NAVs 31JAN2011 (2209C)

TIDMDCL

RNS Number : 2209C

Dexion Commodities Limited

02 March 2011

Dexion Commodities Limited (the "Company")

January Net Asset Values

Ordinary Shares

The net asset values of the Company's Ordinary Shares as of 31 January 2011 are as follows:-

 
 Share Class        NAV       MTD Performance   YTD Performance 
-------------  ------------  ----------------  ---------------- 
 GBP Shares     98.56 pence       +0.24%            +0.24% 
-------------  ------------  ----------------  ---------------- 
 EUR Shares      EUR 1.1889       +0.24%            +0.24% 
-------------  ------------  ----------------  ---------------- 
 US$ Shares      US$ 1.6840       +0.23%            +0.23% 
-------------  ------------  ----------------  ---------------- 
 

Redeemed Shares

The net asset value of the Company's Redemption Portfolio was US$0.92M. This was attributed between Redeemed Share classes as follows:-

 
 Share Class   NAV per Redeemed 
                     Share 
------------  ----------------- 
 GBP Shares          US$ 0.0244 
------------  ----------------- 
 EUR Shares          US$ 0.0251 
------------  ----------------- 
 US$ Shares          US$ 0.0249 
------------  ----------------- 
 

These valuations, which have been prepared in good faith by the Company's administrator, are for information purposes only and are based on the unaudited estimated valuations supplied to the Company's investment adviser by the administrators or managers of the Company's underlying investments and such valuations may not be considered independent or may be subject to potential conflicts of interest. Both weekly manager estimates and monthly valuations may be produced as at valuation dates which do not co-incide with valuation dates for the Company, may be based on valuations provided as of a significantly earlier date, may differ materially from the actual value of the Company's portfolio and are unaudited or may be subject to little verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. The Company's investment adviser, investment manager and administrator may not have sufficient information to confirm or review the completeness or accuracy of information provided by those managers or administrators of the Company's investments. In addition, those entities may not provide estimates of the value of the underlying funds in which the Company 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 manager. In the case of 2 of the Company's 29 investments, where no such formal valuation has been received by today's date, an estimated valuation prepared by the Company's investment adviser or by the manager or administrator of the underlying funds has been used. Certain other risk factors which may be relevant to these valuations are set out in the Company's prospectus dated 10 March 2006.

Net asset values for Redeemed Shares include only those costs and expenses attributable to Redeemed Shares which have been accrued as at the relevant NAV date.

Monthly Portfolio Review

Investment Adviser Portfolio Outlook

The beginning of the year was rather subdued within the commodities sector. However, it soon recovered to finish the month on a similar note to that seen at the end of 2010, with strong global growth fuelling real asset demand and markets trending higher. Several factors combined to provide reasonable trading opportunities for commodity hedge funds. Political events in North Africa pushed many markets higher, notably oil, while WTI ("West Texas Intermediate") crude oil weakness versus other oil markets was a source of opportunity for spread trading managers. The Portfolio posted a modest gain in this environment, with the majority of managers managing to achieve profits.

Market Overview

Commodity Strategies:

Base Metals: -0.08%

Multi-strategy: +1.70%

Energy & Transportation: +1.03%

Agriculture & Livestock: -2.58%

As was the case in December, multi-strategy managers were the best performers as returns were generated across all markets, with the best contributions coming from the demand for base metals, the surge in oil prices and the ongoing strength within the agricultural sector. The strongest manager in this space profited across the board, particularly in cotton and oil-related trades. Another manager profited from long positions in oil, as well as precious metal holdings, while another notable performer added value through various base metal and agricultural positions. Energy and transportation managers had a strong month, with the shifts in oil price creating various opportunities to generate positive returns. Most oil markets hit post-crisis highs despite mid-month inventory increases as political tensions in North Africa raised supply fears. In addition, weakness in WTI crude oil, an increasingly isolated market driven by local rather than global supply/demand dynamics, generated relative value opportunities. Managers took advantage of this activity to extract alpha from both directional and spread trades. The Portfolio's base metals allocations were flat over the month, with positive performance from one manager's long holdings being offset by other managers' short positions. Carbon and emissions also ended January flat as CER ("Certified Emission Reduction") markets trended sideways. Small negative contributions came from the Portfolio's dedicated agricultural managers. Despite grains ending January with another positive return, heavy declines in implied volatility affected performance from these managers' options positions, which dragged returns into negative territory.

Environmental Strategies: -1.46%. The allocation to environmental strategies proved detrimental to performance over the month. Within equity strategies, a global water long/short fund posted a slight loss, with negative contributions coming primarily from long positions in global water utilities and one US infrastructure company. Within carbon strategies, the Portfolio's manager recorded a slight loss. Trading conditions proved challenging as carbon prices moved sideways during January, and market conditions were not helped by the suspension of carbon spot prices in Europe due to certain government registries being hacked.

Other Strategies*: +0.30%

Asian Opportunities: 0.00%

Healthcare Opportunities: 0.00%

Special Situations: -0.41%

Emerging Markets Macro: +0.62%

*Remaining strategies that are being wound down following the decision to re-profile the Company in July 2009.

 
                   Allocation as      Number of 
                   of 1 February       Funds as      Performance by Strategy 
 Strategy                %           of 1 February    % 
----------------  ---------------  ---------------  -------------------------- 
                                                        January         YTD 
----------------  ---------------  ---------------  --------------  ---------- 
 Base Metals            14.2              3              -0.08         -0.08 
----------------  ---------------  ---------------  --------------  ---------- 
 Multi-strategy         33.7              6              1.70          1.70 
----------------  ---------------  ---------------  --------------  ---------- 
 Energy & 
  Transportation        32.4              10             1.03          1.03 
----------------  ---------------  ---------------  --------------  ---------- 
 Agriculture & 
  Livestock             13.3              2              -2.58         -2.58 
----------------  ---------------  ---------------  --------------  ---------- 
 Environmental 
  Strategies            6.0               2              -1.46         -1.46 
----------------  ---------------  ---------------  --------------  ---------- 
 Other 
  Strategies*           0.4               6              0.30          0.30 
----------------  ---------------  ---------------  --------------  ---------- 
 Total                  100               29 
----------------  ---------------  ---------------  --------------  ---------- 
 

Strategy returns are in US$ (except where annotated) and net of underlying manager fees only, and not inclusive of Dexion Commodities' fees and expenses.

* Remaining strategies that are being wound down following the decision to re-profile the Company in July 2009.

Voting Rights and Capital

The Company's share capital consists of 40,306,649 GBP shares (excluding treasury shares) with voting rights, 6,431,734 EUR Shares (excluding treasury shares) and 2,719,786 US$ Shares (excluding treasury shares) with voting rights. All Shareholders have equal voting rights based on the number of Shares held. Accordingly, the total number of voting rights in the Company is 49,458,169 and this figure 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.

Supplementary Information

Click on, or paste the following link into your web browser, to view a full review of the Dexion Commodities Limited portfolio:

http://www.rns-pdf.londonstockexchange.com/rns/2209C_-2011-3-2.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

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