UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-10399
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Henderson Global Funds
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(Exact name of registrant as specified in charter)
737 NORTH MICHIGAN AVENUE, SUITE 1950
CHICAGO, ILLINOIS 60611
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(Address of principal executive offices)(Zip code)
(Name and Address of Agent for Service) Copy to:
BRIAN BOOKER CATHY G. O'KELLY
737 NORTH MICHIGAN AVENUE, SUITE 1950 VEDDER, PRICE, KAUFMAN & KAMMHOLZ
CHICAGO, ILLINOIS 60611 222 NORTH LASALLE STREET
CHICAGO, ILLINOIS 60601
Registrant's telephone number, including area code: (312) 397-1122
Date of fiscal year end: July 31, 2002
Date of reporting period: January 31, 2003
ITEM 1: SHAREHOLDER REPORT
[Logo: Henderson Global Investors]
[Logo: An AMP Company]
HENDERSON GLOBAL FUNDS
EUROPEAN FOCUS FUND
GLOBAL TECHNOLOGY FUND
INTERNATIONAL OPPORTUNITIES FUND
SEMI-ANNUAL REPORT
JANUARY 31, 2003
[Circular photos: Postage stamps
Stock table
Clocks set for different time zones]
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS .................................................... 2
EUROPEAN FOCUS FUND
Commentary ................................................................ 4
Performance Summary ....................................................... 5
GLOBAL TECHNOLOGY FUND
Commentary ................................................................ 6
Performance Summary ....................................................... 7
INTERNATIONAL OPPORTUNITIES FUND
Commentary ................................................................ 8
Performance Summary ....................................................... 9
PORTFOLIOS OF INVESTMENTS ................................................. 10
STATEMENT OF ASSETS AND LIABILITIES ....................................... 16
STATEMENT OF OPERATIONS ................................................... 17
STATEMENT OF CHANGES IN NET ASSETS ........................................ 18
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY ............................. 21
FINANCIAL HIGHLIGHTS ...................................................... 24
NOTES TO FINANCIAL STATEMENTS ............................................. 27
TRUSTEES AND OFFICERS ..................................................... 31
1
HENDERSON GLOBAL FUNDS
LETTER TO SHAREHOLDERS
Dear fellow shareholder,
On behalf of Henderson Global Funds, thank you for joining our growing family of
shareholders. We are also grateful to those of you who stayed the course during
a year that has again been challenging for equity markets globally. In last
year's annual report (July 31, 2002), we discussed the difficulties associated
with predicting financial market movements, and emphasized our reliance on the
selection of international stocks that we believe have the potential to weather
treacherous market conditions and produce competitive returns. Despite the
difficult market environment over the reporting period, we are pleased to report
that this strategy was effective when comparing the Funds' results to their
respective peer groups as illustrated in the charts at right.
Each of the Funds placed solidly within the top quartile of performance for the
one-year period ended January 31, 2003 relative to other funds with similar
investment objectives.* We are particularly proud of the Henderson European
Focus Fund which posted a positive return over the past 12 months, navigating
successfully through very difficult market conditions.
After the precipitous decline in equity markets over the past 3 years, the
uppermost question in many an investor's mind is whether we can expect less
volatility or perhaps even appreciating equity markets over the next 1 to 3
years. In today's markets, our view is that investors are particularly focused
on the reliability of growth prospects at both a macroeconomic and a company
specific level when evaluating their willingness to commit capital. Anemic
global economies and concerns about the predictability of US corporate financial
forecasts have impeded the visibility of future earnings growth expectations.
Combined with the Iraqi situation, there are sizeable roadblocks when seeking to
gauge the strength of any global market recovery.
Having said this, we believe these roadblocks are likely to diminish in 2003,
starting with a resolution to the Iraqi conflict. Equally, we foresee growing
signs of a soggy global economic recovery as we move into the year, coupled
Bar Charts:
HENDERSON EUROPEAN FOCUS FUND
Henderson European MSCI Europe Lipper
Focus Fund Index Average*
6 Months 6.49% -8.23% -9.35%
One Year 2.09% -17.67% -17.26%
Since Inception 16.09% -16.60% -16.85%
HENDERSON GLOBAL TECHNOLOGY FUND
Henderson Global MSCI World Lipper
Technology Fund IT Index Average*
6 Months -5.04% -4.04% -3.10%
One Year -35.94% -38.87% -41.96%
Since Inception -22.27% -25.16% -30.40%
HENDERSON INTERNATIONAL OPPORTUNITIES FUND
Henderson International MSCI EAFE Lipper
Opportunities Fund Index Average*
6 Months -3.26% -9.07% -9.89%
One Year -12.43% -14.64% -16.45%
Since Inception 1.17% -16.29% -16.69%
Past performance is no guarantee of future results. Performance returns are for
Class A shares at NAV. Please see pages 5, 7 and 9 for additional Fund
performance and important information.
2
LETTER TO SHAREHOLDERS
HENDERSON GLOBAL FUNDS
with a stronger sense of reliability in US corporate financials. As these events
unfold over the year, a cyclical recovery in global stock markets is likely in
our view. We believe international equity markets are also well positioned to be
a major beneficiary, given further expected weakness in the US dollar and the
fact that international equities are trading at a 25-30% discount to the US
stock market in relative valuation terms. Today's perceived bargain prices for
international equities have not been seen for roughly 30 years.
Notwithstanding financial market expectations, our bread and butter and the key
driver in seeking investment performance continues to be stock selection, as
evidenced by our comparatively strong investment performance in the trying
market conditions since the launch of the Henderson Global Funds in August 2001.
Our focal point will continue to be selecting stocks which have the potential to
add value to your financial wealth. We believe our large global investment team
located around the world is well placed to identify a diverse set of local
stocks that seek to achieve each Fund's investment objective of long-term
capital growth.
Thank you again for joining Henderson Global Funds and we look forward to
serving your financial needs in the years to come.
/s/Sean Dranfield
Sean Dranfield
President, Henderson Global Funds
* Note: For the one-year period ended 1/31/03: the European Focus Fund was
ranked 3rd out of 176 funds in the Lipper European Region Funds category, the
International Opportunities Fund was ranked 131st out of 812 funds in the
Lipper International Funds category, and the Global Technology Fund was
ranked 61st out of 359 funds in the Lipper Science and Tech Funds category.
The Lipper averages are compiled by Lipper, Inc., an independent mutual fund
research and rating service that ranks funds in various fund categories by
making comparative calculations using total returns.
3
HENDERSON GLOBAL FUNDS
COMMENTARY
EUROPEAN FOCUS FUND
We are pleased to provide you with the January 31, 2003 semi-annual report for
the European Focus Fund (the "Fund"). The Fund has performed well, returning
6.49% (A-shares at NAV) versus the MSCI Europe Index return of -8.23% for the
six month period ended January 31. Over the reporting period, concerns over
company earnings were eclipsed by fears over the strength of the US economic
recovery and the threat of war with Iraq.
For the last six months, European equity markets have remained consistently
weak, but despite a difficult environment, the Fund's cautious strategy and good
stock selection have resulted in positive performance over the majority of the
period. An underweight position in two of the region's largest sectors,
insurance and banks, benefited the Fund as these sectors experienced market
declines. In addition, an underweight position in technology proved beneficial
as this sector continued to suffer as a result of poor technology investment
spending.
The Fund focused on positions of relative stability and resilience in tobacco
and pharmaceuticals, as well as companies with good fundamentals, a factor we
believe was not reflected in their share prices. In difficult markets, stock
specific events presented a risk as investors consistently overreacted to
corporate news. Several of the Fund's tobacco positions were affected as
negative data from a key competitor dragged the sector down, including those
companies with good fundamentals.
Towards the end of the calendar year, markets rallied strongly, spurred on by
interest rate cuts and the euro breaking back above parity with the US dollar.
With financials one of the key sectors participating in the advance, our earlier
decision to take profits in some defensive holdings and reduce the Fund's
underweight in financials proved timely. As markets fell in January, we
continued our cautious strategy, building the Fund's defensive weighting and
continuing to look for companies with relatively stable franchises that had not
been recognized by the market.
Looking forward, European markets are likely to remain choppy as doubts over the
macroeconomic environment continue and the outlook for corporate securities
remains unclear. Although valuations remain attractive, significant risks remain
over the economy, potential war with Iraq, and inflated oil prices.
Consequently, we expect to retain a relatively cautious approach over the short-
to medium-term while continuing our focus on opportunities to purchase companies
that we believe have been heavily oversold.
EUROPEAN FOCUS FUND
TOP 10 EQUITY HOLDINGS - AS OF
JANUARY 31, 2003
AS A PERCENTAGE
SECURITY OF NET ASSETS
- --------------------------------------------
WEMBLEY 3.7%
SCHWARZ PHARMA 3.0
HENKEL 2.7
NDS 2.7
PUBLIC POWER 2.6
RIVERDEEP 2.5
CENTERPULSE 2.5
COMPAGNIE DE
SAINT-GOBAIN 2.3
CENTRICA 2.0
ALTANA 2.0
4
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
EUROPEAN FOCUS FUND
PIE CHART:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF TOTAL EQUITY INVESTMENTS)
United Kingdom 35.0%
Germany 17.5
France 8.0
Switzerland 7.0
Netherlands 5.9
Austria 3.8
Other 22.8
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF TOTAL EQUITY INVESTMENTS)
Consumer Discretionary 22.4%
Industrials 15.4
Information Technology 13.0
Health Care 12.2
Financials 12.0
Consumer Staples 9.2
Other 15.8
INVESTMENT COMPARISON
Value of $10,000
Line Chart:
European Focus Fund European Focus Fund MSCI
Class A w/out Class A w/sales Europe
sales charge charge Index
8/31/01 10,000 9,425 10,000
9/30/01 9,910 9,340 9,002
10/31/01 10,960 10,330 9,288
11/30/01 12,120 11,423 9,661
12/31/01 12,250 11,545 9,908
1/31/02 12,110 11,414 9,391
2/28/02 12,450 11,735 9,390
3/31/02 12,981 12,234 9,902
4/30/02 13,081 12,329 9,834
5/31/02 13,281 12,517 9,816
6/30/02 12,851 12,112 9,479
7/31/02 11,611 10,943 8,426
8/31/02 11,890 11,207 8,426
9/30/02 10,610 10,000 7,318
10/31/02 11,579 10,914 8,026
11/30/02 12,520 11,800 8,420
12/31/02 12,523 11,803 8,115
1/31/03 12,363 11,652 7,732
TOTAL RETURNS AS OF JANUARY 31, 2003
NASDAQ SINCE INCEPTION
AT NAV SYMBOL CLASS 6 MONTHS 1 YEAR (8/31/01)*
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFEAX Class A 6.49% 2.09% 16.09%
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFEBX Class B 6.00% 1.35% 15.23%
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFECX Class C 6.00% 1.26% 15.16%
- -------------------------------------------------------------------------------------------------------------------
WITH SALES LOAD
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class A 0.35% -3.79% 11.35%
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class B 1.00% -2.65% 12.56%
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class C 3.91% -0.74% 13.69%
- -------------------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------------------
MSCI Europe Index -8.23% -17.67% -16.60%
- -------------------------------------------------------------------------------------------------------------------
* Average annual return.
PAST PERFORMANCE IS NEITHER PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS. Market
volatility can significantly impact short-term performance and results of an
investment made today may differ substantially from the Fund's historical
performance. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
Performance was favorably impacted by the Fund's relatively large cash position
during September 2001. Performance results also reflect expense subsidies and
waivers in effect during the periods shown. Absent these waivers, results would
have been less favorable. All results are historical and assume the reinvestment
of dividends and capital gains. For more current performance, please call
1.866.443.6337 or visit the Fund's website at www.hendersonglobalfunds.com.
Performance results with sales charges reflect the deduction of the maximum
front-end sales charge and/or the deduction of the applicable contingent
deferred sales charge. Class A shares are subject to a maximum front-end sales
charge of 5.75%. Class B shares are subject to a contingent deferred sales
charge, which declines from 5% the first year to 0% at the beginning of the
seventh year. Class C shares are subject to a maximum front-end sales charge of
1.00% and a contingent deferred sales charge of 1.00%, which declines to 0%
after 18 months. Net Asset Value (NAV) is the value of one share of the Fund
excluding any sales charges.
The investment comparison graph above reflects the change in value of a $10,000
hypothetical investment since the Fund's inception, including reinvested
dividends and distributions, compared to a broad based securities market index.
The MSCI Europe Index is a market capitalization weighted index of approximately
500 stocks traded in 15 European markets. The Fund is professionally managed
while the Index is unmanaged and not available for investment. Results in the
table and graph do not reflect the deduction of taxes that a shareholder would
pay on Fund distributions or the redemption of Fund shares.
There are risks of investing in a fund of this type that invests in securities
of foreign countries, such as erratic market conditions, economic and political
instability, and fluctuations in currency and exchange rates. In addition, the
Fund may invest in a limited geographic area or in a small number of issuers. As
such, investing in the Fund may involve greater risk and volatility than
investing in a more diversified fund. The views in this report were those of the
Fund manager as of January 31, 2003, and may not reflect the views of the
manager on the date this report is first published or anytime thereafter. These
views are intended to assist shareholders of the Fund in understanding their
investments in the Fund and do not constitute investment advice.
5
HENDERSON GLOBAL FUNDS
COMMENTARY
GLOBAL TECHNOLOGY FUND
For the six months ended January 31, 2003, concerns about the global economy and
about the prospects for corporate profits weighed heavily on equity markets.
Investors were further unsettled by the possibility of military action against
Iraq. The Global Technology Fund (the "Fund") returned -5.04% (A-shares at NAV)
versus the MSCI World IT Index return of -4.04% and the S&P 500 Index return of
- -5.26%.
At the beginning of the reporting period, traditional defensive sectors remained
more robust, while cyclical sectors including technology were among the weakest
performers. The Fund maintained a defensive stance and benefited from an
overweight position in the Internet sector, where leading companies presented
good value opportunities and offered sound business models.
August proved to be a difficult month from a stock specific perspective.
Although a focus on earnings allowed several holdings to be sold before they
suffered any serious losses, the Fund did not escape unscathed as several
holdings fell following negative pre-announcements. We sold some core holdings,
which had been successful for the Fund but had become too expensive, and built
positions in the telecommunications sector in the Pacific and Japanese regions.
After sinking to a five-year low in early October, technology valuations began
to look very compelling. Having maintained a defensive stance throughout the
calendar third quarter, we moved to a more aggressive strategy, reducing cash
and taking profits in some defensive holdings that had performed well in the
previous months. The Fund targeted companies that looked oversold, and we
increased the semiconductor weighting as inventories had run down to sufficient
levels to trigger new orders.
In November, we increased our exposure to the US, at the expense of Europe and
Asia, in the belief that US technology stocks would experience the best growth
momentum towards the end of 2002. In December, markets experienced some profit
taking, following the earlier sharp market rises, as companies began to project
a relatively cautious outlook for 2003.
In January, the Fund adopted a more defensive stance in the belief that the
market had been strong for some time, and that near-term good news had been
factored in to the market. Despite better than expected fourth-quarter earnings,
optimism appeared to have grown too high. Therefore, we sold some of the Fund's
holdings.
Looking forward, technology earnings for 2003 appear much more realistic,
although uncertainty over the global economy and a potential war with Iraq
continues to worry stock market investors. The same concerns are also inhibiting
corporate spending on information technology. However, with valuations looking
much more reasonable than last year, a quick resolution to the current uncertain
political situation could spark a rally for the technology sector.
GLOBAL TECHNOLOGY FUND
TOP 10 EQUITY HOLDINGS - AS OF
JANUARY 31, 2003
AS A PERCENTAGE
SECURITY OF NET ASSETS
- --------------------------------------------
MICROSOFT 6.8%
CISCO SYSTEMS 4.2
SYMANTEC 3.8
FIRST DATA 3.4
LEXMARK INTERNATIONAL 3.4
HEWLETT-PACKARD 3.3
SAP 3.0
ORACLE 2.6
WEBMD 2.6
SYBASE 2.5
6
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL TECHNOLOGY FUND
Pie Chart:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF TOTAL EQUITY INVESTMENTS)
United States 76.5%
Canada 3.6
Germany 3.3
Japan 2.9
Taiwan 2.9
France 2.6
Other 8.2
Pie chart:
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF TOTAL EQUITY INVESTMENTS)
Systems Software 17.3%
Semiconductors 13.1
Application Software 10.2
Telecomm Equipment 8.9
Internet Software & Srvc 7.7
Computer Hardware 7.4
Other 35.4
INVESTMENT COMPARISON
Value of $10,000
Line Chart:
Global Technology Fund Global Technology Fund MSCI
Class A w/sales Class A w/out S&P 500 World IT
charge sales charge Index Index
8/31/01 9425 10000 10000 10000
9/30/01 7399 7850 9192 8282
10/31/01 8463 8980 9368 9609
11/30/01 10075 10689 10086 11176
12/31/01 10404 11039 10175 10955
1/31/02 10281 10909 10026 10850
2/28/02 9103 9658 9833 9659
3/31/02 9876 10478 10202 10274
4/30/02 8934 9479 9584 9046
5/31/02 8425 8939 9513 8686
6/30/02 7671 8139 8836 7664
7/31/02 6936 7359 8148 6912
8/31/02 6531 6929 8201 6828
9/30/02 5579 5920 7309 5632
10/31/02 6503 6899 7952 6756
11/30/02 7436 7889 8421 7863
12/31/02 6520 6917 7926 6729
1/31/03 6587 6989 7718 6633
TOTAL RETURNS AS OF JANUARY 31, 2003
NASDAQ SINCE INCEPTION
AT NAV SYMBOL CLASS 6 MONTHS 1 YEAR (8/31/01)*
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGAX Class A -5.04% -35.94% -22.27%
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGBX Class B -5.13% -36.26% -22.70%
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGCX Class C -5.13% -36.26% -22.69%
- -------------------------------------------------------------------------------------------------------------------
WITH SALES LOAD
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class A -10.51% -39.65% -25.44%
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class B -10.13% -40.26% -25.86%
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class C -7.03% -37.90% -24.02%
- -------------------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------------------
MSCI World IT Index -4.04% -38.87% -25.16%
- -------------------------------------------------------------------------------------------------------------------
S&P 500 Index -5.26% -23.02% -16.71%
- -------------------------------------------------------------------------------------------------------------------
* Average annual return.
PAST PERFORMANCE IS NEITHER PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS. Market
volatility can significantly impact short-term performance and results of an
investment made today may differ substantially from the Fund's historical
performance. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
Due to the Fund's relatively small asset base in its initial stages, performance
was positively impacted by IPOs to a greater degree than it may be in the
future. Performance results also reflect expense subsidies and waivers in effect
during the periods shown. Absent these waivers, results would have been less
favorable. All results are historical and assume the reinvestment of dividends
and capital gains. For more current performance, please call 1.866.443.6337 or
visit the Fund's website at www.hendersonglobalfunds.com.
Performance results with sales charges reflect the deduction of the maximum
front-end sales charge and/or the deduction of the applicable contingent
deferred sales charge. Class A shares are subject to a maximum front-end sales
charge of 5.75%. Class B shares are subject to a contingent deferred sales
charge, which declines from 5% the first year to 0% at the beginning of the
seventh year. Class C shares are subject to a maximum front-end sales charge of
1.00% and a contingent deferred sales charge of 1.00%, which declines to 0%
after 18 months. Net Asset Value (NAV) is the value of one share of the Fund
excluding any sales charges. The investment comparison graph above reflects the
change in value of a $10,000 hypothetical investment since the Fund's inception,
including reinvested dividends and distributions, compared to broad based
securities market indices. The S&P 500 Index is a broad based measurement of
changes in stock market conditions based on the average of 500 widely held
common stocks. The MSCI World Info Tech Index currently consists of 23 developed
market countries, and aims to capture 60% of the total market capitalization of
each country by various technology-related industries. The Fund is
professionally managed while the Indices are unmanaged and not available for
investment. Results in the table and graph do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of Fund
shares.
There are risks of investing in a fund of this type that invests in securities
of foreign countries, such as erratic market conditions, economic and political
instability, and fluctuations in currency and exchange rates. In addition, the
Fund may invest in a limited geographic area, limited industry sectors or in a
small number of issuers. As such, investing in the Fund may involve greater risk
and volatility than investing in a more diversified fund. The views in this
report were those of the Fund managers as of January 31, 2003, and may not
reflect the views of the managers on the date this report is first published or
anytime thereafter. These views are intended to assist shareholders of the Fund
in understanding their investments in the Fund and do not constitute investment
advice.
7
HENDERSON GLOBAL FUNDS
COMMENTARY
INTERNATIONAL OPPORTUNITIES FUND
International equity markets remained extremely volatile over the last six
months as concerns over the weakening global economy grew and investors
experienced increasing uneasiness over the possibility of US military action
against Iraq. Despite poor market conditions, the International Opportunities
Fund (the "Fund") outperformed its index, returning -3.26% (A-shares at NAV)
versus the MSCI EAFE Index return of -9.07% for the six month period ended
January 31, 2003.
The European portion of the Fund performed relatively well over the reporting
period due to a cautious approach to markets and positive stock picking
decisions. While maintaining positions of relative stability and resilience, the
Fund continued to seek out opportunities where poor market conditions had
created relative, and in some cases, absolute value. The Fund's European
positions also benefited from the rise of the euro against the dollar.
In the third calendar quarter, we made a change to the portion of the portfolio
invested in international small- and mid-capitalization companies. In the early
stages of the reporting period, smaller companies underperformed large
capitalization companies; however, more recently the sector has shown signs of
improvement as corporate activity saw large-cap companies making bids for
smaller companies that had become undervalued.
Pacific and Japanese markets exhibited relative outperformance for most of 2002
as global exports began to show signs of recovery. Fund holdings in both regions
performed well for the majority of the six month reporting period. However, in
the fourth calendar quarter, Japanese markets fell badly over a poor economic
outlook and fears over consumer spending, ending the year on a 19-year low.
While the technology portion of the Fund proved a drag on performance during the
early stages of the reporting period, our defensive stance helped protect
against more serious losses. However, when technology stocks began to look
oversold in October, the Fund adopted a more aggressive stance, reducing cash
and its defensive positioning. The Fund benefited fully from this decision as
the sector rallied strongly to the end of the year and through January.
After several months of outperformance, the technology weighting was reduced
slightly in January in favor of European smaller companies. Despite reasonable
earnings reports, the outlook for the technology sector remains mixed and
consequently we believe valuations have become somewhat inflated. A small
increase in the Fund's Pacific region holdings at the expense of Japan reflects
our slightly more positive view for Asian earnings and, in particular, very low
valuations in Korea.
Looking forward, the outlook for international equities markets remains clouded.
Markets have been through a period of severe stock market weakness and,
especially in the short-term, the consequences of a war with Iraq and the effect
on oil prices is casting a shadow over equity returns. However, on a long-term
view, we believe many international equities possess excellent value and
opportunities will continue to arise to achieve good performance through
superior stock selection.
INTERNATIONAL OPPORTUNITIES FUND
TOP 10 EQUITY HOLDINGS - AS OF
JANUARY 31, 2003
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
COMPAGNIE DE
SAINT-GOBAIN 3.8%
CENTRICA 3.5
VINCI 3.4
PUBLIC POWER 3.1
SECURICOR 2.9
PUNCH TAVERNS 2.9
ENIRO 2.6
BMW 2.6
IMPERIAL TOBACCO 2.5
NDS 2.5
8
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
INTERNATIONAL OPPORTUNITIES FUND
Pie Chart:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF TOTAL EQUITY INVESTMENTS)
United Kingdom 20.9%
Japan 15.5
France 13.1
United States 13.1
Germany 10.2
Netherlands 7.5
Other 19.7
Pie Chart:
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF TOTAL EQUITY INVESTMENTS)
Industrials 25.3%
Consumer Discretionary 19.5
Information Technology 19.2
Health Care 9.3
Financials 7.7
Utilities 6.8
Other 12.2
INVESTMENT COMPARISON
Value of $10,000
Line Chart:
Int'l Opportunities Fund Int'l Opportunities Fund MSCI
Class A w/out Class A w/sales EAFE
sales charge charge Index
8/31/01 10000 9425 10000
9/30/01 9080 8558 8989
10/31/01 9930 9359 9219
11/30/01 11430 10773 9560
12/31/01 11641 10971 9617
1/31/02 11610 10943 9106
2/28/02 11290 10641 9171
3/31/02 11840 11159 9716
4/30/02 11950 11263 9741
5/31/02 11940 11254 9874
6/30/02 11540 10877 9484
7/31/02 10510 9905 8549
8/31/02 10410 9811 8531
9/30/02 9280 8747 7617
10/31/02 10061 9482 8027
11/30/02 10711 10095 8393
12/31/02 10330 9736 8111
1/31/03 10167 9583 7773
TOTAL RETURNS AS OF JANUARY 31, 2003
NASDAQ SINCE INCEPTION
AT NAV SYMBOL CLASS 6 MONTHS 1 YEAR (8/31/01)*
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOAX Class A -3.26% -12.43% 1.17%
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOBX Class B -3.57% -12.99% 0.47%
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOCX Class C -3.56% -12.98% 0.48%
- -------------------------------------------------------------------------------------------------------------------
WITH SALES LOAD
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class A -8.81% -17.47% -2.95%
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class B -8.57% -16.99% -2.35%
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class C -5.56% -14.87% -0.92%
- -------------------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index -9.07% -14.64% -16.29%
- -------------------------------------------------------------------------------------------------------------------
* Average annual return.
PAST PERFORMANCE IS NEITHER PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS. Market
volatility can significantly impact short-term performance and results of an
investment made today may differ substantially from the Fund's historical
performance. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
Performance was favorably impacted by the Fund's relatively large cash position
during September 2001. Performance results also reflect expense subsidies and
waivers in effect during the periods shown. Absent these waivers, results would
have been less favorable. All results are historical and assume the reinvestment
of dividends and capital gains. For more current performance, please call
1.866.443.6337 or visit the Fund's website at www.hendersonglobalfunds.com.
Performance results with sales charges reflect the deduction of the maximum
front-end sales charge and/or the deduction of the applicable contingent
deferred sales charge. Class A shares are subject to a maximum front-end sales
charge of 5.75%. Class B shares are subject to a contingent deferred sales
charge, which declines from 5% the first year to 0% at the beginning of the
seventh year. Class C shares are subject to a maximum front-end sales charge of
1.00% and a contingent deferred sales charge of 1.00%, which declines to 0%
after 18 months. Net Asset Value (NAV) is the value of one share of the Fund
excluding any sales charges.
The investment comparison graph above reflects the change in value of a $10,000
hypothetical investment since the Fund's inception, including reinvested
dividends and distributions, compared to a broad based securities market index.
The MSCI EAFE Index tracks the stocks of approximately 1,000 international
companies in Europe, Australasia, and the Far East. The Fund is professionally
managed while the Index is unmanaged and not available for investment. Results
in the table and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
There are risks of investing in a fund of this type that invests in securities
of foreign countries, such as erratic market conditions, economic and political
instability, and fluctuations in currency and exchange rates. In addition, the
Fund may invest in a limited geographic area or in a small number of issuers. As
such, investing in the Fund may involve greater risk and volatility than
investing in a more diversified fund. The views in this report were those of the
Fund manager as of January 31, 2003, and may not reflect the views of the
manager on the date this report is first published or anytime thereafter. These
views are intended to assist shareholders of the Fund in understanding their
investments in the Fund and do not constitute investment advice.
9
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
EUROPEAN FOCUS FUND
JANUARY 31, 2003
VALUE
SHARES (NOTE 2)
------ ----------
COMMON STOCKS - 89.86%
AUSTRALIA - 1.45%
2,000,000 Centamin Egypt Ltd. * $ 361,889
----------
AUSTRIA - 3.42%
30,000 Gericom AG 393,066
30,000 Telekom Austria AG * 307,686
6,000 voestalpine AG 152,587
----------
853,339
----------
BELGIUM - 2.47%
15,000 Agfa-Gevaert N.V. 353,598
9,128 Omega Pharma S.A. 263,113
----------
616,711
----------
CROATIA - 0.81%
14,000 PLIVA d.d., GDR 201,600
----------
DENMARK - 1.39%
3,500 ISS A/S * 122,359
6,300 Sjaelso Gruppen A/S 223,887
----------
346,246
----------
FINLAND - 1.16%
45,000 Fortum Oyj 289,967
----------
FRANCE - 7.24%
20,000 Compagnie de Saint-Gobain 583,369
2,500 Eiffage S.A. 189,821
1,500 Galeries Lafayette S.A. 166,731
5,000 Lafarge S.A. 312,251
3,500 Technip-Coflexip S.A. 219,139
5,000 Vinci S.A. 313,325
3,660 Wanadoo * 20,636
----------
1,805,272
----------
GERMANY - 15.25%
12,000 Altana AG 500,289
17,000 Bayerische Motoren Werke AG 497,690
3,635 Bijou Brigitte modische
Accessoires AG 172,548
20,000 Continental AG * 311,446
8,000 Deutsche Boerse AG 297,871
13,268 Epcos AG * 146,766
13,000 Henkel KGaA 683,269
20,000 Schwarz Pharma AG 744,247
17,000 Zapf Creation AG 449,126
----------
3,803,252
----------
GREECE - 2.58%
43,000 Public Power Corp. 644,671
----------
IRELAND - 2.50%
424,400 Riverdeep Group plc 624,425
----------
VALUE
SHARES (NOTE 2)
------ ----------
ITALY - 1.49%
48,000 Astaldi SpA * $ 82,479
100,000 Cassa di Risparmio
di Firenze SpA 118,672
35,000 Telecom Italia SpA,
Savings Shares 171,402
----------
372,553
----------
NETHERLANDS - 5.32%
20,000 Aegon N.V. 250,230
6,000 Euronext N.V. 118,629
21,000 Heijmans N.V. 370,996
2,000 IHC Caland N.V. 96,548
19,849 Koninklijke Ahold N.V. 247,488
20,000 Ordina N.V. 89,997
12,000 United Services Group N.V. 152,845
----------
1,326,733
----------
NORWAY - 1.54%
12,000 Gjensidige NOR ASA 384,091
----------
SOUTH AFRICA - 0.99%
87,500 Naspers Ltd. 247,569
----------
SPAIN - 2.36%
6,000 Altadis S.A. 137,058
9,000 Compania Espanola
de Petroleos S.A. 183,645
40,000 Viscofan, S.A. 267,628
----------
588,331
----------
SWEDEN - 1.94%
80,000 Eniro AB 482,929
----------
SWITZERLAND - 6.31%
3,880 Centerpulse AG * 614,117
10,000 Credit Suisse Group * 214,570
5,300 Lonza Group AG 308,038
800 Synthes-Stratec, Inc. * 438,060
----------
1,574,785
----------
UNITED KINGDOM - 31.64%
350,000 Aberdeen Asset Management plc 345,440
1,000,000 Anite Group plc * 435,912
200,000 BAE Systems plc 374,226
16,000 British American Tobacco plc 151,335
200,000 Centrica plc 509,112
80,000 easyJet plc * 299,381
58,750 ebookers plc * 304,419
225,000 Filtronic plc 247,976
15,000 HBOS plc 135,955
30,000 Imperial Tobacco Group plc 458,448
60,000 Interserve plc 197,394
50,000 Jarvis plc 220,012
60,000 JJB Sports plc 138,669
50,000 Kensington Group plc 137,353
20,000 Man Group plc 279,642
10,000 Navan Mining plc *+ --
90,000 NDS Group plc, ADR * 675,000
40,000 Persimmon plc 267,798
See Notes to Financial Statements.
10
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
EUROPEAN FOCUS FUND
JANUARY 31, 2003 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ ----------
UNITED KINGDOM - (CONTINUED)
60,000 PHS Group plc $ 67,607
150,000 Punch Taverns plc * 439,202
9,000 PZ Cussons plc 131,761
300,000 Sanctuary Group plc * 175,927
50,000 Savills plc 107,703
350,000 Securicor plc 463,465
250,000 SMG plc 300,204
35,000 Weir Group plc (The) 112,844
75,000 Wembley plc 916,032
----------
7,892,817
----------
TOTAL COMMON STOCKS 22,417,180
(Cost $22,018,206) ----------
PREFERRED STOCK - 0.56%
GERMANY - 0.56%
350 Porsche AG 140,956
(Cost $168,542) ----------
PAR
VALUE
CONVERTIBLE BONDS - 0.03%
SWITZERLAND - 0.03%
CHF 10,000 Credit Suisse Group
6.000%, due 12/23/05 7,281
(Cost $6,736) ----------
SHORT TERM INVESTMENTS - 14.33%
REPURCHASE AGREEMENT - 14.33%
$3,574,000 State Street Bank and Trust Co.,
0.150%, due 02/03/03, with a
repurchase price of $3,574,045,
collateralized by $2,490,000 par
U.S. Treasury Note,
8.500%, due 2/15/20 3,574,000
(Cost $3,574,000) -----------
TOTAL INVESTMENTS - 104.78% 26,139,417
(Cost $25,767,484) -----------
OTHER ASSETS AND
LIABILITIES, NET - (4.78)% (1,193,154)
-----------
TOTAL NET ASSETS - 100.00% $24,946,263
===========
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- -----------------------------------------------------------------
Repurchase Agreement............................ 14.33%
Pharmaceuticals................................. 5.80
Construction & Engineering...................... 4.63
Diversified Financial Services.................. 4.60
Health Care Equipment........................... 4.22
Internet Software & Services.................... 3.80
Leisure Facilities.............................. 3.67
Diversified Commercial Services................. 3.50
Banks........................................... 3.45
Household Products.............................. 3.27
Tobacco......................................... 3.00
Application Software............................ 2.71
Electric Utilities.............................. 2.58
Automobile Manufacturers........................ 2.56
Building Products............................... 2.34
Broadcasting & Cable TV......................... 2.19
IT Consulting & Services........................ 2.11
Gas Utilities................................... 2.04
Advertising..................................... 1.94
Integrated Telecommunication Services........... 1.92
Integrated Oil & Gas............................ 1.90
Leisure Products................................ 1.80
Restaurants..................................... 1.76
Computer Hardware............................... 1.58
Aerospace & Defense............................. 1.50
Gold............................................ 1.45
Photographic Products........................... 1.42
Oil & Gas Equipment & Services.................. 1.27
Tires & Rubber.................................. 1.25
Construction Materials.......................... 1.25
Specialty Chemicals............................. 1.23
Airlines........................................ 1.20
Packaged Foods & Meats.......................... 1.07
Homebuilding.................................... 1.07
Health Care Supplies............................ 1.05
Life & Health Insurance......................... 1.00
Telecommunications Equipment.................... 0.99
Food Retail..................................... 0.99
Real Estate Management & Development............ 0.90
Movies & Entertainment.......................... 0.71
Apparel & Luxury Goods.......................... 0.69
Department Stores............................... 0.67
Steel........................................... 0.61
Employment Services............................. 0.61
Electronic Equipment & Instruments.............. 0.59
Specialty Stores................................ 0.56
Consumer Finance................................ 0.55
Industrial Machinery............................ 0.45
Other Assets and Liabilities, Net............... (4.78)
----------
100.00%
==========
* Non-income producing security
ADR American Depository Receipts
CHF Denominated in Swiss Francs
GDR Global Depository Receipts
+ Currently in UK administration proceedings
See Notes to Financial Statements.
11
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
GLOBAL TECHNOLOGY FUND
JANUARY 31, 2003
VALUE
SHARES (NOTE 2)
------ ----------
COMMON STOCKS - 89.21%
CANADA - 3.32%
1,220 Cognos, Inc. * $ 27,804
5,200 Nortel Networks Corp. * 12,324
----------
40,128
----------
FINLAND - 0.95%
800 Nokia Oyj, ADR 11,512
----------
FRANCE - 2.40%
4,000 Alcatel S.A. 28,954
----------
GERMANY - 3.02%
1,550 SAP AG, ADR 36,425
----------
IRELAND - 0.93%
7,626 Riverdeep Group plc * 11,220
----------
JAPAN - 2.66%
870 Fujitsu Ltd., ADR 11,968
6 Nippon Telegraph and
Telephone Corp. 20,108
----------
32,076
----------
KOREA - 1.76%
175 Samsung Electronics Co.,
Ltd., GDR 21,219
----------
NETHERLANDS - 0.94%
985 ASM International, N.V. * 11,368
----------
SINGAPORE - 1.77%
2,650 Flextronics International Ltd. * 21,359
----------
SWEDEN - 1.05%
15,000 Telefonaktiebolaget LM
Ericsson * 12,625
----------
TAIWAN - 2.62%
2,293 Hon Hai Precision Industry Co.,
Ltd., GDR 15,592
2,393 Taiwan Semiconductor
Manufacturing Co., Ltd., ADR 16,033
----------
31,625
----------
UNITED STATES - 67.79%
13,250 Agere Systems Inc., Class A * 23,452
5,000 Ask Jeeves, Inc. * 26,805
805 Autodesk, Inc. 12,027
1,000 BEA Systems, Inc. * 11,460
1,629 BearingPoint, Inc. * 12,853
3,825 Cisco Systems, Inc. * 51,140
1,560 Concord EFS, Inc. * 22,870
VALUE
SHARES (NOTE 2)
------ ----------
UNITED STATES - (CONTINUED)
1,248 Dell Computer Corp. * $ 29,777
240 Electronic Arts, Inc. * 12,434
300 Expedia, Inc., Class A * 18,000
1,650 Fairchild Semiconductor
International, Inc., Class A * 18,051
1,195 First Data Corp. 41,108
2,265 Hewlett-Packard Co. 39,434
1,450 Intel Corp. 22,707
1,430 Intersil Corp., Class A * 20,735
280 Intuit, Inc. * 12,348
765 KLA-Tencor Corp. * 24,970
670 Lexmark International, Inc. * 40,562
585 Marvell Technology
Group Ltd. * 10,688
350 Maxim Integrated Products, Inc. 10,902
1,725 Microsoft Corp. 81,868
395 Novellus Systems, Inc. * 11,633
2,654 Oracle Corp. * 31,928
745 Overture Services, Inc. * 17,306
970 Pfizer, Inc. 29,449
300 QUALCOMM, Inc. * 11,298
2,105 Sybase, Inc. * 30,270
990 Symantec Corp. * 46,213
1,050 Teradyne, Inc. * 10,909
2,250 Unisys Corp. * 20,970
1,080 UTStarcom, Inc. * 20,812
3,330 WebMD Corp. * 31,369
650 Yahoo, Inc. * 11,830
----------
818,178
----------
TOTAL COMMON STOCKS 1,076,689
(Cost $1,071,406 ) ----------
COMMON STOCK UNIT - 2.02%
UNITED STATES - 2.02%
1,000 Nasdaq-100 Index
Tracking Stock * 24,420
(Cost $25,681) ----------
TOTAL INVESTMENTS - 91.23% 1,101,109
(Cost $1,097,087) ----------
OTHER ASSETS AND
LIABILITIES, NET - 8.77% 105,876
----------
TOTAL NET ASSETS - 100.00% $1,206,985
==========
See Notes to Financial Statements.
12
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
GLOBAL TECHNOLOGY FUND
JANUARY 31, 2003 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- -------------------------------------------------------
Systems Software........................ 15.77%
Semiconductors.......................... 11.92
Application Software.................... 9.32
Telecommunications Equipment............ 8.08
Internet Software & Services............ 7.05
Computer Hardware....................... 6.73
Data Processing Services................ 5.30
Semiconductor Equipment................. 4.87
IT Consulting & Services................ 4.82
Networking Equipment.................... 4.24
Computer Storage & Peripheral........... 3.36
Electronic Equipment & Instruments...... 3.06
Health Care Distribution & Services..... 2.60
Pharmaceuticals......................... 2.44
Integrated Telecommunication Services... 1.67
Other Assets and Liabilities, Net....... 8.77
-------
100.00%
=======
* Non-income producing security
ADR American Depository Receipts
GDR Global Depository Receipts
See Notes to Financial Statements.
13
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND
JANUARY 31, 2003
VALUE
SHARES (NOTE 2)
------ ----------
COMMON STOCKS - 94.88%
AUSTRALIA - 1.66%
23,000 News Corporation Ltd. $ 152,366
----------
BELGIUM - 1.72%
5,477 Omega Pharma S.A. 157,874
----------
DENMARK - 1.90%
5,000 ISS A/S * 174,799
----------
FRANCE - 12.70%
23,500 Alcatel S.A., ADR 170,610
12,000 Compagnie de Saint-Gobain 350,022
7,000 Sodexho Alliance S.A. 174,785
2,500 Technip-Coflexip S.A. 156,528
5,000 Vinci S.A. 313,325
----------
1,165,270
----------
GERMANY - 7.76%
4,000 Altana AG 166,763
8,000 Bayerische Motoren Werke AG 234,207
3,750 Deutsche Boerse AG 139,627
4,600 Schwarz Pharma AG 171,177
----------
711,774
----------
GREECE - 3.10%
19,000 Public Power Corp. 284,854
----------
JAPAN - 15.00%
60,000 Asahi Kasei Corp. 158,059
10,000 Daiichi Pharmaceutical Co., Ltd. 134,467
31 East Japan Railway Co. 142,395
31,000 Mitsui & Co., Ltd. 152,474
41 Nippon Telegraph and
Telephone Corp. 137,401
7,700 Pioneer Corp. 147,318
4,500 Secom Co., Ltd. 130,924
7,000 Tokyo Broadcasting System, Inc. 86,249
46,000 Toshiba Corp. * 138,819
18,000 Yamaha Motor Co., Ltd. 148,556
----------
1,376,662
----------
KOREA - 5.23%
5,500 Kookmin Bank 187,394
3,920 LG Chem Ltd. * 143,577
600 Samsung Electronics Co., Ltd. 148,978
----------
479,949
----------
NETHERLANDS - 7.28%
15,000 Aegon N.V. 187,673
12,000 Heijmans N.V. 211,998
3,000 IHC Caland N.V. 144,822
9,925 Koninklijke Ahold N.V. 123,750
----------
668,243
----------
VALUE
SHARES (NOTE 2)
------ ----------
SPAIN - 1.12%
4,912 Compania de Distribucion
Integral Logista S.A. $ 102,603
----------
SWEDEN - 2.63%
40,000 Eniro AB 241,465
----------
SWITZERLAND - 1.82%
3,600 Converium Holding AG * 166,597
----------
UNITED KINGDOM - 20.27%
55,500 Capita Group plc 186,926
29,000 Capital Radio plc 184,852
125,000 Centrica plc 318,195
50,000 easyJet plc * 187,113
15,000 Imperial Tobacco Group plc 229,224
30,000 NDS Group plc, ADR * 225,000
90,000 Punch Taverns plc * 263,521
200,000 Securicor plc 264,837
----------
1,859,668
----------
UNITED STATES - 12.69%
2,700 Affiliated Computer Services,
Inc., Class A * 146,394
4,150 First Data Corp. 142,760
7,350 Hewlett-Packard Co. 127,963
10,000 Intersil Corp., Class A * 145,000
3,065 Lexmark International, Inc. * 185,555
3,205 Microsoft Corp. 152,109
4,550 Overture Services, Inc. * 105,697
3,400 Symantec Corp. * 158,712
----------
1,164,190
----------
TOTAL COMMON STOCKS 8,706,314
(Cost $8,878,337) ----------
PREFERRED STOCK - 2.13%
GERMANY - 2.13%
4,500 Fresenius AG 195,776
(Cost $119,674) ----------
TOTAL INVESTMENTS - 97.01% 8,902,090
(Cost $8,998,011) ----------
OTHER ASSETS AND
LIABILITIES, NET - 2.99% 274,068
----------
TOTAL NET ASSETS - 100.00% $9,176,158
==========
See Notes to Financial Statements.
14
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND
JANUARY 31, 2003 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ----------------------------------------------------------
Diversified Commercial Services......... 6.22%
Construction & Engineering.............. 5.72
Pharmaceuticals......................... 5.15
Restaurants............................. 4.78
Building Products....................... 3.81
Gas Utilities........................... 3.47
Systems Software........................ 3.39
Oil & Gas Equipment & Services.......... 3.29
Commodity Chemicals..................... 3.29
Semiconductors.......................... 3.20
Electric Utilities...................... 3.10
Broadcasting & Cable TV................. 2.95
Computer Hardware....................... 2.90
Advertising............................. 2.63
Automobile Manufacturers................ 2.55
Tobacco................................. 2.50
Application Software.................... 2.45
Health Care Distribution & Services..... 2.13
Life & Health Insurance................. 2.04
Employment Services..................... 2.04
Banks................................... 2.04
Airlines................................ 2.04
Computer Storage & Peripheral........... 2.02
Telecommunications Equipment............ 1.86
Reinsurance............................. 1.82
Health Care Supplies.................... 1.72
Trading Companies & Distribution........ 1.66
Movies & Entertainment.................. 1.66
Motorcycle Manufacturers................ 1.62
Consumer Electronics.................... 1.61
IT Consulting & Services................ 1.60
Data Processing Services................ 1.56
Railroads............................... 1.55
Diversified Financial Services.......... 1.52
Integrated Telecommunication Services... 1.50
Food Retail............................. 1.35
Internet Software & Services............ 1.15
Distributors............................ 1.12
Other Assets and Liabilities, Net....... 2.99
-------
100.00%
=======
* Non-income producing security
ADR American Depository Receipts
See Notes to Financial Statements.
15
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2003
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
FUND FUND FUND
=======================================================================================================================
ASSETS:
Investments at value
Securities $22,565,417 $1,101,109 $8,902,090
Repurchase agreements 3,574,000 -- --
- -----------------------------------------------------------------------------------------------------------------------
Total investments 26,139,417 1,101,109 8,902,090
Cash 833 91,427 947,784
Foreign cash 488,146 905 43,376
Dividends and interest receivable 18,098 149 4,626
Receivable from investment adviser 17,533 50,218 36,350
Receivable for investment securities sold -- 22,541 605,268
Receivable for fund shares sold 479,233 41,954 107,916
Prepaid expenses and other assets 25,331 -- 12,854
- -----------------------------------------------------------------------------------------------------------------------
Total Assets 27,168,591 1,308,303 10,660,264
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to sub-custodian -- -- 107,002
Payable for investment securities purchased 1,845,544 26,835 1,172,552
Payable for fund shares redeemed 53,338 -- 22,504
Management fee payable 107,968 11,804 55,290
12b-1 distribution fees payable 87,429 7,807 42,959
Accrued expenses and other payables 128,049 54,872 83,799
- -----------------------------------------------------------------------------------------------------------------------
Total Liabilities 2,222,328 101,318 1,484,106
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS $24,946,263 $1,206,985 $9,176,158
=======================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $25,204,757 $1,554,287 $10,042,545
Undistributed net investment loss (133,380) (12,674) (77,770)
Accumulated net realized loss on investments (483,308) (338,651) (689,407)
Net unrealized appreciation/(depreciation) of investments
and foreign currency translations 358,194 4,023 (99,210)
- -----------------------------------------------------------------------------------------------------------------------
$24,946,263 $1,206,985 $9,176,158
=======================================================================================================================
SHARES OUTSTANDING:
Class A Shares 615,425 27,926 226,988
=======================================================================================================================
Class B Shares 480,296 106,319 223,381
=======================================================================================================================
Class C Shares 943,713 41,601 462,625
=======================================================================================================================
CLASS A SHARES:
Net asset value and redemption price per share $12.30 $6.91 $10.10
- -----------------------------------------------------------------------------------------------------------------------
Maximum sales charge* 5.75% 5.75% 5.75%
Maximum offering price per share $13.05 $7.33 $10.72
- -----------------------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value and offering price per share $12.21 $6.86 $10.04
- -----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value per share $12.20 $6.86 $10.04
- -----------------------------------------------------------------------------------------------------------------------
Maximum sales charge 1.00% 1.00% 1.00%
Maximum offering price per share $12.32 $6.93 $10.14
=======================================================================================================================
Investments, at cost $25,767,484 $1,097,087 $8,998,011
=======================================================================================================================
Foreign cash, at cost $486,722 $907 $43,872
=======================================================================================================================
* On sales of $50,000 or more, the sales charge will be reduced.
The Funds may impose a redemption fee of 2.00% on shares redeemed within 30 days
of purchase.
See Notes to Financial Statements.
16
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2003
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
FUND FUND FUND
=======================================================================================================================
INVESTMENT INCOME:
Interest $2,227 $36 $86
Dividends 83,723 929 13,243
Foreign taxes withheld (9,430) (176) (1,333)
- -----------------------------------------------------------------------------------------------------------------------
Total Investment Income 76,520 789 11,996
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 82,089 6,167 37,994
12b-1 distribution and service fees:
Class A Shares 5,282 217 1,539
Class B Shares 20,250 2,830 9,145
Class C shares 40,711 1,441 19,237
Administrative fees 96,040 17,475 48,990
Transfer agent fees 165,410 36,830 86,710
Custodian fees 22,716 18,400 23,480
Registration and filing fees 37,323 33,530 30,632
Legal fees 30,352 4,780 18,800
Accounting fees 26,029 25,032 43,385
Offering expenses 3,008 2,580 633
Audit fees 10,822 10,822 10,822
Trustees' fees and expenses 22,380 1,240 9,670
Printing and postage fees 21,822 1,656 8,684
Miscellaneous fees 22,918 12,121 23,625
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 607,152 175,121 373,346
- -----------------------------------------------------------------------------------------------------------------------
Fees waived and expenses reimbursed by investment advisor (397,252) (161,640) (283,580)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 209,900 13,481 89,766
- -----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (133,380) (12,692) (77,770)
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized loss from:
Investment transactions (402,782) (233,908) (604,488)
Foreign currency transactions (49,349) (369) (21,577)
Net change in unrealized appreciation/(depreciation) of:
Investments 1,537,186 186,100 442,692
Translation of other assets and liabilities (14,087) 25 (3,265)
- -----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain/(loss) 1,070,968 (48,152) (186,638)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $937,588 $(60,844) $(264,408)
=======================================================================================================================
See Notes to Financial Statements.
17
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES IN NET ASSETS
EUROPEAN FOCUS FUND
SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 2003 JULY 31, 2002 (*)
=======================================================================================================================
Net investment income/(loss) $(133,380) $21,214
Net realized loss on investments
and foreign currency transactions (452,131) (76,947)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 1,523,099 (1,164,905)
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 937,588 (1,220,638)
Dividends to shareholders from net investment income:
Class A Shares (30,222) --
Class B Shares (9,132) --
Class C Shares (17,688) --
Net increase in net assets from Fund share transactions:
Class A Shares 5,217,993 2,179,316
Class B Shares 2,822,731 3,138,968
Class C Shares 5,474,713 6,202,634
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets 14,395,983 10,300,280
NET ASSETS:
Beginning of period 10,550,280 250,000
- -----------------------------------------------------------------------------------------------------------------------
End of period $24,946,263 $10,550,280
=======================================================================================================================
Undistributed net investment income/(loss) $(133,380) $57,042
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
18
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES IN NET ASSETS
GLOBAL TECHNOLOGY FUND
SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 2003 JULY 31, 2002 (*)
=======================================================================================================================
Net investment loss $(12,692) $(10,727)
Net realized loss on investments
and foreign currency transactions (234,277) (104,387)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 186,125 (182,102)
- -----------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (60,844) (297,216)
Dividends to shareholders from net investment income:
Class A Shares (13,255) --
Class B Shares (35,753) --
Class C Shares (18,284) --
Net increase in net assets from Fund share transactions:
Class A Shares 52,148 22,601
Class B Shares 384,997 541,158
Class C Shares 33,288 348,145
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets 342,297 614,688
NET ASSETS:
Beginning of period 864,688 250,000
- -----------------------------------------------------------------------------------------------------------------------
End of period $1,206,985 $864,688
=======================================================================================================================
Undistributed net investment income/(loss) $(12,674) $67,310
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
19
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES IN NET ASSETS
INTERNATIONAL OPPORTUNITIES FUND
SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 2003 JULY 31, 2002 (*)
=======================================================================================================================
Net investment loss $(77,770) $(10,588)
Net realized loss on investments
and foreign currency transactions (626,065) (80,490)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 439,427 (538,637)
- -----------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (264,408) (629,715)
Dividends to shareholders from net investment income:
Class A Shares (11,470) --
Class B Shares (5,769) --
Class C Shares (12,228) --
Net increase in net assets from Fund share transactions:
Class A Shares 1,583,018 622,441
Class B Shares 808,171 1,637,747
Class C Shares 1,504,711 3,693,660
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets 3,602,025 5,324,133
NET ASSETS:
Beginning of period 5,574,133 250,000
- -----------------------------------------------------------------------------------------------------------------------
End of period $9,176,158 $5,574,133
=======================================================================================================================
Undistributed net investment income/(loss) $(77,770) $29,467
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
20
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
EUROPEAN FOCUS FUND
SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 2003 JULY 31, 2002 (*)
- -----------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS A SHARES:
Sold $5,661,081 $2,354,684
Issued as reinvestment of dividends 28,574 --
Redeemed (471,662) (175,368)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $5,217,993 $2,179,316
=======================================================================================================================
CLASS B SHARES:
Sold $3,172,158 $3,184,868
Issued as reinvestment of dividends 8,798 --
Redeemed (358,225) (45,900)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $2,822,731 $3,138,968
=======================================================================================================================
CLASS C SHARES:
Sold $6,237,502 $6,247,044
Issued as reinvestment of dividends 16,555 --
Redeemed (779,344) (44,410)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $5,474,713 $6,202,634
=======================================================================================================================
SHARES
CLASS A SHARES:
Sold 467,038 181,211
Issued as reinvestment of dividends 2,308 --
Redeemed (40,749) (14,383)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 428,597 166,828
=======================================================================================================================
CLASS B SHARES:
Sold 265,206 246,649
Issued as reinvestment of dividends 715 --
Redeemed (31,042) (3,732)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 234,879 242,917
=======================================================================================================================
CLASS C SHARES:
Sold 526,111 482,376
Issued as reinvestment of dividends 1,346 --
Redeemed (65,037) (3,583)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 462,420 478,793
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
21
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL TECHNOLOGY FUND
SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 2003 JULY 31, 2002 (*)
- -----------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS A SHARES:
Sold $1,038,133 $23,015
Issued as reinvestment of dividends 13,201 --
Redeemed (999,186) (414)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $52,148 $22,601
=======================================================================================================================
CLASS B SHARES:
Sold $3,106,225 $545,789
Issued as reinvestment of dividends 35,304 --
Redeemed (2,756,532) (4,631)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $384,997 $541,158
=======================================================================================================================
CLASS C SHARES:
Sold $1,428,799 $357,416
Issued as reinvestment of dividends 18,283 --
Redeemed (1,413,794) (9,271)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $33,288 $348,145
=======================================================================================================================
SHARES
CLASS A SHARES:
Sold 142,976 2,326
Issued as reinvestment of dividends 1,839 --
Redeemed (139,163) (52)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 5,652 2,274
=======================================================================================================================
CLASS B SHARES:
Sold 433,228 54,370
Issued as reinvestment of dividends 4,965 --
Redeemed (388,156) (588)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 50,037 53,782
=======================================================================================================================
CLASS C SHARES:
Sold 198,474 37,923
Issued as reinvestment of dividends 2,571 --
Redeemed (198,954) (913)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 2,091 37,010
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
22
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
INTERNATIONAL OPPORTUNITIES FUND
SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 2003 JULY 31, 2002 (*)
- -----------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS A SHARES:
Sold $1,677,968 $636,965
Issued as reinvestment of dividends 11,291 --
Redeemed (106,241) (14,524)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $1,583,018 $622,441
=======================================================================================================================
CLASS B SHARES:
Sold $897,839 $1,642,801
Issued as reinvestment of dividends 5,089 --
Redeemed (94,757) (5,054)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $808,171 $1,637,747
=======================================================================================================================
CLASS C SHARES:
Sold $1,997,801 $3,724,104
Issued as reinvestment of dividends 11,841 --
Redeemed (504,931) (30,444)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $1,504,711 $3,693,660
=======================================================================================================================
SHARES
CLASS A SHARES:
Sold 163,285 54,811
Issued as reinvestment of dividends 1,091 --
Redeemed (10,918) (1,281)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 153,458 53,530
=======================================================================================================================
CLASS B SHARES:
Sold 89,213 141,079
Issued as reinvestment of dividends 494 --
Redeemed (9,453) (452)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 80,254 140,627
=======================================================================================================================
Class C Shares:
Sold 195,554 317,069
Issued as reinvestment of dividends 1,151 --
Redeemed (50,901) (2,748)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 145,804 314,321
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
23
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
EUROPEAN FOCUS FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
SIX MONTHS ENDED JANUARY 31, 2003
CLASS A CLASS B CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $11.61 $11.54 $11.53
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.07) (0.11) (0.11)
Net realized and unrealized gain/(loss) on investments 0.82 0.80 0.80
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.75 0.69 0.69
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.06) (0.02) (0.02)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions (0.06) (0.02) (0.02)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.30 $12.21 $12.20
==========================================================================================================================
Total Return (c) 6.49% 6.00% 6.00%
==========================================================================================================================
Net assets, end of period (000) $7,567 $5,862 $11,517
Ratio of operating expenses to average net assets (d) 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets (d) (1.08)% (1.81)% (1.81)%
Portfolio turnover rate (%) 44% 44% 44%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed (d) 6.84% 7.59% 7.59%
- --------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED JULY 31, 2002 (a)
CLASS A CLASS B CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.00 $10.00 $10.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.11 0.09 0.09
Net realized and unrealized gain/(loss) on investments 1.50 1.45 1.44
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.61 1.54 1.53
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Total distributions 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.61 $11.54 $11.53
==========================================================================================================================
Total Return (c) 16.10% 15.40% 15.30%
==========================================================================================================================
Net assets, end of period (000) $2,169 $2,831 $5,550
Ratio of operating expenses to average net assets (d) 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets (d) 0.95% 0.79% 0.77%
Portfolio turnover rate (%) 67% 67% 67%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed (d) 22.40% 23.15% 23.15%
(a) The Henderson Global Funds commenced operations on August 31, 2001.
(b) Per share numbers have been calculated using the average share method.
(c) Non-annualized total return for the period indicated excluding any
applicable sales charges.
(d) Annualized
See Notes to Financial Statements.
24
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
GLOBAL TECHNOLOGY FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
SIX MONTHS ENDED JANUARY 31, 2003
CLASS A CLASS B CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $7.36 $7.31 $7.31
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.06) (0.09) (0.09)
Net realized and unrealized gain/(loss) on investments (0.31) (0.28) (0.28)
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.37) (0.37) (0.37)
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.08) (0.08) (0.08)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions (0.08) (0.08) (0.08)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.91 $6.86 $6.86
==========================================================================================================================
Total Return (c) (5.04)% (5.13)% (5.13)%
==========================================================================================================================
Net assets, end of period (000) $193 $729 $285
Ratio of operating expenses to average net assets (d) 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets (d) (1.84)% (2.60)% (2.59)%
Portfolio turnover rate (%) 118% 118% 118%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed (d) 33.45% 34.20% 34.20%
PERIOD ENDED JULY 31, 2002 (a)
CLASS A CLASS B CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.00 $10.00 $10.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.16) (0.21) (0.20)
Net realized and unrealized gain/(loss) on investments (2.48) (2.48) (2.49)
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations (2.64) (2.69) (2.69)
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Total distributions 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.36 $7.31 $7.31
==========================================================================================================================
Total Return (c) (26.40)% (26.90)% (26.90)%
==========================================================================================================================
Net assets, end of period (000) $164 $412 $289
Ratio of operating expenses to average net assets (d) 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets (d) (1.84)% (2.56)% (2.59)%
Portfolio turnover rate (%) 134% 134% 134%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed (d) 80.48% 81.23% 81.23%
(a) The Henderson Global Funds commenced operations on August 31, 2001.
(b) Per share numbers have been calculated using the average share method.
(c) Non-annualized total return for the period indicated excluding any
applicable sales charges.
(d) Annualized
See Notes to Financial Statements.
25
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
SIX MONTHS ENDED JANUARY 31, 2003
CLASS A CLASS B CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.51 $10.44 $10.44
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.08) (0.12) (0.12)
Net realized and unrealized gain/(loss) on investments (0.26) (0.25) (0.25)
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.34) (0.37) (0.37)
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.07) (0.03) (0.03)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions (0.07) (0.03) (0.03)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.10 $10.04 $10.04
==========================================================================================================================
Total Return (c) (3.26)% (3.57)% (3.56)%
==========================================================================================================================
Net assets, end of period (000) $2,292 $2,242 $4,642
Ratio of operating expenses to average net assets (d) 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets (d) (1.65)% (2.38)% (2.38)%
Portfolio turnover rate (%) 100% 100% 100%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed (d) 10.19% 10.94% 10.94%
PERIOD ENDED JULY 31, 2002 (a)
CLASS A CLASS B CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.00 $10.00 $10.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.05) (0.09) (0.07)
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain/(loss) on investments 0.56 0.53 0.51
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.51 0.44 0.44
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Total distributions 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.51 $10.44 $10.44
==========================================================================================================================
Total Return (c) 5.10% 4.40% 4.40%
==========================================================================================================================
Net assets, end of period (000) $773 $1,494 $3,307
Ratio of operating expenses to average net assets (d) 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets (d) (0.49)% (0.84)% (0.67)%
Portfolio turnover rate (%) 80% 80% 80%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed (d) 32.69% 33.44% 33.44%
(a) The Henderson Global Funds commenced operations on August 31, 2001.
(b) Per share numbers have been calculated using the average share method.
(c) Non-annualized total return for the period indicated excluding any
applicable sales charges.
(d) Annualized
See Notes to Financial Statements.
26
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1. ORGANIZATION
Henderson Global Funds (the "Trust") was organized on May 11, 2001, as a
Delaware business trust and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment company.
The Trust has an unlimited number of authorized shares that are divided among
three series. Henderson European Focus Fund ("European Focus"), Henderson Global
Technology Fund ("Global Technology") and Henderson International Opportunities
Fund ("International Opportunities") (collectively, the "Funds") are each
non-diversified series of the Trust. The Funds each offer three classes of
shares. Class A shares generally provide for a front-end sales charge, Class B
shares provide for a contingent deferred sales charge and Class C shares provide
for both a front-end sales charge and a contingent deferred sales charge. Each
class of shares has equal rights as to earnings and assets except that each
class bears different distribution and shareholder service expenses. Each class
of shares has exclusive voting rights with respect to matters that affect just
that class. Income, expenses (other than expenses attributable to a specific
class), and realized and unrealized gains and losses on investments are
allocated to each class of shares based on its relative net assets. Class B
shares automatically convert to Class A shares at the end of the month following
the eighth anniversary of issuance.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds. The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results may differ from those estimates.
SECURITY VALUATION
Securities traded on a recognized stock exchange (or The Nasdaq Stock Market,
Inc. system) are valued at the last reported sale price on the exchange on which
the securities are principally traded. Listed securities for which no sale was
reported on that date and other securities traded in the over-the-counter market
are valued at the mean between the last bid and asked prices. Short-term
investments purchased with an original or remaining maturity of 60 days or less
are valued at amortized cost, which approximates market value. Securities and
other assets for which market quotations are not readily available are valued at
fair value as determined in good faith using procedures approved by the Board of
Trustees.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the trade date. Dividend income is
recorded on the ex-dividend date. Corporate actions involving foreign
securities, including dividends, are recorded as soon as the information becomes
available. Interest income is recorded on the accrual basis and includes
accretion of discounts and amortization of premiums. Withholding taxes on
foreign dividends are accrued for in accordance with the Funds' understanding of
the applicable country's tax rules and rates. Securities gains and losses are
determined on the identified cost basis, which is the same basis used for
federal income tax purposes.
FOREIGN CURRENCY TRANSLATION
Investment securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the date of valuation.
Purchases and sales of investment securities and income and expense items
denominated in foreign currencies are translated into U.S. dollar amounts on the
respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Funds' books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
fair values of assets and liabilities, other than investments in securities,
resulting from changes in foreign exchange rates.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts primarily to hedge
against foreign currency exchange rate risks on their non-U.S. dollar
denominated investment securities. When entering into forward foreign currency
contracts, a Fund agrees to receive or deliver a fixed quantity of foreign
currency for an agreed-upon price on an agreed future date. Realized gains or
losses on these forward contracts include net gains or losses on contracts that
have matured or which a Fund has terminated by entering into offsetting closing
transactions. These forward contracts are valued daily and the unrealized
appreciation or depreciation
27
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
is included in the Statement of Assets and Liabilities. These instruments
involve market risk, credit risk, or both kinds of risks, in excess of the
amount recognized in the Statement of Assets and Liabilities. These risks arise
from the possible inability of counterparties to meet the terms of their
contracts and from unfavorable currency fluctuations. The Funds did not invest
in forward foreign currency contracts for the six months ended January 31, 2003.
REPURCHASE AGREEMENTS
In connection with transactions in repurchase agreements, it is the Trust's
policy that its custodian either segregate or take possession of the underlying
collateral securities, the fair value of which exceeds the principal amount of
the repurchase transaction, including accrued interest, at all times. If the
value of the underlying collateral securities fall below the value of the
repurchase price plus accrued interest, a Fund will require the seller to
deposit additional collateral. If the request for additional collateral is not
met, or the seller defaults on its repurchase obligation, each Fund maintains
the right to sell the underlying collateral securities at the market value and
may claim any resulting loss against the seller. However, in the event of
default or bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral securities may be subject to legal proceedings.
EXPENSES
Expenses are recorded on an accrual basis. Expenses of the Trust that are
directly attributable to a specific Fund are charged to that Fund. Other
expenses are allocated proportionately to each Fund within the Trust based on
net assets or on another reasonable basis.
FEDERAL INCOME TAXES
The Trust's policy is that each Fund continue to comply with the requirements of
the Internal Revenue Code that are applicable to regulated investment companies
and to distribute all its taxable income to shareholders. Therefore, no federal
income tax provision is required.
The Funds intend to utilize provisions of the federal income tax laws which
allow them to carry a realized capital loss forward for eight years following
the year of loss and offset such losses against any future realized capital
gains. At July 31, 2002, the Funds had the following accumulated capital loss
carryforwards for tax purposes. These carryforwards will expire on July 31,
2010.
European Focus $611
Global Technology 7,641
International Opportunities 1,387
DISTRIBUTIONS TO SHAREHOLDERS
The Funds intend to distribute to their shareholders, at least annually,
substantially all of their net investment income and any net realized capital
gains. These distributions are recorded on the ex-dividend date. Distributions
from net investment income and net realized capital gains are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States. These book/tax differences
are either temporary or permanent in nature. To the extent these differences are
permanent, they are reclassified within the capital accounts based on their
federal tax-basis treatment.
DEFERRED OFFERING COSTS
Costs incurred in connection with the offering and initial registration of the
Trust have been deferred and were amortized on a straight-line basis over the
first twelve months after commencement of operations.
NOTE 3. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement, Henderson Global Investors (North
America) Inc. ("HGINA") acts as the Funds' investment adviser. HGINA is an
indirect wholly owned subsidiary of Henderson Global Investors (Holdings) plc,
which is an indirect wholly owned subsidiary of AMP Limited. HGINA supervises
the investments of the Funds and receives a management fee for such services.
The fee is calculated daily and paid monthly based on each Fund's average net
assets as set forth below:
European Focus 1.00%
Global Technology 1.20%
International Opportunities 1.10%
Pursuant to separate Expense Limitation Agreements, HGINA has agreed to waive or
limit its advisory fee and, if necessary, to reimburse other operating expenses
of each Fund in order to limit total annual expenses, less distribution and
service fees, to 1.75% of average net assets. HGINA may recover from each Fund
reimbursed expenses relating to previous years provided the Fund's current
expense ratio falls below the expense limitation. These agreements are effective
through July 31, 2007. The amount of potentially recoverable expenses for each
Fund at January 31, 2003 was:
European Focus $938,757
Global Technology 543,775
International Opportunities 780,478
28
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
Henderson Investment Management Limited ("HIML") is the sub-adviser to the Funds
pursuant to a Sub-Advisory Agreement. HIML is a direct wholly owned subsidiary
of Henderson Global Investors (Holdings) plc. HIML receives a fee for its
services, paid by HGINA from its management fee, based on each Fund's average
net assets as set forth below:
European Focus 0.90%
Global Technology 1.10%
International Opportunities 1.00%
Trustees who are not interested persons of the Trust or HGINA receive
compensation from the Funds. This compensation is reflected as Trustees' fees in
the Statement of Operations. Certain officers of the Trust are also officers of
HGINA. None of the Trustofficers are compensated by the Trust.
At January 31, 2003, HGINA owned the following number of shares of each Fund:
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
- --------------------------------------------------------
Class A 20,103 20,229 20,133
Class B 2,505 2,527 2,507
Class C 2,505 2,527 2,507
NOTE 4. DISTRIBUTION
The Trust has adopted a distribution plan for Class A, Class B and Class C
shares of the Funds in accordance with Rule 12b-1 under the 1940 Act (the "12b-1
Plan"). Under the 12b-1 Plan, each Fund pays the distributor an annual fee of
0.25% of the average daily net assets attributable to its Class A shares, and an
annual fee of 1.00% of the average daily net assets attributable to its Class B
and Class C shares, respectively. The 12b-1 Plan is used to induce or compensate
financial intermediaries (including brokerage firms, depository institutions and
other firms) to provide distribution and/or services to the Funds and their
shareholders.
NOTE 5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities, excluding short-term investments,
for the Funds during the six months ended January 31, 2003, were as follows:
PURCHASES SALES
- --------------------------------------------------------
European Focus $18,005,547 $6,574,245
Global Technology 1,415,676 1,094,878
International Opportunities 10,237,847 6,460,696
========================================================
The U.S. federal income tax basis of the Funds' investments at January 31, 2003,
and the gross unrealized appreciation and depreciation, were as follows:
European Global International
Focus Technology Opportunities
- --------------------------------------------------------
Cost $25,767,484 $1,115,992 $8,998,013
- --------------------------------------------------------
Gross Unrealized
Appreciation 1,867,093 91,299 452,843
- --------------------------------------------------------
Gross Unrealized
Depreciation (1,495,160) (106,182) (548,766)
- --------------------------------------------------------
Net Unrealized
Appreciation
(Depreciation) $371,933 $(14,883) $(95,923)
========================================================
Identified cost may differ for book basis and tax basis reporting purposes due
to losses pertaining to wash sale transactions.
NOTE 6. SIGNIFICANT CONCENTRATIONS
The Funds invest a substantial percentage of their assets in securities of
foreign issuers in various countries. These investments may involve certain
considerations and risks not typically associated with investments in the United
States as a result of, among other factors, the possibility of future political
and economic developments and the level of governmental supervision and
regulation of securities markets in the respective countries. In addition,
changes in currency exchange rates will affect the value of investments
denominated in a foreign currency, as well as investment income derived from
those securities. The Funds may invest a high percentage of their assets in
specific sectors of the market in order to achieve a potentially greater
investment return. As a result, the economic, political and regulatory
developments in a particular sector of the market, positive or negative, have a
greater impact on a Fund's net assets and will cause its shares to fluctuate
more than if the Fund did not concentrate its investments in a particular
sector. In particular, the Global Technology Fund concentrates its investments
in issuers within specific industries of the technology and telecommunications
sectors. Valuations of companies in these sectors are typically subject to
greater volatility than other sectors.
29
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 7. LINE OF CREDIT
The Funds may borrow from a $10,000,000 committed line of credit. Proceeds of
loans may only be used to finance shareholder redemptions or to temporarily
finance the purchase or sale of securities for prompt delivery provided the loan
is repaid promptly in the ordinary course of business upon the completion of
such purchase or sale transaction. Borrowings by any one Fund in the Trust may
not exceed the lesser of (a) $10,000,000 or (b) 10% of the net assets of the
Fund for which the loan is extended. In addition, the aggregate outstanding
amount of all loans to all Funds in the Trust may not exceed $10,000,000.
Interest is charged to the Funds based on their borrowings at an annual rate
equal to the overnight federal funds rate plus 0.50%. The Trust also pays a
commitment fee of 0.10% per annum on the daily unused portion of the committed
line which is allocated proportionately to the Funds. The Funds had no
borrowings outstanding at January 31, 2003, nor at any time during the six
months then ended.
NOTE 8. REDEMPTION FEE
The Funds may impose a redemption fee of 2.00% on shares redeemed within 30 days
of purchase. The fee, which is not a sales charge, is retained by the Funds and
not paid to HGINA or its affiliates. Redemption fees are included in redemptions
on the Statement of Changes in Net Assets.
30
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
TERM OF OTHER
NAME, ADDRESS POSITION WITH OFFICE AND PRINCIPAL OCCUPATION(S) DIRECTORSHIPS
AND AGE1 THE TRUST2 TIME SERVED3 DURING PAST FIVE YEARS HELD
- --------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------------------
Roland C. Baker, 64 Trustee Since 2001 President and Chief Executive Officer, First None
Penn-Pacific Life Insurance Co. (retired
2001); Director, The Rittenhouse Trust
(banking; money management); Director, North
American Company for Life and Health Insurance
(a provider of life insurance, health
insurance and annuities).
C. Gary Gerst, 63 Trustee Since 2001 Chairman Emeritus, Jones Lang LaSalle, Chairman and Trustee,
formerly LaSalle Partners Ltd. (real estate Harris Insight Funds
investment management and consulting Trust (22 portfolios).
firm); Director, Florida Office Property
Company Inc. (real estate investment fund).
Faris F. Chesley, 64 Trustee Since 2002 Chairman, Chesley, Taft & Associates, LCC, None
since 2001; Vice Chairman, ABN-AMRO,
Inc. (a financial services company),
1998-2001; Director, Modern Educational
Systems (a manufacturer of maps and
educational equipment), 1992-1999.
INTERESTED TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------------------------------------------------------
Charles H. Chairman Since 2001 Managing Director, Henderson Global None
Wurtzebach4, 53 and Trustee Investors (North America) Inc. ("HGINA")
since 1999; President and Chief Executive
Officer, Heitman Capital Management,
1996-1998.
Sean Trustee and Since 2001 Director, North American Retail Distribution, None
Dranfield4, 36 President HGINA since 1999; Executive Director, North
American Business Development, Henderson
Investment Management Limited, since 1999;
Director, International Business Development,
Henderson Global Investors, 1995-1999.
Alanna N. Palmer, 27 Vice President Since 2002 Product Manager, HGINA since 2001; N/A
Portfolio Assistant, UBS Brinson 1998-2001.
Scott E. Volk, 31 Vice President Since 2001 Director, Retail Finance and Operations N/A
since 2002 and Finance Manager 2001-
2002, HGINA; Vice President, Financial
Services, BISYS Fund Services, 1999-2001;
Mutual Fund Treasurer, Stein Roe &
Farnham Mutual Funds, 1997-1999.
Steven M. Hill, 38 Treasurer Since 2002 Operations Manager, HGINA, since 2002; N/A
Managing Director, FrontPoint Partners
LLC, 2001-2002; Vice President, Nuveen
Investments, 1999-2001; Chief Financial
Officer, Skyline Asset Management LP, 1999;
Vice President, Van Kampen Investments
and Assistant Treasurer, Van Kampen
mutual funds, 1989-1999
31
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
TERM OF OTHER
NAME, ADDRESS POSITION WITH OFFICE AND PRINCIPAL OCCUPATION(S) DIRECTORSHIPS
AND AGE1 THE TRUST2 TIME SERVED3 DURING PAST FIVE YEARS HELD
- --------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------------------------------------------------------
Ann M. Casey, 36 Assistant Since 2001 Treasurer, The China Fund Inc., since 2001; N/A
225 Franklin Street Treasurer Treasurer, The Holland Balanced Fund, 2002;
Boston, MA Vice President, Senior Director of Fund
02110 Administration, State Street Corporation
since 2000; Assistant Vice President, Director
of Fund Administration, State Street
Corporation, 1999-2000; Assistant Secretary,
Assistant Director of Fund Administration,
State Street Corporation, 1997-1999.
Brian C. Booker, 36 Secretary Since 2001 Senior Legal Counsel and Corporate N/A
Secretary, since 2001 and Manager, Legal
and Compliance, HGINA, 2000-2001;
Attorney, Vedder, Price, Kaufman &
Kammholz, 1998-2000; Attorney, Waller,
Lansden, Dortch & Davis, 1996-1998.
Heidemarie Assistant Since 2001 Legal Counsel, HGINA, since 2001; N/A
Gregoriev, 31 Secretary Attorney, Gardner, Carton & Douglas,
1997-2001.
1 Unless otherwise indicated, each person's address is 737 North Michigan
Avenue, Suite 1950, Chicago, IL 60611.
2 Currently, all Trustees oversee all three series of the Trust.
3 A trustee may serve until his death, resignation or removal. The officers
of the Trust are elected annually by the Board.
4 These Trustees are interested persons of the Trust because of their
employment relationship with Henderson Global Investors (North America)
Inc., or "HGINA", the investment adviser to the Funds.
THE STATEMENT OF ADDITIONAL INFORMATION FOR HENDERSON GLOBAL FUNDS INCLUDES
ADDITIONAL INFORMATION ABOUT THE TRUSTEES AND IS AVAILABLE WITHOUT CHARGE BY
CALLING 1.866.4HENDERSON (1.866.443.6337).
32
HENDERSON GLOBAL FUNDS
TRUSTEES
Charles H. Wurtzebach, Chairman
Roland C. Baker
Faris F. Chesley
Sean Dranfield
C. Gary Gerst
OFFICERS
Sean Dranfield, President
Alanna N. Palmer, Vice President
Scott E. Volk, Vice President
Steven M. Hill, Treasurer
Ann M. Casey, Assistant Treasurer
Brian C. Booker, Secretary
Heidemarie Gregoriev, Assistant Secretary
INVESTMENT ADVISER
Henderson Global Investors (North America) Inc.
737 North Michigan Avenue, Suite 1950
Chicago, IL 60611
TRANSFER AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
FOR MORE INFORMATION
Please call 1.866.4HENDERSON
(1.866.443.6337)
or visit our website:
www.hendersonglobalfunds.com
This report is authorized for distribution only to shareholders and to others
who have received a copy of the Funds' prospectuses. The views expressed in this
report and information about the Funds' portfolio holdings are for the period
covered by this report and are subject to change hereafter.
33
Henderson Global Funds
737 N. Michigan Avenue, Suite 1950
Chicago, IL 60611
1.866.4HENDERSON (1.866.443.6337)
www.hendersonglobalfunds.com
Forum Fund Services, LLC, Distributor (March 2003)
ITEM 9. CONTROLS AND PROCEDURES.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
(b) Certifications (pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act
of 2002) for principal executive officer and principal financial officer.
Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
HENDERSON GLOBAL FUNDS
By: /s/ Sean Dranfield
---------------------
Sean Dranfield
President of Henderson Global Funds
Date: March 26, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Sean Dranfield
---------------------
Sean Dranfield
President of Henderson Global Funds
(Principal Executive Officer)
Date: March 26, 2003
By: /s/ Steven M. Hill
---------------------
Steven M. Hill
Treasurer of Henderson Global Funds
(Principal Financial Officer)
Date: March 26, 2003