The DCG Iris insurance linked security and reinsurance -linked investment fund has issued another 1.17m shares to investors in the latest round of its share placement programme. The shares have been issued at a price of 100.5p, raising the ILS fund a further £1.18m to invest in reinsurance-linked investments, ILS and catastrophe bonds via the master fund.
The DCG Iris ILS fund is managed by Dexion Capital as a feeder fund into the Credit Suisse managed CS Iris Low Volatility Plus fund. As such the portfolio is managed by Credit Suisse, an ILS investment manager with a stirling track record, and DCG Iris passes on the capital it raises to be invested directly in the CS Iris fund.
With the closing of this latest share placement, the DCG Iris fund now has 61,469,440 shares in issue, which at today’s share price of 100.5p gives it a total capitalisation of just under £61.78m.
DCG Iris added just over £9m in a share offering which closed in May and £11m last December. It launched in June 2012 when it raised £40.1m in its initial share offering.
DCG Iris has targeted a fund-raising figure of £150m over an unspecified number of share offerings, a number it had hoped to reach by the 30th June this year. Its current prospectus, however, allows for issuance of up to 500m shares, so we expect DCG Iris to continue making new share placements as and when new investors come along. With this share placement being relatively small it is possible that a single, large investor has made the commitment.
Dexion Capital has applied to the London Stock Exchange for the shares to be admitted for listing, alongside existing DCG Iris shares. It says that it expects the listing to become effective on the 19th July.
In an interview published yesterday on Investment Europe, Dexion Capital executive grooup managing director Ana Haurie said that at the end of May 2013 DCG Iris counted among its top ten investors a Swedish corporate pension fund, a UK local authority pension fund, multi-asset managers and private wealth management groups. These top ten investors in DCG Iris account for just under 82% of the issued share capital, according to Haurie and demonstrates the diversity of the ILS investment base.