TIDMIRIS

RNS Number : 9085L

DCG IRIS Limited

16 August 2013

DCG IRIS Limited (the "Company")

AMENDMENT:

Please note that on page 2 of the Supplementary Information referred to at the bottom of the June Net Asset Value announcement, released on 12 August 2013 at 16:48 under RNS No 5216L and reproduced below, the expected annual loss has been amended from 3.00% to 2.00% in the Key Figures table.

All other details remain unchanged.

The full amended text is shown below.

June Net Asset Values

As at 28 June 2013, 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 June     (Total Return)    (Total Return) 
-------------  ----------  ----------------  ---------------- 
 Sterling 
  shares         100.12p        +0.33%            +2.72% 
-------------  ----------  ----------------  ----------------

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 0.33% (total return, net of fees) in June. Performance was driven by our swap positions. Most of the month was spent positioning the portfolio and finalising trades that were negotiated going in to the US hurricane season, thereby reducing cash in the portfolio. Cat bond issuance in the primary market continued to be steady with three deals closing over the course of the month.

Large Catastrophic Events: In Central Europe, a period of intense rainfall at the end of May and early June led to some of the worst flooding in many years. Germany, Austria and the Czech Republic were some of the worst affected countries, but Switzerland, Hungary, Slovakia and Poland also suffered damage. The early estimates for the damage in Germany alone currently stand between $4bn and $7.7bn. The overall economic impact of the flooding is expected to be much higher given the low insurance penetration in some of the affected regions. We are constantly monitoring the situation on the ground, but based on our current analysis and the latest available information, we do not expect any impact on performance from this event.

Trading: June was a relatively active month in terms of cat bond trading for the fund, which strategically moved out of several cat bond positions to lock in mark-to-market profits and only selectively bought one new position. The sales were timed so that the fund could take positions in ILW trades where we have seen pricing for some perils improve over the last month. The fund has also taken a few small positions in top layers in some regional Florida programs.

Outlook: Cat bond issuance in 2013 is expected to continue at its current high pace. Most of the bonds coming to the market continue to reference US risks. As always, we will participate in those issuances that we find most attractive given our current portfolio. We have noticed some improvement in pricing in some sections of the ILW market for US wind risk. We will look to take advantage of this trend when appropriate. The fourth PCS update with respect to super storm Sandy is expected to be out at the end of July 2013. We would remind investors that there continues to remain the possibility of development on this number, but our current expectation is that any development would not have a significant impact on the fund. We anticipate that July will see the finalisation of Australian and New Zealand programs that we decided to participate in. We expect trading to be light as we only expect to see smaller opportunities where reinsurance buyers are looking to fill gaps in their programs. Given that we are now in the US hurricane season, we will constantly monitor the weather and keep you updated on any meaningful hurricane activity. Overall, this fund is well invested and on target to meet its performance expectations.

(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/9085L_-2013-8-16.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

END

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