VOLTA FINANCE - DECEMBER MONTHLY REPORT
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN
PART, IN OR INTO THE UNITED STATES
*****
Guernsey, 17 January 2012 - 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 30.12.11 | At 30.11.11 | |
Gross Asset Value (GAV / € million) | 139.1 | 135.8 |
GAV per share (€) | 4.5 | 4.41 |
At the end of December 2011, the Gross Asset Value (the
"GAV") of Volta Finance Limited (the "Company", "Volta
Finance" or "Volta") was €139.1m or €4.51 per share, an
increase of €0.10 per share from €4.41 GAV per share at the
end of November 2011. The end of December GAV did not
take into account the dividend payment which took place the
16th of January.
The 2011 annual performance of Volta's assets, including the
April dividend payment and according to the GAV, is a
positive 10.3%.
The December mark-to-market variations* of Volta Finance's
asset classes have been: +26.4% for ABS investments, +0.1%
for mezzanine of CDO investments, -0.5% for residuals of CDO
investments and +1.0% for Corporate Credit investments. The
GAV increase in December was in line with slightly positive
credit markets in December.
Volta's assets generated the equivalent of €2.4m of cash
flows in December 2011 (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 €14.7m. This amount
can be compared with €11.8m for the previous six-month period
ended in June 2011 (the most recent period which is
comparable considering the seasonality of payments).
In December, no asset was sold or bought by the Company.
At the end of December, Volta held €6.7m in cash, including
€1m posted in respect of the currency hedge. Considering the
pace at which cash flows are generated and the necessity to
keep cash available for the next dividend payment, Volta
could be considered as fully invested.
MARKET ENVIRONMENT
In December, credit spreads tightened modestly in Europe and
in the US reflecting the remaining uncertainties regarding
Europe capability to settle a comprehensive package to face
the Euro sovereign debt crisis. The spread of the 5y European
iTraxx index and of the 5y iTraxx European Crossover Index
(series 16) decreased, respectively, from 185 and 759 bps at
the end of November to
173 and 755 bps at the end of December. During the same
period, credit spreads in the US, as illustrated by the 5y
CDX main index (series 17), went from 131 to 120 bps at the
end of December
2011. According to the CSFB Leverage Loan Index, the average
price for US liquid first lien loans modestly increased from
91.88% to 92.19% at the end of December.**
Overall, the tensions that have been present in most markets
since March have affected structured finance markets since
June. On average, prices are back to the end of 2010 levels
or slightly lower. The significantly positive 2011
performance of Volta's assets mostly reflects the ability of
the Company
to generate cash flows from its asset base.
VOLTA FINANCE PORTFOLIO
In December, no particular event materially affected the
situation of the Corporate Credit holdings. However, it
should be remembered that the first-loss positions in Jazz
III and ARIA III remain highly sensitive to any credit event
that could occur, especially to financial debts considering
the significant exposures to bank debt held through these
positions.
At the end of December, the average price of the assets in
this bucket increased from 39.6% to 40.2%
in line with the modest tightening observed in credit
markets.
As regards the Company's investments in residual and
mezzanine debt of CDOs, at the end of December, all the 53
positions in residual or mezzanine debt of CDOs are currently
paying their coupons. The last one that was unable to do so,
Carlyle IX, resumed paying a coupon in December. No
particular event materially affected the situation of these
positions.
At the end of November the 40 mezzanine debt tranches of CDOs
(38 tranches of CLOs, 1 tranche of Emerging Debt CDO and 1
tranche of CDO of ABS), totalling the equivalent of €102.9m
of principal amount, were valued at an average price of 59%
of par; the 12 classic residual tranches of CLOs, totalling
the equivalent of €54.3m of principal amount, were valued at
an average price of 59%; the rest of the bucket, one loan
fund, for the equivalent of €11.5m of principal amount, was
valued at 75% of par.
As regards the Company's ABS investments, at the end of
December, nothing special affected the main position (Promise
Mobility) or the other investments in this bucket (6 UK
non-conforming residual positions). The very good performance
of this bucket in December was due to significant amounts
received from the UK non-conforming residual positions.
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 as well as 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.
The recent widening of discount margins has been seized upon
by the Company to invest most of the cash available.
Depending on market opportunities, the Company may aim at
taking advantage of current volatility in prices to sell some
assets in order to reinvest the sale proceeds on assets
representing, at the time of purchase, what the Company can
consider a better opportunity.
* "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 €514 billion
in assets under management as of the end of June
2011. AXA IM employs approximately 2,389 people around the
world and operates out of 21 countries.
CONTACTS Company Secretary
State Street (Guernsey) Limited
volta.finance@ais.statestreet.com
+44 (0) 1481 715601
Portfolio Administrator Deutsche Bank voltaadmin@list.db.com
For the Investment Manager AXA Investment Managers Paris
Serge Demay
serge.demay @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.
*****
distribué par | Ce noodl a été diffusé par Volta Finance Limited et initialement mise en ligne sur le site http://www.voltafinance.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-17 18:36:33 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
Documents associés | |
Publication of December monthly report |