DCG Iris Share Discussion Threads

[jonwig] 20/11/2014 19:04

Broker (TDW) tell me:

the liquidators have announced their
intention to make a first and final distribution
to holders on the register on 13th November 2014.
It is expected that a rate of GBP0.976253
will be paid to holders of Sterling
shares on said date with a payment
date of 28th November 2014.

- which is more than I thought.

[praipus] 24/9/2014 10:05

From the RNS

Expected Timetable

2014
Latest time and date for receipt of Forms of 11.30 a.m. on 22
Proxy for the Extraordinary General Meeting September
Register of members closed 5.00 p.m. on 23
September
Suspension of Shares from trading on the London 7.30 a.m. on 24
Stock Exchange and suspension of the listing September
for Shares on the Official List
Extraordinary General Meeting 11.30 a.m. on 24
September
Effective Date: Winding Up commences and Liquidator 24 September
appointed
Cancellation of Shares from trading on the 8.00 a.m. on 8 October
London Stock Exchange and cancellation of listing
for Shares on the Official List
Redemption proceeds of CS Master Fund shares By 30 November (1)
received
Settlement of Winding Up monies As soon as practicable
following receipt
of redemption proceeds
from the CS Master
Fund

[jonwig] 24/9/2014 09:26

Ah, yes, thanks. So the pending announcement will be the result of the EGM.

[praipus] 24/9/2014 08:57

It's all in the proposal

[jonwig] 24/9/2014 08:47

Shares suspended at company's request pending an announcement.

This must surely come later this morning. It shouldn't have been necessary in the ordinary course of a voluntary liquidation. So why?

[jonwig] 04/9/2014 08:44

Winding up proposals announced yesterday. Subtracting all the costs (and a bit more in case) suggests we'll get about 95.7p, which makes it pointless to sell in the market, though I see some people are buying.

The capital loss from issue of 4.3p is entirely explained by the fact that the 5p pa dividends have been that bit higher than NAV growth.

[praipus] 15/7/2014 15:59

Just followed Weiss in to this stock and now we've got a Typhoon!!!!



I track Weiss and other value investors holdings on the WAM thread.

[jonwig] 18/6/2014 20:08

This morning's monthly report spells it out:

Overall spread compression continues to be the trend, with the market anticipating premium reduction of between 15-20% in Florida. Given market conditions and the approaching US hurricane season, we will be selective and considered in our participation in the upcoming renewal.

... ie. not participate?

It looks as though they can liquidate in October: over three months away, so that's ongoing expenses.
The board should reduce its number and fees, for a start.

Catco did something similar: a partial return of capital.

[valhamos] 18/6/2014 18:12

Shame really, always liked the idea with low correlation to other investments, but the returns in 2014 were even lower than last year. I guess it needed a few severe hurricanes and earthquakes for a return to a climate of higher premiums.

[jonwig] 18/6/2014 17:36

Liquidation proposal: poor climate for cat insurance unsurprising.

Latest NAV (13/06) 98.49p. Current share price about right.

[jonwig] 09/6/2013 15:22

Val - thanks!

I think I know the ADVFN idea about "hxxp" (to shaft 'black' users like us). The simple solution is to paste and change, of course.

On the insurance funds, CAT is highest risk (and USD), BCGR medium (USD) and IRIS lowest (GBP). I hold CAT and IRIS.

As for returns, the "uncorrelated" bit does protect you against a nasty fall in risk asset prices ... like we've just tasted! Of course, share price could fall simply because people need to see stuff.

[valhamos] 09/6/2013 10:15

Hi jonwig

I'm not able to change hxxp - seems to be ADVFN policy.

OK - downward pressure on expected returns or yield

I haven't got a position here yet. The target return is libor plus 5% to 7%. Despite it being uncorrelated, a 5% or less return would probably be too low for me, whereas if I felt confident they would be hitting the top end I'd be more interested. Therefore the move to look at other reinsurance instruments to boost returns is worth investigating further.

I'm aware of CAT but I'm not keen on the currency risk.

[jonwig] 08/6/2013 08:18

Valhamos - thanks for the link (but can you edit "hxxp" to "hxxp" please?)

It's *upward* pricing pressure, though, which is making cat bonds unattractive - just as it's upward pricing which is making gilts and US treasuries unattractive to income seekers.

[valhamos] 08/6/2013 07:51

Seems to be a lot of downward pricing pressure on cat bonds at the moment.

hxxp://www.artemis.bm/blog/2013/06/07/credit-suisse-to-move-iris-ils-fund-out-of-cat-bonds-in-hunt-for-return/

[jonwig] 21/5/2013 17:31

Oklahoma from CS:

We currently expect insured losses for this week's event to be below $5 billion. Although it is much too early to have a clear picture of potential loss figures, we do not expect our funds to be impacted. We will closely monitor the situation and will keep you updated if needed."

[jonwig] 09/3/2013 11:32

David S in IC:

I think that the recent spate of big claims on the catastrophe reinsurance front - the New York hurricane being the real biggie - must force a fundamental change in the natural disaster insurance sector. Reinsurers can't keep bailing out the US eastern seaboard for disasters and premiums must start rising, which is why I think now might be a good time to slowly increase my exposure to the reinsurers through the DCG IRIS fund run by a team at Credit Suisse. Again, this isn't exciting stuff and won't blow the lights out (if you can excuse the pun) but I think it reasonable to expect a 6 to 8 per cent annual return through the long-term cycle, with 5 per cent a year paid as income.

And should be uncorrelated with most other asset classes.

[jonwig] 12/2/2013 09:27

Parked some profits here. Target dividend of 5.0p for 2013-14 and pretty low risk Cat-bond exposure.
Should also be immune to an equity market correction.

[jonwig] 29/10/2012 08:37

I'm surprised this is holding up in the face of hurricane Sandy. NAV starts to be impacted once industry losses exceed $20bn, according to their July survey.

Isaac had industry cost of $15bn apparently. This may be worse.

In any case, their cat-bonds will be marked to market.

[jonwig] 13/7/2012 16:43

NAV postings:

06 Jul 12 ... 98.55p
31 Jul 12 ... 98.95p
31 Aug 12 ... 99.43p
07 Sep 12 ... 99.45p
14 Sep 12 ... 99.63p
21 Sep 12 ... 99.84p
28 Sep 12 .. 100.03p
04 Oct 12 ... 99.80p

[jonwig] 29/6/2012 07:24

The plan was to raise up to £150m, only £40m was raised.
The size itself doesn't matter provided the master fund is suitably large.
I don't know whether this is the case.

However, the whole company may be redeemed at NAV less costs (discretion of board?) if the NAV at certain points is below £150m. The first such point is August 2013.

Barring bad insurance events, that would most likely mean getting around 101p in a year's time if the NAV is static after income (4.75p divi).

[jonwig] 29/6/2012 06:46

27 June 2012:

DCG IRIS Limited, a Guernsey investment company investing in insurance-linked strategies has raised in excess of £40m, despite the continuing challenges of market conditions.

The Company is a feeder fund, investing its assets in the CS IRIS Low Volatility Plus Fund, which is managed by Credit Suisse AG.

The fund offers investors diversification. The portfolio is diversified across regions for natural catastrophes and risk types, where regions and perils have little or no correlation to each other and enable efficient diversification of the portfolio e.g. Japanese typhoons, US hurricanes and explosions or fire. The fund offers further diversification to investors as returns are expected to have a low correlation to the financial markets.

Robin Fuller, newly-appointed Executive Director of Dexion Capital (Guernsey) Limited and a director of DCG IRIS, said: "The launch of DCG IRIS Limited marks an exciting start to my role here. Achieving a capital raise in such challenging conditions is proof of the strengths of the investment proposition and investors' interest in insurance-related investment strategies. As investment manager to DCG IRIS we remain confident in the company's future growth."

Talmai Morgan, Chairman of DCG IRIS, said: "We are very pleased to launch the company at a time of uncertainty for many investors. We have seen a positive response to the investment proposition and the feedback has indicated a confidence in the company's strengths. We believe firmly in the ability for the company to grow through future tap or C-share raises and we plan actively to pursue these opportunities over the coming year."

[jonwig] 29/6/2012 06:46

Significant Holdings at 28/03/13 (total 51,125,440 Sterling Shares):

Credit Suisse ......... 10,000,000 24.9%
Ericsson Pensions ..... 70,314,088 21.5%
Dexion Capital (Gy) .... 4,000,000 10.0%
Premier Fund Mgrs ...... 3,803,790. 7.4%