TIDMDTL
RNS Number : 5236F
Dexion Trading Limited
15 June 2012
Dexion Trading Limited ("the Company")
May Net Asset Value
The net asset value of the Company's Shares as of 31 May 2012 is
as follows:-
GBP Shares
NAV MTD Performance YTD Performance
-------------- ---------------- ----------------
133.46 pence -0.76% -0.31%
-------------- ---------------- ----------------
In calculating the Company's Net Asset Value the Company's
Administrator will rely solely upon the valuation of GBP
denominated Permal Macro Holdings Limited ("PMH") Class A shares
provided by PMH. The Investment Adviser and third party service
providers to PMH, rely on estimates of the value of Underlying
Funds in which PMH invests, which are provided, directly or
indirectly, by the managers or administrators of those Underlying
Funds and such valuations may not be considered 'independent' or
may be subject to potential conflicts of interest. Such estimates
may be produced as at valuation dates which do not coincide with
valuation dates for PMH and may be unaudited or may be subject to
little verification or other due diligence and may not comply with
generally accepted accounting practices or other valuation
principles. The Investment Adviser may not have sufficient
information to confirm or review the completeness or accuracy of
information provided by those managers or administrators. In
addition, these entities may not provide estimates of the value of
Underlying Funds in which PMH invests on a regular or timely basis
or at all with the result that the values of such investments may
be estimated by the Investment Adviser. Both weekly estimates and
bi-monthly valuations may be based on valuations provided as of a
significantly earlier date and hence the published valuation may
differ materially from the actual value of PMH's portfolio. Other
risk factors which may be relevant to this valuation are set out in
the Company's prospectus dated 12th March 2008.
Monthly Portfolio Review
Investment Adviser Portfolio Outlook
Discretionary managers maintain their belief that the US will
continue to outperform relative to the rest of the developed world.
Those with a more constructive stance feel that the recovery is
more self-sustaining than people expect, while those who are more
cautious feel that much of the first quarter's strong performance
has been a misrepresentation of trend-growth and was in fact driven
by seasonal patterns, compounded by the favourable weather in the
US. There is a high degree of pessimism regarding the European
situation where Spain is starting to resemble Greece with problems
in its banking sector, and a general lack of agreement between the
Spaniards and the Germans, proves worrisome. With the Spanish
economy being roughly five times the size of the Greek economy,
should the Spanish situation deteriorate much further then we could
be facing a very serious European crisis. While a long-term
solution may be reached whereby Spanish banks are re-capitalised
and some form of fiscal unification is approved, in the short term
the situation remains dire and volatile. Within emerging markets,
China is experiencing a dramatic slowdown; however, it has many
policy tools which it will deploy if needed. While the US
outperformance theme continues to dominate the majority of risk
taking within the discretionary allocation, managers have been
trading their books much more actively than earlier this year. Some
of the more bullish managers have now become more defensive given
the deteriorating outlook in Europe, with a number believing that
strong US performance may start to fade in the second half of the
year. A smaller subset of the discretionary managers remains
bearish, but they are looking to participate in short-term rallies
prompted by positive news, such as speculation surrounding further
quantitative easing.
Market Overview
The European situation continued to deteriorate through much of
May. Political events, notably the failure of Greek elections to
produce a government, as well as the election of a socialist
President in France, prompted concerns about the future of the
euro. Towards the end of the month the focus turned to Spain's
ailing banking sector with the Spanish government forced to step in
to support Bankia and taking a 45% indirect stake. In the US,
economic data weakened with job growth slowing more than expected
and a downward revision to first quarter GDP figures. On a relative
basis, however, the US continued to impress when compared with the
rest of the developed world. Chinese data weakened with lower
industrial production and retail sales.
Global equity prices fell sharply through the first half of the
month, with concerns surrounding the eurozone encouraging investors
to flee risk assets. Losses were marginally offset in the second
half of the month on the back of positive US home sales figures and
reports that China may take steps to boost its economy. Asian
equities were among the hardest hit during the month, with the
Nikkei 225 falling by more than 10% and Hang Seng dropping 12.6%
amid weaker Chinese data. Optimism on the US recovery is expressed
via long S&P futures and other sectors of the economy that
stand to benefit from a strong US consumer; however, on a global
basis, positioning is tactically short as further risk aversion is
likely, given the ongoing situation in Europe.
Many government bond yields reached record lows as risk aversion
dominated markets. US, German, and UK 10-year bond yields all ended
lower due to Europe's mounting political uncertainty and the
increased backlash against fiscal austerity. Peripheral European
sovereign spreads continued to widen in May. The most pronounced
widening was in Greek bonds, driven by the failure to form a
government and the rise of the Syriza party with its anti-austerity
plans. Although some managers continue to hold short exposure in US
treasuries, believing in a continuation of the US recovery story,
others have adopted long exposures due to the heightened global
growth slowdown concerns. They are conveying their pessimism
towards Europe via long positions in German government bonds.
Emerging market focused managers continue to express the "lower for
longer" theme through long exposure to Brazilian and Mexican
government bonds.
The US dollar was significantly stronger against most developed
market counterparts during the month, with the exception being the
Japanese yen, which ended the month 1.9% higher. The threat of a
Greek exit, growing issues in Spain, and a large drop in eurozone
economic activity kept the euro under pressure throughout May, with
the currency ultimately ending down 6.6% against the dollar.
Emerging market currencies suffered amid the indiscriminate
sell-off in risk assets, with the Mexican peso and New Zealand
dollar facing some of the sharpest losses, declining 9.5% and 7.9%
respectively against the US dollar. Most managers continue to
exhibit a pro-US bias, with long positions in the US dollar,
Canadian dollar and, to a lesser extent, Mexican peso. Their bias
is to be short the euro given the disconcerting European situation
and short the Australian dollar given the concerns surrounding
Chinese slowdown concerns. On the back of improving fundamentals,
emerging market focused managers hold long exposures to emerging
market currencies, such as the Mexican peso, as well as non-Japan
Asian currencies, including the Korean won and the Malaysian
ringgit.
The natural resources sector experienced a significant downturn
in May, with underlying commodity markets and commodity-related
equities falling for a third consecutive month, capping the largest
monthly slump since 2008. The energy sector declined sharply. Brent
crude oil prices finished down 14.7%, the result of not only
Europe's debt crisis and weaker global economic data but also
record Saudi Arabian oil production (the highest level for at least
23 years) and news that Iran had agreed to let Western nuclear
inspectors into the country, thus easing political concerns in the
region. US natural gas prices saw significant advances during the
first half of May on news of a smaller than forecast increase in US
stockpiles, but fell later in the month due to cooler temperatures
throughout the US, ending up 6% for the month. Industrial metal
prices sold off significantly, while gold prices fell for a fourth
month in a row. Precious metal related equities experienced a sharp
fall with many producers reporting larger-than-expected increases
in capital spending. Agricultural commodities also sold off heavily
on the back of global growth concerns. Commodity exposure is
relatively low and is expressed primarily through relative-value
trades in the energy and agricultural sectors.
Strategy Overview
Discretionary: -1.30%. Although many managers have shifted to a
defensive/risk-off stance over the past few months, several have
maintained more pro-risk positions. Those who remained with the
risk-on trade suffered in May from long equity positions in both
developed and emerging markets, as well as long positions in
emerging market currencies. These losses diluted gains from
managers who were more bearish and had short positions in the euro
and Australian dollar, as well as long fixed income in the US,
Germany and some emerging markets, such as Brazil.
Systematic: +2.75%. After a difficult start to the month, the
trend-followers performed particularly well in May, with gains
primarily resulting from long exposure to US treasuries. These
gains more than offset the losses from long positions in energy and
equities. Non-trend following managers also performed well, with
gains deriving from long positions in US and German bonds and short
positions in the euro.
Natural Resources: -7.63%.The losses were widespread across
various sectors, with the largest declines coming from long
positions in gold equities and oil.
Relative Value Arbitrage: -1.66%.Losses in this sub-strategy
came primarily from fundamental-focused managers, where long
positions declined more than short ones.
Number of
Allocation Managers as
as of 31 May of Performance by
Strategy % 31 May Strategy %
-------------------------- -------------- ------------- -----------------
May YTD
-------------------------- -------------- ------------- -------- -------
Discretionary(1) 53 21 -1.30 +1.41
-------------------------- -------------- ------------- -------- -------
Natural Resources 8 10 -7.63 -5.22
-------------------------- -------------- ------------- -------- -------
Relative Value Arbitrage 5 3 -1.66 -0.44
-------------------------- -------------- ------------- -------- -------
Systematic(1) 29 12 +2.75 +0.77
-------------------------- -------------- ------------- -------- -------
Cash 5 - - -
-------------------------- -------------- ------------- -------- -------
Total 100 45(1)
-------------------------- -------------- ------------- -------- -------
(1) Discretionary and Systematic have one manager in common.
Strategy returns are in US$, net of underlying manager fees
only, and not inclusive of either Dexion Trading's or PMH's fees
and expenses.
Supplementary Information
Click on, or paste the following link into your web browser, to
view a full review of the Dexion Trading Limited portfolio.
http://www.rns-pdf.londonstockexchange.com/rns/5236F_-2012-6-15.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Dexion Trading (LSE:DTL)
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から 6 2024 まで 7 2024
Dexion Trading (LSE:DTL)
過去 株価チャート
から 7 2023 まで 7 2024
