European Equity Tranche Income Share Discussion Threads

[davebowler] 09/7/2007 11:29

Anomaly of the week

At 55p, European Equity Tranche Income is currently trading on a discount of 16% to live NAV estimate of 65.5p (cum income) and offers a prospective yield post expenses of 9.7%, which should rise as further investments are made.

In stark contrast with both Caliber and Queen's Walk, European Equity Tranche has posted a positive NAV total return over the year to 30 June and has no exposure to sub-prime mortgages.

Queen's Walk also trades on a 16% discount to NAV (source: Funddata), yet its NAV has fallen by 22% over six months (Funddata), and still has exposure to sub-prime mortgages.

European Equity Tranche Income has been tarred with the same brush as the sub-primers, yet it has no exposure to sub-prime. We are positive that the next company update, to be published next week, will show that the company is on track to deliver consistent quarterly dividends of EUR 0.02 and at the same time to grow NAV; the two objectives outlined in the company's last statement.

At current levels the shares look exceptionally attractive.
Buy. Switch out of other more highly rated income funds.
Arbuthnots

[spectoacc] 06/7/2007 08:52

Dave - thanks for posting that Arbuthnot note. Been a few under-market sells going on past week or two; even though EET not exposed at all to US or sub-prime, they are the riskier end & no doubt worries there'll be knock-on effects down the chain.

But just added a couple more here; the NAV discount reassures, as does the divi policy, as does the buy-back potential.

[isa23] 04/7/2007 14:43

completely agree. Obviously not the best time to hold the shares but I have every confidence in the management and their expertise. They had the forsight to avoid US & UK morgage markets and the whole subprime market back in early 2006 where these were hyped by investment banks. Can't see how Prime RMBS in Europe can be affected when European rates are still around 4% & indebtedness is not a problem. Unles homeowners actually begin to default on their morgages & lose their houese as a result, things should be OK. In the meantime, share price will inevitably drift lower on low volumes as media reports of subprime woes continue. I am Happy to enjoy the 10% divi until interest rate cycle turns

[isa23] 09/5/2007 11:10

A wise decision given that NAV is about 0.96 Euro (65.5p) at worst (an 11.5 % discount). I had a good look at the RNS over the bank holiday weekend. These are all assumptions that have to be factored in the book value of assets for regulatory reasons. In other words, managers have to assume the worst and factor that in their models / forecasts etc...Once NAV is restored to 1EUR & the company goes back to its original divi target of 1.2 euro (8.2 p), the shares will yield a mouth-watering 14.14% based on the current price. That's over 14% for a portfolio of prime RMBS!! I'm happy to hold

[davebowler] 09/5/2007 10:02

European Equity Tranche Income Ltd.
08 May 2007


EUROPEAN EQUITY TRANCHE INCOME LIMITED

("EETI" OR THE "COMPANY")

NOTICE OF EXTRAORDINARY GENERAL MEETING

Notice has today been sent to shareholders convening an Extraordinary General
Meeting seeking authority to buy back up to 14.99 per cent of the Company's
issued share capital. A copy of this document has been submitted to the Channel
Islands Stock Exchange and AIM and will shortly be available for inspection at:


Anson Fund Managers Limited

[isa23] 04/5/2007 17:24

no wonder somebody bought half a million shares @ 59p

[davebowler] 04/5/2007 14:17

I agree.The last sentence of the RNS was encouraging.

[isa23] 04/5/2007 13:59

A 4m Euro Max equates to 2.72p a share. The price is already down double that and now yields 9.26%!! 9.26% on prime loans seems fantastic to me, given that the shares are already trading at a significant discount to NAV
As usual DYOR

[davebowler] 27/3/2007 13:55

This fund owns the part of the mortgage pool most exposed to arrears and losses
-the equity tranche-Hence the high return.

[davebowler] 27/3/2007 13:52

The asset
pools underlying the investments held by the Company consist of residential
mortgages granted primarily to prime borrowers in Continental Europe.

[konkel] 15/2/2007 08:32

I bought a few of these literally on a mate's say so but, hard as I try, still can't fully understand EXACTLY what the Company invests in. Could somebody (probably you, Dave!) please put into Peter & Jane language precisely what a RMBS is and how it ranks. Thanks and apologies for my ignorance.

[davebowler] 15/1/2007 15:07

For immediate release on 11 January 2007 via Arbuthnots
European Equity Tranche Income Limited ("EETI" or the "Company")
Investment Update
Summary
�� Euro 108 million invested in 11 investments across 6 countries
�� High quality investment portfolio – 92% of gross assets in prime RMBS investments
�� Internal rate of return on current investments in excess of 10%
�� Based on expected dividend for the quarter ending 31 March 2007, annualised dividends will exceed
Eur 0.08 per share
�� In discussions with bank lenders to provide leverage to enable EETI to move towards higher dividend
levels in subsequent financial periods
�� Ocean Capital Associates LLP, the Company's investment manager, continues to evaluate
opportunities and is confident of a strong pipeline of future investments
Robin Monro-Davies, Chairman of EETI, said:
"In the nine months we have been in existence we have made substantial progress. We have built up a
diversified portfolio which is performing well, and we are advanced in arranging further funding. The area
we operate in is highly specialised and we believe that the expertise provided by our fund managers together
with careful oversight by the board provides the opportunity to continue to enhance shareholder returns."
Investment Update
EETI is pleased to announce that it has now completed the first stage of its investment programme, which
was to use the proceeds of its capital raising in April 2006 (Euro 98 million) to purchase Residential
Mortgage Backed Securities ("RMBS") and a limited amount of non RMBS, issued in Europe.
As at 31 December 2006, the Company had made eleven investments for a total sum of Euros 108 million.
These investments are spread across six countries, five in continental Europe (Italy, Netherlands, Portugal,
France and Austria) and one in the UK. Ten of these investments were made in RMBS assets, which are all
prime and represent 92% of current gross assets. The company has bought one non RMBS asset, an
Austrian auto loan bond, which currently makes up 8% of gross assets.
Modelled internal rates of return for our various investments indicate a blended overall internal rate of return
in excess of 10% on our current portfolio. Furthermore, based on the expected dividend for the quarter
ending 31 March 2007, annualised dividends will exceed Eur 0.08 per share. The internal rates of return
reflect the high quality of the investment portfolio and a decision by the Company's investment manager, at
present, not to invest in higher yielding non-prime opportunities. Consequently, while the annualised
dividends per share based on the current quarter exceed Eur 0.08, the total dividends per share for the year
ending 30 June 2007 are now expected to be marginally below the Eur 0.08 target at the time of the launch
of the Company.
EETI expects to announce the next quarterly dividend in relation to the quarter ended 31 December 2007 by
19 January 2007.
EETI is now negotiating with potential bank lenders to provide it with the leverage which will enable EETI
to move towards its targeted dividend rate of Euro 0.12 per share in subsequent financial periods. The
Company has already arranged short term financing with Citibank of Euro 40 million and discussions on
increasing this amount to Euro 100 million are in progress. Whilst we are building up our investment base it
is necessary that we have a limited reliance on short term funding, however it is the board's policy to ensure
that, over time, our borrowing is matched to our average asset maturity.
Enquiries:
European Equity Tranche Income Limited
Robin Monro-Davies, Chairman 020 7659 6277
Ocean Capital Associates LLP
Edouard Bridel 020 7307 0880
The Company
European Equity Tranche Income Limited is a closed-ended investment company incorporated in Guernsey.
Its investment objective is to deliver stable returns to shareholders in the form of quarterly dividends and to
preserve capital. It intends to achieve its investment objective by investing in both non-investment grade
and equity tranches of residential mortgage backed securities (RMBS) and, to a limited extent, in the equity
tranches of corporate asset backed securities (ABS) in Continental Europe and the UK. The equity tranches
of the securities will, in most cases, be rated below investment grade or unrated and will, in many cases,
represent the residual income typically retained by the originator of a securitisation transaction as the 'equity
tranche' or 'first loss position'. The Company's strategy is to buy and hold its investments to maturity and it
does not factor in trading opportunities when assessing the potential returns of an investment.
-------------------------
The statements in relation expected or target dividend levels are based on certain assumptions as to future
events which may not prove to be realised. Due to the uncertainty surrounding these future events the
expected levels or targets are not intended to be and should not be regarded as profits or earnings forecasts.
Accordingly, there can be no assurance or guarantee that the expected or target dividends will be realised.

[davebowler] 13/10/2006 16:25

EUROPEAN EQUITY TRANCHE INCOME LIMITED 13 Oct 06

PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS

The directors announce the statement of results for the period from
incorporation on 17 March 2006 to 30 June 2006 as follows:-

ABOUT THE COMPANY

European Equity Tranche Income Limited ('the Company') was incorporated in
Guernsey as a closed-ended investment company on 17 March 2006 and issued its
prospectus for the raising of capital on 6 April 2006 (the 'Prospectus'). The
Company commenced business on 26 April 2006 ('Admission') when 100,000,000
Ordinary shares of no par value ('Shares') were allotted to applicants pursuant
to the initial offering of Shares at an issue price of €1 each. The Company
does not have a fixed life. Shareholders will have the opportunity to review
the future of the Company after an initial period of seven years following
Admission and every second year thereafter.

INVESTMENT OBJECTIVE AND POLICY

The Company's investment objective is to deliver stable returns to shareholders
in the form of quarterly dividends and to preserve capital.

It intends to achieve this by investment in non-investment grade and equity
tranche (or 'first loss') positions of residential mortgage-backed securities
('RMBS') and, to a limited extent, other asset-backed securities ('ABS') in
Europe. The directors intend that, once fully invested no less than 75 per cent
of investments are made in RMBS and up to 25 per cent in other ABS.


CHAIRMAN'S STATEMENT FOR THE PERIOD FROM INCORPORATION TO 30 JUNE 2006

I am pleased to present the first annual report and accounts for European Equity
Tranche Income Limited ('EET'). EET is a Guernsey incorporated investment
company listed on the AIM London Stock Exchange. The Company successfully
completed its initial public offering in April, raising €100 million at a price
of €1 per share. The initial net asset value was €97.7 million after the
Company incurred flotation costs of €2.3 million. For the period ended 30 June
2006 the Company has reported a net profit of €375,216 and earnings per ordinary
share of €0.0061. The market capitalisation as at 30 June was €98 million. The
Company had invested €55 million at June 30 and held €42.6 million in cash.

Strategy

The Company's investment objective is to preserve capital and to provide stable
returns to shareholders by distributing dividends on a quarterly basis. It
intends to achieve this by investing in the equity tranches and/or lowly rated
securities of residential mortgage backed securities (RMBS) and, to a limited
extent, in similar corporate asset backed securities (ABS) in Europe. In due
course the Company is authorised to increase the leverage of the fund by using
debt financing. The Company targets a yield (excluding leverage) between 10%
and 13% on its investments. The Investment Manager, Ocean Capital Associates
LLP, has started to build an attractive and well diversified portfolio of
subordinated tranches of RMBS across Continental Europe.

Investments to Date

The Company successfully invested 55% of its IPO proceeds by the end of June
2006 and continues to invest in Continental Europe. As at the time of writing,
the Company has invested close to €70 million and has a pipeline of potential
investments. Our prospectus enunciated an objective of being fully invested
within 12 months of the IPO. However, given current market conditions we expect
to be fully invested earlier than this, possibly by 31 December 2006. The asset
pools underlying the investments held by the Company consist of residential
mortgages granted primarily to prime borrowers in Continental Europe. The
portfolio includes both non rated and rated (below investment grade)
investments.

Portfolio Diversification

As at year end the Company's investment portfolio was diversified
geographically, with investments in Italy, The Netherlands, Portugal and France.
Once fully invested the portfolio will consist of a minimum of 75% of RMBS.
We will also consider investing in other European asset backed securities which
have strong granularity characteristics and attractive yields.

Outlook

The Company is well positioned to deliver stable value to our shareholders.The
market for equity tranches in Europe remains a niche in the overall credit
market, albeit with good growth prospects which will be helped by the
implementation of the Basel II framework in January 2007. EET has developed a
network of relationships with blue chip banks and issuers across Europe. We are
confident in the Company's ability to capitalise on the development of that
niche. Once fully invested the Company has an unlimited power to borrow.
However your directors will be using this power cautiously and in any case will
not borrow an amount in excess of 240% of net assets.

The market we operate in is highly specialised, but we believe the expertise
provided by our fund managers Ocean Capital, combined with careful oversight by
your board, offers the opportunity for excellent returns. Your board has
regular and active conversations with our managers and although we are at an
early stage we are optimistic that the goals we have set are achievable.


Annual General Meeting

Our first Annual General Meeting will be held at the registered offices of the
Company on 16 November 2006. The Notice of the Annual General Meeting is set
out at the end of the annual report and a form of proxy accompanies the annual
report.

Robin Monro-Davis
Chairman


INVESTMENT MANAGER'S REPORT FOR THE PERIOD FROM INCORPORATION TO 30 JUNE 2006

Overview

EET closed its first accounting period on 30 June 2006, 9 weeks after 26 April
2006, its first day of listing.

The Company intends to achieve its investment objective by investing in both
non-investment grade and equity tranches of residential mortgage backed
securities (RMBS) and, to a limited extent, in the equity tranches of corporate
asset backed securities (ABS) in Continental Europe and the UK. Types of ABS
the Company may invest in will include securities which are backed by
collateral, such as trade receivables and leases where the underlying obligors
are individuals or corporations, as well, potentially, as loans, whole business
loans, aircraft loans, auto loans, credit card loans, auto leases, CBOs/CLOs(1)
and reinsurance. The equity tranches of the securities will, in most cases, be
rated below investment grade or unrated and will, in many cases, represent the
residual income typically retained by the Originator of a securitisation
transaction as the 'equity tranche' or 'first loss position'.

The Company's strategy is to buy and hold its investments to maturity and it
does not factor in trading opportunities when assessing the potential returns of
an investment. The Company's portfolio as at 30 June 2006 is comprised entirely
of residual income positions and subordinated tranches of Continental European
RMBS, valued at approximately €55 million at acquisition cost.

Investment Performance and Portfolio Characteristics

At the year end the Company's portfolio comprised 6 individual investments
consisting of residual income positions or subordinated tranches of RMBS in
Continental Europe. The underlying asset pools are comprised of prime mortgages
originated by established local banks in Italy, the Netherlands, France and
Portugal. As all investments are Euro denominated, the fund currently has no
forex exposures.

The Investment Manager has reviewed a number of other investment opportunities
backed by mortgage pools in Continental Europe and the UK, as well as by SME
loans. It has chosen not to enter into these transactions as the risk reward
profile has not matched our investment criteria. The Company's investment
portfolio has performed in line with initial expectations and the fair values
and effective yields attributed to each investment at the time they were
acquired have not been adjusted since acquisition.

Financing Strategy

At 30 June 2006, the Company had approximately €43 million in cash, which
represented the remaining cash from funds raised in the IPO as well as payments
received on its investments. As at 30 June 2006, the Company's indebtedness was
nil.

Once the cash has been invested, the Company intends to leverage its portfolio
to increase its investment capacity and enhance returns to shareholders. The
Company's Board has limited the leverage to 240 per cent. of shareholders'
equity but it is unlikely that future indebtedness, if any, would reach this
limit.

Market Outlook

Primary RMBS issuance in Continental Europe and the UK represented a total
volume of approximately €105 billion in the first half of 2006(2), compared with
an issuance volume of approximately €170bn for the whole of 2005. UK issuance
continued to be strong over the period, making up approximately 45% of the
total, supported by growing issuance by non-conforming and sub-prime lenders.
The main issuing countries in Continental Europe were the Netherlands, Spain and
Italy. At this point, our view is that total issuance volume of RMBS for the
whole of 2006 should equal or exceed the volume for 2005.

While we are not aware of any publicly available statistics, we believe the
value of RMBS deeply subordinated tranches sold in Continental Europe and the UK
will have substantially increased in 2006. Supply has come from a broadening
base of Continental European issuers as well as UK non-conforming mortgage
lenders. Residual income positions from securitisations of UK non-conforming
mortgages represented, in our assessment, approximately half of the total market
during the first half of 2006.

The sale of residual income positions of securitisation structures by issuing
banks or lenders has gained momentum over the past years, largely driven by new
regulatory capital treatment and accounting regulations. The Basel II
regulatory framework changes the regulatory capital treatment for banks and
provides a strong economic incentive to focus on the capital management of the
residual income positions, which historically, they retained. Basel II comes
into force in January 2007 for most European countries. In addition, the
convergence of international accounting standards following the introduction of
IFRS in 2005, requires, in most cases, the transfer or sale of the equity
tranche of securitisations in order to achieve off-balance sheet treatment.

Ocean Capital continues to believe that the market for residual income positions
of RMBS as well as of other asset classes, should experience sustained growth in
the foreseeable future.

Investment Focus

The Company focuses on investment opportunities in residual income positions of
RMBS in Continental Europe and the UK. At present the Company is focussing its
main attention in Continental Europe where the outlook for housing and the level
of consumer indebtedness is less uncertain. In addition, most RMBS transactions
issued in these countries are backed by 'prime' mortgage borrowers.

As previously mentioned, there is a significant deal flow consisting of UK
mortgage lenders financing non-conforming and sub-prime borrowers. The Company
has evaluated several opportunities in that segment but to date has not invested
in any such positions. This choice reflects, among other factors, our view of a
deteriorating credit outlook in the UK, particularly among non-conforming and
sub-prime borrowers, and uncertainty on the valuation trend of non-prime
properties. This could translate into higher volatility in cash flows and
returns on residual income positions over the coming years, despite the overall
strong current performance of such instruments.

Once fully invested the Company's portfolio will consist of no less than 75%
RMBS.

Investment Process

Ocean Capital sources investment opportunities on behalf of the Company through
a variety of channels, including Ocean Capital's direct relationships with
commercial and investment banks. In addition, Ocean Capital's securitisation
expertise allows us, on behalf of the Company, to source direct purchases of
granular asset portfolios. We believe that the Company's existing asset
sourcing capability and its efforts to broaden it across Europe will enable it
to continue to secure residual income positions at attractive levels for the
foreseeable future.

Prior to making any investment, Ocean Capital conducts an extensive analysis of
the potential investment centred on a number of aspects pertaining to the
economic environment of that particular jurisdiction, the quality of the
originating lender and of the servicer, the performance of previous comparable
transactions and the expected risk and reward profile of the asset. Once the
decision to further evaluate a particular investment is made, Ocean Capital
conducts extensive due diligence and financial modelling with a view to refining
its assumptions and establishing the appropriate valuation level.

We thank the Board for its continued confidence in our ability to source
investments for the Company and to manage the Company's investment portfolio.

(1) Collaterised Bond Obligations / Collaterised Loan Obligations
(2) Figures are based on The International Securitisation Report of July 2006


Ocean Capital Associates LLP
Investment Manager


INCOME STATEMENT
for the period from incorporation to 30 June 2006

17 Mar 2006
to 30 Jun 2006
€

Operating income 778,122

Operating expenses (402,906)
------------

Net profit for the period 375,216
============

Basic and diluted earnings per share for the period 0.0061

Proforma basic and diluted earnings per share for the period 0.0037


In arriving at the results for the financial period, all amounts above relate to
continuing operations.


BALANCE SHEET
as at 30 June 2006
€ €

ASSETS

Non-current assets
Investments designated at fair value through the 55,104,283
income statement

Current assets
Trade and other receivables 608,025
Cash at bank 42,663,014
---------
43,271,039
---------

Total assets 98,375,322
=========

EQUITY AND LIABILITIES

Equity
Issued capital -
Share premium 50,000,000
Retained earnings 48,051,553
---------
98,051,553
---------

Current liabilities

Trade and other payables 323,769
---------

Total equity and liabilities 98,375,322
=========



STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the period from incorporation to 30 June 2006
€

Balance at beginning of the period -

Formation expenses (2,323,663)
Profit for the period 375,216
----------

Total recognised income and expenses for the period (1,948,447)

Share premium on issue of shares 100,000,000
----------

Balance at 30 June 2006 98,051,553
==========





CASH FLOW STATEMENT
for the period from incorporation to 30 June 2006
17 Mar 2006
to 30 Jun 2006
€

Cash flows from operating activities

Profit for the period 375,216
Increase in accrued expenses 323,769
(Increase) in prepayments and accrued income (608,025)
Purchase of non-current assets (55,104,283)
-----------

Net cash flow from operating activities (55,013,323)
-----------

Cash flows from financing activities

Proceeds of issue of ordinary shares 100,000,000
Costs related to the issuance of ordinary shars (2,323,663)
-----------

Net cash flow from financing activities 97,676,337
-----------

Cash and cash equivalents at the beginning of the period -

Net increase in cash and cash equivalents 42,663,014
-----------

Cash and cash equivalents at the end of the period 42,663,014
===========


For further information contact:

Anson Fund Managers Limited
Company Secretary

Tel: Guernsey 01481 722260

13 October 2006

E&OE - in transmission

[badtime] 18/8/2006 22:04

OMG it moved!

[davebowler] 26/6/2006 13:54

Ram, I take your point but this one is 50% invested now, whereas the Queens Walk is fully invested ,so the optimist in me is looking forward to a simlar premium
in due course.

[rambutan2] 22/6/2006 14:36

dave, like it says at the end, i don't think that they are really comparable. of partic note is that queens is run by cheyne who have an outstanding track record in the field and who appear to intend to make queens a more all round wealth vehicle.

[davebowler] 22/6/2006 10:09

• European Equity Tranche Income* (EET) Over 50% of the Euro 97.5m proceeds from this

recent new issue have now been invested in continental Europe. The fund invests in both noninvestment

grade and equity tranches of residential mortgage-backed securities and, to a limited

extent, other asset-backed securities. We expect EET to yield 8% in its first financial year and

over 12% in subsequent years.

• Queen's Walk Investment (QWIL) Invests primarily in a diversified portfolio of subordinated

tranches of asset-backed securities. The majority of its investments are below investment grade

or unrated and many represent the equity or first loss position of a securitisation transaction. The

fund is now fully invested and trades on a 28% premium to estimated NAV and is yielding over

8% according to Funddata without financial leverage.

The funds are by no means a

homogenous group of funds in

terms of investment policy and

risk profile

Investment fund intelligence 20 June 2006

[davebowler] 05/6/2006 13:34

Rambutan,
Yes it is, but the health of the underlying asset e.g.Houses in Germany etc
are also relevant as they back any default.

[davebowler] 05/6/2006 13:28

European Equity Tranche Income Ltd.
05 June 2006

EUROPEAN EQUITY TRANCHE INCOME LIMITED (the 'Company')

Investment Update

European Equity Tranche Income Limited (the 'Company') is pleased to report that
as of 1st June 2006, in line with the investment objectives set out in its
prospectus dated 6 April 2006, the Company has now invested over €50 million in
several RMBS equity tranches across Continental Europe.

The Company is a closed-ended limited liability investment company investing in
non-investment grade and equity tranche positions of residential mortgage-backed
securities and, to a limited extent, other asset-backed securities in
Continental Europe and the United Kingdom.

The Company's investment portfolio is managed by Ocean Capital Associates LLP.

Ocean Capital Associates LLP is a specialised investment management firm
providing equity and deeply subordinated capital to structured finance and
securitisation transactions originated by financial institutions and corporates.

For further information contact:

Anson Fund Managers Limited
Company Secretary

Tel: [phone]

[rambutan2] 24/5/2006 10:47

cheers dave, but re their comment...

Such tranches are expected to yield between 10-15% irrespective of the direction of equity and bond markets.

isn't it interest rates that we are concerned with? they are the primary factor in the rmbs mkt.

[davebowler] 24/5/2006 10:14

Note from Arbuthnots---
European Equity Tranche Income - EET

This newly launched specialist investment company, to which we act as corporate broker, expects to update investors on its investment progress within the next two weeks.

The fund is in the process of building a portfolio made up primarily of equity tranches of Residential Mortgage Backed Securitisations (RMBS) issued by blue chip continental European banks. Such tranches are expected to yield between 10-15% irrespective of the direction of equity and bond markets.

We note the premium on Queenswalk (QWIL) of 24% (source: FundData) compared with a 3% premium on European Equity Tranche Income. Queenswalk invests primarily in a diversified portfolio of subordinated tranches of asset-backed securities. A majority of its investments are below investment grade or unrated and many represent the equity or first loss position of a securitisation transaction. QWIL is now fully invested It would not surprise us, if the premium on EET were to grow as it gets invested and its future revenue stream becomes more visible

[badtime] 22/5/2006 21:51

Nibbled at a few this a.m.

[davebowler] 30/4/2006 19:57

Thanks for that- I was just wondering what causes a stock to quickly appreciate in value? Fundamentals? News? Management?
Now I know !

[Abuse team] 30/4/2006 17:59

Post removed by ADVFN