.) are still unable to pay theircoupon due to the breach of the relevant overcollateralisation test.As regards the Company's ABS investments, no particular event hasaffected the six UK non-conforming residual holdings as well asPromise Mobility, a residual position in a very diversified portfolioof small and medium German company loans. The four positions taken asa substitute for cash management in very senior euro ABS tranchesbehaved as expected. The largest one is expected to be fully repaidin December.At the end of November, the Company held the equivalent of ?6.2m ofcash (?0.21 per share). From this amount a bit more than ?3m havebeen spent to pay a ?0.10 per share dividend the 3rd of December. Atthe end of November the Company has almost finished to invest the?25m that have been kept in cash during the peak of the crisis. Mostof the remaining cash, with ongoing cash flows expected to bereceived months after months, will be used for investing as well aspaying operating expenses and further dividends.The Company considers that opportunities could arise in severalstructured credit sectors in the current market environment. Amongothers, mezzanine tranches of CLOs and of European ABS or seniortranches of Corporate Credit portfolios could be considered for suchinvestments. Investments will be made depending on the pace at whichmarket opportunities could be seized and cash is available.* "Mark-to-market variation" is calculated as the Dietz-performanceof the assets in each bucket, taking into account the MtM of theassets at month-end, payments received from the assets over theperiod, and ignoring changes in cross currency rates Nevertheless,some residual currency effects could impact the aggregate value ofthe portfolio when aggregating each bucket.** Index data source: Markit, Bloomberg.(Full monthly report in attachment or on www.voltafinance.com)*****ABOUT VOLTA FINANCE LIMITEDVolta Finance Limited is incorporated in Guernsey under the Companies(Guernsey) Laws, 1994 to 1996 (as amended) and listed on EuronextAmsterdam. Its investment objectives are to preserve capital and toprovide a stable stream of income to its shareholders throughdividends. For this purpose, it pursues a multi-asset investmentstrategy targeting various underlying assets. Volta Finance's basicapproach to its underlying assets is through vehicles andarrangements that provide leveraged exposure. The exposure to thoseunderlying assets is gained through direct and indirect investment infive principal asset classes: corporate credits, CDOs, ABS, leveragedloans, and infrastructure assets.Volta Finance has appointed AXA Investment Managers Paris, aninvestment management company with a division specialised instructured credit, for the investment management of all its assets.ABOUT AXA INVESTMENT MANAGERSAXA Investment Managers (AXA IM) is a multi-expert asset managementcompany within the AXA Group, a global leader in financial protectionand wealth management. AXA IM is one of the largest European-basedasset managers with ?485 billion in assets under management as of theend of December 2008. AXA IM employs approximately 2,900 peoplearound the world and operates out of 21 countries.CONTACTSCompany SecretaryMourant Guernsey Limitedvolta.finance(at)mourant.com+44 (0) 1481 715601Portfolio AdministratorDeutsche Bankvoltaadmin(at)list.db.comFor the Investment ManagerAXA Investment Managers ParisSerge Demayserge.demay(at)axa-im.com+33 (0) 1 44 45 84 47*****This press release is for information only and does not constitute aninvitation or inducement to acquire shares in Volta Finance. Itscirculation may be prohibited in certain jurisdictions and norecipient may circulate copies of this document in breach of suchlimitations or restrictions.This press release is not an offer of securities for sale in theUnited States. Securities may not be offered or sold in the UnitedStates absent registration with the United States Securities andExchange Commission or an exemption from registration under the U.S.Securities Act of 1933, as amended (the "Securities Act"). VoltaFinance has not registered, and does not intend to register, anyportion of any offering of its securities in the United States or toconduct a public offering of any securities in the United States.*****This document is being distributed by Volta Finance Limited in theUnited Kingdom only to investment professionals falling withinarticle 19(5) of the Financial Services and Market Act 2000(Financial Promotion) Order 2005 (the "Order") or high net worthcompanies and other persons to whom it may lawfully be communicated,falling within article 49(2)(A) to (E) of the Order ("Relevantpersons"). The shares are only available to, and any invitation,offer or agreement to subscribe, purchase or otherwise acquire theshares will be engaged only with, relevant persons. Any person who isnot a relevant person should not act or rely on this document or anyof its contents. Past performance cannot be relied on as a guide tofuture performance.*****This press release contains statements that are, or may deemed to be,"forward-looking statements". These forward-looking statements can beidentified by the use of forward-looking terminology, including theterms "believes", "anticipated", "expects", "intends", "is/areexpected", "may", "will" or "should". They include the statementsregarding the level of the dividend, the current market context andits impact on the long-term return of Volta's investments. By theirnature, forward-looking statements involve risks and uncertaintiesand readers are cautioned that any such forward-looking statementsare not guarantees of future performance. Volta Finance's actualresults, portfolio composition and performance may differ materiallyfrom the impression created by the forward-looking statements. VoltaFinance does not undertake any obligation to publicly update orrevise forward-looking statements.Any target information is based on certain assumptions as to futureevents which may not prove to be realised. Due to the uncertaintysurrounding these future events, the targets are not intended to beand should not be regarded as profits or earnings or any other typeof forecasts. There can be no assurance that any of these targetswill be achieved. In addition, no assurance can be given that theinvestment objective will be achieved.*****http://hugin.info/137695/R/1361388/332456.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 15.12.2009 - 15:52 Uhr
Sprache: Deutsch
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