RNS Number:1564O
Dexion Absolute Limited
30 July 2003

Dexion Absolute Limited ("the Company")


June Net Asset Value


The net asset value per ordinary share as of 30 June 2003 was 105.61 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 4 of the Company's 37 investments, where no such formal 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


Equity markets continued to rally in June based on hopes of an improving
economic outlook and expectations of continued accommodative monetary policy
from the Fed. Markets experienced only a brief pull-back in the latter half of
the month after a lower-than-expected US interest rate easing. In fixed income
markets, high-yield and convertible bond issuance continued at a vigorous pace
as issuers took advantage of extremely low interest rates. Dexion Absolute
gained 1.56% in June and is now up 7.49% year to date.


Hedged equities was the largest contributor to profits in the month with
healthcare and a financial services specialist leading the way. The healthcare
specialist benefited from long exposure to biotechnology, medical devices, and
drug delivery firms and several short positions which posted double digit
percentage losses, while the financial services specialist gained on positions
in a diversified insurance and financial services company and an online
brokerage firm. The distressed securities strategy was also a substantial
component of returns. Our distressed managers benefited from a number of
situations including continued strength in the newly-issued securities of a
European manufacturer of telecom equipment and appreciation in several names in
the energy sector. Gains in value-oriented equities and other strategies led to
a positive month for opportunistic managers. For instance, one manager enjoyed
success in an equity arbitrage position in a German broadcasting company whose
stock appreciated following the company's announcement that it was examining the
conversion of its non-voting shares into ordinary shares. Another manager's
investments in a U.S.-based investment management firm and a food processing
company also proved profitable. Equity strategies managers enjoyed a successful
month as a diverse array of investments generated gains. Positions in a
manufacturing and engineering company, a national health benefits firm, and a
provider of business management services and software to the healthcare industry
all contributed to profits. The diversification benefits of relative value
managers' multi-strategy portfolios were apparent this month as the strategy was
positive in the face of depressed convertible bond arbitrage returns. A number
of factors contributed to the sell-off in convertible bonds, including new
dividend tax legislation in the U.S., which led to an increase in announced
dividends, and decreased equity market volatility. The low interest rate
environment led to a large supply of new issuance, further depressing prices in
the secondary market, although this should be positive for the strategy going
forward. Our event-driven manager posted a positive June with profits mainly in
credit positions. The manager saw appreciation of his holdings in the bank debt
of several companies, including a manufacturer of home fashion products that
filed for bankruptcy protection, an action beneficial to bank note holders.
Tactical trading was flat for the month as reversals in several major themes,
including long U.S. fixed income trades and positions short the U.S. dollar,
resulted in losses which offset gains in energy trading. Finally, short selling
was negative for the month as managers struggled against a strong market
headwind.




      Strategy          Allocation*      Number of         Performance attribution %
                                         managers*
                                                            June               YTD
Distressed                  17%              4             4.36%             34.05%
Equity strategies           4%               2             1.66%              2.65%
Hedged equities            32 %             12             3.40%              9.29%
Event driven                2%               1             1.20%              8.69%
Opportunistic               14%              5             1.12%              6.33%
Relative value              13%              5             0.26%              5.40%
Short selling               11%              7             -2.15%            -15.29%
Tactical trading            7%               3             -0.05%            11.88%

* As of July 1

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




Outlook


There is some question as to whether the current market rally represents a true
recovery or is merely liquidity-driven and short-lived. Recent macroeconomic
data has been mixed, but the increase in merger activity possibly indicates that
companies believe business is improving and are becoming less risk-averse. The
large number of new mergers announced in June, and in the first half of July, is
a positive sign, and if the deal flow continues may provide opportunities for
both event-driven and multi-strategy relative value managers.







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

NAVILFSRDLIIVIV