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By Beverly Chandler, Opalesque London

May saw alternative investment group Dexion Group add a further £9.3m ($13.59m) to the funds it has raised for its London-listed, insurance linked strategies (ILS) fund, DCG IRIS Limited. This is the third successful cash raise in a 12 month period for the fund.

Ana Haurie, Dexion’s Group Managing Director said: "DCG IRIS has been positively received by investors since its launch in June 2012, with a cumulative £60.5m ($90m) of equity raised. Diversifying sources of income away from traditional fixed income products continues to be an important theme amongst investors and the growth of insurance linked strategies is a reflection of this trend. As such, we continue to be optimistic on the prospects for DCG IRIS and we would like to continue to grow the fund".

The company accesses a highly diversified portfolio of catastrophe risks, with a target net return of LIBOR +5% to 7% and annual volatility of 2 to 4%, alongside low correlation with other financial markets and alternative investments. Dexion notes that following record natural catastrophe losses for reinsurers in 2011, premiums had sharply increased; however, the firm says, such increases slowed in late 2012, given larger inflows of capital into more easily accessible ILS segments (namely, catastrophe bonds and sidec......................

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