Sat, Feb 25, 2017
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. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  2. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  3. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  4. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  5. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d