Final NAV 31 August 2007

RNS Number:6594E
Dexion Trading Limited
27 September 2007

Dexion Trading Limited ("the Company")

August Net Asset Value

The net asset value per # share as of 31 August 2007 was 114.53 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 6 of the Company's 18 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 -2.16% in August (ytd +5.33%).

August proved to be a volatile month as the sub-prime crisis spread into 'safe
haven' investments following revelations that a number of European banks had
sub-prime mortgage exposure in structured products and money market funds. Debt
and equity markets sold-off sharply, the commercial paper market dried up and
overnight deposit rates surged. Proprietary traders and hedge funds de-levered
substantially in the first two weeks of the month, leading to a sharp
appreciation in the Yen and a short squeeze rally in speculative growth names.
The S&P 500 index fell by almost -10% (from its July peak) and the VIX increased
as demand for index puts heightened. Central banks moved swiftly to contain the
crisis and the Fed cut the discount rate from 6.25% to 5.75%. This caused a
relief rally in the second half of August in which the S&P 500 gained +1.5%, but
European and Japanese equity markets failed to recover as well. In fixed income
markets, 2-year yields fell globally in anticipation of additional rate cuts.
The US and European yield curves steepened and the Japanese curve flattened in
the 2-10 year segment. In commodity markets, the main story was the weakness in
the price of oil, which fell -5.3% due to the prospect of slowing global demand
and the fact that the hurricane season has so far had negligible impact on oil
production.

Performance in August was disappointing with all but two managers ending the
month in negative territory. The main contributor to positive returns was the
strong performance from our idiosyncratic (short-term Systematic) manager. For
other Systematic managers in the portfolio the majority of the losses came from
the unwinding of the Yen carry trade. Equity exposure also detracted whilst long
positions in US treasury contracts benefited from the flight to quality. Foreign
exchange was the worst performing sector for the second consecutive month. The
Yen continued to rally strongly against all major currencies and some managers
reduced their short Yen positions, while others reversed their Yen positions
altogether. Losses were also incurred on the back of the movements of the US
Dollar against many other currencies, including Australian and New Zealand
Dollars, Sterling and Euros. These positions were subsequently reduced or closed
out. The fixed income markets exhibited sharp reversals and long-term technical
managers were able to profit from the rally in the US yield curve, particularly
in the 5-10 year segment. Initial short positions in European debt were reduced
and some of the Systematic managers switched to the long side. In commodities,
the long-term technical managers lost money on long exposure in crude oil but
profited from shorts in natural gas positions. Metals also proved difficult and
long positions were mostly reduced or reversed. In grains, long positions in
wheat were profitable. In equities, some managers reduced their position sizes
significantly and even switched to being net short equities. For Discretionary
managers, fixed income provided mixed results. Short US, UK and Euro-zone fixed
income positions detracted from profits in the flight to quality rally. Notable
losses came from short exposure held via default swaps on credit indices.
Emerging markets exposure was mainly held in sovereign debt which also lost
money, in particularly, long debt positions in Turkey, Brazil and Argentina
hurt. Short positions in US equities and long positions in Japanese equities
were the biggest detractors from performance for Discretionary traders. FX
exposure was minimal for the Discretionary managers. Thematic trades have been
significantly reduced or completely wound down. Tactical trades in the Yen,
Swiss Franc and Euro were profitable but did not significantly impact portfolio
performance. Asian currency trades detracted from profits for the most part. In
the commodity space, the strong rally in wheat and the decline in crude oil hurt
managers. In agriculturals, long corn and short wheat positions also detracted
from performance. The Relative Value manager also posted negative returns for
the month closing down - 3.51%.

Strategy Allocation as Number of Performance by Strategy
of 1 Funds as of 1
September September %

%
August YTD
Directional - Discretionary and RV Macro 36 7 -2.17 6.86
Directional - Systematic Trading 34 7 -1.75 8.91
Multi-Process 10 3 -6.78 4.99
Relative Value Arbitrage 5 1 -3.51 2.35
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

Risk has been reduced across all of our managers. The consensus view for our
Discretionary managers continues to be cautiously bullish as fundamentals have
not changed. Rolling twenty-day correlations between our long-term technical
managers have however fallen sharply and this augurs well for the sector. Equity
exposures are also extremely low in aggregate and this improves the
diversification benefit of holding these managers.

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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