DCG IRIS Limited DCG Iris Limited February 2014 Monthly Report (8985E)

TIDMIRIS

RNS Number : 8985E

DCG IRIS Limited

15 April 2014

DCG IRIS Limited (the "Company")

February Net Asset Values

As at 28 February 2014, the final net asset value of the Company's ordinary shares is as follows:-

Ordinary Shares

 
 Share class     Final NAV     MTD Performance   YTD Performance 
                 28 February    (Total Return)    (Total Return) 
-------------  -------------  ----------------  ---------------- 
 Sterling 
  shares           99.08p          +0.27%            +0.60% 
-------------  -------------  ----------------  ----------------

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 0.27% (net of fees) in February, driven by the private transactions. The cat bond primary market was quiet in terms of deal closure in the non--life space with just one deal closing in the month of February. Several new deals have been announced and are expected to close over the course of the next few months in the run up to the US wind season. The focus for February was the planning of the April 1 Japan renewals. We have been in Japan to meet with counterparties and discuss their needs ahead of the renewals. The ILW market continues to be challenging but we have found pockets of opportunity in this market to deploy some capacity.

Large Catastrophic Events: The active winter storm season in Europe continued with storms Nadja, Petra, Tini and Ulla bringing strong winds and heavy rain to Western and Central Europe. Storm Tini also worsened severe flooding along rivers and coastal areas in the United Kingdom and Ireland. Losses from storm damage are expected to approach GBP410m while insured flood losses could surpass GBP1bn. Japan was affected by the heaviest snow in decades which led to widespread travel disruption and killed more than 30 people in mostly traffic--related accidents. Severe winter weather also continued in the US with heavy accumulations of snowfall, freezing rain and strong winds. We will continue to monitor the impact of these events and keep investors advised of any significant changes in the insured losses in future reports. While the full impact of these loss events is still uncertain, we do not anticipate an impact on fund performance at currently estimated industry loss levels.

Trading: The fund added some cat bond exposure in the secondary market and also some first and second event ILW exposure.

Outlook: As mentioned above, our planning for Japan continues at full speed. After our success last year, we are quite positive going into this renewal season. We expect pricing to soften in Japan, but to be much more stable in comparison to the January 1 renewal. Over the course of the next few months, we anticipate that we will see some further diversifying perils, including some exposure to the crop market. We are also starting to see some early US wind submissions for the renewals in June/July.

(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/8985E_-2014-4-15.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

END

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