DCG IRIS Limited Event Report: CS IRIS Low Volatility Plus Fund Ltd (1208O)

TIDMIRIS

RNS Number : 1208O

DCG IRIS Limited

16 September 2013

DCG IRIS LIMITED

Event Report: CS IRIS Low Volatility Plus Fund Limited

The Company today received the following report from Credit Suisse AG ('Credit Suisse'), the investment manager of CS IRIS Low Volatility Plus Fund Limited (the 'Master Fund'), in which the Company invests substantially all of its assets. The effect on the Company's NAV of the matters discussed below will be reflected in subsequent NAV releases, the first of which is expected to be on 20 September 2013.

Opinions expressed in the report are those of Credit Suisse AG.

"Dear Shareholder,

On 29 November 2012, holders of Participating Shares ("Shareholders") in CS IRIS Low Volatility Plus Fund Limited (the "Fund") were notified that side pockets had been implemented for certain investments which your board of directors (the "Directors") had determined had become Illiquid Investments (as defined in the prospectus for the Fund dated 26 June 2013, as supplemented (the "Prospectus")) for the Valuation Point (as defined in the Prospectus) falling on 31 October 2012 due to valuation uncertainty caused by hurricane Sandy. An update followed on 27 February 2013 informing Shareholders that a part of the side pocketed positions had been moved back to the Fund's main portfolio and a part of Shareholders' S Shares had been redeemed and replaced with newly issued Participating Shares. This letter provides another update on the side pocketed investments.

On 23 July 2013, Property Claim Services (PCS) published its final estimate of insurance industry losses caused by hurricane Sandy, estimating such industry losses to be US$ 18.75 billion.

Illiquid Investments were moved into the side pocket in late 2012 because of a material uncertainty in the valuation and/or a potential illiquidity due to hurricane Sandy. As a result from PCS's latest and final estimate, all side pocketed positions can in our view be valued again with a sufficient level of certainty, and are liquid as counterparties have released the associated collateral. The publication of the final PCS estimate only caused a minor valuation change in the side pocket (approx. -0.12% development as a percentage of the Fund NAV for 31 October 2012).

As such, the Directors have decided to release the remaining side pocketed investments (the "Relevant Investments") and to move all four remaining positions back into the Fund's main portfolio effective as of the Valuation Point falling on 30 August 2013.

All remaining S Shares in issue will be converted into new Participating Shares and Shareholders will receive such number of new Participating Shares that corresponds to the value of the S Shares held. In order to reflect the value of the Relevant Investments in the performance fee calculation of the relevant Participating Shares, the high-water mark of only those Participating Shares that were originally affected by the issuance of S Shares will be adjusted to reflect the increase in the number of Participating Shares issued to those Shareholders.

As a continuing Shareholder, the Directors thank you for your ongoing support.

Yours sincerely

Director"

For further information please contact:

Dexion Capital (Guernsey) Limited

[phone]

Christopher Copperwaite

Dexion Capital plc

[phone]

Robert Peel

Media Enquiries:

Anthony Payne and Max Hilton

Peregrine Communications

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This information is provided by RNS

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