TIDMDTL
RNS Number : 8170X
Dexion Trading Limited
16 January 2014
Dexion Trading Limited (the "Company")
December Net Asset Value
The net asset value of the Company's Shares as of 31 December
2013 is as follows:-
GBP Shares
NAV MTD Performance YTD Performance
-------------- ---------------- ----------------
139.70 pence +0.91% +3.40%
-------------- ---------------- ----------------
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 12 March 2008.
Monthly Portfolio Review
Investment Adviser Portfolio Outlook
2014 looks set to be a year of better economic performance for
developed economies. It is also likely to be characterised by
higher rates. The US economy is in good shape, with the financial
sector improving and house prices, along with household wealth,
rising. In Japan, authorities look set to do even more to propel
the economy forward, but to also counter the effects of the
upcoming increase in consumption sales tax. Such a move gives
renewed impetus to the "Japan trade" across many fronts, with a
further weakening of the Japanese yen supporting Japanese stocks,
while the government pension fund is moving its sizeable base away
from Japanese government bonds into higher yielding foreign assets.
In Europe, the fragile recovery continues to unfold, although the
region still looks consigned to a low growth environment for the
foreseeable future. Regional austerity is ongoing and with bank
stress tests coming online, we are likely to see further
deleveraging, a situation that is likely to weigh on economic
activity. The macro backdrop over the past few months has become
more conducive for the discretionary macro managers who in turn
have greater conviction. Alongside opportunities in equities and
currencies, the fixed income sector - a key asset class for these
managers - looks to have turned a corner with the Fed explicitly
stating that it is pursuing a different path from other developed
market countries. In summary, the macro opportunities look set to
be more plentiful in 2014 than they have for a while, not just
across market themes but also across asset classes.
Market Overview
Most major global equity markets finished the month higher.
After intense speculation during the first half as to when the Fed
would scale back QE, the central bank announced on 18 December 2013
that in January it will taper monthly bond purchases to $75bn, with
interest rates remaining low into 2015, news that sent global
equity markets higher. In the US, economic data continued to be
strong, with unemployment falling to 7% (a 5-year low) and
stronger-than-expected Q3 GDP data. Into month-end, US equities
advanced again on further positive jobs data, increasing the
market's confidence that the economy can sustain a reduction in the
accommodative monetary policy. In Europe, equities initially moved
lower before recovering on positive US jobs data. Later in the
month, European equities shook off a EU credit rating downgrade,
instead paying attention to the favourable US GDP release. In Asia,
Japanese equity markets rose in December as the Japanese yen fell
to a five-year low against the US dollar, while Chinese equity
markets fell on investor fears that the government is set to
announce a reduced growth target for 2014 and renewed fears of a
cash crunch. Many managers believe that an accelerating growth
backdrop in the US continues to support equities and encourages the
maintenance of long positions in the asset class. Others, however,
have some small shorts as they believe valuations to be somewhat
inflated. In addition, they do not want too much US equity exposure
in a rising US interest rate environment. Managers maintain, and in
some cases have increased, their long exposure to Japanese
equities, noting that the renewed momentum in the "Japan trade"
appears set to remain strong, with Japanese domestic investors now
allocating increasingly to domestic stocks.
The JP Morgan Global Government Bond Index (local currency) was
down marginally in December while the yield on 10-year US
treasuries ended the month higher on the back of the Fed tapering.
10-year yields in the UK and Germany likewise ended higher. The
Merrill Lynch High Yield Master II Index (a high yield bond index)
and the JPMorgan EMBI+ Index both finished the month slightly
higher. In the US, managers generally hold short exposure to US
government bonds in light of strong US economic data and the Fed's
decision to taper asset purchases. In Europe, despite some
improvement in the economic situation, the region remains quite
fragile and, as such, the ECB will need to be accommodative.
Consequently, managers continue to hold long exposures along the
euro curve. Certain managers also hold small short positions in
Japanese government bonds given the explicit pursuit of inflation
and investors' rotation away from domestic bonds.
In commodities, crude oil prices climbed on reports of a decline
in US crude inventories and the improved economic outlook. Natural
gas prices surged as cold weather in the US bolstered demand. In
precious metals, gold and silver prices continued to move lower as
speculation mounted that the Fed would start tapering in December.
In base metals, copper prices rose on expectations of increased
demand due to positive economic data. In agricultural commodities,
corn prices advanced after the USDA lowered its forecast on US
stockpiles, while wheat prices moved lower on larger-than-expected
supplies, and soybean prices fell on favourable growing conditions
in South America. Whilst light, exposure is generally expressed
through short gold exposures.
The US dollar had a mixed month versus the major currencies.
Against the Japanese yen it strengthened on speculation that the
looming 3% consumption tax in Japan may lead the BoJ to increase
stimulus measures. It also strengthened against the Australian
dollar as the RBA continued to push for the Australian dollar to be
closer to the $0.85 mark. Conversely, it declined against the euro,
as the ECB avoided further easing measures, and sterling, on
increasing speculation that the BoE would be the first central bank
to raise interest rates. Emerging market currencies were also mixed
against the US dollar, notably the Turkish lira, which declined 6%
as market's questioned Turkey's political stability. Being long the
US dollar against the Japanese yen remains one of the most popular
positions in managers' portfolios in light of the aggressive
implementation of "Abenomics". Against this backdrop, it is worth
noting that while the Fed's balance sheet is shrinking, the BoJ's
balance sheet is increasing. Managers are also generally long the
US dollar against certain emerging market currencies.
Strategy Overview
Discretionary: +1.53%. Similar to the previous month, managers
profited across all asset classes, particularly from long exposure
to Japanese and US stocks and, to a lesser extent, European
equities. Foreign exchange also proved profitable, with gains
coming primarily from long US dollar versus Japanese yen, as well
as long US dollar against certain commodity and emerging market
currencies. In fixed income, gains were in long peripheral European
sovereign debt, namely Greek government bonds, as well as tactical
shorts in US and Japanese government bonds.
Systematic: -0.26%. Both trend and non-trend followers
experienced losses in December. Any trend following gains from
short Japanese yen and long equities exposures were overwhelmed by
losses from long bond and rates positions, while non-trend
followers lost money from long Australian dollar and Japanese yen
positions and longs at the front end of the German and US yield
curves.
Natural resources: -0.39%. Losses came from long gold and
gold-related equities, as well as short energy and trading in
agricultural commodities.
Relative value arbitrage: +0.59%. All funds were positive in
December, with the strongest returns coming from fundamental equity
long/short.
Strategy Allocation Number of Performance by
as of 31 December managers as strategy %
% of
31 December
-------------------------- ------------------- ------------- ------------------
December YTD
-------------------------- ------------------- ------------- --------- -------
Discretionary(1) 68 18 +1.53 +10.84
-------------------------- ------------------- ------------- --------- -------
Natural resources 5 9 -0.39 -11.40
-------------------------- ------------------- ------------- --------- -------
Relative value arbitrage 8 3 +0.59 +10.06
-------------------------- ------------------- ------------- --------- -------
Systematic(1) 14 8 -0.26 -5.89
-------------------------- ------------------- ------------- --------- -------
Cash 5 - - -
-------------------------- ------------------- ------------- --------- -------
Total 100 37(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/8170X_-2014-1-16.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCVQLBFZFFLBBK
Grafico Azioni Dexion Trading (LSE:DTL)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Dexion Trading (LSE:DTL)
Storico
Da Giu 2023 a Giu 2024
