DCG IRIS Limited DCG Iris Limited January 2014 Monthly Report (5896C)

TIDMIRIS

RNS Number : 5896C

DCG IRIS Limited

18 March 2014

DCG IRIS Limited (the "Company")

January Net Asset Values

As at 31 January 2014, the final net asset value of the Company's ordinary shares is as follows:-

Ordinary Shares

 
 Share          Final       MTD Performance   YTD Performance 
  class           NAV            (Total            (Total 
              31 January        Return)           Return) 
----------  -------------  ----------------  ---------------- 
 Sterling       98.81p 
  shares         (XD)           +0.32%            +0.32% 
----------  -------------  ----------------  ----------------

This valuation, which has been prepared in good faith by the Company's administrator, is for information purposes only and is based on the unaudited final valuation supplied by the administrators of the Company's underlying investment. Both a weekly estimate and a monthly valuation of the underlying investment may be produced as at valuation dates which do not coincide with valuation dates for the Company, may be based on a valuation provided as of a significantly earlier date, may differ materially from the actual value of the Company's portfolio and is unaudited or may be subject to little verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. The Company's administrator may not have sufficient information to confirm or review the completeness or accuracy of information provided by the administrators of the Company's investments.

Other risk factors which may be relevant to this valuation are set out in the Company's prospectus dated 12 November 2012.

Monthly Portfolio Review

Portfolio Commentary (provided by Credit Suisse AG, the manager of the Master Fund)(1)

Performance: The Company returned 0.32% (total return, net of fees) in January, with performance driven by our private transactions. The primary cat bond market was quiet in terms of deal closure in the non-life space for the first month of the year. Several new deals have been announced and are expected to close over the course of the first quarter. The focus for January was on finalising our contracts for the January 1 renewals. As anticipated, the lack of significant large loss events over the course of 2013 meant that pricing at January 1 was under pressure, with cedents looking for year-on-year price decreases on a risk-adjusted basis. We saw pricing changes of 10-20% depending on the country and region. We found pricing to be much more stable in relation to clients with which we have broad longstanding relationships. Also, we chose not to renew our lines on some of the smaller programs where terms were unfavourable. We believe this to be the most sensible strategy given the softening market premium environment.

Large Catastrophic Events: January saw large sections of the continental United States affected by a series of powerful winter storms. These storms brought a wintery mix of heavy snowfall, freezing rain, gusting winds and bitterly cold Arctic temperatures to much of the country and caused widespread travel delays and property damage, with insured losses expected to be in excess of $1.4bn. Europe's active windstorm season continued with windstorms Anne and Christina affecting parts of the United Kingdom, France and Scandinavia with strong winds and persistent rainfall. We will continue to monitor the impact of these events and keep investors advised of significant developments in future reports. While the full impact of these loss events is still uncertain, we do not anticipate an impact on fund performance at current industry loss estimates.

Trading: The fund added some cat bond exposure in the secondary markets. Overall, risk exposures summing to roughly half the fund volume were renewed or added for the fund for the January renewal.

Outlook: Over the next few months we will be watching ILW pricing closely in order to determine where the market settles and evaluate investment opportunities. The primary focus in February and March, however, will be on our planning for the Japanese renewal on April 1. After our successful renewals in Japan last year, we are quite positive going into this renewal. We expect pricing in Japan to be much more stable in comparison to the January 1 renewal. Our team will be in Japan in February to meet with counterparties to explore further their buying needs. We will keep you updated with respect to the renewal over the next few months. With some more transactions expected to close in February, the portfolio is well balanced for the year ahead.

(1)Portfolio commentary compiled at the end of the month being reported on.

Supplementary Information

Click on, or paste the following link into your web browser, to view a full review of the DCG Iris portfolio.

http://www.rns-pdf.londonstockexchange.com/rns/5896C_-2014-3-18.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

END

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