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Securis to float new income fund

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Securis Investment Partners is planning to list a new closed ended investment company, Securis Income Fund Limited, on the London Stock Exchange. Securis Income Fund Limited will be a feeder fund of Securis I Master Fund, which invests in assets carrying exposure to insurance and reinsurance risk.

Securis Income Fund Limited (the company) will be a closed-ended, Guernsey-incorporated investment company, with a premium listing on the Main Market of the London Stock Exchange. The company will seek to deliver a target total return of 12% net per annum from which it intends to pay a 6% annual gross dividend (payable semi-annually).

The company will invest substantially all of its assets into the Securis I Master Fund, an existing cash-yielding, diversified portfolio of insurance-linked securities launched in October 2005 2. Shares will be offered to institutional and sophisticated investors denominated in USD and GBP currency classes through a placing expected to close on 11 March 2011.
 
Investment diversification from traditional markets is achieved through exposure to insurance and reinsurance risks, both life and non-life. These risks, which focus on mortality and longevity expectations or physical loss resulting from natural catastrophes, have historically demonstrated a negligible link with the performance of many financial markets.

The portfolio’s revenue generation is driven by the Investment Manager’s experience in assessing insurance risk and insurance sector inefficiencies.
 
The Investment Manager of the Company will be Securis Investment Partners LLP (Securis), a London-based manager, established in 2005, with US$834 m3 of assets under management at 31 January 2011.

Securis I Fund has an impressive five-year track record producing total return performance of +11.6% in the period from October 2005 to January 2011 with annualised volatility of 1.9% 4

Securis use their experienced investment team’s capital markets and specialist insurance and actuarial expertise to access opportunities in both the life and non-life insurance sectors.
 
Rob Procter, Managing Partner and co-founder of Securis Investment Partners LLP, says: “We established Securis five years ago to take advantage of the growing opportunities from insurance capital markets and the need for expert investment skills. Since then our investment strategy has delivered strong returns that have been uncorrelated to many financial markets whilst generating a consistent cash yield.

"The Securis Income Fund provides a wider audience with access to this strategy and we believe that investors will welcome the opportunity to invest in an income fund that offers diversification into cash-generative insurance and reinsurance markets. ”
 
Espen Nordhus, Managing Partner and co-founder of Securis Investment Partners LLP, says: “The new fund provides greater market presence for our investment strategy as well as a broader investor base,  to the benefit of existing investors and new investors alike. By building a balanced portfolio of risk across both life and non-life classes through private and public transactions, Securis offers potential for impressive, stable returns, whilst at the same time delivering real diversification to investors’ portfolios.”
 
The placing agent to the Company’s proposed initial public offering will be Dexion Capital plc, the Financial Adviser will be Katalyst Partners and the Sponsor will be Dickson Minto W.S..

Fees to be charged by the Investment Manager to the Company are an annual 1.5% management fee and an annual 20% performance fee (subject to a high water mark).

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