NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
VOLTA FINANCE - JUNE MONTHLY REPORT
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Guernsey, 16 July 2007 - Volta Finance Limited has published its June monthly report. The full report is attached to this release and is available on Volta Finance Limited's financial website (www.voltafinance.com). As of 29 June 2007, Volta Finance Limited's Gross Asset Value stood at €9.74, down €0.17 from 31 May 2007.
Gross Asset Value
|
|
At 29.06.07 |
At 31.05.07 |
|
Gross Asset Value (GAV - €) |
292,067,362
|
297,387,237 |
|
GAV per Share (€) |
9.74 |
9.91 |
Continuing negative headlines on subprime mortgages have not left credit markets unscathed. In spite of strong credit fundamentals in the US and in Europe, a significant credit spread widening has been observed on both markets in June.
The investment grade credit market widened slightly from historically tight levels, while the cross-over touched its highest levels seen in years, prompting a sell-off in the leveraged loans market. In the US, the 7y CDX credit index widened 9 bps to 56 bps at 29 June. The 7y European iTraxx index also widened 5 bps to 34 bps, while the 7y iTraxx European Crossover index widened 37 bps to 227 bps.
Gross asset value
The diversification of Volta Finance's investments, currently among four different asset classes, has mitigated the impact of this credit spread widening on the value of the company's portfolio. Also, the absence of exposure to US subprime mortgages, either directly through asset backed securities (ABS) or indirectly through CDOs of ABS, has largely shielded Volta Finance from the turmoil on this market.
In turn, the mark-to-market value of Volta Finance's corporate credit investments has been very resilient, with the gross asset value (GAV) of the company down only €0.17 (1.7 %) to €9.74 month-to-month. This mark-to-market change does not have any impact on the expected cash flows of the company's assets, which determine the company's dividends. Hence, the target dividends of at least 3.5% for the period from December 20, 2006 to July 31, 2007 and its target dividend of 9.5% for the following period from August 1, 2007 to July 31, 2008, are maintained.
Financial calendar
Volta Finance will close its first annual accounts on 31 July 2007. The annual report, along the announcement of the dividend payment, will be published towards the end of October 2007. The dividend is then expected to be paid towards the end of November. Further information on these issues will be communicated in due time.
(Full monthly report in attachment or on www.voltafinance.com)
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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. Volta Finance's basic approach to its underlying assets is through vehicles and arrangements that provide leveraged exposure. The exposure to those underlying assets is gained through direct and indirect investment in five principal asset classes: corporate credits, CDOs, ABS, leveraged loans, and infrastructure assets.
Volta Finance 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 €550 billion in assets under management as of the end of March 2007. AXA IM employs approximately 2,800 people around the world and operates out of 19 countries.
CONTACTS
Company Secretary
Mourant Guernsey Limited
+44 (0) 1481 715601
Porfolio Administrator
Deutsche Bank
For the Investment Manager
AXA Investment Managers Paris
Julien Laplante
+33 (0) 1 44 45 94 92
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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.
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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.
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