NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
Guernsey, 5 June 2014 - Volta Finance Limited (the "Company" or "Volta Finance" or "Volta") has published its Interim Management Statement. The full report is attached to this release and is available on Volta Finance Limited's financial website (www.voltafinance.com).
Dear Shareholders and Investors,
During the quarter, from the end of January 2014 to the end of April 2014, the Gross Asset Value (the "GAV") of Volta Finance Limited (the "Company" or "Volta Finance" or "Volta") went from €274,3m or €7.56 per share, to €264,3m or €7.25 per share. In the meantime a €0,30 per share dividend payment has been made.
It reflects a negative 0,1% quarterly performance in the per share value.
Year to date 2014 performance is +2,6% as of the end of April.
During the quarter the Company paid the fees due to the investment manager for the 6-month period closed at the end of January 2014 and decided to change the way the GAV was computed, provisioning fees due to the manager on a monthly basis. It has an overall impact of 1,8% during the quarter.
During the quarterly period, the Company purchased four assets for a total of €13,3m: two debt tranches and two equity tranches of CLO. The company sold 1 CDO of ABS for €3,3m and committed €7,5% to a European Loan Fund. On average assets were purchased at an expected rate of return close to 8,5% (under reasonable historical hypothesis).
During the quarter, cash flows generated by the Company's assets, excluding asset sales and principal payments from assets, amounted to €8,4m (non euro amounts being translated in euro using the end of month currency rate). This amount could be compared to €9.5m for the most recent comparable 3-month period (from the end of July 2013 to the end of October 2013). The cash generated by the assets, during the quarter under review, is rather significant, being close to an annual rate of 13,4% of Volta's asset valuation, excluding cash, at the beginning of the period (€250,7m).
The cash position in the Company's accounts went from €23,6m at the end of January 2014 to €16,9m at the end of April 2014. Considering the pace at which cash flows are generated and the commitment already taken, Volta could be considered as being able to invest €10m at the time of writing this statement.
The GAV increase (when taking into account the impact of fees on the GAV) during the quarter is mostly reflecting the high level of cash flows generated by Volta's assets.
VOLTA FINANCE PORTFOLIO
Synthetic Corporate Credit
During the quarter, no material event affected the Synthetic Corporate Credit holdings. The Company has no more first loss positions in this bucket (ARIA III and JAZZ III matured).
CLO Equity and Debt tranches
During the quarter, on average, defaults and rating changes in the underlying loan portfolios continued to occur, albeit at a slower pace than in the most recent quarters which remained low compared to historical average for USD deals but at a pace that continued to be near historical average rates for European deals. This situation had no material consequences for Volta over the quarter.
Cash Corporate Credit
During the quarter, no material event affected the Cash Corporate Credit holdings.
During the quarter, no material event affected the ABS holdings.
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, European or US ABS as well as tranches of Cash or Synthetic Corporate Credit portfolios could be considered for investment. Potential investments could be done depending on the pace at which market opportunities could be seized and cash is available.
Depending on market opportunities, the Company may aim to take advantage of the current compression on discount margins to sell some assets in order to reinvest the sale proceeds on assets that the Investment Manager consider being, at the time of purchase, better opportunities.
The Investment Manager continues working on a solution to leverage part of the Company CLO debt positions.
Unless stated otherwise, the figures in this Interim Management Statement are as at the end of April 2014 as valuations are available only on a monthly basis with some delays. Between the end of April 2014 and 5 June 2014, the date of publication of this Interim Management Statement, the Company is not aware of any significant event, materially affecting the Company's financial position or the Company's controlled undertaking.
(Full Interim Management Statement attachment on www.voltafinance.com)
ABOUT VOLTA FINANCE LIMITED
Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (as amended) and listed on NYSE 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.
Sanne Group (Guernsey) Limited
+44 (0) 1481 739810
For the Investment Manager
AXA Investment Managers Paris
+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.
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Volta Finance Limited via Globenewswire