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Volta Finance Ltd. Interim / Quarterly Report 2015

Dec 18, 2015

9950_ir_2015-12-18_77dcbba1-e215-45d5-9234-5d2c37bded84.pdf

Interim / Quarterly Report

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Contact on the portfolio composition

Volta Admin Team [email protected]

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Interim Management Statement At 30 October 2015

By obtaining access to and reviewing this monthly report, you acknowledge and agree to be bound by the following:

This monthly report does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of Volta Finance Limited (the “Company”) whose portfolio is managed by AXA Investment Managers Paris (the “Investment Manager”), or securities of any other entity (together, the “Securities”). Nor shall this monthly report or any part of it nor the fact of its distribution or publication (on the Company’s website or otherwise) form the basis of, or be relied on in connection with, any contract or investment decision in relation to the Securities. This monthly report does not constitute a recommendation regarding the Securities. The information contained herein is for information purposes only, does not purport to contain all the information that may be required to evaluate the Company or any other entity or their respective financial positions.

This monthly report speaks only as of its date and neither the Company nor the Investment Manager is under any obligation to update the information contained herein. Certain information and estimates contained herein are originated by or derived from third parties and therefore the accuracy and completeness of such information and estimates has not been verified. It should also be noted that the financial information contained herein has not been audited. No representation or warranty whatsoever, whether express or implied, is given by or on behalf of the Company, the Investment Manager, their affiliates, or their respective directors, officers or employees or any other person as to (a) the accuracy or completeness of the information or (b) the opinions contained in this monthly report. None of the Company, the Investment Manager, any of their affiliates, or their respective directors, officers or employees or any other person accepts any liability whatsoever for any such information or opinions. Nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance of the Company, any other entity, any Securities or any asset class in the Company’s portfolio. No statement in this monthly report is intended to be nor may be construed as a profit forecast and there can be no assurance that the assumptions described herein, the returns and targets (including without limitation target portfolio composition) indicated herein will be achieved.

The valuation of financial assets can vary significantly from the prices that the Company could obtain if it sought to liquidate the positions due to market conditions and general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be regarded as such. They follow the valuation policy of the Company as adapted from time to time in the best interests of the shareholders, taking into account the evolutions and the illiquidity of financial markets.

Comment

Dear Shareholders and Investors,

PERFORMANCE

During the quarter, from the end of July 2015 to the end of October 2015, the Estimated NAV of Volta Finance Limited (the “Company”, “Volta Finance” or “Volta”) went from €299.9m or €8.21 per share to €293.3m or €8.03 per share, a decrease of €0.18 per share, or -2.2%.

The YTD NAV performance for the 2015 calendar year, including the April dividend paid, stood at +8.7% as at the end of October.

The GAV stood at €338.8m at the end of October against €330.2 at the end of July 2015. The GAV increased by €8.6m since the end of July, despite the decrease in Estimated NAV during the period, as Volta has borrowed a further USD15m under its repurchase agreement.

MARKET REVIEW AND PORTFOLIO ACTIVITY

During the quarter, credit markets suffered as illustrated by the widening of spread in most of credit markets, particularly the US loan market.

The impact was relatively modest for Volta thanks to the relatively defensive positioning of Volta (we maintained in the book a significant portion of assets, the transactions issued prior 2008, that have a low sensitivity to this kind of market stress).

During the Quarter, Volta purchased or entered into the following transactions:

  • a new european warehouse for €15.5m;

  • a new bank balance sheet transaction for USD3m;

  • a USD CLO equity tranche at discount in the secondary market (USD3m par amount);

  • 3 BB rated debt tranches of US CLO (USD11m par amount); and,

  • a further USD4m was invested in the St Bernard fund.

One BBB USD CLO tranche and one USD CLO Equity tranche were reimbursed during the quarter.

During the quarter, Volta received the equivalent of €5.5m of interest and coupons (non-Euro amounts translated into Euro using end-of-month cross currency rates). Cash or cash equivalent instruments, at the end of October, after settlement of the most recent purchases, was at €21.7m. Considering the December dividend payment, Volta could be considered as having approximatively €6m to deploy as at the end of October.

Comment (continued)

Through the quarter, we took the opportunity of the widening in CLO debt tranches to purchase some recent tranches (having longer duration hence being more sensitive to spread widening) to replace some short-term instruments (some old debt tranches of CLOs mainly) that are less affected by the kind of volatility that was observed in August and September. We intend to continue rotating the portfolio from these old debt assets into more sensitive assets that could be purchased at a lower price/ higher discount margin in current market circumstances.

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.

Estimated Net Asset Value

At 31.07.15
At 30.10.15
Note
Gross Asset Value
(GAV – € million)
330.2
338.8 In March 2015 Volta entered into a Repurchase Agreement creating a significant amount of liability. From
end of March 2015, GAV is the sum of all assets including cash. The net value of the Company for
shareholders is given by the Estimated NAV (liabilities are subtracted from GAV)
Liabilities (€m)
30.3
45.5
Estimated NAV (€m)
/ per Share (€)
299.9 / 8.21

293.3 / 8.03
36,510,611 outstanding shares

Estimated NAV and Share Price History

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Volta Finance Limited
Since Inception
Share Price NAV per Share
(source: www.euronext.com) (source: www.voltafinance.com)
11
10
9
8
7
6
5
4
3
2
1
0
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Volta Finance Limited
Last 2 Years
Share Price NAV per Share
(source: www.euronext.com) (source: www.voltafinance.com)
9,0
8,0
7,0
6,0
5,0
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Contact on the portfolio composition

Volta Admin Team [email protected]

Portfolio Com osition p

voltafina
Market Value(€m) Breakdown of Gross Asset Value(% GAV) Average Price Nominal
Amount*(€m)
CLO 245,8 USD CLO Equity 13,6% 59% 46,1
USD CLO Debt 36,6% 89% 139,9
EUR CLO Equity 4,5% 79% 30,6
EUR CLO Debt 13,3% 92% 49,0
CLO Warehouse 4,6% not relevant -
Synthetic
Corporate Credit
33,8 Synthetic Corporate Credit Equity 0,0% -
Bank Balance Sheet Transactions 10,0% 97% 34,9
Cash Corporate
Credit
15,2 Cash Corporate Credit Equity 3,3% 57,1% 11,6
Cash Corporate Credit Debt 1,2% 88,3% 4,5
ABS 23,1 Mortgage Residual Positions 5,5% not relevant 18,6
ABS Debt 1,3% not relevant 4,5
Cash or equivalent
21,0
Cash or equivalent 6,2% 21,0
GAV 338,9 360,7
Liability 41,0
-
Debt from Repurchase Agreement -12,1%
Fees due 4,6
-
Fees due to Investment Manager -1,3%
Estimated NAV **293,3 ** Per Share 8,03
* Nominal amount equal market value for funds, ABS Residual positions and CLO Equity positions, par amount for debt assets
CurrencyExposures CurrencyExposures in CCY (m) % NAV
Euro Assets (EURm) 110,4 37,6%
Exposure to Euro(includingUSD/Euro hedge) 52,1%
USD Assets (USDm) 175,7 54,4%
USD Forward Sales 73,0
USD Call **(42% Delta) 63,0
Residual exposure to USD(in USDm )
129,1
40,0%
GBP Assets(GBPm) 11,7 5,6%
CHF Assets(CHFm) 7,4 2,3%
**USDCalls are purchased toreducemarging calls onthe USD forward sales

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Others 7,0%
Cash Corporate Credit
Cash or equivalent 6,2%
Equity 3,3%
CLO Warehouse 4,6%
USD CLO Debt 36,6%
Bank Balance Sheet
Transactions 10,0%
Mortgage Residual
Positions 5,5%
EUR CLO Debt 13,3%
USD CLO Equity 13,6%
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Volta share performance relative to large equity indexes (1 year)

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Past performance is not indicative or constitutes a representation or guarantee as to future results or performance

Volta share performance relative to most direct peers (1 year)

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Past performance is not indicative or constitutes a representation or guarantee as to future results or performance

6-month rolling Interest and Coupons per asset class

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6-month rolling amount of Interest and Coupons
over the last 3 years
18 000 000
16 000 000
14 000 000
Total Assets
12 000 000
CLO Residual
Synth Corp Credit
10 000 000
CLO Debts
8 000 000 ABS
Cash Corp Credit
6 000 000
4 000 000
2 000 000
0
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Volta Finance Portfolio Holdings: Complete List

Issuer % GAV Main Asset
Class
Sub
Classificatio
n
Description of
underlying asset
Manager/Servicer Principal
geographic
exposure
ISIN Arranging
Institution
Vintage
CVC Warehouse 4,58 CLO Warehouse Broadly syndicated loans CVC Credit Partners Europe na Credit Suisse 2015
Bank Deleveraging Opportunity Fund 4,51 Synthetic
Corporate
Bank Balance
Sheet
Majority investment grade
corporate credit

Axa Investment
ManagersParis
Europe non-
UK
FR0011525724 AXA IMP na
Wasatch CLO 2006-1 Sub 2,59 CLO Equity
Broadly syndicated loans
Invesco USA USG94608AB57 JP Morgan 2006
Black Diamond 2013-1 Sub 2,56 CLO Equity Broadly syndicated loans Black Diamond
Capital Management
USA USG11476AB76 Natixis 2013
Acas CLO 2014-1 E - BB Debt 2,41 CLO Debt Broadly syndicated loans
ACAM
USA USG00673AA48 Deutsche Bank 2014
St Bernard Opportunity Fund 2,39 ABS Debt (Fund) US Mortgages Axa Investment
ManagersParis
USA QS0002021030 NA 2008
Black Diamond 2006 1 E - BB debt 2,22 CLO Debt Broadly syndicated loans Black Diamond
Capital Management
USA XS0282504280 Bear Stearns 2006
CIFC 2007-3 D - BB Debt 2,19 CLO Debt Broadly syndicated loans
CIFC
USA USG2189NAA93 JP Morgan 2007
TENNENBAUM OPPORTUNITIES FUND V 2,22 Cash
Corporate
Equity (Fund) High yield bonds and
loans
Tennenbaum Capital
Partners LLC
USA TOF5 Wachovia Bank,
N.A.
2006
Oak Hill ECP 2015 -3-sub 2,13 CLO Equity Broadly syndicated loans ,
Oak Hill
Europe Inc-
UK
XS1227790844 Goldman Sachs 2015
ALBA 2006-2 PLC 2,11 ABS Residual UK non-conforming
RMBS
Oakw ood United
Kingdom
XS0271780651 Credit Suisse 2006
Batallion CLO 2007-1 E - BB debt 2,02 CLO Debt Broadly syndicated loans Brigade Capital
Management
USA USG08889AF79 Deutsche Bank 2007
Adagio III CLO E -BB debt 1,99 CLO Debt Broadly syndicated loans Axa Investment
Managers Paris
Europe XS0262683971 Lehman Brothers 2006
Richmond Park CLO D - BB debt 1,89 CLO Debt Broadly syndicated loans
GSO Blackstone
Europe XS1000874302 Citigroup 2013
ACAS 2015-2 E - BB debt 1,89 CLO Debt Broadly syndicated loans ACAM USA USG0068AAA72 Wellsfargo 2015
ALBA 2007-1 PLC 1,89 ABS Residual UK non-conforming
RMBS
Oakw ood United
Kingdom
XS0301709621 Credit Suisse 2007
CIFC 2007-2 D - BB debt 1,83 CLO Debt Broadly syndicated loans CIFC USA USG21899AA00 JP Morgan 2007
Acas CLO 2013-1 E - BB Debt 1,82 CLO Debt Broadly syndicated loans ACAM USA USG0067AAA81 Deutsche Bank 2013
CIFC 2006-2 B2L - BB debt 1,77 CLO Debt Broadly syndicated loans CIMC USA XS0279835614 Bear Stearns &
Co Inc
2006
ICG 2014-2 E 1,76 CLO Equity Broadly syndicated loans ICG Capital USA USG47075AA76
Morgan Stanley
2014

Volta Finance Portfolio Holdings: Complete List (ctd.)

Issuer % GAV Main Asset
Class
Sub
Classificatio
n
Description of
underlying asset
Manager/Servicer Principal
geographic
exposure
ISIN Arranging
Institution
Vintage
Black Diamond 2013-1 D - BB debt 1,63 CLO Debt Broadly syndicated loans Black Diamond
Capital Management
USA USG11476AA93 Natixis 2013
Bank Capital Opportunity Fund 1,61 Synthetic
Corporate
Bank Balance
Sheet

Majority investment grade
corporate credit
Axa Investment
ManagersParis
Europe non-
UK
LU0648070216 AXA IMP na
KKR 12 E - BB debt 1,45 CLO Debt
Broadly syndicated loans
KKR Investment
~~Manager~~
USA USG5277UAA90 BNP Paribas 2015
Carlyle HY PART IX Sub 1,44 CLO Equity Broadly syndicated loans Carlyle USA KYG1908R1048 Lehman Brothers 2006
Acas CLO 2014-2 E - BB debt 1,42 CLO Debt Broadly syndicated loans ACAM USA USG00677AA51 Wellsfargo 2014
Elvetia 2 1,36 Synthetic
~~Corporate~~
Bank Balance
~~Sheet~~
Majority investment grade
~~corporate credit~~

Major European
~~Bank~~
Europe non-
~~UK~~
XS1249420396 Major European
~~Bank~~
2015
Golden Tree Loan OPP. 2007-4 Sub 1,25 CLO Equity
Broadly syndicated loans
Golden Tree USA USG39607AC37 Deutsche Bank 2007
Limerock 1 D – BB debt 1,24 CLO Debt Broadly syndicated loans Invesco USA US532623AH83 Credit Suisse 2007
Batallion CLO 2007-1 Sub 1,18 CLO Equity Broadly syndicated loans Brigade Capital
Management
USA USG08887AA27 Deutsche Bank 2007
ICE 1 Emerg CLO- A3 – AA debt 1,18 Cash
Corporate
Debt Corporate Emerging Debt ICE Canyon LLC Other USG4746PAD09 CitiGroup 2006
Sands Point 2006-1 Sub 1,13 CLO Equity Middle market loans Guggenheim USA USG7800DAA93 Deutsche Bank 2006
Jubilee1 D - BBB Debt 1,13 CLO Debt Broadly syndicated loans Alcentra Europe XS0292633533 JP Morgan 2007
ICG 2014-3 D - BB debt 1,10 CLO Debt Broadly syndicated loans ICG Capital USA USG47071AA62 Citibank 2015
Oak Hill ECP 2007-2 E - BB debt 1,06 CLO Debt Broadly syndicated loans Oak Hill Europe XS0300349379 Deutsche Bank 2007
Mountain View X E - BB debt 1,05 CLO Debt Broadly syndicated loans Seix Advisor USA USG63005AA37 Morgan Stanley 2015
Arese 2013-6 E - BB debt 1,04 CLO Debt Broadly syndicated loans Arese Europe Europe XS0951555530 Credit Suisse 2013
EuroGalaxy 2013-3 E - BB debt 1,04 CLO Debt Broadly syndicated loans Pinnebridge (aka
AIG)
Europe XS0996455472 Barclays Capital 2013
ACAS 2015-2 Sub 0,97 CLO Equity Broadly syndicated loans ACAM USA USG0068AAB55 Wellsfargo 2015
ICG 2015-2 E - BB debt 0,98 CLO Debt Broadly syndicated loans ICG Capital USA USG47091AA43 Morgan Stanley 2015
Venture 2007-9 E - BB debt 0,94 CLO Debt Broadly syndicated loans MJX USA USG93352AA33 Morgan Stanley 2007

Volta Finance Portfolio Holdings: Complete List (ctd.)

Issuer % GAV Main Asset
Class
Sub
Classificatio
n
Description of
underlying asset
Manager/Servicer Principal
geographic
exposure
ISIN Arranging
Institution
Vintage
Centurion 2005-10 E - BB debt 0,93 CLO Debt Broadly syndicated loans River Source
Investments LLC
USA US15132PAA12 Morgan Stanley 2005
Sieera 2006-2 B2L - BB debt 0,93 CLO Debt Broadly syndicated loans Apidos Capital
Management
USA XS0276546065 Bear Stearns 2006
Black Diamond 2014-1 D - BB debt 0,91 CLO Debt Broadly syndicated loans Black Diamond
~~Capital Management~~
USA USG11496AA73 JP Morgan 2014
ARESE 2013-6 - Sub 0,90 CLO Equity Broadly syndicated loans
Arese Europe
Europe XS0951556850 Credit Suisse 2013
Dorchester Park 2015-1 Sub 0,90 CLO Equity Broadly syndicated loans GSO Blackstone USA USG28175AC40 Deutsche Bank 2015
ACAS 2015-1 E - BB debt 0,90 CLO Debt Broadly syndicated loans ACAM USA USG0067UAA46 Deutsche Bank 2015
Dorchester Park 2015-1 F - B Debt 0,87 CLO Debt Broadly syndicated loans GSO Blackstone USA USG28175AB66 Deutsche Bank 2015
Cordatus 2007-1 E BB debt 0,86 CLO Debt Broadly syndicated loans CVC Credit Partners Europe XS0304113235 RBS 2007
BlackDiamond 2012-1 D - BB debt 0,84 CLO Debt Broadly syndicated loans Black Diamond
Capital Management
USA USG1146TAA00 Crédit Suisse 2012
CELF 2005-2 D - BBB debt 0,84 CLO Debt Broadly syndicated loans
Carlyle Europe
Europe XS0233121234 JP Morgan 2005
Clock 2013 0,82 Synthetic
Corporate
Bank Balance
Sheet
Majority investment grade
corporate credit

Major European
Bank
Europe non-
UK
XS0908245037 Major European
Bank
2013
Flatiron 2015-1 F - B debt 0,81 CLO Debt
Broadly syndicated loans
Nylim USA USG3554YAB86 Morgan Stanley 2015
Start 10 0,81 Synthetic
~~Corporate~~
Bank Balance
~~Sheet~~
Majority investment grade
~~corporate credit~~

Standard Chartered
Other XS1282736468 Standard
~~Chartered~~
2015
CARAVELA 3 0,79 Synthetic
Corporate
Bank Balance
Sheet

SME Loans
European Bank Europe non-
UK
XS0945192762 StormHarbour 2013
ACAS 2012-1 E - BB debt 0,75 CLO Debt Broadly syndicated loans ACAM USA USG00669AA28 Deutsche Bank 2012
Laurelin 2 D1 – BBB debt 0,74 CLO Debt Broadly syndicated loans Golden Tree Asset
Management LP
Europe XS0305010711 Barclays Capital 2007
ACAS 2014-2 Sub 0,67 CLO Equity Broadly syndicated loans
ACAM
USA USG00677AB35 Wellsfargo 2014
Adagio III D - BBB debt 0,74 CLO Debt Broadly syndicated loans Axa Investment
~~ManagersParis~~
Europe XS0262683203 Lehman Brothers 2006
Euro Galaxy 2006-1 E – BB debt 0,72 CLO Debt Broadly syndicated loans
AIG Global
~~Investments~~
Europe US29871UAG31 Morgan Stanley 2006
Carlyle GMSE 2013-1 E - BB debt 0,71 CLO Debt Broadly syndicated loans Carlyle Europe XS0941552407 Barclays Capital 2013

Volta Finance Portfolio Holdings: Complete List (ctd.)

Issuer % GAV Main Asset
Class
Sub
Classificatio
n
Description of
underlying asset
Manager/Servicer Principal
geographic
exposure
ISIN Arranging
Institution
Vintage
Crescent Europ. Specially Lending 0,61 Cash
Corporate
Equity (Fund) Loans Crescent Capital
Group
Europe Inc-
UK
USG47075AA76 na na
Cordatus 2014-III - Sub 0,48 CLO Equity Broadly syndicated loans CVC Credit Partners Europe XS1052142608 Goldman Sachs 2014
PROMISE MOBILITY 2006-1 0,48 Cash
Corporate
Equity German SME Loans IKB Europe non-
UK
DE000A0LDYP7 Deutsche Bank 2006
Acas CLO 2013-1 F - B debt 0,43 CLO Debt Broadly syndicated loans ACAM USA USG0067AAB64 Deutsche Bank 2013
ACAS 2015-1 F - B debt 0,42 CLO Debt Broadly syndicated loans ACAM USA USG0067UAB29 Deutsche Bank 2015
Oak Hill ECP 2007-2 Sub 0,42 CLO Equity Broadly syndicated loans Oak Hill Europe non-
~~UK~~
XS0300349700 Deutsche Bank 2007
ALBA 2006-1 PLC 0,42 ABS Residual UK non-conforming
RMBS
Oakw ood United
Kingdom
XS0255043050 Credit Suisse 2006
ADAGIO II D1 - BBB debt 0,41 CLO Debt Broadly syndicated loans Axa Investment
ManagersParis
Europe XS0237058424 Merrill Lynch
International
2005
Apidos 2006-Q E - BB debt 0,40 CLO Debt Broadly syndicated loans Apidos Capital
Management
USA US03761NAA00 Morgan Stanley 2006
Flatiron 2015-1 Sub 0,39 CLO Equity Broadly syndicated loans Nylim USA USG3554YAC69 Morgan Stanley 2015
Lightpoint Pan European CLO - Sub 0,34 CLO Equity Broadly syndicated loans Neuberger Berman Europe XS0282169803 Credit Suisse 2006
Lightpoin CLO V - Sub 0,32 CLO Equity Broadly syndicated loans Neuberger Berman USA USG5487GAG31 Credit Suisse 2006
Century 2007-14 C - BBB debt 0,31 CLO Debt Broadly syndicated loans Lightpoint USA US15134UAA88 Credit Suisse 2007
Octagon2007-XI D - BB debt 0,19 CLO Debt Broadly syndicated loans Octagon Investment
Partners
USA USG67245AF09 Citigroup / GS 2007
PRELUDE 0,18 CLO Equity Broadly syndicated loans AXA IM Paris USA XS0213954802 Wachovia Bank
N.A.
2006
Leopard IV E – BB debt 0,18 CLO Debt Broadly syndicated loans M&G Investment
Management Ltd
Europe XS0251752472 RBS 2006
Opera Structured Credit 0,20 CLO Equity Broadly syndicated loans
AXA IM Paris
USA XS0244258272 UBS 2006
Black Diamond - 2005-2 E1 - BB debt 0,16 CLO Debt Broadly syndicated loans Black Diamond
Capital Management
USA XS0232465202 Bear Stearns 2005
Aquarius 0,07 Synthetic
Corporate
Bank Balance
Sheet
Majority investment grade
corporate credit


Major European
Bank
USA XS0870021366 Major European
Bank
2013
Galaxy 2006-VII - Sub 0,02 CLO Equity
Broadly syndicated loans
AIG USA USG25796AB20 Morgan Stanley 2006
Denali Capital 2005-V - Sub 0,02 CLO Equity Broadly syndicated loans Denali Capital LLC USA US24821MAB46 JP Morgan 2005

About Volta Finance Ltd

Volta Finance Limited is incorporated in Guernsey under The Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the London Stock Exchange's Main Market for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to regulation and supervision by the AFM, being the regulator for financial markets in the Netherlands.

Volta's 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.

CLO

Synthetic Corporate Credit

This asset class regroups the Company investments in securities issued by collateralised swap obligations (“CSO”) as well as bank balance-sheet transactions. Through this asset class, the Company aim to get an exposure to investment grade, sub-investment grade or unrated credits. The vast majority of these credit exposures are investment grade corporate credit exposures mainly through synthetic arrangements such as Credit Default Swaps (“CDS”).

This asset class is split depending on the subordination to default of the securities. The equity positions have no subordination to default but receive a high cash-on cash payment; the debt positions benefit from subordination to default and receive a lower coupon payment.

Through a bank balance-sheet transaction, the Company aim to get an equity or mezzanine exposure to a specific core business of a bank. They are structured through synthetic arrangements, such as CDS, Total Return Swap or Credit Linked Note and are often private transactions.

This asset class regroups the Company investments in securities issued by actively managed Collateralized Loan Obligations (CLO). This asset class is split based on the risk position within the CLO capital structure (ie between equity and mezzanine debt positions) and on the geographical main exposures of the underlying portfolio (ie US or European senior secured loans).

Cash Corporate Credit

This asset class offers a direct exposure to corporate credit portfolios (either investment grade, high yield or unrated). It currently encompasses an unlevered fund of leverage loans, a small and medium enterprise CLO equity tranche and an emerging market CDO debt tranche offering a cash exposure to a portfolio of mainly emerging market corporates.

ABS

This asset class regroups the Company investments in securities issued by structures for which payments depends on residential mortgage loans. This asset class is split based on the riskiness of the positions (ie between Residual Interest and debt tranches)