KPMG and Carey Olsen advised on the launch of DCG IRIS insurance-linked securities fund

When Dexion Capital (Guernsey) recently launched the DCG Iris insurance-linked securities and catastrophe bond fund and listed it on the London stock Exchange (LSE) they were assisted by KPMG in Guernsey and law firm Carey Olsen. The DCG Iris fund was launched as a closed-end investment company by Dexion Capital and the equity wrapped offering raised £40.1m from its initial public offering (IPO) on the main market of the LSE.

KPMG in Guernsey are the appointed auditors for DCG Iris and also provide reporting accounting services. Carey Olsen provide legal advice from their Guernsey office. Dexion Capital plc and Dickson Minto acted as joint-sponsors of the launch.

DCG Iris is essentially a feeder fund which will invest all of its capital assets in Credit Suisse’s CS IRIS Low Volatility Plus Fund which invests in a broadly diversified portfolio of insurance-linked contracts, securities and catastrophe bonds as well as various types of investments related to insurance risks. Credit Suisse AG is the manager of the master fund. DCG Iris aims to return an annual dividend of 5%, with the total net return to shareholders, including appreciation, expected to be as much as 7% over Libor.

KPMG’s auditing and accounting team for the DCG Iris launch was led by Ashley Paxton, head of advisory, and senior manager, Gavin Niven. Mr Paxton said: “The total value of funds business in Guernsey has grown in the first quarter of 2012 and it is encouraging that we are continuing to see funds in the alternative assets class being domiciled in Guernsey.”

“This is the third Guernsey main market listing in 2012 and the second that KPMG in the Channel Islands have advised on,” added Mr Paxton.

The Carey Olsen legal team on the DCG Iris launch was corporate partner Christopher Anderson and associate Alex Mauger. Anderson said: “This re-affirms Guernsey’s expertise as the market leader in LSE listings of non-UK entities. There are currently 111 Guernsey entities listed on the main market which puts the island well ahead of all of its competitors. Carey Olsen advised on all three of the new listings so far in 2012.”