DCG IRIS Limited is an investment company IPO that will close mid-June this year. Investors will be given access to a diversified portfolio of catastrophe risks with a target return of Libor plus between 5% and 7%, net, with annual volatility of between 2% and 4%.
It will invest in the CS IRIS Low Volatility Fund run by Credit Suisse, with Dexion Capital Guernsey Limited (DCG) as its investment manager.
Diversification comes from investment in a range of uncorrelated catastrophe events including hurricanes, earthquakes, aviation, marine and typhoons. Credit Suisse may also include up to 30% of publicly-traded catastrophe bonds.
In total, the aim is to pay a quarterly dividend, targeting 5% per year.
Ana Haurie, group managing director, 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.”
