DCG IRIS Limited, a feeder fund that is run by Dexion Capital and that mainly invests in a vehicle holding insurance-linked assets, has placed shares in various currencies including sterling, the dollar, euro and Swiss franc.

The feeder fund is a Guernsey-registered non-cellular company with an indefinite life, according to a statement. It will principally invest assets in the CS IRIS Low Volatility Plus Fund, managed by Credit Suisse. The latter fund was set up in January this year.

The aim is to earn returns by investing in insurance-linked contracts and assets carrying exposure related to insured event risks known as insurance-linked strategies, the statement said.

“DCG IRIS will offer the opportunity to access a diversified insurance risk portfolio in terms of perils, geographies and instrument types, which is for the most part difficult to obtain in this asset class. The insurance-linked strategies asset class is not correlated to the financial markets, offers high historical yields and facilitates real investment portfolio diversification,” Ana Haurie, group chief chief executive of Dexion Capital, said. Dexion is the manager of the feeder fund.

The fund’s portfolio has been set up so that it will only be affected by “very large catastrophe events” and to target an annualised return (net of losses and fees) of LIBOR plus 5 to 7 per cent, with low volatility of 2 to 4 per cent.

Expected losses from the portfolio are in the region of 2 to 4 per cent per annum.

The feeder fund has appointed Dexion Capital (Guernsey) as its investment manager.

Dexion had around $1.385 billion of assets under management at the end of March.