DCG IRIS Limited Event Report: CS IRIS Low Volatility Plus Fund Ltd (1208O)
September 16 2013 - 10:17AM
UK Regulatory
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
+44 (0) 1481 743940
Christopher Copperwaite
Dexion Capital plc
+44 (0) 20 7832 0900
Robert Peel
Media Enquiries:
Anthony Payne and Max Hilton
Peregrine Communications
Tel (Direct): +44 20 3178 6869 / +44 20 3178 6873
This information is provided by RNS
The company news service from the London Stock Exchange
END
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