VOLTA FINANCE - JULY MONTHLY REPORT

Thursday, 19. August 2010 11:40
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES

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Guernsey, 19 August 2010 - Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") has published its July 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 30.07.10 | At 30.06.10 |
+-----------------------------+-------------+-------------+
| Gross Asset Value (GAV / €) | 100,127,671 | 96,994,933 |
+-----------------------------+-------------+-------------+
| GAV per share (€) | 3.30 | 3.20 |
+-----------------------------+-------------+-------------+

At the end of July 2010, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was €100.1m or €3.30 per
share, an increase of €0.10 per share from €3.20 per share at the end of June
2010.

The July mark-to-market variations* of Volta Finance's asset classes have been:
+1.2% for ABS investments, +1.7% for mezzanine of CDO investments, +7.3% for
residuals of CDO investments and +7.7% for Corporate Credit investments. The
increase of the GAV in July, reflect the tightening of credit spreads in July
following some easing on sovereign debt concerns.

Excluding some minor and early principal payments from two mezzanine debt of
CDOs (€0.1m), Volta's assets have generated the equivalent of €1.0m of cash
flows in July 2010 (non-euro amounts converted into euro using end-of-month
cross currency rates) bringing the total cash generated during the last six
months to €9.1m. This amount could be compared with €7.4m for the previous
six-month period ended in January 2010 (the most recent period which is
comparable considering the seasonality of payments).

In July, the Company bought two mezzanine debt tranches of CLOs (Octagon XI-D,
ICE 1-A3) for €2.5m (USD5.750m of nominal at an average price of 56.8%) and sold
two others mezzanine debt tranches of CLOs (Alpstar 2-B, Leopard IV-B) for €2.1m
(€3.250m of nominal at an average price of 65.6%).

At the end of July, Volta had €5.5m in cash including €2.3m posted for margin
calls in respect of its currency hedge positions.

MARKET ENVIRONMENT

In July, credit spreads tightened, reflecting a positive period in most credit
and equity markets as tensions on sovereign debts seemed to calm down. Economic
indicators were demonstrating that even if the pace of growth couldn't stay at
the high level recorded in Q4 2009 and Q1 2010, it should maintain at such a
pace that some stability could be expected. The spread of the 5y European iTraxx
index (series 13) and the 5y iTraxx European Crossover Index (series 13)
decreased respectively from 129 and 574 bps at the end of June to respectively
105 and 479 bps at the end of July. According to the CSFB Leverage Loan Index,
the average price for US liquid first lien loans modestly increased from 89.41%
to 90.09%.**

VOLTA FINANCE PORTFOLIO

In July, no particular event materially affected the situation of the Corporate
Credit holdings. However it should be mentioned that the first-loss positions in
Jazz III and ARIA III remain highly sensitive to any credit event that could
occur. At the end of July, these first-loss positions were priced on average for
28.1% of par. The other Corporate Credit positions, representing 8.2% of the GAV
were two senior tranches (initially rated AAA) and one mezzanine tranche
(initially rated A), priced on average for 53.2% of par.

As regards the Company's investments in residual and mezzanine debt of CLOs,
representing 68% of Volta's GAV, the company continued to invest in this area
(one deal in April, three in May, four in June, two in July). In July the
Company sold two of its most senior positions in mezzanine debt of CLOs to
finance its monthly purchases. One of the July purchases (ICE 1-A3) is the first
purchase of Volta in CDO tranches of emerging debts. This position initially
rated, three years ago, AA by S&P and Aa2 by Moody's, is still AA (with negative
watch) at S&P and has been downgraded to A2 by Moody's.
At the end of July, from a total of 42 positions in residual or mezzanine debt
of CLOs, two of the mezzanine positions (Alpstar 2A E and Cheyne Credit Opp.)
and two of the residual positions (Carlyle IX and Northwoods VIII) are still
unable to pay their coupon due to over collateralisation test breaches. The 38
other positions are currently paying. At the end of June the mezzanine debt
tranches of CLOs, totalling €78.4m of principal amount, were valued at an
average price of 49.8% of par; the classic residual tranches of CLOs, totalling
€45.8m of principal amount, were valued at an average price of 38.2%; the rest
of the bucket, two low-leverage residual positions, totalling €16.8m of
principal amount, were valued at an average price of 77.3%.

As regards the Company's ABS investments, in July, no particular event
materially affected the six UK non-conforming residual holdings nor the position
held by Volta in Promise Mobility 20006-1. The two investments in short-term
euro ABS senior tranches held by the Company to enhance its cash management
amounted to €3m.

The Company considers that opportunities could arise in several structured
credit sectors in the current market environment. Amongst others, mezzanine
tranches of CLOs and of European ABS or senior tranches of Corporate Credit
portfolios could be considered for investments. Potential investments will be
made depending on the pace at which market opportunities could be seized and
cash is available. From time to time, as was the case three times since the
beginning of 2010 and in line with what has been described in the latest
semi-annual report of Volta, the Company could be expected to sell some previous
assets in order to reinvest the sale proceeds in almost similar investments for
which expected cash flows are anticipated to be less uncertain or higher than
the ones that were expected from the sold assets.

* "Mark-to-market variation" is calculated as the Dietz-performance of the
assets in each bucket, taking into account the MtM 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)

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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
nearly €525 billion in assets under management as of the end of June 2010. AXA
IM employs approximately 2,521 people around the world and operates out of 21
countries.

CONTACTS

Company Secretary
Mourant Guernsey Limited
volta.finance@mourant.com
+44 (0) 1481 715601

Portfolio Administrator
Deutsche Bank
voltaadmin@list.db.com

For the Investment Manager
AXA Investment Managers Paris
Serge Demay
serge.demay@axa-im.com
+33 (0) 1 44 45 84 47

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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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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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[HUG#1438932]





July Monthly Report:
http://hugin.info/137695/R/1438932/383422.pdf




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Source: Volta Finance Limited via Thomson Reuters ONE
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