DCG IRIS takes Dexion Capital past $10bn fund raising level
DGC IRIS, the Guernsey based closed ended investment company listed in London this past week via a £40m placing, has taken Dexion Capital past the $10bn level in fund raising activities.
The funds raised by the placing will be invested in the CS IRIS Low Volatility Plus Fund Limited, managed by Credit Suisse, which will invest in a diversified portfolio of insurance contracts. This includes securities and derivatives as well as various types of investments related to insurance risks over the long-term. The portfolio will focus on catastrophe risks and be diversified across both risk types and regions.
Ana Haurie, Dexion Capital Group managing director, said the investment risk is managed by diversifying across different contracts.
She said that the success of the fund raising was evidence that investors were looking for uncorrelated assets in a UK IPO market that otherwise had reduced dramatically compared to last year.
She noted that the IPO market in the UK had tumbled from about $19bn in the first half of 2011 to just $1bn in the equivalent period in 2012. The average listing size fell from $650m to just $48m.
Investors in the vehicle so far include a spectrum of wealth managers, pension funds, multi-managers and family offices. Although predominatnly UK based, Haurie suggested that there would be room for additional investors from other European markets as the fund grows in future.