Guernsey, 6 July 2012 - Volta Finance Limited (the "Company", "Volta Finance" or "Volta") announces a revised classification of its assets in order to adapt its communications to current market practices and terminology and to be helpful to investors.
Since Volta's inception, its assets have been classified in 4 categories: Corporate Credits, CDOs, ABS and Leveraged Loans. The new categories will be: Cash Corporate Credit, Synthetic Corporate Credit, CLO and ABS.
CLO will be further subdivided into USD CLO Equity, USD CLO Debt, EUR CLO Equity and EUR CLO Debt, in recognition of the significant increase in Volta's CLO holdings over the past 3 years.
Apart from CLOs, Volta also has exposure to corporate credit risk through cash or synthetic deals. The Company believes it makes sense to split those deals according to this distinction and to express clearly if a specific position has either (a) a subordination to defaults ("Debt" position), or is (b) a first loss position ("Equity" position). Amongst Synthetic Corporate Credit positions, recognizing the specifics of Bank Balance Sheet Transactions relative to other synthetic arbitrage deals should provide additional transparency to Volta's portfolio.
The full list of assets and their previous and new classification is given below.
Volta will take advantage of these changes in communication to update the way it presents geographical and currency exposure. The way assets are classified below gives a clearer picture of such issues. From the June 2012 monthly report, Volta will incorporate a table of currency exposures.
For the sake of clarity, the Company does not propose any change to the primary underlying assets in which it invests. The Company will change the classification of its assets for investor reporting purposes only. The changes will have no effect on the categorisation of its assets for IFRS purposes.
Main Asset Class % of GAV*
CLO 61.8
Detailed Asset Class % of GAV*
USD CLO Equity 22.0
USD CLO Debt 21.2
EUR CLO Equity 1.8
EUR CLO Debt 16.7
Synthetic Corporate Credit 17.4
Synthetic Corporate Credit Equity 3.1
Synthetic Corporate Credit Debt 10.1
Bank Balance Sheet Transactions 4.3
Cash Corporate Credit 10.7
Cash Corporate Credit Equity 8.8
Cash Corporate Credit Debt 1.8
ABS 2.8
Mortgage Residual Positions 1.4
ABS Debt 1.4
Cash 7.3 Cash 7.3
*As of End of May 2012
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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. 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 €512 billion in assets under management as of the end of December 2011. AXA IM employs approximately 2,367 people around the world and operates out of 21 countries.
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