RNS Number:3748Q
Dexion Absolute Limited
30 September 2003

Dexion Absolute Limited ("the Company")


August Net Asset Value


The net asset value per ordinary share as of 29 August 2003 was 105.38 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 39 investments, where no such formal valuation has
been received by today's date, an estimated valuation prepared by the Company's
investment advisor or 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 markets recorded six straight months of gains as investors cheered
favorable economic data and second quarter corporate earnings. The large power
black-out in the Northeast U.S. and parts of Canada did little to derail the
market's enthusiasm. The Federal Reserve maintained its interest rate target and
overtly reassured investors that it would maintain the accommodative monetary
policy well into an economic recovery, as deflation is more of a concern than
inflation. Against this backdrop, Dexion Absolute gained 0.26% in August and is
now up 7.26% year to date.


Distressed securities was again the largest contributor to profits for the
month. The narrowing of high-yield credit spreads and positive developments in
specific investments led to the gains. For example, a large U.S. insurance
conglomerate cleared the final hurdle for its bankruptcy plan thereby lifting
the value of existing debt. In addition investments in the energy sector
improved as one firm reached a tentative agreement with the government regarding
its participation in the California energy crisis. Our equity strategies
managers generated solid gains as strong second quarter earnings and the
prospects for an economic recovery propelled stocks in their portfolios such as
an information technology research and consulting firm which appreciated on good
reported earnings, and the stock of a medical devices firm improved following
the announcement of a large dividend increase and a share repurchase program.
The tactical trading strategy was positive for the month. One manager posted
gains in fixed income trades based on expectations of a continued back-up in
U.S. Treasuries from reflationary economic pressures. Long positions in grains
and precious metals also contributed to the gains. Dexion's opportunistic
strategy was up for the month, boosted by special situation equity trades. One
manager saw gains in an equity restructuring trade in a Swiss surveying
equipment manufacturer. This manager also witnessed gains in an equity arbitrage
position in a Portuguese telecommunications firm and a holding company trade in
an Italian manufacturing company. The event-driven strategy generated profits
primarily from gains in credit-related investments, including appreciation of
the debt of a technology services and equipment leasing firm due to the
announced sale of the firm's information technology leasing unit. The relative
value arbitrage strategy was flat in August as convertible bond arbitrage
returns continued to be pressured by oversupply and further declines in equity
volatility, adversely impacting the value of these convertible bonds' embedded
call options. Relative value equity investments, including stub and spin-off
trades, helped to mitigate the drawdown from convertible bond arbitrage.
Dexion's hedged equities strategy was marginally negative for the month with
mixed performances from our sector specialists. A European manager had strong
performance from a long position in a Danish provider of security and safety
services. The stock of a Dutch office products distributor with a large U.S.
presence also appreciated, driven by expectations of a U.S. economic recovery.
On the downside, our technology and healthcare sector experts struggled,
contributing to losses for the strategy. The short selling strategy was down for
the month with our managers continuing to struggle in the rising equity markets.


      Strategy          Allocation       Number of         Performance attribution %
                                         managers
                                                           August              YTD
Distressed                  18%              4             2.89%             39.36%
Equity strategies           5%               2             3.31%             11.25%
Hedged equities             32%             12             -0.17%             7.31%
Event driven                2%               1             0.42%              9.46%
Opportunistic               14%              5             0.46%              6.88%
Relative value              13%              5             0.03%              5.58%
Short selling               10%              7             -4.45%            -22.29%
Tactical trading            7%               3             1.15%             12.51%


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


Outlook

The emerging picture of an improving economy should provide a favorable backdrop
for many of our managers. Recent economic data show that inflation may be edging
higher, potentially forcing the Fed to raise interest rates sooner than expected
and providing opportunities for our tactical trading managers. The convertible
market has rebounded since August which has benefited several of our
multi-strategy relative value managers









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