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 C. 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
Date of reporting period: July 31, 2003
ITEM 1: REPORT OF SHAREHOLDER
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logo: Henderson Global Investors
HENDERSON GLOBAL FUNDS
ARTWORK: TOWER CLOCK, FUNDS, BUILDING FRIEZE
EUROPEAN FOCUS FUND
GLOBAL TECHNOLOGY FUND
INTERNATIONAL OPPORTUNITIES FUND
ANNUAL REPORT
JULY 31, 2003
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ..............................................1
EUROPEAN FOCUS FUND
Commentary ..........................................................2
Performance Summary .................................................3
GLOBAL TECHNOLOGY FUND
Commentary ..........................................................4
Performance Summary .................................................5
INTERNATIONAL OPPORTUNITIES FUND
Commentary ..........................................................6
Performance Summary .................................................7
PORTFOLIOS OF INVESTMENTS ...........................................8
STATEMENT OF ASSETS AND LIABILITIES ................................14
STATEMENT OF OPERATIONS ............................................15
STATEMENT OF CHANGES IN NET ASSETS .................................16
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY ......................19
FINANCIAL HIGHLIGHTS ...............................................22
NOTES TO FINANCIAL STATEMENTS ......................................25
REPORT OF INDEPENDENT AUDITORS .....................................29
TRUSTEES AND OFFICERS ..............................................30
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 appreciate your choice to include Henderson in your investment
portfolio. In January's semiannual report, we discussed many of the global
challenges that investors faced in the second half of 2002, but expressed our
belief that there were many signs of a continuing soggy economic recovery in
global stock markets. We now feel that this economic recovery is strengthening,
and our overall outlook continues to be cautiously optimistic.
While it has certainly been an interesting and somewhat choppy period since last
July, markets and economies worldwide are starting to exhibit signs of growth.
The successful military campaign in Iraq has been winding down, and
international markets have subsequently rallied, beginning in the second quarter
of this year. Asia has rebounded following the remission of a potentially lethal
strain of atypical pneumonia (SARS), and the European Central Bank cut its
benchmark interest rate another 50 basis points (0.50%) in June to 2%, in an
effort to further stimulate economic activity in Europe.
During this time, our Funds have continued to excel, outperforming both their
benchmarks and peer group averages for the calendar year-to-date, one year and
since inception periods ended July 31, 2003. The Henderson European Focus Fund
has done particularly well, placing 1st out of 163 funds in its Lipper European
Region Funds peer group for the one year period and 1st out of 153 funds for the
since inception period (8/31/01 to 7/31/03).*
Looking forward, we expect continued improvements in global markets, although
there may be a few bumps along the way. The Federal Reserve Board appears
committed to keeping US interest rates low, in an attempt to stimulate US, and
therefore worldwide, economic growth. Positive earnings reports from a number of
companies have also contributed to the uptick in markets. The weaker US dollar
may continue to act as a stimulus, enhancing dollar-based returns for those
investing overseas. Finally, international stocks remain at very appealing
valuation levels, one of our key criteria for identifying potential attractive
holdings for our Funds.
At Henderson Global Funds, we continue to focus on seeking investment
performance through bottom-up stock selection. Our portfolio managers located
around the world are dedicated to selecting investment opportunities that have
the potential to increase the value of your portfolio.
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
bar charts:
HENDERSON EUROPEAN FOCUS FUND
HENDERSON EUROPEAN MSCI LIPPER
FOCUS FUND EUROPE INDEX AVERAGE*
YTD 24.16% 13.48% 12.4%
ONE YEAR 33.93 9.3 6.53
SINCE INCEPTION 25.88 -4.21 -4.59
HENDERSON GLOBAL TECHNOLOGY FUND
HENDERSON GLOBAL MSCI WORLD LIPPER
TECHNOLOGY FUND IT INDEX AVERAGE*
YTD 39.77% 24.75% 31.57%
ONE YEAR 31.38 21.43 27.93
SINCE INCEPTION -1.74 -8.73 -11.82
HENDERSON INTERNATIONAL OPPORTUNITIES FUND
HENDERSON INTERNATIONAL MSCI LIPPER
OPPORTUNITIES FUND EAFE INDEX AVERAGE*
YTD 16.86% 12.52% 11.07%
ONE YEAR 14.84 6.76 4.36
SINCE INCEPTION 10.31 -4.66 -5.61
Past performance is no guarantee of future results. Performance returns reflect
the Funds' Class A shares at NAV. Please see pages 3, 5 and 7 for additional
Fund performance.
* Note: The Lipper rankings 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. The European Focus
Fund's rankings are for the Fund's A shares; other share classes will vary.
The European Focus Fund, Global Technology Fund and International
Opportunities Fund compare to the Lipper European Region Funds Average, the
Lipper Science & Tech Funds Average and the Lipper International Funds
Average, respectively.
1
HENDERSON GLOBAL FUNDS COMMENTARY
EUROPEAN FOCUS FUND
The European Focus Fund has substantially outperformed the MSCI Europe Index for
the year ended 7/31/03, returning 33.93% (A-shares at NAV) versus the Index's
return of 9.30%. The reporting period has been dominated by the second quarter
rally in equity markets around the world, a rally in which European markets
readily participated.
During the second half of 2002, European equity markets were consistently weak
although they did rally strongly towards the end of the year, spurred on by
interest rate cuts and the euro breaking back above parity with the US dollar.
With financials one of the key sectors to underpin the advance, our earlier
decision to take profits in some defensive holdings and reduce the Fund's
underweight in financials proved timely. However, the economic and corporate
backdrop remained disappointing over the first quarter of 2003 and was made more
acute by institutional selling of equities. Throughout this period the Fund
maintained a cautious strategy and continued to focus on stock selection and
defensive positions such as tobacco and pharmaceuticals. Consumer-related
sectors such as food and beverages performed poorly; however, the European
technology sector managed to sustain good performance.
The European market, like most major equity markets, experienced a dramatic
change in fortune over the last few months. With the war behind them and
encouraged by generally better than expected company results, investors'
tolerance for riskier assets improved. Consequently, those sectors that had
previously lagged, for instance insurance and technology, notched up some of the
largest gains and we believe this, in turn, stimulated the individual markets of
Holland and Germany. Defensive sectors including food, beverages and utilities,
where the Fund has been underweight, lost much of their appeal and failed to
participate in the rally. The economic and corporate backdrop improved after the
European Central Bank took further action in June to stimulate economic activity
and cut interest rates by 50 basis points (0.50%) to 2%.
As discussed previously, the Fund maintained a cautious strategy during much of
the reporting period. We trimmed our positions further and increased our
underweight in the more defensive sectors such as healthcare, pharmaceuticals
and food, which all continued to underperform. However, more recently the Fund
has moved portfolio assets away from defensive stocks towards more aggressive
cyclical / recovery stocks, such as those in the automobile sector.
Looking forward, the Fund will continue to implement its flexible approach to
market capitalization, investing in those small, mid and large cap stocks which
we believe exhibit good value. Although we believe that further progress may
require better economic news both from the US and the eurozone, the focus of the
Fund will continue to remain on those stocks that can potentially perform well
despite market volatility.
sidebar:
EUROPEAN FOCUS FUND
TOP 10 EQUITY HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
PUNCH TAVERNS 4.3%
PUMA 2.8
UNILEVER 2.5
NDS GROUP 2.5
BUHRMANN 2.4
HEIJMANS 2.4
HMV GROUP 2.3
WOLTERS KLUWER 2.3
KONINKLIJKE AHOLD 2.2
PUBLIC POWER CORP. 2.1
2
HENDERSON GLOBAL FUNDS PERFORMANCE SUMMARY
EUROPEAN FOCUS FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF TOTAL EQUITY INVESTMENTS)
UNITED
KINGDOM NETHERLANDS GERMANY GREECE FRANCE SWITZERLAND OTHER
34.0% 15.4 14.0 7.2 6.9 5.1 17.4
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF TOTAL EQUITY INVESTMENTS)
CONSUMER CONSUMER INFORMATION
DISCRETIONARY INDUSTRIALS STAPLES FINANCIALS HEALTH CARE TECHNOLOGY OTHER
34.9% 17.2 13.5 8.2 6.0 5.8 14.4
INVESTMENT COMPARISON
Value of $10,000
MOUNTAIN CHART:
EUROPEAN
EUROPEAN FOCUS FUND
FOCUS FUND CLASS A
CLASS A W/OUT W/SALES MSCI
SALES CHARGE CHARGE EUROPE 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 11,546 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
2/28/03 11,891 11,207 7,480
3/31/03 11,699 11,027 7,372
4/30/03 13,468 12,694 8,379
5/31/03 14,664 13,821 8,932
6/30/03 15,006 14,143 9,024
7/31/03 15,549 14,655 9,209
TOTAL RETURNS AS OF JULY 31, 2003
NASDAQ CALENDAR SINCE INCEPTION
AT NAV SYMBOL CLASS YTD 1 YEAR (8/31/01)*
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Henderson European Focus Fund HFEAX Class A 24.16% 33.93% 25.88%
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFEBX Class B 23.69 32.83 24.95
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFECX Class C 23.69 32.94 24.94
- -------------------------------------------------------------------------------------------------------------------
WITH SALES LOAD
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class A 17.02% 26.21% 22.05%
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class B 18.69 28.83 23.24
- -------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class C 21.50 30.57 24.30
- -------------------------------------------------------------------------------------------------------------------
INDEX
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MSCI Europe Index 13.48% 9.30% -4.21%
- -------------------------------------------------------------------------------------------------------------------
* 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 since inception 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.hendersonglobalinvestors.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 16 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 July 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.
3
HENDERSON GLOBAL FUNDS COMMENTARY
GLOBAL TECHNOLOGY FUND
The start of the reporting period began with cyclical sectors, including
technology, being among the weakest performers as traditionally defensive
sectors continued to be more robust. 2003 began with a technology rally in
January, but this soon ran out of steam. However, a more solidly based uptrend
started in March, when uncertainty over the timing of the Iraq war finally
ended. The SARS epidemic affected individual stocks, but was not enough to halt
the general rise. We anticipated that the rally would last more than a few short
weeks, and oriented the portfolio accordingly - for example, we increased the
exposure to attractively valued smaller-capitalization stocks. The Fund
performed well over the period, returning 31.38% (A-shares at NAV), compared to
returns of 21.43% for the MSCI World IT Index and 10.64% for the S&P 500 Index.
Based on our bottom-up view of relative valuations, some changes of emphasis
emerged during the period. 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 most growth momentum towards the end of 2002. During the first
half of 2003, Japanese technology stocks began to appear significantly
undervalued, and we increased our weighting to the region, becoming
approximately 10% overweight in the region as compared to the MSCI World IT
Index. On a sectoral basis, we increased our exposure to computer storage and to
computer hardware where we maintained our overweight position. Enterprises have
remained willing to address their still-expanding information storage needs even
as the spending squeeze has remained tight on most other information technology
goods and services.
Many changes were made within the Fund's semiconductor portfolio. Stocks that we
believed had begun to appear expensive or disappointed expectations were sold,
and although there were some additions to existing holdings the overall result
was a reduction in exposure to this demandingly valued sector. By contrast,
there were net additions to the software sector. We remain underweight in
business application software and focused on specialist areas such as games,
conditional access and internet software where we maintained our long-term
overweight exposure.
We continue to like the growth characteristics of the internet sector, but are
becoming more conscious of valuations, which have become very high. The
communications equipment sector enjoyed a roller-coaster ride during the
reporting period. We remain underweight the sector, but took profits in some
recovery stocks.
Looking forward, technology companies have been cautious in their expectations
for the third quarter, but there are reasons for modest optimism. Both the US
and Japanese economies have recently shown signs of better-than-expected growth.
Asia has thrown off the stigma of the SARS epidemic and only European growth
remains a concern - compounded by the continuation of a strong euro. Within the
technology sector, rationalization has continued, leading to a reduction in
excess capacity and a lowering of the cost base. The positive gearing effect on
earnings, which is already evident, should become more pronounced when growth
accelerates. We expect that markets may drift, or even correct, during the
traditionally weak summer period for technology, but are well positioned to do
better as companies gear up for the remainder of the year.
sidebar:
GLOBAL TECHNOLOGY FUND
TOP 10 EQUITY HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ----------------------------------------------
MICROSOFT 8.4%
EMC 3.2
INTEL 3.2
ELECTRONIC ARTS 3.1
HEWLETT-PACKARD 3.1
TAIWAN SEMICONDUCTOR 3.1
CISCO SYSTEMS 2.9
AGERE SYSTEMS 2.9
KLA-TENCOR 2.8
SYMANTEC 2.8
4
HENDERSON GLOBAL FUNDS PERFORMANCE SUMMARY
GLOBAL TECHNOLOGY FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF TOTAL EQUITY INVESTMENTS)
UNITED
STATES JAPAN GERMANY SINGAPORE TAIWAN FRANCE OTHER
73.0% 7.8 5.9 3.9 3.0 1.8 4.6
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF TOTAL EQUITY INVESTMENTS)
COMPUTER INTERNET
SYSTEMS SEMI- COMPUTER APPLICATION STORAGE SOFTWARE
SOFTWARE CONDUCTORS HARDWARE SOFTWARE & PRPHR & SRVC OTHER
14.6% 12.0 11.5 11.2 8.8 7.4 34.5
INVESTMENT COMPARISON
Value of $10,000
MOUNTAIN CHART:
GLOBAL
GLOBAL TECHNOLOGY
TECHNOLOGY FUND
FUND CLASS A MSCI
CLASS A W/OUT W/SALES WORLD IT S&P 500
SALES CHARGE CHARGE INDEX INDEX
8/31/01 $10,000 $9,425 $10,000 $10,000
9/30/01 7,850 7,399 8,282 9,192
10/31/01 8,980 8,463 9,609 9,368
11/30/01 10,689 10,075 11,176 10,086
12/31/01 11,040 10,405 10,946 10,175
1/31/02 10,909 10,281 10,850 10,026
2/28/02 9,658 9,103 9,659 9,833
3/31/02 10,478 9,876 10,274 10,202
4/30/02 9,479 8,934 9,046 9,584
5/31/02 8,939 8,425 8,686 9,513
6/30/02 8,139 7,671 7,664 8,836
7/31/02 7,359 6,936 6,912 8,148
8/31/02 6,929 6,531 6,828 8,201
9/30/02 5,920 5,579 5,632 7,309
10/31/02 6,899 6,503 6,756 7,952
11/30/02 7,889 7,436 7,863 8,421
12/31/02 6,917 6,520 6,729 7,926
1/31/03 6,988 6,586 6,633 7,718
2/28/03 6,968 6,567 6,723 7,602
3/31/03 6,876 6,481 6,609 7,676
4/30/03 7,463 7,034 7,257 8,308
5/31/03 8,394 7,911 7,883 8,746
6/30/03 8,808 8,302 7,923 8,858
7/31/03 9,668 9,112 8,394 9,014
TOTAL RETURNS AS OF JULY 31, 2003
NASDAQ CALENDAR SINCE INCEPTION
AT NAV SYMBOL CLASS YTD 1 YEAR (8/31/01)*
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGAX Class A 39.77% 31.38% -1.74%
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGBX Class B 39.41 31.10 -2.19
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGCX Class C 38.97 30.69 -2.35
- -------------------------------------------------------------------------------------------------------------------
WITH SALES LOAD
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class A 31.68% 23.81% -4.73%
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class B 34.41 27.10 -4.34
- -------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class C 36.55 28.45 -2.86
- -------------------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------------------
MSCI World IT Index 24.75% 21.43% -8.73%
- -------------------------------------------------------------------------------------------------------------------
S&P 500 Index 13.73 10.64 -5.27
- -------------------------------------------------------------------------------------------------------------------
* 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
since inception 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.hendersonglobalinvestors.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
and an industry focused index. 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 July 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.
5
HENDERSON GLOBAL FUNDS COMMENTARY
INTERNATIONAL OPPORTUNITIES FUND
International equities continued to be weak during the latter half of 2002 and
early in 2003 as sentiment was dominated by the threat and instigation of the
conflict in Iraq. However, international equities had a strong second quarter,
with a significant improvement in global equity markets in conjunction with
increased optimism about a US economic recovery which was bolstered by a
stronger than expected rise in business confidence. The Fund outperformed its
index for the year ended 7/31/03, returning 14.84% (A-shares at NAV) against the
MSCI EAFE Index return of 6.76%.
Over the course of the reporting period, the European portion of the Fund
performed well due to its cautious approach to mainly falling markets and
positive stock picking decisions. The second half of 2002 was poor for European
markets and was further undermined at the start of 2003 by disappointing
economic and corporate news; made more acute by institutional selling of
equities. However, European markets experienced a dramatic change of fortune in
the second quarter. With the Iraq war behind them and encouraged by generally
better than expected company results, investors' tolerance for riskier assets
improved. Consequently, those sectors that had previously lagged, for instance
insurance and technology, notched up some of the largest gains while defensive
sectors with relatively stable and predictable cashflows, including food,
beverages and utilities, lost much of their appeal and failed to participate in
the rally.
During the fourth quarter of 2002, Japanese markets fell badly based on the poor
economic outlook and fears over consumer spending, ending on a 19-year low.
However, we increased the Fund's weighting in Japan and the Pacific by 5% in
July 2003 due to our belief that the region was looking increasingly attractive
as valuations continued to improve. The region also began to produce positive
data and companies showed more appealing numbers and margins. An influx of
foreign money led Tokyo's TOPIX Index to register its biggest quarterly gain
since the first quarter of 1999.
Pacific markets were undermined early in the year as news was released that SARS
was spreading rapidly throughout Asia and Hong Kong's equity market sank by
nearly 6%. However, during the second quarter of 2003, economic news became
slightly more positive and Asian equity markets performed well as they continued
to play catch up after earlier SARS-related weakness.
The technology sector remained weak during the second half of 2002 but 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
2002. Technology continued to lead the market recovery in 2003 and we maintained
an overweight stance, focusing on companies that looked oversold. The relative
outperformance of the sector continued in the aftermath of the conflict with
Iraq. We believe that earnings expectations have now become more realistic
although valuations appear to be a little stretched.
Looking forward, we continue to believe that sustained good news on economies
and corporate earnings will be required to lift markets significantly higher.
However, further rate cuts in Europe and the UK have the potential to bolster
the outlook, and international equity valuations continue to look relatively
attractive as compared to US equities. We will continue to seek out undervalued
stocks which we believe have good fundamentals and the potential for growth in
the year to come.
sidebar:
INTERNATIONAL OPPORTUNITIES FUND
TOP 10 EQUITY HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ----------------------------------------------
PUNCH TAVERNS 3.8%
HEIJMANS 3.1
PUBLIC POWER CORP. 3.1
EASYJET 2.8
COMPAGNIE DE
SAINT-GOBAIN 2.8
UNILEVER 2.7
TAIWAN SEMICONDUCTOR 2.5
TOKYO BROADCASTING
SYSTEM 2.5
CHEUNG KONG HOLDINGS 2.5
KONINKLIJKE AHOLD 2.5
6
HENDERSON GLOBAL FUNDS PERFORMANCE SUMMARY
INTERNATIONAL OPPORTUNITIES FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF TOTAL EQUITY INVESTMENTS)
UNITED UNITED
JAPAN KINGDOM NETHERLANDS STATES GERMANY SWEDEN OTHER
21.5% 14.6 11.2 8.8 7.1 5.9 30.9
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF TOTAL EQUITY INVESTMENTS)
CONSUMER INFORMATION CONSUMER
DISCRETIONARY TECHNOLOGY INDUSTRIALS STAPLES FINANCIALS MATERIALS OTHER
22.1% 20.9 19.4 10.9 10.8 5.7 10.2
INVESTMENT COMPARISON
Value of $10,000
MOUNTAIN CHART:
INT'L INT'L
OPPORTUNITIES OPPORTUNITIES
FUND FUND CLASS A
CLASS A W/OUT W/SALES MSCI
SALES CHARGE CHARGE EAFE INDEX
8/31/01 $10,000 $9,425 $10,000
9/30/01 9,080 8,558 8,989
10/31/01 9,930 9,359 9,219
11/30/01 11,430 10,773 9,560
12/31/01 11,640 10,971 9,589
1/31/02 11,610 10,943 9,106
2/28/02 11,290 10,641 9,171
3/31/02 11,840 11,159 9,716
4/30/02 11,950 11,263 9,741
5/31/02 11,940 11,254 9,874
6/30/02 11,540 10,877 9,484
7/31/02 10,510 9,905 8,549
8/31/02 10,410 9,811 8,531
9/30/02 9,280 8,747 7,617
10/31/02 10,061 9,482 8,027
11/30/02 10,711 10,095 8,393
12/31/02 10,330 9,736 8,111
1/31/03 10,168 9,584 7,773
2/28/03 9,554 9,005 7,595
3/31/03 9,454 8,910 7,451
4/30/03 10,501 9,898 8,191
5/31/03 11,166 10,524 8,694
6/30/03 11,650 10,980 8,909
7/31/03 12,072 11,378 9,126
TOTAL RETURNS AS OF JULY 31, 2003
NASDAQ CALENDAR SINCE INCEPTION
AT NAV SYMBOL CLASS YTD 1 YEAR (8/31/01)*
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOAX Class A 16.86% 14.84% 10.31%
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOBX Class B 16.47 14.10 9.55
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOCX Class C 16.47 14.12 9.56
- -------------------------------------------------------------------------------------------------------------------
WITH SALES LOAD
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class A 10.10% 8.25% 6.95%
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class B 11.47 10.10 7.62
- -------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class C 14.34 11.93 8.99
- -------------------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 12.52% 6.76% -4.66%
- -------------------------------------------------------------------------------------------------------------------
* 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 since inception 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.hendersonglobalinvestors.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 July 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.
7
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2003
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 91.62%
AUSTRALIA - 0.75%
2,841,228 Centamin Egypt Ltd *............ $ 394,572
-----------
AUSTRIA - 2.65%
34,000 Andritz AG ..................... 939,445
30,000 Gericom AG ..................... 447,820
-----------
1,387,265
-----------
BELGIUM - 2.81%
25,000 Delhaize Group ................. 801,684
5,600 KBC Bankverzekerinholding ...... 223,104
15,000 Omega Pharma S.A. .............. 445,798
-----------
1,470,586
-----------
CROATIA - 0.68%
24,000 PLIVA d.d., GDR ................ 357,600
-----------
DENMARK - 1.87%
36,000 Group 4 Falck A/S .............. 655,788
6,300 Sjaelso Gruppen A/S ............ 321,907
-----------
977,695
-----------
FRANCE - 6.50%
27,000 Compagnie de Saint-Gobain ...... 1,074,161
6,500 Eiffage S.A. ................... 647,581
8,644 Lafarge S.A. ................... 578,168
7,583 Renault S.A. ................... 421,092
8,000 Technip S.A. ................... 681,558
-----------
3,402,560
-----------
GERMANY - 11.17%
23,000 Bayerische Motoren Werke AG .... 890,226
30,000 Continental AG * ............... 719,073
13,000 Henkel KGaA .................... 759,284
60,301 MobilCom AG * .................. 510,008
13,000 Puma AG ........................ 1,482,063
14,000 Volkswagen AG .................. 600,373
8,000 Vossloh AG ..................... 320,516
17,000 Zapf Creation AG ............... 567,104
-----------
5,848,647
-----------
GREECE - 6.78%
39,000 Coca Cola Hellenic Bottling
Co., S.A. ...................... 694,744
57,000 Folli Follie S.A. .............. 961,617
65,000 Greek Organization of Football
Prognostics S.A. ............... 766,584
55,000 Public Power Corp. ............. 1,124,324
-----------
3,547,269
-----------
ITALY - 0.76%
75,000 Telecom Italia SpA, Saving
Shares ......................... 395,928
-----------
NETHERLANDS - 14.41%
180,000 Buhrmann N.V. * ................ 1,241,361
60,000 Heijmans N.V. .................. 1,234,622
14,000 IHC Caland N.V. ................ 720,983
VALUE
SHARES (NOTE 2)
------ --------
NETHERLANDS - (CONTINUED)
145,000 Koninklijke Ahold N.V. ......... $ 1,175,879
100,000 Koninklijke KPN N.V. * ......... 684,029
23,000 Unilever N.V. .................. 1,302,014
82,000 Wolters Kluwer N.V. ............ 1,183,516
-----------
7,542,404
-----------
NORWAY - 0.97%
116,000 Storebrand ASA * ............... 507,927
-----------
SPAIN - 3.34%
42,000 Altadis S.A. ................... 1,043,498
54,157 Red Electrica de Espana ........ 707,443
-----------
1,750,941
-----------
SWEDEN - 2.33%
80,000 Eniro AB ....................... 652,156
75,000 Investor AB, B Shares .......... 565,769
-----------
1,217,925
-----------
SWITZERLAND - 4.75%
2,000 Centerpulse AG * ............... 547,487
21,000 Credit Suisse Group ............ 659,714
8,500 Roche Holdings AG .............. 708,565
800 Synthes-Stratec, Inc. .......... 573,696
-----------
2,489,462
-----------
UNITED KINGDOM - 31.85%
21,141 Benfield Group Ltd ............. 94,576
200,000 Centrica plc ................... 570,461
240,000 easyJet plc * .................. 893,106
65,000 ebookers plc * ................. 559,599
225,000 Filtronic plc .................. 541,294
461,538 HMV Group plc .................. 1,225,466
45,000 Imperial Tobacco Group plc ..... 708,209
16,000,000 Inter-Alliance Group plc *# .... 514,944
200,000 Interserve plc ................. 775,634
50,000 Jarvis plc ..................... 267,529
115,000 JJB Sports plc ................. 394,173
135,000 Kensington Group plc ........... 673,450
291,250 Matalan plc .................... 942,046
10,000 Navan Mining plc *+ ............ --
90,000 NDS Group plc, ADR * ........... 1,300,500
80,000 Persimmon plc .................. 673,289
447,846 Punch Taverns plc .............. 2,226,881
9,000 PZ Cussons plc ................. 127,811
150,000 Savills plc .................... 457,415
110,000 Shell Transport & Trading
Co. plc ........................ 689,462
49,715 Smith & Nephew plc ............. 296,805
199,000 Taylor Woodrow plc ............. 692,499
85,000 Weir Group plc (The) ........... 365,892
75,000 Wembley plc .................... 823,709
185,030 Yell Group plc * ............... 859,009
-----------
16,673,759
-----------
TOTAL COMMON STOCKS ............ 47,964,540
(Cost $40,411,900) -----------
See Notes to Financial Statements.
8
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2003 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
PREFERRED STOCK - 1.95%
GERMANY - 1.95%
2,500 Porsche AG ..................... $ 1,022,112
-----------
TOTAL PREFERRED STOCK .......... 1,022,112
(Cost $981,374) -----------
TOTAL INVESTMENTS - 93.57% .................. 48,986,652
(Cost $41,393,274) -----------
NET OTHER ASSETS AND
LIABILITIES - 6.43% ............ 3,365,357
-----------
TOTAL NET ASSETS - 100.00% .................. $52,352,009
===========
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ----------------------------------------------------------
Automobile Manufacturers................ 5.60%
Construction & Engineering.............. 5.08%
Restaurants............................. 4.25%
Food Retail............................. 3.77%
Electric Utilities...................... 3.50%
Tobacco................................. 3.34%
Specialty Stores........................ 3.09%
Advertising............................. 2.89%
Footwear................................ 2.83%
Oil & Gas Equipment & Services.......... 2.68%
Homebuilding............................ 2.61%
Packaged Foods & Meats.................. 2.49%
Industrial Machinery.................... 2.49%
Application Software.................... 2.49%
Office Services & Supplies.............. 2.37%
Publishing.............................. 2.26%
Health Care Equipment................... 2.14%
Integrated Telecommunication Services... 2.07%
Building Products....................... 2.05%
Pharmaceuticals......................... 2.03%
Other Diversified Financial Services.... 1.85%
Apparel & Luxury Goods.................. 1.84%
Apparel Retail.......................... 1.80%
Diversified Commercial Services......... 1.76%
Airlines................................ 1.71%
Household Products...................... 1.70%
Leisure Facilities...................... 1.57%
Casinos & Gaming........................ 1.46%
Health Care Supplies.................... 1.42%
Tires & Rubber.......................... 1.37%
Soft Drinks............................. 1.33%
Integrated Oil & Gas.................... 1.32%
Thrift and Mortgage Finance............. 1.29%
Diversified Capital Markets............. 1.26%
Construction Materials.................. 1.11%
Gas Utilities........................... 1.09%
Multi-Sector Holdings................... 1.08%
Leisure Products........................ 1.08%
Internet Software & Services............ 1.07%
Communications Equipment................ 1.03%
Wireless Telecommunication Services..... 0.98%
Multi-line Insurance.................... 0.97%
Computer Hardware....................... 0.86%
Gold.................................... 0.75%
Real Estate Management & Development.... 0.62%
Construction & Farm Machines............ 0.61%
Diversified Bank........................ 0.43%
Reinsurance............................. 0.18%
Net Other Assets and Liabilities........ 6.43%
------------
100.00%
============
* Non-income producing security
GDR Global Depository Receipts
# Fair valued security, purchased as part of a placement of shares
which is contingent upon shareholder approval
ADR American Depository Receipts
+ Currently in UK administration procedings
See Notes to Financial Statements.
9
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
GLOBAL TECHNOLOGY FUND
JULY 31, 2003
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 100.55%
CANADA - 0.70%
4,000 Nortel Networks Corp. * ........ $ 11,800
-----------
CHINA - 1.65%
550 Netease.com, Inc., ADR ......... 27,747
-----------
FRANCE - 1.80%
1,400 STMicroelectronics N.V. ........ 30,270
-----------
GERMANY - 5.96%
7,300 ADVA AG Optical Networking * ... 31,240
1,095 SAP AG, ADR .................... 32,138
3,500 T-Online International AG * .... 36,757
-----------
100,135
-----------
JAPAN - 7.82%
500 Canon, Inc., ADR ............... 24,505
770 Fujitsu Ltd., ADR * ............ 15,841
3,000 NEC Corp. * .................... 18,484
4 Nippon Telegraph and
Telephone Corp. ................ 16,575
1,000 Olympus Optical Co., Ltd. ...... 22,213
9,000 Sanyo Electric Co., Ltd. ....... 33,706
-----------
131,324
-----------
KOREA - 1.15%
110 Samsung Electronics Co.,
Ltd., GDR ...................... 19,388
-----------
SINGAPORE - 3.96%
1,515 Flextronics International, Ltd. * 16,665
40,000 Unisteel Technology Ltd. ....... 19,329
3,000 Venture Corp., Ltd. ............ 30,529
-----------
66,523
-----------
TAIWAN - 3.05%
5,130 Taiwan Semiconductor
Manufacturing Co.,
Ltd., ADR * .................... 51,300
-----------
UNITED KINGDOM - 1.03%
1,200 NDS Group plc, ADR * ........... 17,340
-----------
UNITED STATES - 73.43%
300 Affiliated Computer Services,
Inc., Class A * ................ 14,865
17,350 Agere Systems, Inc., Class A * . 48,753
1,720 Apple Computer, Inc. * ......... 36,206
1,405 Autodesk, Inc. ................. 21,019
1,280 BEA Systems, Inc. * ............ 16,896
2,500 Cisco Systems, Inc. * .......... 48,800
1,600 Computer Associates
International, Inc. ............ 40,720
VALUE
SHARES (NOTE 2)
------ --------
UNITED STATES - (CONTINUED)
1,100 Concord EFS, Inc. * ............ $ 14,971
3,000 Cray, Inc. * ................... 33,210
1,148 Dell, Inc. * ................... 38,665
1,150 Digital River, Inc. * .......... 24,702
290 eBay, Inc. * ................... 31,088
625 Electronic Arts, Inc. * ........ 52,500
5,095 EMC Corp. * .................... 54,211
455 Expedia, Inc., Class A * ....... 35,586
680 First Data Corp. ............... 25,677
1,565 Helix Technology Corp. ......... 25,447
2,465 Hewlett-Packard Co. ............ 52,184
2,150 Intel Corp. .................... 53,642
605 Intuit, Inc. * ................. 26,027
910 KLA-Tencor Corp. * ............. 47,001
1,300 Lexar Media, Inc. * ............ 17,823
575 Lexmark International, Inc. * .. 36,898
650 Mercury Interactive Corp. * .... 25,584
5,335 Microsoft Corp. ................ 140,844
1,787 NETGEAR, Inc. * ................ 31,578
1,000 PeopleSoft, Inc. * ............. 16,670
1,170 Pfizer, Inc. ................... 39,031
1,750 Seagate Technology ............. 38,150
1,190 Sybase, Inc. * ................. 18,683
1,000 Symantec Corp. * ............... 46,910
550 Synopsys, Inc. * ............... 34,381
600 Take-Two Interactive
Software, Inc. * ............... 15,960
690 UTStarcom, Inc. * .............. 29,373
-----------
1,234,055
-----------
TOTAL INVESTMENTS - 100.55% ................. 1,689,882
-----------
(Cost $1,334,949)
NET OTHER ASSETS
AND LIABILITIES - (0.55)% ...... (9,165)
-----------
TOTAL NET ASSETS - 100.00% .................. $ 1,680,717
===========
See Notes to Financial Statements.
10
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
GLOBAL TECHNOLOGY FUND
JULY 31, 2003 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ----------------------------------------------------------
Systems Software........................ 14.70%
Semiconductors.......................... 12.09%
Computer Hardware....................... 11.58%
Application Software.................... 11.31%
Computer Storage & Peripheral........... 8.85%
Internet Software & Services............ 7.43%
Communications Equipment................ 7.21%
Semiconductor Equipment................. 4.31%
Home Entertainment Software............. 4.07%
Data Processing & Outsourcing Services.. 3.30%
Electronic Manufacturing Services....... 2.81%
Pharmaceuticals......................... 2.32%
Consumer Electronics.................... 2.01%
Multi-Sector Holdings................... 1.88%
Internet Retail......................... 1.85%
Office Electronics...................... 1.46%
Health Care Equipment................... 1.32%
Electronic Equipment Manufacturing...... 1.06%
Integrated Telecommunication Services... 0.99%
Net Other Assets and Liabilities........ (0.55)%
-----------
100.00%
===========
* Non-income producing security
ADR American Depository Receipts
GDR Global Depository Receipts
See Notes to Financial Statements.
11
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2003
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 92.53%
BELGIUM - 1.50%
10,000 Omega Pharma S.A. .............. $ 297,199
-----------
DENMARK - 1.54%
8,900 ISS A/S ........................ 304,741
-----------
FRANCE - 4.34%
13,700 Compagnie de Saint-Gobain ...... 545,038
5,667 Renault S.A. ................... 314,694
-----------
859,732
-----------
GERMANY - 6.53%
55,000 ADVA AG Optical Networking * ... 235,367
12,000 Bayerische Motoren Werke AG .... 464,466
3,100 Puma AG ........................ 353,415
23,000 T-Online International AG * .... 241,544
-----------
1,294,792
-----------
GREECE - 3.10%
30,000 Public Power Corp. ............. 613,267
-----------
HONG KONG - 2.49%
75,000 Cheung Kong Hldgs., Ltd. ....... 492,836
-----------
IRELAND - 1.84%
41,000 IAWS Group plc ................. 364,726
-----------
ITALY - 1.55%
16,500 Recordati S.p.A. ............... 307,645
-----------
JAPAN - 19.92%
82,000 Asahi Kasei Corp. .............. 249,217
6,000 Canon Inc. ..................... 288,977
62,000 Daiwa Securities Group, Inc. ... 359,361
56 Japan Tobacco Inc. ............. 333,419
63,000 Minebea Co., Ltd. .............. 254,773
55,000 Mitsui & Co., Ltd. ............. 306,456
600 NEC Electronics Corp. .......... 28,599
69 Nippon Telegraph and
Telephone Corp. ................ 285,913
75,000 Sanyo Electric Co., Ltd. ....... 280,880
6,500 Secom Co., Ltd. ................ 186,755
1,940 SFCG Co., Ltd. ................. 196,698
44,200 Tokyo Broadcasting
System, Inc. ................... 497,330
90,000 Toshiba Corp. .................. 315,383
14,400 Toyota Motor Corp. ............. 364,708
-----------
3,948,469
-----------
KOREA - 2.39%
12,000 LG Chem Ltd. ................... 472,681
-----------
VALUE
SHARES (NOTE 2)
------ --------
NETHERLANDS - 10.32%
30,000 Heijmans N.V. .................. $ 617,311
60,000 Koninklijke Ahold N.V. ......... 486,570
9,500 Unilever N.V. .................. 537,788
28,000 Wolters Kluwer N.V. ............ 404,128
-----------
2,045,797
-----------
SINGAPORE - 1.54%
30,000 Venture Corp., Ltd. ............ 305,287
-----------
SWEDEN - 5.43%
35,000 Assa Abloy AB, Series B ........ 366,229
40,000 Eniro AB ....................... 326,078
123,000 Skandia Forsakrings AB ......... 383,117
-----------
1,075,424
-----------
SWITZERLAND - 3.75%
95,000 ABB, Ltd. * .................... 413,600
6,000 Syngenta AG .................... 330,021
-----------
743,621
-----------
TAIWAN - 2.52%
50,000 Taiwan Semiconductor
Manufacturing Co.,
Ltd., ADR * ................... 500,000
-----------
THAILAND - 2.04%
250,000 Bangkok Bank Public Co.,
Ltd. * ......................... 404,858
-----------
UNITED KINGDOM - 13.54%
125,000 Centrica plc ................... 356,538
150,000 easyJet plc * .................. 558,191
82,000 GKN plc ........................ 308,773
18,000 Imperial Tobacco Group plc ..... 283,284
30,000 NDS Group plc, ADR * ........... 433,500
149,569 Punch Taverns plc .............. 743,721
-----------
2,684,007
-----------
UNITED STATES - 8.19%
100,000 Agere Systems, Inc.,
Class A * ...................... 281,000
12,000 Intel Corp. .................... 299,400
11,060 Microsoft Corp. ................ 291,984
8,339 NETGEAR, Inc. * ................ 147,358
14,750 Seagate Technology ............. 321,550
4,500 Synopsys, Inc. * ............... 281,295
-----------
1,622,587
-----------
TOTAL INVESTMENTS - 92.53% ................. 18,337,669
-----------
(Cost $16,437,398)
NET OTHER ASSETS
AND LIABILITIES - 7.47% ........ 1,480,818
-----------
TOTAL NET ASSETS - 100.00% .................. $19,818,487
===========
See Notes to Financial Statements.
12
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2003 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ----------------------------------------------------------
Automobile Manufacturers................ 5.77%
Semiconductors.......................... 5.59%
Building Products....................... 4.60%
Restaurants............................. 3.75%
Commodity Chemicals..................... 3.65%
Application Software.................... 3.61%
Tobacco................................. 3.11%
Construction & Engineering.............. 3.11%
Electric Utilities...................... 3.10%
Airlines................................ 2.81%
Packaged Foods & Meats.................. 2.71%
Broadcasting & Cable TV................. 2.51%
Real Estate Management & Development.... 2.49%
Diversified Commercial Services......... 2.48%
Food Retail............................. 2.46%
Heavy Electronic Equipment.............. 2.09%
Publishing.............................. 2.04%
Diversified Bank........................ 2.04%
Life & Health Insurance................. 1.93%
Agricultural Products................... 1.84%
Investment Banking & Broker............. 1.81%
Gas Utilities........................... 1.80%
Footwear................................ 1.78%
Fertilizer & Agriculture Chemicals...... 1.66%
Advertising............................. 1.65%
Computer Storage & Peripheral........... 1.62%
Computer Hardware....................... 1.59%
Auto Parts & Equipments................. 1.56%
Trading Companies & Distributors........ 1.55%
Pharmaceuticals......................... 1.55%
Electronic Manufacturing Services....... 1.54%
Health Care Supplies.................... 1.50%
Systems Software........................ 1.47%
Office Electronics...................... 1.46%
Integrated Telecommunication Services... 1.44%
Consumer Electronics.................... 1.42%
Industrial Machinery.................... 1.29%
Internet Software & Services............ 1.22%
Communications Equipment................ 1.19%
Consumer Finance........................ 0.99%
Multi-Sector Holdings................... 0.75%
Net Other Assets and Liabilities........ 7.47%
-----------
100.00%
===========
* Non-income producing security
ADR American Depository Receipts
See Notes to Financial Statements.
13
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2003
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
FUND FUND FUND
=======================================================================================================================
ASSETS:
Investments, at value $48,986,652 $1,689,882 $18,337,669
Cash 2,930,131 29,479 2,029,076
Foreign cash, at value 655,814 12,867 47,403
Dividends receivable 49,925 81 10,021
Receivable from investment adviser 39,920 41,859 4,286
Receivable for investment securities sold 406,037 - 269,230
Receivable for fund shares sold 625,004 21,186 609,581
Prepaid expenses and other assets 20,218 6,132 9,813
- -----------------------------------------------------------------------------------------------------------------------
Total Assets 53,713,701 1,801,486 21,317,079
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased 1,016,777 25,018 1,328,824
Payable for fund shares redeemed 32,676 30,446 6,449
Investment advisory fee payable 109,976 5,072 42,097
12b-1 distribution and service fees payable 81,023 3,601 27,586
Accrued expenses and other payables 121,240 56,632 93,636
- -----------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,361,692 120,769 1,498,592
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS $52,352,009 $1,680,717 $19,818,487
=======================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $43,746,768 $1,484,703 $18,176,263
Accumulated undistributed net investment income/(loss) (15,460) (1,188) (37,895)
Accumulated net realized gain/(loss) on investments 1,040,944 (157,491) (214,179)
Net unrealized appreciation/(depreciation) of investments
and foreign currency translations 7,579,757 354,693 1,894,298
- -----------------------------------------------------------------------------------------------------------------------
$52,352,009 $1,680,717 $19,818,487
=======================================================================================================================
SHARES OUTSTANDING:
Class A Shares 1,334,957 42,738 698,241
=======================================================================================================================
Class B Shares 615,759 86,117 327,372
=======================================================================================================================
Class C Shares 1,456,877 48,252 636,514
=======================================================================================================================
CLASS A SHARES:
Net asset value and redemption price per share $15.47 $9.56 $11.99
- -----------------------------------------------------------------------------------------------------------------------
Maximum sales charge* 5.75% 5.75% 5.75%
Maximum offering price per share $16.41 $10.14 $12.72
=======================================================================================================================
CLASS B SHARES:
Net asset value and offering price per share $15.30 $9.48 $11.88
=======================================================================================================================
CLASS C SHARES:
Net asset value per share $15.30 $9.45 $11.88
- -----------------------------------------------------------------------------------------------------------------------
Maximum sales charge 1.00% 1.00% 1.00%
Maximum offering price per share $15.45 $9.55 $12.00
=======================================================================================================================
Investments, at cost $41,393,274 $1,334,949 $16,437,398
=======================================================================================================================
Foreign cash, at cost $662,779 $13,106 $47,420
=======================================================================================================================
* 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.
14
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2003
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
FUND FUND FUND
=======================================================================================================================
INVESTMENT INCOME:
Dividends $886,717 $3,561 $182,802
Interest 3,377 38 130
Foreign taxes withheld (99,056) (372) (16,905)
- -----------------------------------------------------------------------------------------------------------------------
Total Investment Income 791,038 3,227 166,027
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 260,188 15,009 106,219
12b-1 distribution and service fees:
Class A Shares 20,758 571 6,781
Class B Shares 56,457 7,094 22,801
Class C Shares 120,700 3,131 46,639
Transfer agent fees 287,185 41,380 141,850
Administrative fees 187,335 30,675 87,235
Legal fees 67,016 10,712 33,015
Accounting fees 53,179 51,277 87,730
Registration and filing fees 47,497 41,728 45,465
Custodian fees 46,106 38,030 48,550
Trustees' fees and expenses 44,690 2,311 19,960
Printing and postage fees 32,887 14,655
Audit fees 25,578 24,578 25,078
Offering expenses 3,008 2,580 633
Miscellaneous fees 77,947 21,567 61,406
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 1,330,531 292,551 748,017
- -----------------------------------------------------------------------------------------------------------------------
Fees waived and expenses reimbursed by investment advisor (677,286) (259,937) (503,411)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 653,245 32,614 244,606
- -----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 137,793 (29,387) (78,579)
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investment transactions 1,071,794 (53,117) (148,902)
Foreign currency transactions (153,233) (1,203) (49,507)
Net change in unrealized appreciation/(depreciation) of:
Investments 8,758,631 537,011 2,438,884
Translation of other assets and liabilities (13,969) (216) (5,949)
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain 9,663,223 482,475 2,234,526
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $9,801,016 $453,088 $2,155,947
=======================================================================================================================
See Notes to Financial Statements.
15
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
EUROPEAN FOCUS FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2003 JULY 31, 2002 (*)
=======================================================================================================================
Net investment income $137,793 $21,214
Net realized gain/(loss) on investments
and foreign currency transactions 918,561 (76,947)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 8,744,662 (1,164,905)
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 9,801,016 (1,220,638)
- -----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (30,222) --
Class B Shares (9,132) --
Class C Shares (17,688) --
- -----------------------------------------------------------------------------------------------------------------------
(57,042) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 15,159,011 2,179,316
Class B Shares 4,641,590 3,138,968
Class C Shares 12,257,154 6,202,634
- -----------------------------------------------------------------------------------------------------------------------
32,057,755 11,520,918
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets 41,801,729 10,300,280
NET ASSETS:
Beginning of period 10,550,280 250,000
- -----------------------------------------------------------------------------------------------------------------------
End of period $52,352,009 $10,550,280
=======================================================================================================================
Accumulated undistributed net investment income/(loss) $(15,460) $57,042
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
16
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
GLOBAL TECHNOLOGY FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2003 JULY 31, 2002 (*)
=======================================================================================================================
Net investment loss $(29,387) $(10,727)
Net realized loss on investments
and foreign currency transactions (54,320) (104,387)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 536,795 (182,102)
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 453,088 (297,216)
- -----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (13,255) --
Class B Shares (35,753) --
Class C Shares (18,284) --
- -----------------------------------------------------------------------------------------------------------------------
(67,292) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 165,586 22,601
Class B Shares 175,872 541,158
Class C Shares 88,775 348,145
- -----------------------------------------------------------------------------------------------------------------------
430,233 911,904
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets 816,029 614,688
NET ASSETS:
Beginning of period 864,688 250,000
- -----------------------------------------------------------------------------------------------------------------------
End of period $1,680,717 $864,688
=======================================================================================================================
Accumulated undistributed net investment income/(loss) $(1,188) $67,310
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
17
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
INTERNATIONAL OPPORTUNITIES FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2003 JULY 31, 2002 (*)
=======================================================================================================================
Net investment loss $(78,579) $(10,588)
Net realized loss on investments
and foreign currency transactions (198,409) (80,490)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 2,432,935 (538,637)
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) net assets resulting from operations 2,155,947 (629,715)
- -----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (11,470) --
Class B Shares (5,769) --
Class C Shares (12,228) --
- -----------------------------------------------------------------------------------------------------------------------
(29,467) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 6,785,924 622,441
Class B Shares 1,940,094 1,637,747
Class C Shares 3,391,856 3,693,660
- -----------------------------------------------------------------------------------------------------------------------
12,117,874 5,953,848
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets 14,244,354 5,324,133
NET ASSETS:
Beginning of period 5,574,133 250,000
- -----------------------------------------------------------------------------------------------------------------------
End of period $19,818,487 $5,574,133
=======================================================================================================================
Accumulated undistributed net investment income/(loss) $(37,895) $29,467
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
18
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
EUROPEAN FOCUS FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2003 JULY 31, 2002 (*)
- -----------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS A SHARES:
Sold $16,536,567 $2,354,684
Issued as reinvestment of dividends 28,574 --
Redeemed (1,406,130) (175,368)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $15,159,011 $2,179,316
=======================================================================================================================
CLASS B SHARES:
Sold $5,751,214 $3,184,868
Issued as reinvestment of dividends 8,798 --
Redeemed (1,118,422) (45,900)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $4,641,590 $3,138,968
=======================================================================================================================
CLASS C SHARES:
Sold $14,654,568 $6,247,044
Issued as reinvestment of dividends 16,555 --
Redeemed (2,413,969) (44,410)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $12,257,154 $6,202,634
=======================================================================================================================
SHARES
CLASS A SHARES:
Sold 1,252,105 181,211
Issued as reinvestment of dividends 2,308 --
Redeemed (106,284) (14,383)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 1,148,129 166,828
=======================================================================================================================
CLASS B SHARES:
Sold 455,160 246,649
Issued as reinvestment of dividends 715 --
Redeemed (85,533) (3,732)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 370,342 242,917
=======================================================================================================================
CLASS C SHARES:
Sold 1,160,846 482,376
Issued as reinvestment of dividends 1,346 --
Redeemed (186,608) (3,583)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 975,584 478,793
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
19
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL TECHNOLOGY FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2003 JULY 31, 2002 (*)
- -----------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS A SHARES:
Sold $1,200,813 $23,015
Issued as reinvestment of dividends 13,201 --
Redeemed (1,048,428) (414)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $165,586 $22,601
=======================================================================================================================
CLASS B SHARES:
Sold $3,287,255 $545,789
Issued as reinvestment of dividends 35,304 --
Redeemed (3,146,687) (4,631)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $175,872 $541,158
=======================================================================================================================
CLASS C SHARES:
Sold $1,499,737 $357,416
Issued as reinvestment of dividends 18,283 --
Redeemed (1,429,245) (9,271)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $88,775 $348,145
=======================================================================================================================
SHARES
CLASS A SHARES:
Sold 163,598 2,326
Issued as reinvestment of dividends 1,839 --
Redeemed (144,973) (52)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 20,464 2,274
=======================================================================================================================
CLASS B SHARES:
Sold 457,753 54,370
Issued as reinvestment of dividends 4,965 --
Redeemed (432,883) (588)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 29,835 53,782
=======================================================================================================================
CLASS C SHARES:
Sold 206,897 37,923
Issued as reinvestment of dividends 2,571 --
Redeemed (200,726) (913)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 8,742 37,010
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
20
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
INTERNATIONAL OPPORTUNITIES FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2003 JULY 31, 2002 (*)
- -----------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS A SHARES:
Sold $7,206,808 $636,965
Issued as reinvestment of dividends 11,291 --
Redeemed (432,175) (14,524)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $6,785,924 $622,441
=======================================================================================================================
CLASS B SHARES:
Sold $2,158,172 $1,642,801
Issued as reinvestment of dividends 5,089 --
Redeemed (223,167) (5,054)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $1,940,094 $1,637,747
=======================================================================================================================
CLASS C SHARES:
Sold $4,391,188 $3,724,104
Issued as reinvestment of dividends 11,841 --
Redeemed (1,011,173) (30,444)
- -----------------------------------------------------------------------------------------------------------------------
Net increase $3,391,856 $3,693,660
=======================================================================================================================
SHARES
CLASS A SHARES:
Sold 664,162 54,811
Issued as reinvestment of dividends 1,091 --
Redeemed (40,542) (1,281)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 624,711 53,530
=======================================================================================================================
CLASS B SHARES:
Sold 205,252 141,079
Issued as reinvestment of dividends 494 --
Redeemed (21,501) (452)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 184,245 140,627
=======================================================================================================================
CLASS C SHARES:
Sold 417,043 317,069
Issued as reinvestment of dividends 1,151 --
Redeemed (98,501) (2,748)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 319,693 314,321
=======================================================================================================================
(*) The Henderson Global Funds commenced operations on August 31, 2001.
See Notes to Financial Statements.
21
HENDERSON GLOBAL FUNDS FINANCIAL HIGHLIGHTS
EUROPEAN FOCUS FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
YEAR ENDED JULY 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 income (b) 0.16 0.02 0.03
Net realized and unrealized gain on investments (b) 3.76 3.76 3.76
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.92 3.78 3.79
- -----------------------------------------------------------------------------------------------------------------------
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 $15.47 $15.30 $15.30
=======================================================================================================================
Total Return (c) 33.93% 32.83% 32.94%
=======================================================================================================================
Net assets, end of period (000) $20,647 $9,420 $22,285
Ratio of operating expenses to average net assets 2.00% 2.75% 2.75%
Ratio of net investment income to average net assets 1.20% 0.16% 0.24%
Portfolio turnover rate (%) 76% 76% 76%
Ratio of operating expenses to average net assets
without waivers and/or expenses reimbursed 4.60% 5.35% 5.35%
=======================================================================================================================
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 on investments (b) 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.
22
HENDERSON GLOBAL FUNDS FINANCIAL HIGHLIGHTS
GLOBAL TECHNOLOGY FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
YEAR ENDED JULY 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) (0.13) (0.18) (0.18)
Net realized and unrealized gain on investments (b) 2.41 2.43 2.40
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.28 2.25 2.22
- -----------------------------------------------------------------------------------------------------------------------
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 $9.56 $9.48 $9.45
=======================================================================================================================
Total Return (c) 31.38% 31.10% 30.69%
=======================================================================================================================
Net assets, end of period (000) $409 $816 $456
Ratio of operating expenses to average net assets 2.00% 2.75% 2.75%
Ratio of net investment loss to average net assets (1.74)% (2.48)% (2.50)%
Portfolio turnover rate (%) 238% 238% 238%
Ratio of operating expenses to average net assets
without waivers and/or expenses reimbursed 22.78% 23.53% 23.53%
=======================================================================================================================
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 loss on investments (b) (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 loss 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.
23
HENDERSON GLOBAL FUNDS FINANCIAL HIGHLIGHTS
INTERNATIONAL OPPORTUNTIES FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
YEAR ENDED JULY 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 income/(loss) (b) 0.00(*) (0.12) (0.12)
Net realized and unrealized gain on investments (b) 1.55 1.59 1.59
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.55 1.47 1.47
- -----------------------------------------------------------------------------------------------------------------------
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 $11.99 $11.88 $11.88
=======================================================================================================================
Total Return (c) 14.84% 14.10% 14.12%
=======================================================================================================================
Net assets, end of period (000) $8,371 $3,888 $7,560
Ratio of operating expenses to average net assets 2.00% 2.75% 2.75%
Ratio of net investment income/(loss) to average net assets 0.01% (1.13)% (1.14)%
Portfolio turnover rate (%) 190% 190% 190%
Ratio of operating expenses to average net assets
without waivers and /or expenses reimbursed 7.21% 7.96% 7.96%
=======================================================================================================================
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 on investments (b) 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 loss 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
(*) Amount represents less than $0.01.
See Notes to Financial Statements.
24
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
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 (no par value per share)
that are divided among four series, three of which are presented in this report.
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 market are valued at the
last reported sale price or at the official closing price if such price is
deemed to be representative of value at the close of such exchange or market 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 at
fiscal period end, resulting from changes in 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 forwards includes net
25
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
gains or losses on contracts that have matured or which a Fund has terminated by
entering into offsetting closing transactions. Forward contracts are valued
daily and the unrealized appreciation or depreciation is included in the
Statement of Assets and Liabilities. These instruments involve market risk
and/or credit risk 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 year
ended July 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, the 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, the Funds maintain 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 among each Fund within the Trust based on
average 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, 2003, the Funds had the following accumulated capital loss
carryforwards for tax purposes. Expiring July 31:
2010 2011
- --------------------------------------------------------
European Focus $ -- $ --
Global Technology 7,641 117,718
International Opportunities 1,387 161,019
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders 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.
Accordingly, at July 31, 2003, the Funds reclassified the following amounts
between paid-in capital, undistributed net investment income and accumulated net
realized gain/loss:
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
- ---------------------------------------------------------
Paid-in Capital $(307) $(29,384) $(88,256)
- ---------------------------------------------------------
Accumulated
Undistributed
Net Investment
Income/(Loss) (153,253) 28,181 40,684
- ---------------------------------------------------------
Accumulated
Net Realized
Gain/(Loss) 153,560 1,203 47,572
- ---------------------------------------------------------
These reclassifications relate to a net investment loss and to the deductibility
of certain expenses and the character of realized gains/losses on foreign
currency transactions for tax purposes and had no impact on the net asset value
of the Funds.
The tax character of distributions paid during the year ended July 31, 2003 from
ordinary income was $57,042 for European Focus, $67,292 for Global Technology
and $29,467 for International Opportunities. There were no distributions paid in
the period ended July 31, 2002.
26
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
As of July 31, 2003, the components of distributable earnings on a tax basis
were as follows:
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
- ---------------------------------------------------------
Undistributed
Ordinary
Income $1,254,293 $ -- $ --
- ---------------------------------------------------------
Unrealized
Appreciation 7,464,667 328,839 1,848,498
- ---------------------------------------------------------
Ordinary income and net realized gains/losses may differ for book basis and tax
basis reporting purposes due to post October losses which are not recognized for
tax purposes until the first day of the following fiscal year, losses pertaining
to wash sale transactions and mark to market adjustments for passive foreign
investment companies.
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 July 31, 2003 was:
European Focus $1,218,791
Global Technology 642,072
International Opportunities 1,000,309
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 July 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 year ended July 31, 2003, were as follows:
PURCHASES SALES
- ---------------------------------------------------------
European Focus $49,276,906 $20,116,110
Global Technology 3,181,645 2,803,733
International Opportunities 28,449,823 17,688,855
=========================================================
27
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
The U.S. federal income tax basis of the Funds' investments at July 31, 2003,
and the gross unrealized appreciation and depreciation, were as follows:
EUROPEAN GLOBAL INTERNATIONAL
FOCUS TECHNOLOGY OPPORTUNITIES
- ---------------------------------------------------------
Cost $41,521,985 $1,361,043 $16,489,171
- ---------------------------------------------------------
Gross Unrealized
Appreciation 7,993,788 333,507 2,000,348
- ---------------------------------------------------------
Gross Unrealized
Depreciation (529,121) (4,668) (151,850)
- ---------------------------------------------------------
Net Unrealized
Appreciation $7,464,667 $328,839 $1,848,498
=========================================================
Identified cost may differ for book basis and tax basis reporting purposes due
to losses pertaining to wash sale transactions and mark to market adjustments
for passive foreign investment companies.
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 net 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 the value of 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.
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 July 31, 2003, nor at any time during the year 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.
28
HENDERSON GLOBAL FUNDS
REPORT OF INDEPENDENT AUDITORS
The Board of Trustees and Shareholders
Henderson Global Funds
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Henderson European Focus Fund, Henderson
Global Technology Fund and Henderson International Opportunities Fund
(collectively, the "Funds"), comprising the Henderson Global Funds, as of July
31, 2003, and the related statements of operations for the year then ended, and
the statements of changes in net assets and the financial highlights for the
year then ended and for the period from August 31, 2001 (commencement of
operations) through July 31, 2002. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of July 31, 2003, by correspondence with the custodian and brokers or
by other appropriate auditing procedures where replies from brokers were not
received. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting the Henderson Global Funds at July 31,
2003, and the results of their operations for the year then ended, the changes
in their net assets and financial highlights for the year then ended and for the
period from August 31, 2001 (commencement of operations) through July 31, 2002
in conformity with accounting principles generally accepted in the United
States.
/s/ Ernst & Young LLP
Chicago, Illinois
September 9, 2003
29
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
TERM OF OTHER
NAME, AGE AND POSITION WITH OFFICE AND PRINCIPAL OCCUPATION(S) DIRECTORSHIPS
ADDRESS1 THE TRUST2 TIME SERVED3 DURING PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Roland C. Baker, 65 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, 64 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
firm); Director, Florida Office Property portfolios).
Company Inc. (real estate investment fund).
Faris F. Chesley, 65 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, 54 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, 37 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, 28 Vice President Since 2002 Associate Director, Product Management, N/A
HGINA since 2003 and Product Manager since 2001;
Portfolio Assistant, UBS Brinson 1998-2001.
Scott E. Volk, 32 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
30
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
TERM OF OTHER
NAME, AGE AND POSITION WITH OFFICE AND PRINCIPAL OCCUPATION(S) DIRECTORSHIPS
ADDRESS1 THE TRUST2 TIME SERVED3 DURING PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES AND OFFICERS OF THE TRUST
- ------------------------------------------------------------------------------------------------------------------------------------
Ann M. Casey, 37 Assistant Since 2001 Treasurer, The China Fund Inc., since 2001; N/A
225 Franklin Street Treasurer Assistant Treasurer, The Holland Balanced
Boston, MA Fund, 2002; Vice President, Senior Director
02110 of Fund 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, 37 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, 32 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).
31
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.hendersonglobalinvestors.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.
Henderson Global Funds
737 N. Michigan Avenue, Suite 1950
Chicago, IL 60611
1.866.4HENDERSON (1.866.443.6337)
www.hendersonglobalinvestors.com
Forum Fund Services, LLC, Distributor (September 2003)
ITEM 2: CODE OF ETHICS
- -----------------------
(a) Henderson Global Funds (the "Trust") has adopted a Code of Ethics that
applies to the Trust's principal executive officer and principal financial
officer.
(c) There have been no amendments to the Trust's Code of Ethics during the
reporting period for Form N-CSR.
(d) There have been no waivers granted by the Trust to individuals covered by
the Trust's Code of Ethics during the reporting period for Form N-CSR.
(f) A copy of the Trust's Code of Ethics may be obtained free of charge by
calling the Henderson Global Funds at 866-343-6337.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
- -----------------------------------------
(a) (1) The Board of Trustees of Henderson Global Funds (the "Trust") has
determined that the Trust has three members serving on the Trust's
Audit Committee that possess the attributes identified in Instruction
2(b) of Item 3 to Form N-CSR to qualify as "audit committee
financial experts."
(2) The names of the audit committee financial experts are:
Roland C. Baker
Faris F. Chesley
C. Gary Gerst
Each audit committee financial expert has been deemed to be
"independent" as that term is defined in Item 3(a)(2) of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
- ------------------------------------------------
Not required.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
- -----------------------------------------------
Not applicable.
ITEM 6. [RESERVED]
- -------------------
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
INVESTMENT COMPANIES.
- ---------------------
Not applicable.
ITEM 8. [RESERVED]
- -------------------
ITEM 9. CONTROLS AND PROCEDURES.
- ---------------------------------
(a) The registrant's principal executive and principal financial officers
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(d))) are effective, as of a date
within 90 days of the filing date of this Form N-CSR, based on their
evaluation of these controls and procedures required by Rule 30a-3(b) under
the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under
the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's second fiscal half-year
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 10. EXHIBITS
- ------------------
(a)(1) Not applicable.
(a)(2) The certifications required by Rule 30a-2 of the 1940 Act are attached
hereto.
(b) The certifications required by Rule 30a-2(b) of the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are 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 (principal executive officer) of Henderson Global Funds
Date: September 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 (principal executive officer) of Henderson Global Funds
Date: September 26, 2003
By: /s/ Steven M. Hill
Steven M. Hill
Treasurer (principal financial officer) of Henderson Global Funds
Date: September 26, 2003