RNS Number:9581M
Dexion Absolute Limited
30 June 2003

Dexion Absolute Limited ("the Company")

May Net Asset Value

The net asset value per ordinary share as of 30 May 2003 was 103.99 pence.

This valuation, which has been prepared in good faith by the Company's
investment manager, is based principally on formal valuations supplied to the
Company by the administrators of the company's underlying investments. In the
case of 3 of the Company's 36 investments, where no such valuation has been
received by today's date, an estimated valuation prepared by the manager or
administrator of the underlying funds has been used. Such valuations or
estimates are unaudited and may not comply with generally accepted accounting or
valuation principles.


Performance Review


The equity market rally continued into May, stimulated by the signing of US tax
cut legislation, as well as anticipation of future interest rate cuts. Equity
and fixed income markets remained highly correlated in May, as Federal Reserve
Chairman Alan Greenspan's widely-aired concerns regarding deflation led to a
rally in U.S. Treasuries, especially in the short end of the yield curve.
Against this backdrop, Dexion Absolute gained 2.11% for the month and is up
5.84% year to date.


All strategies with the exception of Short Selling posted gains. Distressed
Securities was again the largest contributor to returns with exceptional results
from several managers. A debt position in a European manufacturer of
telecommunications equipment was a large winner for several managers as the
company emerged from bankruptcy and exchanged its existing liabilities for newly
issued debt and equity which traded substantially higher. Hedged Equities was
also a strong contributor to the month's performance with all managers reporting
positive returns. A healthcare specialist was the top performing manager with
winning long positions in biopharmaceutical and drug delivery companies. Also a
financial services specialist and several generalist managers performed
particularly well. Opportunistic managers posted a solid month, with a number of
diverse strategies contributing, including emerging markets investments, special
situation equities, and relative value trades. One manager profited from holding
company arbitrage, capital structure arbitrage, and the closing of a tender
offer in the French financial sector. Tactical Trading managers turned in a very
strong month, generating profits in fixed income and from the dollar's continued
slide versus the euro and yen. Long positions at the short-end of the U.S. yield
curve were profitable, as deflationary concerns ignited a rally in those
instruments. The long-biased orientation of our Equity Strategies managers
benefited from the strength in equity markets. Relative Value managers had a
steady month. U.S. convertible issuance picked up in May and, although initially
expensive, traded down to a level that provided interesting opportunities in the
secondary market. New issuance in Europe and Japan also increased although
unlike the U.S., most of the newly-issued bonds traded upwards. Capital
structure and credit arbitrage strategies continue to benefit from the
tightening of credit spreads and were profitable for several managers. Our
Event-driven manager benefited from appreciation in his credit-related
portfolios, as well as the closing of a tender offer in the French financial
sector.




      Strategy          Allocation      Number of         Performance attribution %
                                         managers
                                                          Month               YTD

Distressed                  18%             4             7.39%             28.61%
Equity strategies           4%              2             5.71%              0.97%
Hedged equities             32%             11            3.54%              5.70%
Event driven                2%              1             2.00%              7.40%
Opportunistic               14%             5             2.04%              5.15%
Relative value              13%             5             1.11%              5.13%
Short selling               11%             6             -7.25%            -13.42%
Tactical trading            6%              2             4.25%             11.85%


Strategy returns are net of underlying manager fees only and not inclusive of
Dexion Absolute's fees and expenses.


Outlook

Although the sustainability of the equity market rally is unknown and many of
our managers remain conservatively positioned, they have gradually increased
their risk profiles to take advantage of a more rational market environment in
the wake of the Iraqi war. The Fed's concerns over deflation and the resulting
guessing game of market participants, in addition to the recent ECB interest
rate cut, should continue to provide profitable opportunities for our tactical
trading managers.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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