NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES
*****
Guernsey, 19 December 2014 - 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 28.11.14 |
At 31.10.14 |
Gross Asset Value (GAV / € million) |
290.2 |
285.4 |
GAV per share (€) |
7.95 |
7.82 |
At the end of November 2014, the
Gross Asset Value* (the "GAV") of Volta Finance Limited
(the "Company", "Volta Finance" or "Volta") was €290.2 m or
€7.95 per share, an increase of €0.13 per share from the end of
October 2014.
This brings the performance for
the first 11 months of 2014 to +12.1% including the April dividend
payment.
It is worth noting that, at the
date of publishing this report, Volta shares trade post dividend
payment. A post-dividend-payment GAV would have been €7.65 per
share (€30 cents dividend was paid the 9th of
December).
The November mark-to-market
variations* of Volta's asset classes were: 0.0% for Synthetic
Corporate Credit deals, -0.1% for CLO Equity tranches; +0.8% for
CLO Debt tranches, +5.6% for Cash Corporate Credit deals and +0.7%
for ABS. The positive performance of Volta in November is in line
with the tightening of credit market spreads during the month.
However it should be noticed that credit markets suffered during
the first 3 weeks of December.
Volta's assets generated the
equivalent of €1.9m cash flows in November 2014 (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 €15.6m.
In November, Volta made two
investments (a BB tranche of a new USD CLO and a European CLO
Warehouse) for the equivalent of €11.5m (€7.125m was settled in
relation with the new warehouse from a total commitment of €19m).
Under standard assumptions the CLO debt tranche is expected to have
an IRR close to 9%, the warehouse is expected to have an IRR
between 13 and 17%. During the month, Volta sold 4 debt tranches of
CLO (2 in USD, 2 in Euro) for the equivalent of €12.8m. These asset
were sold with projected IRR near to 4%.
At the end of November, Volta held
€13.0m in cash. Taking account of unsettled commitments as
well as the dividend payment to be made in December, Volta can be
considered as being fully invested as of the end of November.
MARKET
ENVIRONMENT
In November 2014, credit market
spreads tightened both in Europe and in the US : the 5 year
iTraxx European Main index and 5 year iTraxx European Crossover
Index (series 22) spreads went respectively from 65 and 354 bps at
the end of October 2014 to 58 and 319 bps at the end of November
2014. In the US, in the same vein, the 5y CDX main index (series
23) tightened from 64 to 61 bps. According to the CSFB
Leverage Loan Index, the average price for US liquid first lien
loans was as well increasing from 97.61% at the end of October 2014
to 97.78% at the end of November 2014. In Europe, the price of the
S&P European Leveraged Loan Index increased from 97.35% to
97.51%. **
During the first 3 weeks of
December all the spread compression/price increase detailed above
reverted and at the time of writing this report spread are wider
than what they were at the end of October.
VOLTA FINANCE
PORTFOLIO
In November 2014, no particular
event materially impacted any of Volta's assets.
Regarding the CLO warehouse Volta
invested in during June, it is worth mentioning that the CLO priced
the 18th of December with an expected closing the 21st of
January.
However, at a point in time at
which most of people investing in credit markets are questioning
their exposure to the Oil and Gas sub-sectors it worth mentioning
the following points :
-
Energy sector (most of it is Oil&Gas
producers or servicers) represents 4 to 4.5% of the loan market
outstanding (depending on which index you looked at). The same
sector represents 13 to 15% of the High Yield Bond market;
-
Looking through all the USD CLO positions owned
by Volta, the underlying exposures to Oil&Gas is in the area of
2.4%, considering the latest trustee reports available at the
end of November.
When purchasing CLO tranches for Volta we do expect default to
occur in the underlying loan portfolios. Considering the weight of
the Oil&Gas sub-sector in the CLOs held by Volta an increase of
the default rate for this sub-sector shouldn't have direct material
consequences.
We continue to see opportunities
in several structured credit sectors including mezzanine or equity
tranches of CLOs, RMBS tranches as well as tranches of Cash or
Synthetic Corporate Credit portfolios.
* "Mark-to-market variation" is
calculated as the Dietz-performance of the assets in each bucket,
taking into account the Mark-to-Market 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) 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 €607
billion in assets under management as of the end of September
2014. AXA IM employs approximately 2,300 people around the world
and operates out of 21 countries.
CONTACTS
Company Secretary
Sanne Group (Guernsey) Limited
voltafinance@sannegroup.com
+44 (0) 1481 739810
Portfolio
Administrator
Sanne Group (Guernsey) Limited
voltafinance@sannegroup.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 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.
*****
November Monthly Report
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
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
HUG#1882274
Invesco Dynamic Credit O... (NYSE:VTA)
Historical Stock Chart
From Feb 2024 to Mar 2024
Invesco Dynamic Credit O... (NYSE:VTA)
Historical Stock Chart
From Mar 2023 to Mar 2024