Final NAV 29Dec2006

RNS Number:8231Q
Dexion Trading Limited
06 February 2007

Dexion Trading Limited ("the Company")

December Net Asset Value

The net asset value per # share as of 29 December 2006 was 108.73 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 5 of the Company's 19 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.

Manager's Report

Performance Review

Dexion Trading returned +1.95% in December (ytd +5.38%).

December proved to be a month in which equity and bond markets took a very
different perspective on the outlook for inflation and corporate profits.
Equity markets reacted positively to another sharp fall in the price of oil,
which occurred despite attempts by OPEC to stabilise prices with more production
cuts. Natural gas prices also fell sharply as the US East coast enjoyed an
unseasonably warm December. Weakening energy prices also helped the US Dollar
rally by 2.8% against the Yen as the US trade deficit shrank to USD65B, its
lowest level in almost 18 months.  Japanese equities rallied strongly as the Yen
weakened to a record low against the Euro helping both exporters and Yen carry
traders. European equities benefited from high levels of corporate activity
whereas US Dollar strength and housing market concerns held back the US market.
Currency markets focussed on rate differentials once again as both the New
Zealand Dollar and the South African Rand rallied by more than 2% against an
already strong US Dollar. Bond markets however took a more pessimistic view on
inflation as strong US employment and payroll data coupled with a pessimistic
labour market outlook from the Japanese Tankan survey and the ECB governor Mr
Trichet suggested that central banks might have to tighten more aggressively to
control wage inflation. G3 bond markets sold off aggressively across the curve
with 10-year rates generally being sold down more than 2-year rates. Emerging
(EM) debt indices showed that investors in risk assets were still taking their
cues from equity markets as EM spreads at 179bp reached their lowest levels of
the year helped by strong reserve accumulation and debt retirement in Latin
America.

All strategies contributed positively to performance bar Short-term Systematic
Trading which cost -69bp, largely due to reversals in major currency and bond
markets in early December. The main contributor to performance came from
Long-term Systematic Trading which added +133bp, with managers benefiting from
the global equity market rally, particularly in Japan, negative trends in energy
markets and Yen weakness.  The average December return for these funds was
+5.5%.  Discretionary Trading managers also posted positive returns, fuelled by
December's liquidity driven rally in risky assets.  In addition to long
developed and emerging market equity trades, returns were driven by long
positions in emerging market currencies, particularly in Asia, and selected
emerging market local debt markets, such as Argentina, Brazil and Indonesia.
Another positive was the interest rate outlook in the US, where projected
monetary easing was partially priced in. Returns on average for Discretionary
Trading managers were +2.5% making a gross positive contribution of +114bp.
Strong equity markets, a high level M&A/LBO activity and a generally credit
friendly environment helped other hedge fund strategies to perform well.
Investors' renewed enthusiasm for value metrics helped statistical arbitrage
managers generate above average returns, which, coupled with good numbers from
volatility (convertible) and event strategies, enabled Relative Value Arbitrage
to add around +25bp to gross performance.

Strategy                                  Allocation as   Number of        Performance 
                                          of 1 January  Funds as of 1      by Strategy
                                                %          January              %
                                                
                                                                        December       YTD
Directional - Discretionary and RV Macro       46             9           2.47        5.28
Directional - Systematic Trading               34             8           1.82        9.73
Multi-Process                                  10             3           3.99        18.39
Relative Value Arbitrage                       10             2           2.44        21.38
Total                                          100           22

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

Outlook

Aggregate risk levels were above average during the month of December; however,
they have now been pared back to more normal levels. Some of the risk reduction
came in advance of January's volatility in risky assets but it was also
partially in reaction to it. The fact that risk levels have not decreased
further reflects the consensus view that early January was nothing more than a
small correction and we may see another increase in risk asset prices.

Ten Largest Investments

Listing Rule 15.4.11R(2) requires an investment company to notify to a
Regulatory Information Service, within two business days of the end of each
quarter, a list of all investments with a value greater than 5% of the company's
gross assets and at least the 10 largest investments as at the last business day
of that quarter. As set out in the Company's prospectus dated 9 November 2004,
in normal circumstances, the final month-end net asset value of the Company is
calculated and announced through a Regulatory Information Service approximately
28 calendar days following the month-end. Accordingly, the Company will provide
the information required by Listing Rule 15.4.11R(2) on a quarterly basis at the
same time as it releases its month-end final net asset value.

The ten largest investments of the Company as at 29 December 2006 were as
follows:

Name of Investment                             Strategy                         Market Value   % of net
                                                                                     #          assets
                                                                                     
FRM Sigma Fund Limited                         Directional Trading -             15,078,309      16.71
                                               Systematic Trading
Brevan Howard Fund Limited                     Directional - Discretionary       7,781,670       8.62
                                               and RV Macro
GLG Emerging Markets Fund                      Directional - Discretionary       6,375,163       7.06
                                               and RV Macro
Bluecrest Strategic Fund Limited               Directional - Discretionary       6,284,926       6.96
                                               and RV Macro
DE Shaw Composite International Fund           Multi-Process                     5,553,213       6.15
Mangart Global Fund Limited                    Directional - Discretionary       4,923,082       5.46
                                               and RV Macro
Pharo Macro Fund Limited                       Directional - Discretionary       4,611,777       5.11
                                               and RV Macro
Polygon Global Opps                            Relative Value Arbitrage          4,516,198       5.00
JMG Triton Offshore                            Relative Value Arbitrage          4,353,630       4.82
Drawbridge Global Macro                        Directional - Discretionary       4,258,770       4.72
                                               and RV Macro

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. The
Company does not invest in other UK listed investment companies (including UK
listed investment trusts).

Voting Rights and Capital

The Company's capital consists of 83,000,000 ordinary shares with voting rights.
Therefore, the total number of voting rights in the Company is 83,000,000.

The above figure (83,000,000) may be used by shareholders as the denominator for
the calculations by which they will determine if they are required to notify
their interest in, or a change to their interest in the Company under the FSA's
Disclosure and Transparency Rules.


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

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