RNS Number:7331T
Dexion Absolute Limited
30 December 2003

Dexion Absolute Limited ("the Company")


November Net Asset Value


The net asset value per ordinary share as of 30 November was 108.04pence.


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 40 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


Equity markets appreciated modestly in November, as investor enthusiasm for the
upbeat economic and corporate data was mollified by the continued weakness in
the US dollar and the resulting decline in foreign investment, together with an
interest rate rise in the UK. In the US Treasury market, accommodative messages
by various Federal Reserve Governors resulted in an early month rally, while in
the corporate debt market, credit spreads narrowed on the back of the
aforementioned economic and corporate data.


Dexion Absolute gained 0.31% and is now up 9.97% year to date.


Five out of Dexion Absolute's eight strategies were profitable in November.
Distressed securities continued its excellent performance with all managers
registering gains. Long debt positions in several sectors, especially energy,
contributed to the profits. Some managers benefited from gains in the securities
of a cable provider, which demonstrated operational improvements and progress in
its bankruptcy reorganization process. Investments in an insurance company, an
operator of healthcare facilities, and a wireless communications firm also
contributed to performance. Relative value managers all posted profits as they
benefited from gains in most segments of their multi-strategy portfolios. U.S.
convertible bond arbitrage produced modest gains, fuelled by tightening credit
spreads, positive equity returns, and an increase in equity volatility. Japanese
convertible bond arbitrage continued to perform well with plenty of equity
volatility, especially in the financial sector, providing ample gamma trading
opportunities. In addition capital structure arbitrage, merger arbitrage, and
statistical arbitrage produced gains for several managers. Dexion Absolute's
opportunistic strategy benefited from positive performance in several
restructuring and special situation equity trades. A restructuring position in a
UK utility experienced gains following a dividend increase and an announcement
of asset sales to fund a share repurchase program and long positions in a Dutch
retailer and a European directory services firm outperformed short baskets of
their peers. On the downside, one emerging markets specialists experienced
losses with long positions in Turkish equities declining following recent
terrorist attacks and long positions in Russian debt negatively impacted by the
arrest and resignation of the CEO of oil firm Yukos. Tactical trading posted
gains with equity trading responsible for the majority of the appreciation. One
manager benefited from the continued rally in the U.S. and Latin American equity
markets and exposure to U.S. retail stocks which surged based on strong
anticipated holiday sales and Brazilian equities which strengthened due to an
improving economic environment. Currency trading, especially positions short the
dollar which fell to an all-time low against the euro, and precious metals
trading also contributed to the gains. Dexion Absolute's event-driven strategy
was positive for the month with gains primarily in distressed credits whilst our
equity strategies component declined slightly as our managers' portfolios were
negatively impacted by positions in the healthcare sector. The hedged equities
strategy was down for the month with losses from several of our sector
specialists. On the positive side, a manager focussed on UK-based companies
experienced a strong month with long positions in two tenanted pub companies
appreciating following strong earnings and acquisition announcements. A core
position in a leading football club was disposed of after takeover speculation
quickly ran the stock price up to the manager's target valuation. Finally, the
short selling strategy posted a loss for the month.








                                    Strategy


                                   Allocation


                               Number of managers


                          Performance attribution %








                                    November


                                      YTD


                                   Distressed


                                      19%


                                       5


                                      2.59


                                     57.68


                               Equity strategies


                                       5%


                                       2


                                     -0.03


                                     13.20


                                Hedged equities


                                      33%


                                       13


                                     -0.21


                                      9.09


                                  Event driven


                                       1%


                                       1


                                      0.64


                                     12.14


                                 Opportunistic


                                      13%


                                       5


                                      0.19


                                      6.98


                                 Relative value


                                      12%


                                       5


                                      0.93


                                      9.63


                                 Short selling


                                      10%


                                       7


                                     -2.03


                                     -28.34


                                Tactical trading


                                       7%


                                       3


                                      0.19


                                     16.83


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


Outlook


Given the low risks of inflation, the Federal Reserve decided to leave interest
rates unchanged at its December meeting. Although it may be closer to raising
rates than before the meeting, its plans to leave rates unchanged for a '
considerable period' are likely to provide a continued stimulus for the markets.


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
END

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