Final NAV 31 July 2007

RNS Number:0366D
Dexion Trading Limited
30 August 2007

Dexion Trading Limited ("the Company")

July Net Asset Value

The net asset value per # share as of 31 July 2007 was 117.06 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 20 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 +0.95% in July (ytd +7.66%).

The first three weeks of July saw global equity markets reach all time highs
despite on-going pressure in the credit markets. Equity markets began on a
strong note with the S&P 500 gaining +3.5% and emerging market equities,
measured by the MSCI EM (LC), rallying by +8%. Sentiment changed rapidly in the
final week of the month as concerns over sub-prime mortgage exposure in the
European financial sector soured sentiment. Investment banks faced the prospect
of having to underwrite a $300bn pipeline of announced deals that they could not
sell, forcing them to de-leverage from other areas. This caused spreads on
leveraged loans to widen and also led to extremely negative sentiment towards
the bank debt market. Demand for highly leveraged CDOs also stalled and spreads
in synthetic indices widened dramatically. Fears of a global credit squeeze
resulted in a classic "flight to quality" and US, European and Japanese fixed
income markets strengthened in the 2-10 year segment as investors sought refuge
in safe haven assets. Equity markets sold down heavily ending the month in
negative territory in all regions with the exception of Asia. The VIX surged to
23.5% as investors bought puts and merger spreads widened to reflect increased
uncertainty over deal financing. The Yen rallied by +3.7% against the US Dollar
as carry trades were unwound.

In July, the portfolio coped extremely well considering the turmoil in the
markets and closed, for the fourth consecutive month, in positive territory. The
main positive contributor to the return was the strong performance from our
idiosyncratic (short-term systematic) manager. Gains were derived from the
increased market volatility which led to a very favourable opportunity set for
the manager. The remaining Systematic managers were negatively impacted in the
second part of the month by strong reversals in previously established trends.
Those reversals offset losses generated in the first part of July, with short
Yen, long equities and short European fixed income producing the largest losses.
Long positions in Australian Dollar, New Zealand Dollar and Canadian Dollar
against the US Dollar and Yen also negatively impacted managers in the second
half of July. Systematic managers also struggled in fixed income markets and
long positions in European debt were hurt the most. Commodities was the only
positive sector, with energies, the best performing sub-sector, gaining from
long crude oil and short natural gas positions. Finally, the equity sector was
negative for the second consecutive month, with gains in Asian markets, notably
long positions in Hong Kong, Taiwan and South Korea markets, offset by losses in
European and US equities. Our emerging markets dedicated managers had mixed
results with one manager posting almost double digit returns and another only
slightly up on the month. Profits from long positions in Turkish bonds,
Brazilian Real and Taiwan Dollar interest rate swaps offset losses derived from
long Brazilian fixed income, short US Treasuries and Bunds. Discretionary and RV
Macro traders posted mixed results. Long positions in the Nikkei, US and
European equity indices were notable losers. In fixed income, managers also had
mixed results in both emerging and developed markets. Long Brazilian rates
positions in sovereign debt and inflation-linked debt further out on the curve
detracted from profits, as did Long Turkish rates. Short US corporate credit
positions were very profitable on the month. Commodity exposure continued to
remain minimal across our Discretionary managers; however, our commodity
dedicated manager posted good performance with commodity-related equities being
the biggest contributor to gains. Other positive sub-sectors were energy,
grains, livestock and oil seeds; detractors from performance were softs and
metals. The Relative Value manager struggled to cope with the increase in
volatility and decrease in liquidity and closed the month in negative territory.

Strategy Allocation as Number of Performance by Strategy
of 1 August Funds as of 1
August %
%
July YTD
Directional - Discretionary and RV Macro 36 7 1.59 9.23
Directional - Systematic Trading 34 7 1.21 10.85
Multi-Process 10 3 2.26 12.63
Relative Value Arbitrage 5 1 -2.81 6.08
Cash 15 - - -
Total 100 18

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

Outlook

The general outlook continues to be cautiously bullish as volatility is on the
rise and market dislocations more likely. However, credit market jitters
continue to be watched carefully, as well as the possibility of contagion into
emerging markets. In August, we will most likely continue to see increased
volatility and our managers are defensively poised, hoping to increase risk
levels opportunistically.

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
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