Sat, Jul 23, 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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe