RNS Number:4581R
Dexion Absolute Limited
29 October 2003

Dexion Absolute Limited ("the Company")

September Net Asset Value

The net asset value per ordinary share as of 30 September 2003 was 106.94 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

After six consecutive positive months, equity markets ran out of steam in
September. Despite the Federal Reserve's decision to maintain rates at 1%, a
number of factors caused investor enthusiasm to wane, including the dollar's
continued slide as a result of comments from the Dubai G-7 summit, disappointing
retail sales and consumer confidence data, and a rise in crude oil prices
following OPEC's decision to reduce output. Not surprisingly, the fixed income
markets benefited from the above factors.

Dexion Absolute gained 1.48% in September and is now up 8.84% year to date.

Seven of Dexion Absolute's eight strategies were profitable for September. The
distressed securities strategy maintained its leadership place in the portfolio,
as several positions successfully reached significant bankruptcy milestones,
resulting in renewed confidence in the companies concerned and appreciation in
their securities. The biggest winner was a large insurance conglomerate, which
emerged from bankruptcy in September and exchanged its old debt obligations for
newly-issued common and preferred stock. September was also a strong month for
multi-strategy relative value arbitrage managers as several strategies performed
well, especially convertible bond arbitrage. In U.S. convertible bond arbitrage,
the abundance of new bond issuance declined, allowing the supply imbalance to
subside and secondary market prices to appreciate. Increasing equity volatility
also aided profitability. Japanese and European convertible bond arbitrage were
successful due to increased equity volatility in Japan and several attractively
priced new issues in Europe. Tactical trading managers experienced a positive
month as they profited from the plunge of the dollar following the G-7 meeting
in Dubai and market perception that these countries' central banks would allow
further dollar depreciation. U.S. and European fixed-income trading, along with
successful commodities trading in the grain markets, added to these gains.
Dexion Absolute's short selling managers benefited from investors' declining
interest in more speculative stocks and recorded a positive month. Short
positions in retail and mortgage-related names performed well. The opportunistic
strategy posted another positive month with successful investments in value
equities, equity arbitrage, and emerging markets securities leading the way. In
equity arbitrage, a technology pairs trade proved successful as the long
position in a British mobile phone operator gained following strong operating
numbers and the announcement of a potential spin-off of its German operations.
Dexion Absolute's event-driven strategy benefited from gains in merger arbitrage
and distressed credits. For instance in merger arbitrage, Canadian-based Alcan
came to a definitive agreement to purchase Pechiney, its French- based rival in
the aluminium industry, resulting in gains for our manager. Equity strategies
managers were modestly profitable in September with slight gains in their
long-only portfolios. Another manager's core holding in a business
communications services company performed well as investors approved of the
company's purchase of a unit of another firm that gives it rights to key
electronic document delivery technology. Finally, Dexion Absolute's hedged
equities strategy was slightly down in September, with gains from our healthcare
specialist offset by losses from our technology and European managers.

 Strategy             Allocation    Number of managers             Performance attribution %  
     
                                                                 September              YTD    

Distressed               18%                4                      6.04%               47.77%  
Equity strategies        5%                 2                      0.31%               11.59%  
Hedged equities          32%               12                      -0.06%              7.26%   
Event driven             1%                 1                      1.41%               11.00%  
Opportunistic            14%                5                      0.66%               7.59%   
Relative value           13%                5                      1.64%               7.30%   
Short selling            10%                7                      1.34%              -21.25%  
Tactical trading         8%                 3                      2.69%               15.63%  


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

Outlook

With the U.S. pressing Japan and China to adopt a free-floating currency regime,
the resulting currency and fixed-income market volatility may present
interesting opportunities for tactical trading managers. Hedged equities
managers will also be evaluating the implications of a weaker dollar. In
addition, prospects are positive for convertible bond arbitrage as an uptick in
equity volatility coincident with a more moderate and fairly-priced primary
market will be quite welcome.

Investment Policy

The Company's investment policy is to invest in an actively managed portfolio of
hedge funds which is diversified by investment strategy, style and manager, to
achieve attractive risk adjusted returns with low correlation to equity and
fixed interest benchmarks. The Company does not invest in other UK listed
investment companies (including UK listed investment trusts).


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