REG - CATCo Re-ins Opps Fd - Half-year Report <Origin Href="QuoteRef">CATC.L</Origin> - Part 2

CATCo Reinsurance Opportunities FundAnnouncement

18/08/2017 07:01

- Part 2: For the preceding part double click  ID:nRSR3451Oa 

Shares. 
 
On 26 January 2017, the Board declared a final dividend of $0.07180 per share
in respect of the Ordinary Shares and $0.05795 per share in respect of the C
Shares. The record date for these dividends was 3 February 2017 and the
ex-dividend date was on 2 February 2017. These final dividends were paid to
shareholders on 17 February 2017. 
 
On 11 May 2017, the Board announced that the CATCo Master Fund had closed the
majority of its Side Pocket Investments associated with Pemex. Consequently,
as the Company's Ordinary Shares no longer had any material exposure to such
Side Pocket Investments, the Board elected to convert the Company's issued C
Shares into Ordinary Shares. The conversion of 102,510,018 C Shares into
82,835,718 Ordinary Shares was effective 23 May 2017. 
 
6. INVESTMENT MANAGEMENT AGREEMENT 
 
Pursuant to the Investment Management Agreement dated 8 December 2015, the
Investment Manager is empowered to formulate the overall investment strategy
to be carried out by the Company and to exercise full discretion in the
management of the trading, investment transactions and related borrowing
activities of the Company in order to implement such strategy. The Investment
Manager earns a fee for such services (see Note 7). 
 
As discussed in Note 1, prior to completion of the Acquisition, the Company
was managed by CIML as investment manager pursuant to the Investment
Management Agreement dated 16 December 2010. 
 
7. RELATED PARTY TRANSACTIONS 
 
The Investment Manager of the Company is also the Investment Manager of the
Master Fund and the Insurance Manager of the Reinsurer. CIML is the Investment
Manager of the CATCo Master Fund and the Insurance Manager of the CATCo
Reinsurer. 
 
The Investment Manager is entitled to a management fee, calculated and payable
monthly in arrears equal to 1/12 of 1.5% of the net asset value of the
Company, which is not attributable to the Company's investment in the Master
Funds' shares as at the last calendar day of each calendar month. Management
fees related to the investment in the Master Funds shares are charged in the
Master Funds and allocated to the Company. Performance fees are charged in the
Master Funds and allocated to the Company. 
 
Markel, which holds the entire share capital of the Investment Manager, holds
5.16% of the voting rights of the Ordinary Shares issued in the Company as of
30 June 2017. 
 
In addition, two of the Directors of the Company are also shareholders of the
Company. 
 
8. ADMINISTRATIVE FEE 
 
SS&C Fund Services (Bermuda) Ltd, a division of SS&C GlobeOp serves as the
Company's Administrator and performs certain administrative services on behalf
of the Company. The Administrator is a licensed fund administrator pursuant to
the provisions of the Bermuda Investment Funds Act. The Administrator receives
a fixed monthly fee. 
 
9. FINANCIAL HIGHLIGHTS 
 
Financial highlights for the period 1 January 2017 to 30 June 2017 are as
follows: 
 
                                                      Class 1 - Ordinary Shares  
 Per share operating performance                                                           
 Net asset value, beginning of period                 $                          1.3024    
                                                                                           
 Income (loss) from investment operations:                                                 
 Net investment loss                                                             (0.0028)  
 Performance fee*                                                                (0.0055)  
 Management fee                                                                  (0.0094)  
 Net gain on investments                                                         0.0668    
 Total from investment operations                                                0.0491    
 Dividend                                                                        (0.0718)  
 Net asset value, end of period                       $                          1.2797    
                                                                                           
 Total net asset value return                                                              
 Total net asset value return before performance fee                             4.18%     
 Performance fee*                                                                -0.42%    
 Total net asset value return after performance fee                              3.76%     
                                                                                           
 Ratios to average net assets                                                              
 Expenses other than performance fee                                             -1.15%    
 Performance fee*^                                                               -0.48%    
 Total expenses after performance fee                                            -1.63%    
 Net investment loss                                                             -1.36%    
 
 
^ Adjusting the opening capital to reflect the dividend declared on 26 January
2017, the normalised total return for 2017 is equivalent to 3.94% 
 
* The performance fee is charged in the Master Funds 
 
The ratios to weighted average net assets are calculated for each class of
shares taken as a whole. An individual shareholder's return and ratios to
weighted average net assets may vary from these amounts based on the timing of
capital transactions. Returns and ratios shown above are for the period ended
30 June 2017 and have not been annualised. The per share amounts and ratios
reflect income and expenses allocated from the Master Funds. 
 
10. INDEMNIFICATIONS OR WARRANTIES 
 
In the ordinary course of its business, the Company may enter into contracts
or agreements that contain indemnifications or warranties. Future events could
occur that lead to the execution of these provisions against the Company.
Based on its history and experience, management believes that the likelihood
of such an event is remote. 
 
11. SUBSEQUENT EVENTS 
 
The unaudited Financial Statements were approved by the Board and available
for issuance on 18 August 2017. Subsequent events have been evaluated through
this date. 
 
 For further information:                                                                                                             
 Markel CATCo Investment Management Ltd. Judith Wynne, General CounselTelephone: +1 441 493 9005 Email: judith.wynne@markelcatco.com  
 Mark Way, Chief Operating OfficerTelephone: +1 441 493 9001Email: mark.way@markelcatco.com                                           
 Numis Securities Limited David Benda / Hugh Jonathan Telephone: +44 (0) 20 7260 1000                                                 
 
 
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