Dexion Capital, the London-based firm, plans to list a new investment fund generating returns from insurance-linked strategies, holding an initial public offering due to close by the middle of June, it said yesterday.

The fund, called DCG IRIS Limited, is to be floated on the London Stock Exchange. It is a closed-end investment company exposed to access a mix of catastrophe risks with a target net return of LIBOR +5 per cent to 7 per cent and annual volatility of 2 to 4 per cent. To get access to the fund, clients invest in the CS IRIS Low Volatility Plus Fund, or “master fund”, overseen by Credit Suisse.

The fund has an initial dividend target of 5 per cent per annum, payable quarterly, according to Dexion Capital in a statement.

“The catastrophe reinsurance market offers investors a diversified source of returns which are attractively priced at a time when traditional portfolio diversifiers such as government bonds and gold are fully priced with high potential risk. Dexion Capital is the sole financial advisor on the fund,” said Ana Haurie, group managing director of Dexion Capital.