September Net Asset Value

RNS Number:6884G
Dexion Trading Limited
31 October 2007



Dexion Trading Limited ("the Company")

September Net Asset Value

The net asset value per # share as of 28 September 2007 was 118.34 pence (1).


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 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.

(1) FRM Investment Management Limited ceased to act as the Company's Sub-Manager
on 30 September 2007.  The Company became a feeder fund of Permal FX, Financials
& Futures Ltd ("Permal FX") as of 1 October 2007.


Manager's Report


Performance Review


Dexion Trading returned +3.33% in September (ytd +8.84%).


September saw the first run on a British bank in over 30 years as Northern Rock
failed to finance its loan book due to a collapse in the inter-bank lending
market. The independence of Central Banks was called into question as the
governor of the Bank of England, Mervyn King, having criticised the "Greenspan
Put" mentality in the US, offered to underwrite deposits at Northern Rock. His
counterpart in the US, Ben Bernanke, cut interest rates by a full 50bp making
this the largest liquidity injection since 9/11 2001. The Fed rate cut exceeded
most investors' expectations and all major equity indices ended the month in
positive territory. Overall, the most speculative markets enjoyed the strongest
returns: the NASDAQ rallied by +4%, and the MSCI Emerging Markets (LC) Index
rallied by +8.2%, fuelled by a +10.3% rally in Asian equities. Credit indices
rallied across the board and the Lehman High Yield Index enjoyed its strongest
month in four years. Synthetic credit curves flattened as crossover and high
yield indices outperformed investment grade indices. Yield curves steepened
globally in reaction to the inflationary implications of the liquidity
injection, the price of oil surged by +10% to reach US$82 per barrel. The gold
price rallied sharply to US$743 per ounce and the US Dollar weakened against the
Euro to reach an all time lows. Popular carry trade currencies such as the
Canadian, Australian and New Zealand Dollars and the Turkish Lira benefited from
the US Dollar weakness.



September was a record month for the Dexion Trading portfolio. All but two
managers ended the month in strongly positive territory. The allocation to
Systematic managers produced the bulk of the gains for the portfolio as trends
and volatility picked up after the Fed Funds rate was cut. Our Systematic
managers derived the majority of their gains from long commodity positions,
especially in energy, grains and precious metals, as well as short US Dollar
positions versus the Canadian Dollar, the Euro and Sterling and various other
cross-currency trades. Exposure to the Yen was low compared to large short
positions seen earlier this year. Overall performance for our Systematic
managers in fixed income remained muted as positions at the front end of the US
curve were profitable. However, trading in the German and UK curves proved to be
more challenging. The largest losses were from short positions in short duration
Sterling rates. Long positions in Eurodollar and the US 2-year Treasury were the
best performers in the fixed income sector. Overall, managers held long
bias-biased positions along the US curve but positioning along the European
curves remained mixed with no distinct long or short biases. Commodities were
the biggest contributor to performance for Systematic managers. Long positions
in crude and refined products were responsible for the majority of the gains.
Managers derived other positives from exposure to the wheat and soybean markets,
which both rallied strongly. Long positions in precious metals, built up during
the month, were also profitable. Negatives came from small losses that were
recorded in softs exposure, especially from short sugar positions. The equity
sector was also a positive contributor as managers built their long positions
during the month. All Discretionary managers were positive contributors to the
portfolio, with fixed income and equities producing the majority of the returns.
 FX also added to performance, but to a lesser extent. Outright long positions
at the front-end of the US curve were profitable for most of our managers. Other
gains came from emerging markets exposure with Argentinean and Brazilian fixed
income positions rallying strongly. In equities, the majority of the gains came
from non-Japan Asia indices and baskets of stocks. Notable winners were long
exposures in South Korea, Hong Kong and Taiwan equity markets. (Source: FRM
Investment Management Limited)


Strategy                                  Allocation as   Number of   Performance by Strategy
                                              of 28      Funds as of
                                            September   28 September  %

                                                %
                                                                        September      YTD
Directional - Discretionary and RV Macro       36             8           4.44        11.60
Directional - Systematic Trading               34             7           6.51        16.01
Multi-Process                                  10             3           -0.21       4.77
Relative Value Arbitrage                        5             1           -1.38       0.94
Cash                                           15             -             -           -
Total                                          100           19



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



Outlook



After the Fed action in September, it appears that the global reflation trade is
still on for many macro managers. Emerging markets and natural resource
exposures continue to be profitable and the steepening of yield curves globally
offers attractive trading opportunities. US Dollar weakness remains an important
theme among the managers although some of the views on USD/EUR are changing. The
global reflation trade will come into question if global central bank
intervention fails to offset the continuing fall-out from the credit crunch and/
or the BRIC and other major economies cannot decouple from the US. Visibility on
these is still limited but we expect good trading opportunities for macro
managers in either scenario. (Source: Permal Investment Management Services
Limited)



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
total 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 28 September 2007 were as
follows:


Name of Investment                             Strategy                         Market Value   % of net
                                                                                     #           assets
                                                                                     
FRM Sigma Fund Limited                         Directional Trading -             14,507,658      14.77
                                               Systematic Trading
Crabel Fund Limited                            Directional Trading -             10,112,752      10.30
                                               Systematic Trading
GLG Emerging Markets Fund                      Directional - Discretionary       7,646,039       7.78
                                               and RV Macro
DE Shaw Composite International Fund           Multi-Process                     5,081,942       5.17
Brevan Howard Fund Limited                     Directional - Discretionary       5,054,683       5.15
                                               and RV Macro
Mangart Global Fund Limited                    Directional - Discretionary       4,820,586       4.91
                                               and RV Macro
Tyticus Overseas Partners Limited              Directional - Discretionary       4,657,838       4.74
                                               and RV Macro
Polygon Global Opportunities Fund              Relative Value Arbitrage          4,512,763       4.59
Drawbridge Global Macro                        Directional - Discretionary       4,399,519       4.48
                                               and RV Macro
Moore Global Fixed Income Fund Limited         Directional - Discretionary       3,803,652       3.87
                                               and RV Macro



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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