Thu, Feb 11, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Dexion Capital launches insurance-linked closed-end fund

Monday, April 30, 2012

Ana Haurie
Opalesque Industry Update - Alternatives specialist Dexion Capital has announced the proposed listing of a new investment company, DCG IRIS Limited, on the London Stock Exchange.

Offer highlights include:

  • DCG IRIS Limited (the ‘Company’) is a proposed new London-listed, closed-end investment company seeking attractive returns from insurance linked strategies (‘ILS’). The IPO is scheduled to close mid June 2012
  • The Company will access a highly diversified portfolio of catastrophe risks with a target net return of LIBOR +5% to 7% and annual volatility of 2 to 4%, by investing in CS IRIS Low Volatility Plus Fund (the ‘Master Fund’), managed by Credit Suisse
  • The Company has an initial dividend target of 5% per annum, payable quarterly
  • ILS offers substantial diversification benefit with low correlation to financial markets and other alternative investment strategies
  • Strong discount controls
  • Credit Suisse manage a portfolio of catastrophe risks with unique risk/reward characteristics which typically involve synthetic triggers, reducing complexity and providing transparency so that losses can quickly be assessed more quickly and losses typically expected to arise only as a result of very large events
  • Publicly traded cat bonds may also be used, typically 10-30% of the portfolio
  • A high degree of portfolio diversification is provided through the range of uncorrelated catastrophe event exposures i.e. hurricanes, earthquakes, aviation, marine and typhoons
  • Transactions are collateralised by a highly-rated bank (currently AAA) and minimal credit risk is taken with insurance counterparties
  • The Credit Suisse ILS investment team has long track record in ILS, with US$3.7 billion in AUM (as of March 2012). It has a total of 24 fully dedicated employees
  • A presence in Zurich and London gives access to main reinsurance markets
  • The ILS team receives fully integrated support from Credit Suisse with independent control functions including risk management and compliance provided by Credit Suisse
Dexion Capital plc has been appointed sole financial adviser and placing agent to the Company. Dexion Capital Guernsey Limited (DCG) will be investment manager to the Company.

Ana Haurie, Group Managing Director of Dexion Capital said: “The catastrophe reinsurance market offers investors a diversified source of returns which are attractively priced at a time when traditional portfolio diversifiers such as government bonds and gold are fully priced with high potential risk. The experienced Credit Suisse ILS team are specialist risk managers with extensive knowledge of meteorology and insurance, and a long track record in this field. We believe that investors will quickly grasp the benefits of this opportunity with increasing numbers of institutions entering the space”.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s