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 1700
CHICAGO, ILLINOIS 60611
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(Address of principal executive offices)(Zip code)
(Name and Address of Agent for Service) Copy to:
CHRISTOPHER K. YARBROUGH CATHY G. O'KELLY
737 NORTH MICHIGAN AVENUE, SUITE 1700 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, 2007
Date of reporting period: July 31, 2007
Item 1: Report to Shareholders.
LOGO: HENDERSON GLOBAL INVESTORS
HENDERSON GLOBAL FUNDS
ANNUAL REPORT
JULY 31, 2007
EUROPEAN FOCUS FUND
GLOBAL EQUITY INCOME FUND
GLOBAL OPPORTUNITIES FUND
GLOBAL TECHNOLOGY FUND
INTERNATIONAL OPPORTUNITIES FUND
JAPAN-ASIA FOCUS FUND
US FOCUS FUND
WORLDWIDE INCOME FUND
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ...................................................... 1
EUROPEAN FOCUS FUND
Commentary .................................................................. 2
Performance summary ......................................................... 3
GLOBAL EQUITY INCOME FUND
Commentary .................................................................. 4
Performance summary ......................................................... 5
GLOBAL OPPORTUNITIES FUND
Commentary .................................................................. 6
Performance summary ......................................................... 7
GLOBAL TECHNOLOGY FUND
Commentary .................................................................. 8
Performance summary ......................................................... 9
INTERNATIONAL OPPORTUNITIES FUND
Commentary .................................................................. 10
Performance summary ......................................................... 11
JAPAN-ASIA FOCUS FUND
Commentary .................................................................. 12
Performance summary ......................................................... 13
US FOCUS FUND
Commentary .................................................................. 14
Performance summary ......................................................... 15
WORLDWIDE INCOME FUND
Commentary .................................................................. 16
Performance summary ......................................................... 17
PORTFOLIOS OF INVESTMENTS ................................................... 18
STATEMENT OF ASSETS AND LIABILITIES ......................................... 42
STATEMENT OF OPERATIONS ..................................................... 44
STATEMENTS OF CHANGES IN NET ASSETS ......................................... 46
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY .............................. 54
FINANCIAL HIGHLIGHTS ........................................................ 62
NOTES TO FINANCIAL STATEMENTS ............................................... 70
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ..................... 79
OTHER INFORMATION ........................................................... 81
TRUSTEES AND OFFICERS ....................................................... 86
THERE ARE RISKS OF INVESTING IN FUNDS LIKE THE EUROPEAN FOCUS, GLOBAL EQUITY
INCOME, GLOBAL OPPORTUNITIES, GLOBAL TECHNOLOGY, INTERNATIONAL OPPORTUNITIES,
JAPAN-ASIA FOCUS AND WORLDWIDE INCOME FUNDS THAT INVEST IN SECURITIES OF FOREIGN
COUNTRIES, SUCH AS ERRATIC MARKET CONDITIONS, ECONOMIC AND POLITICAL
INSTABILITY, AND FLUCTUATIONS IN CURRENCY AND EXCHANGE RATES. In addition, the
Global Equity Income Fund, Global Opportunities Fund, and Japan-Asia Focus Fund
are non-diversified, meaning they may invest in a limited geographic area or in
a small number of issuers. As such, investing in these Funds may involve greater
risk and volatility than investing in a more diversified fund. The European
Focus, Global Equity Income, Global Opportunities, Global Technology,
International Opportunities, Japan-Asia Focus and Worldwide Income Funds may
also invest in securities issued by smaller companies, which typically involves
greater risk than investing in larger companies.
The Global Technology Fund's returns may be considerably more volatile than a
fund that does not invest in technology companies, because technology companies
may react similarly to certain market pressures and events. This may be
significantly affected by short product cycles, aggressive pricing of products
and services, competition from new market entrants, and obsolescence of existing
technology.
There are risks of investing in funds similar to the Worldwide Income Fund that
invest in high yield securities. High yield, lower rated bonds involve a greater
degree of risk than investment grade bonds in return for higher yield potential.
As such, securities rated below investment grade generally entail greater
credit, market, issuer and liquidity risk than investment grade securities. In
addition, the Worldwide Income Fund is subject to interest rate risk, which is
the risk that the debt securities in the Fund's portfolio will decline in value
because of increases in market interest rates.
The views in this report were those of the Fund managers as of July 31, 2007,
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 Funds in understanding their investment in the Funds and do not
constitute investment advice.
This page deliberately left blank.
HENDERSON GLOBAL FUNDS
LETTER TO SHAREHOLDERS
Dear fellow shareholder,
We are pleased to provide the annual report for the Henderson Global Funds,
which covers the year ended July 31, 2007.
Global economies continued to strengthen over the past year, as strong growth in
emerging markets boosted global growth to a 35-year high. Unemployment in the
Euro zone fell to a new low of 7.0% in July (records began in 1993), and the
economy continues to exhibit strong growth. In Japan, unemployment dropped to
3.7% in June, its lowest rate since early 1998, amid relatively robust business
sentiment. China's economy continues to boom, with both the Hang Seng and the
Singapore Straits Times Indexes reaching record highs. Real gross domestic
product (GDP) in China increased by almost 12% over the one-year period through
June 30, retail sales growth picked up from already high levels, and industrial
production remained strong. In the US, both the Dow Jones Industrial Average and
the S&P 500 Index hit record highs in July. Meanwhile, globalization is helping
to keep wage demands moderate in developed economies, holding back inflation
pressures.
However, a mix of fears over credit markets, continued woes in the US housing
market, and generally overbought conditions led to a flight to quality in bond
markets in July. This bond market volatility and subsequent equity market
sell-off has reignited concerns about the impact of weakness in the US sub-prime
mortgage market. However, we believe that as long as US corporate profit growth
does not disappoint expectations and economic dataflow remains positive, markets
should keep improving despite ongoing stress in US housing and global credit
markets.
Looking forward, our view is that global equity markets should continue to be
supported by what we perceive to be a favorable macro-economic backdrop,
generally low inflation and good, if slowing, earnings growth. Additionally, we
believe corporate buy-backs and private equity buyouts are likely to keep demand
for equities strong. Japanese equities have lagged other markets and could
benefit most from an upturn in sentiment about the global economic cycle.
European equities should benefit from the surprisingly good economic performance
of the Euro-area, buoyant mergers and acquisitions activity and continued
restructuring.
At Henderson, we remain focused on seeking out exciting investment opportunities
around the world and bringing them to our shareholders' portfolios. We have
maintained our flexible bottom-up stock picking methodology which utilizes our
local market insight to uncover investments which others may overlook. This is
what we refer to as "The Henderson Difference," and we look forward to serving
your financial needs with our differentiated products in the years to come.
/s/ Sean Dranfield
Sean Dranfield
President, Henderson Global Funds
1
HENDERSON GLOBAL FUNDS
COMMENTARY
EUROPEAN FOCUS FUND
After a weak summer period, Continental European equity markets bounced back in
August. We believe the new found optimism was a result of an end to the US
interest rate tightening cycle and a broadly encouraging earnings season.
Markets continued their positive trend for much of the period buoyed by a
re-acceleration of global merger and acquisition volumes as well as strong
consumer confidence and business sentiment survey results. The strong run was
punctuated by a correction in February which was blamed on volatility in the
local Chinese market and concerns over the US housing market.
At the end of the period, European markets corrected sharply again. US sub-prime
mortgage woes and concerns that a credit crunch would herald the end of the
European private equity boom caused the sell-off.
US dollar weakness was an important feature of the period, with the euro
exchange rate moving from US$1.27 to US$1.37 over the year. This can be
explained by the European Commission raising its forecast for economic growth,
the market seeing a decoupling from the US, and the divergence in US Federal
Reserve and European Central Bank policy. The Fund benefitted from US$ weakness
as it was unhedged over the year.
Over the period, the European Focus Fund returned 36.52% (Class A shares at NAV)
versus the benchmark, the MSCI Europe Index, which posted a return of 28.28%.
The standout performer during the period was Tradedoubler, a Swedish online
advertising company and the dominant provider of affiliate marketing in Europe.
The company had a good run thanks to strong results and rumors of a takeover
approach by AOL. The bid materialized in January, with AOL offering a 20%
premium. Temenos Group, the Swiss banking software company, was also up
strongly. The company posted quarterly results which were considerably ahead of
market expectations. Guidance was also positive, suggesting significant upside
to margins.
The Fund's holdings in the Materials sector performed well. Rhodia, France's
largest manufacturer of specialty chemicals, performed well thanks to a positive
preannouncement and favorable market reaction to the announced sale of its
non-core Silicones business.
The Fund's holdings in the Consumer Discretionary sector had a negative effect
on performance. Higher interest rates and disappointing summer weather in the UK
has hurt retail sales and the Fund's holdings in department store Debenhams and
sportswear retailer Sports Direct International were down as a result.
One of the Fund's largest holdings, National Bank of Greece, also posted strong
returns. The stock was sold off sharply by the overall market in June following
the company's announcement of a Turkish acquisition. We felt the market reaction
was unduly harsh and felt this represented an excellent entry point into a stock
we had been monitoring for some time. During the reporting period, the company
announced results that were ahead of consensus, thanks largely to strength in
its home market.
After several years of ample liquidity and low bond yields, the sub-prime market
issues have caused concerns that global credit will no longer be as cheap or
easy to obtain as in the recent past. However, we believe valuations generally
remain reasonable and many company results robust. There have been fewer
upgrades this year, but this is more due to currency moves and interest rate
rises than underlying demand. In this environment, we believe astute stock
picking is vital.
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EUROPEAN FOCUS FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
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CENTAMIN EGYPT, LTD. 2.5%
OAO GAZPROM 2.3
LUNDIN MINING CORP. 2.3
KAZAKHMYS PLC 2.2
TEMENOS GROUP AG 2.2
ARCELOR MITTAL 2.2
MARFIN INVESTMENT
GROUP S.A. 2.0
GERRESHEIMER AG 2.0
KINGDOM HOTEL
INVESTMENTS 2.0
NATIONAL BANK OF
GREECE S.A. 1.9
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2
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
EUROPEAN FOCUS FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United Kingdom 24.9%
Germany 12.0
Netherlands 8.7
Switzerland 8.1
Greece 6.8
France 4.1
Other 35.4
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Materials 23.7%
Financials 21.9
Industrials 15.0
Energy 14.3
Consumer Discretionary 5.6
Information Technology 5.4
Other 14.1
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
European Focus Fund European Focus Fund MSCI Europe
Class A w/out sales Class A w/sales Index -
charge - $50,096 charge - $47,215 $22,380
8/31/01 10000 9425 10000
9910 9340.18 9002.2
10960 10329.8 9287.66
12120 11423.1 9660.65
12250 11545.6 9908.16
1/31/02 12110 11413.7 9391.45
12450 11734.1 9389.85
12980 12233.6 9901.69
13080 12327.9 9834.36
13280 12516.4 9816.17
12850 12111.1 9479.47
7/31/02 11610 10942.4 8425.73
11890 11206.3 8426.24
10610 9999.93 7317.94
11580 10914.1 8025.65
12520 11800.1 8419.87
12523.9 11803.8 8115.41
1/31/03 12353 11642.7 7732.28
11890.6 11206.9 7480.21
11699.7 11026.9 7372.5
13468.7 12694.2 8378.84
14664.8 13821.6 8931.84
15006.5 14143.7 9023.84
7/31/03 15549.3 14655.2 9208.83
16142.3 15214.1 9193.18
16785.6 15820.4 9380.72
17820.9 16796.2 10009.2
18649.5 17577.2 10435.6
20276.7 19110.8 11292.4
1/31/04 21819.4 20564.8 11425.6
23267 21929.1 11761.5
22696.4 21391.4 11398.1
22685.8 21381.4 11317.2
22485.1 21192.2 11494.9
23298.7 21959 11675.3
7/31/04 22062.4 20793.8 11355.4
21903.9 20644.5 11364.5
23193 21859.4 11820.2
24165.1 22775.6 12248.1
26071.8 24572.6 13149.6
27900.5 26296.2 13707.1
1/31/05 28252.2 26627.7 13454.9
29858.3 28141.4 14130.4
29283.8 27600 13778.5
28006 26395.7 13450.6
26822 25279.8 13517.8
27935.7 26329.4 13709.8
7/31/05 29659 27953.6 14211.2
30714 28948 14425.8
30725.8 28959 14776.3
29483.1 27787.8 14312.4
30420.3 28671.1 14559.1
31857.5 30025.7 15073.6
1/31/06 34457.1 32475.8 16061.4
35194.5 33170.8 16071.7
36531.8 34431.2 16703.3
39443.9 37175.8 17575.2
37281.7 35138 17120
36744.3 34631.5 17183.4
7/31/06 36694.3 34584.4 17448
37856.6 35679.8 18002.9
38144.1 35950.8 18157.7
40343.7 38024 18938.5
42593.4 40144.2 19616.5
44821.2 42244 20246.2
45538 42919.6 20367.6
45808.5 43174.5 20294.3
47742.6 44997.3 21039.1
49811.8 46947.7 22425.6
50718 47801.7 22860.6
50907.3 47980.2 22865.2
7/31/07 50095.9 47215.3 22380.5
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ ONE THREE FIVE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* YEARS* (8/31/01)*
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Henderson European Focus Fund HFEAX Class A 36.52% 31.44% 33.97% 31.30%
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Henderson European Focus Fund HFEBX Class B 35.47 30.48 32.98 30.34
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Henderson European Focus Fund HFECX Class C 35.52 30.48 33.00 30.34
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WITH SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class A 28.68% 28.87% 32.38% 29.99%
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class B 31.47 29.89 32.91 30.34
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Henderson European Focus Fund Class C 35.52 30.48 33.00 30.34
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INDEX
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MSCI Europe Index 28.28% 25.38% 21.58% 14.59%
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* Average annual return.
Performance data quoted represents past performance and is no guarantee of
future results. Performance results with sales charges reflect the deduction of
the maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 5.75%. Class B shares are subject to a CDSC which
declines from 5% the 1st year to 0% at the beginning of the 7th year. Class C
shares are subject to a CDSC of up to 1% on certain redemptions made within 12
months of purchase. Performance presented at Net Asset Value (NAV), which does
not include a sales charge, would be lower if this charge were reflected. NAV is
the value of one share of the Fund excluding any sales charges. Current
performance may be lower or higher than the performance data quoted. Investment
return and principal value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than original cost. As stated in the current
prospectus, the Fund's annual operating expense ratios (gross) for Class A, B,
and C shares are 1.64%, 2.39%, and 2.39% respectively. The Fund's audited net
expense ratios based on the fiscal year from August 1, 2006 to July 31, 2007 for
Class A, B, and C shares are 1.53%, 2.28% and 2.28% respectively. Shares
redeemed within 30 days of purchase may be subject to a 2.0% redemption fee. For
the most recent month-end performance, please call 1.866.443.6337 or visit the
Funds' website at www.hendersonglobalinvestors.com.
Performance results also reflect expense subsidies and waivers in effect during
certain periods shown. Absent these waivers, results would have been less
favorable for certain periods. All results assume the reinvestment of dividends
and capital gains.
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.
3
HENDERSON GLOBAL FUNDS
COMMENTARY
GLOBAL EQUITY INCOME FUND
The Global Equity Income Fund was successfully launched on November 30, 2006.
During its inaugural month, we concentrated on opening positions that would seek
maximization of income within the first six months of 2007. The Fund performed
well as equity markets rallied, driven by buoyant markets across Europe, the Far
East, and the US. Equity markets across the globe experienced a correction at
the end of February, but we believe they recovered strongly driven by continued
corporate activity and a return of investor confidence. During the next few
months, markets began to rise again, but in June the trend reversed due to the
threat of further interest rate increases and issues in the sub-prime lending
market in the US. UK equities tested seven year highs in mid-July, but fell back
sharply toward month end with the FTSE 100 Index sustaining its largest one day
percentage decline in four years. This sell off was triggered by events in the
US and concerns that tighter credit conditions would derail the mergers and
acquisitions boom that had been sustaining share prices. For the period, the
Fund returned 10.68% (Class A shares at NAV) versus the benchmark, the MSCI
World Index, which posted a return of 9.29%.
The Fund was heavily invested in US companies at the beginning of the period, as
US companies historically pay higher dividends in the early part of the year.
Positions were opened in food and tobacco company Altria Group, pharmaceutical
companies Merck and Pfizer, utility company Progress Energy, and financial
services conglomerates Bank of America and Citigroup. A number of Asian
companies also go ex-dividend at this time, so we opened positions in Daelim
Industrial, Singapore Telecommunications, and Hang Seng Bank.
As we sought to take advantage of the relative strength of the dividend income
streams offered in different geographical markets, we began to reduce our
exposure to the US and Asia and added positions in the UK and Continental
Europe. Several companies held, such as British American Tobacco and Royal Bank
of Scotland Group, announced higher than expected dividend growth, which gave a
clear indication that management teams were willing to share cash flow with
investors. New positions in Europe included Deutsche Bank and France Telecom.
During March, April and May we reduced holdings in companies that had gone
ex-dividend, mainly in UK and Scandinavia, and increased exposure to Continental
Europe and the Far East. We continued to favor the growth of Asian profits and
we increased our weighting to the region, to include Hong Kong, China, Taiwan,
and Singapore. CNOOC, China's largest offshore oil producer, was one of the
Fund's top contributors.
For the period, the Asia-Pacific region was the largest contributor to
performance, and Industrials was the best performing sector. We were underweight
the benchmark in the US region, which only ended up hurting performance
slightly. Financials was the worst performing sector, as many companies were
affected by the sell-off in late July.
While volatility of equity prices around the world appears to be increasing, we
believe many companies are still producing strong earnings results and record
cash flows which should present us with good investment opportunities. We expect
to maintain reasonable cash balances seeking to capitalize on current market
volatility while maintaining an overall defensive nature to portfolio stock
selection. We have materially reduced exposure to financial stocks in recent
months and prefer Telecom and Industrials, as their earnings look to be
relatively stable.
The FTSE 100 Index is a capitalization-weighted index of the 100 most highly
capitalized companies traded on the London Stock Exchange. The index was
developed with a base level of 1000 as of January 3, 1984. One cannot invest
directly in an index.
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GLOBAL EQUITY INCOME FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
U-MING MARINE
TRANSPORT CORP. 3.5%
VODAFONE GROUP PLC 3.2
LLOYDS TSB GROUP PLC 3.0
ENI SPA 2.9
DIAGEO PLC 2.8
SCOTTISH &
SOUTHERN ENERGY PLC 2.7
NORTHUMBRIAN
WATER GROUP PLC 2.6
BARCLAYS PLC 2.5
ING GROEP N.V. 2.5
ENEL SPA 2.5
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4
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL EQUITY INCOME FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United Kingdom 50.8%
Taiwan 9.4
Germany 7.3
Italy 5.9
Greece 5.1
France 5.1
Other 16.4
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Financials 22.8%
Telecommunication Service 19.1
Utilities 15.4
Industrials 13.9
Energy 8.3
Consumer Staples 6.2
Other 14.3
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
Global Equity Income MSCI World Global Equity Income
Fund Class A w/out Index - Fund Class A w/sales
sales charge - $11,068 $10,928 charge - $10,432
11/30/06 10000 10000 9425
12/31/06 10230 10206 9641.78
1/31/07 10300 10328.5 9707.75
2/28/07 10250 10278.9 9660.63
3/31/07 10600 10471.1 9990.5
4/30/07 11120 10939.2 10480.6
5/31/07 11392.9 11256.4 10737.8
6/30/07 11313.1 11173.1 10662.6
7/31/07 11068.1 10928.4 10431.7
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ INCEPTION
AT NAV SYMBOL CLASS (11/30/06)
- -------------------------------------------------------------------------------------------------------
Henderson Global Equity Fund HFQAX Class A 10.68%
- -------------------------------------------------------------------------------------------------------
Henderson Global Equity Fund HFQCX Class C 10.11
- -------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -------------------------------------------------------------------------------------------------------
Henderson Global Equity Fund Class A 4.32%
- -------------------------------------------------------------------------------------------------------
Henderson Global Equity Fund Class C 9.11
- -------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------
MSCI World Index 9.29%
- -------------------------------------------------------------------------------------------------------
Performance data quoted represents past performance and is no guarantee of
future results. Performance results with sales charges reflect the deduction of
the maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 5.75%. Class C shares are subject to a CDSC of up to
1% on certain redemptions made within 12 months of purchase. Performance
presented at Net Asset Value (NAV), which does not include a sales charge, would
be lower if this charge were reflected. NAV is the value of one share of the
Fund excluding any sales charges. Current performance may be lower or higher
than the performance data quoted. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. As stated in the current prospectus, the Fund's annual
operating expense ratios (gross) for Class A and C shares are 2.76% and 3.51%,
respectively. However, the Fund's adviser has agreed to contractually waive a
portion of its fees and/or reimburse expenses such that total operating expenses
do not exceed 1.40% and 2.15% for Class A and C shares, which is in effect until
July 31, 2020. The Fund's audited net expense ratios based on the fiscal year
from November 30, 2006 to July 31, 2007 for Class A and C shares are 1.40% and
2.15% respectively. Shares redeemed within 30 days of purchase may be subject to
a 2.0% redemption fee. For the most recent month-end performance, please call
1.866.443.6337 or visit the Funds' website at www.hendersonglobalinvestors.com.
Performance results also reflect expense subsidies and waivers in effect during
periods shown. Absent these waivers, results would have been less favorable. All
results assume the reinvestment of dividends and capital gains.
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 World Index is a free float-adjusted market capitalization index that
is designed to measure global developed market equity performance. 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.
5
HENDERSON GLOBAL FUNDS
COMMENTARY
GLOBAL OPPORTUNITIES FUND
The Global Opportunities Fund was successfully launched on November 30, 2006.
Over the period the Fund returned 14.10% (Class A shares at NAV) versus the
benchmark, the MSCI World Index, which posted a return of 9.29%. During the
period, many global markets reached all-time highs. However, triggered by events
in the US, where there were signs that the problems in the mortgage market were
not confined to the sub-prime sector, these markets experienced volatility at
the end of the period. Also, concerns that an impending credit crunch would
abruptly halt the private equity boom unsettled many already skittish investors.
After a strong run between January and June, the US Equity-Fundamental sleeve of
the Fund lost some ground as the period ended. Many of the positions had been
strong performers, and we paid a price for previous success as some investors
chose to lock in short term profits. We are still enthusiastic about the
underlying fundamentals of the businesses the Fund owns and continue to hold
positions.
The US Equity-Special Situations sleeve of the Fund had a positive close to the
period aided by some holdings that historically have performed better in a down
market. Specifically, Cablevision Systems traded well following management's
bullish projections, and Laureate Education benefited from an increased offer
from a private equity firm.
Higher interest rates and fall out from the US sub-prime loans trouble weighed
on the Fund's European and UK holdings in both the Financials and Utilities
sectors. However, we believe the underlying performance of these companies is
far less sensitive to these influences than general market consensus presents.
Strong results announcements may serve to confound the current bearish
sentiment.
Japan significantly underperformed other international markets over the period.
A small number of global cyclicals have driven performance since the start of
the year. We believe that they look expensive, but favorable price and earnings
momentum trends have kept investors interested. We believe earnings momentum
will spread out to include the domestic stocks in the second half of the year.
Valuations in Banks, Building and Construction are compelling.
China's economy continued to grow at a rapid pace despite efforts by
policymakers to rein it in. The strength of the Asia-Pacific markets was also
reflected in the performance of the more established exchanges, with the Hong
Kong Hang Seng Index and the Australian ASX both recording all-time highs prior
to the sell-off at the end of the period.
Technology continues to show strong performance trends, and we feel the Fund has
capitalized on several opportunities the area has presented over the period.
Technology sector strength is being driven by continued steady improvement in
technology fundamentals, attractive valuation and increased recognition of the
sector's relative appeal. The Global Technology sleeve of the Fund performed
well driven by CommScope, EMC, Nokia Oyj, Parrot and Autodesk.
We believe equities still offer reasonable value on a medium term view, though
this is contingent on the outlook for profits which despite their declining
trend, continue to surprise on the upside. As long as the US economy continues
to create jobs at the current pace and prices of essential items do not rise too
quickly, any fears regarding consumption should remain in check. However,
further potential fall-out from the sub-prime mortgage loan business in the US
could have a slightly negative impact on the current situation, slowing down the
pace of private equity deals.
The Australian ASX Index represents 500 of the largest companies listed on the
Australian Stock Exchange. The Hang Seng Index is the major indicator of stock
market performance in Hong Kong. The index is comprised of 33 companies with
aggregate capitalization that represents 70% of total market capitalization of
all eligible stocks listed on the Main Board of the Stock Exchange of Hong Kong.
One cannot invest directly in an index.
GLOBAL OPPORTUNITIES FUND
TOP 10 LONG-TERM HOLDINGS
- -----------------------------------------------
AS A PERCENTAGE
SECURITY OF NET ASSETS
- -----------------------------------------------
BCE, INC. 3.2%
EFG EUROBANK ERGASIAS 3.0
TELEFONICA S.A. 2.3
FRESENIUS AG 2.3
NINTENDO CO., LTD. 2.2
SCHNEIDER ELECTRIC S.A. 2.2
TELEFONICA 02 CZECH
REPUBLIC A.S. 2.2
E.ON AG 2.2
ENI SPA 2.2
COMPAGNIE FINANCIERE
RICHEMONT AG 2.2
- -----------------------------------------------
6
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL OPPORTUNITIES FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United States 34.6%
Japan 13.5
United Kingdom 8.6
Canada 6.9
Switzerland 6.7
Germany 5.3
Other 24.4
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
FINANCIALS 22.1%
INDUSTRIALS 14.9
INFORMATION TECHNOLOGY 13.8
TELECOMMUNICATION SERVICE 11.8
CONSUMER DISCRETIONARY 8.7
CONSUMER STAPLES 7.8
OTHER 20.9
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
Global Opportunities Fund MSCI World Global Opportunities Fund
Class A w/out sales Index - Class A w/sales
charge - $11,410 $10,928 charge - $10,754
11/30/06 10000 10000 9425
12/31/06 10300 10206 9707.75
1/31/07 10430 10328.5 9830.28
2/28/07 10530 10278.9 9924.53
3/31/07 10720 10471.1 10103.6
4/30/07 11120 10939.2 10480.6
5/31/07 11700 11256.4 11027.2
6/30/07 11550 11173.1 10885.9
7/31/07 11410 10928.4 10753.9
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ INCEPTION
AT NAV SYMBOL CLASS (11/30/06)
- -------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund HFPAX Class A 14.10%
- -------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund HFPCX Class C 15.30
- -------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund Class A 7.54%
- -------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund Class C 14.30
- -------------------------------------------------------------------------------------------------------
INDEX
- -------------------------------------------------------------------------------------------------------
MSCI World Index 9.29%
- -------------------------------------------------------------------------------------------------------
Performance data quoted represents past performance and is no guarantee of
future results. Due to the Fund's relatively small asset base in its initial
stages, performance was positively impacted by IPOs to a greater degree than it
may be in the future. IPO investments are not an integral component of the
Fund's investment process and may not be utilized to the same extent in the
future. Performance results with sales charges reflect the deduction of the
maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 5.75%. Class C shares are subject to a CDSC of up to
1% on certain redemptions made within 12 months of purchase. Performance
presented at Net Asset Value (NAV), which does not include a sales charge, would
be lower if this charge were reflected. NAV is the value of one share of the
Fund excluding any sales charges. Current performance may be lower or higher
than the performance data quoted. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. As stated in the current prospectus, the Fund's annual
operating expense ratios (gross) for Class A and C shares are 3.44% and 4.19%,
respectively. However, the Fund's adviser has agreed to contractually waive a
portion of its fees and/or reimburse expenses such that the total operating
expenses do not exceed 1.95% and 2.70% for Class A and C shares, which is in
effect until July 31, 2020. The Fund's audited net expense ratios based on the
fiscal year from November 30, 2006 to July 31, 2007 for Class A and C shares are
1.95% and 2.70% respectively. Shares redeemed within 30 days of purchase may be
subject to a 2.0% redemption fee. For the most recent month-end performance,
please call 1.866.443.6337 or visit the Funds' website at
www.hendersonglobalinvestors.com.
Performance results also reflect expense subsidies and waivers in effect during
periods shown. Absent these waivers, results would have been less favorable. All
results assume the reinvestment of dividends and capital gains.
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 World Index is a free float-adjusted market capitalization index that
is designed to measure global developed market equity performance. 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.
7
HENDERSON GLOBAL FUNDS
COMMENTARY
GLOBAL TECHNOLOGY FUND
Technology stocks outperformed the wider market over the period. Having
struggled in the market correction in July 2006, the sector surged after US
interest rates were put on hold in August and investors' appetite for risk
returned. The upward trend continued for most of the period as investors became
more confident that the US economy was heading for a soft landing. However, the
second half of July 2007 saw a sharp correction in markets in general, triggered
by fears over credit markets and the US housing market. Over the period, the
Global Technology Fund returned 34.78% (Class A shares at NAV) versus the
benchmark, the MSCI AC World IT Index which posted a return of 29.36%.
The Fund's holdings in the Internet sector performed strongly. The standout
performer in the space was online media company, aQuantive, which received an
all-cash takeover offer from Microsoft at an 85% premium to the existing stock
price. Although expensive, it looks like a good acquisition for Microsoft as it
should improve competitiveness in its online business, an area where it has been
struggling. Baidu.com, the Chinese internet company, also performed well thanks
to strong growth and continued success in monetizing its user base which led to
a series of broker upgrades. A new holding in the Fund is online travel agency,
Priceline.com. We believe the market has underestimated the company's growth
prospects in the fragmented European hotel market.
The Software sector had a negative effect, largely due to the performance of
Citrix Systems, the remote access software company. The company's third quarter
results were in-line with consensus, but weakness in its presentation server
business concerned the market.
We have increased our exposure to the Communications Equipment sector by
increasing our exposure to broadband equipment suppliers such as F5 Networks,
Arris Group and CommScope. This theme has performed strongly, most notably
CommScope, the speciality wire and cable company, due to solid quarterly
results.
Within the Computers and Peripherals sector, our holdings in the storage space
hurt performance as a result of negative newsflow. However, our exposure to the
personal navigation device (PND) theme was able to offset this. Dutch PND
manufacturer, TomTom, was a major contributor to returns. The company recently
reported earnings 30% ahead of expectations and the share price soared as a
result. The company also announced its intention to purchase another Fund
holding, digital map provider, Tele Atlas. The offer represented a 30% premium
and the shares were up as a result. A new position was initiated in Taiwanese
notebook manufacturer, Compal Electronics. Our view is that the company is well
positioned to benefit from the potential personal computer replacement cycle in
2007 and 2008 and is likely to take market share from rivals.
We increased our exposure to gaming-related names. We had avoided the segment
for some time as we felt consumers would hold off purchases until next
generation consoles were available. We initiated positions in Nintendo, whose
Wii console launch was well received, and entertainment software names, UbiSoft
Entertainment and Electronic Arts.
Our outlook for Global Technology markets for the second half of the year
remains positive. We believe valuations are attractive and excess cash positions
on many company balance sheets are drawing considerable interest from private
equity buyers. Many companies' technology infrastructures have been starved of
investment since the bursting of the bubble and we believe it will be
increasingly difficult for corporate customers to continue this
under-investment. On the consumer side, we believe innovative products such as
the iPhone and YouTube are driving growth.
- ----------------------------------------------
GLOBAL TECHNOLOGY FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ----------------------------------------------
NINTENDO CO., LTD. 3.6%
TOMTOM N.V. 3.0
INFINEON TECHNOLOGIES AG 3.0
ANIXTER INTERNATIONAL, INC. 3.0
CISCO SYSTEMS, INC. 2.8
NOKIA OYJ 2.8
COMMSCOPE, INC. 2.7
APPLE, INC. 2.6
C-COR, INC. 2.6
NHN CORP. 2.5
- ----------------------------------------------
8
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL TECHNOLOGY FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United States 59.1%
France 7.8
Netherlands 6.3
Taiwan 5.4
Japan 5.3
Germany 4.7
Other 11.4
PORTFOLIO COMPOSITION BY INDUSTRY
(AS A % OF LONG-TERM INVESTMENTS)
Software 20.3%
Communications Equipment 18.8
Semiconductors & Semi Equipment 18.1
Computers & Peripherals 13.1
Internet Software & Services 6.9
Household Durables 6.4
Other 16.4
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
Global Global
Technology Fund Technology Fund MSCI AC MSCI
Class A w/out Class A w/ S&P 500 World IT World IT
charge - sales charge - Index - Index - Index -
$17,776 $16,754 $14,241 $13,599 $13,252
8/31/01 10000 9425 10000 10000 10000
7850 7398.63 9192 8223 8282.3
8980 8463.65 9367.57 9555.13 9609.12
10690 10075.3 10086.1 11150.8 11175.6
11040 10405.2 10174.8 11044.9 10955.2
10910 10282.7 10026.3 10966.5 10850.2
9660 9104.55 9832.76 9829.26 9658.92
10480 9877.4 10202.5 10463.2 10274
9480 8934.9 9584.2 9293.45 9046.46
8940 8425.95 9513.28 8907.77 8685.78
8140 7671.95 8835.93 7876.25 7663.99
7/31/02 7360 6936.8 8147.61 7128.8 6912.3
6930 6531.53 8200.57 7041.83 6828.46
5920 5579.6 7309.17 5825 5631.7
6900 6503.25 7952.38 6951.55 6756.41
7890 7436.33 8420.77 8058.24 7862.77
6918.22 6520.42 7925.63 6895.44 6728.72
6989.02 6587.15 7717.98 6802.35 6632.97
6968.79 6568.09 7602.21 6863.57 6723.18
6877.76 6482.29 7675.95 6741.4 6608.89
7464.4 7035.19 8308.45 7380.48 7256.56
8394.92 7912.21 8746.3 8020.37 7882.8
8809.61 8303.05 8858.26 8098.97 7923
7/31/03 9669.33 9113.34 9014.16 8626.21 8393.63
10266.1 9675.78 9189.94 9198.99 8950.12
10104.2 9523.25 9092.52 9134.6 8900.9
10872.9 10247.7 9607.16 9947.58 9692.19
11055 10419.3 9691.7 10002.3 9769.73
11237 10590.9 10199.5 10222.3 9992.48
11894.5 11210.5 10387.2 10797.9 10509.1
12076.5 11382.1 10531.6 10571.1 10263.2
11924.8 11239.1 10372.6 10412.5 10083.6
11277.5 10629 10209.7 9794.03 9477.55
11631.5 10962.7 10349.6 10054.5 9777.04
12036.1 11344 10550.4 10312 10079.1
7/31/04 10660.5 10047.5 10201.2 9399.34 9200.25
10134.6 9551.85 10242 9044.05 8792.67
10781.9 10162 10352.6 9284.62 9042.39
11540.5 10876.9 10511 9720.07 9492.7
12376.3 11664.7 10936.7 10216.8 9962.59
12792.4 12056.8 11308.5 10534.5 10254.5
12098.9 11403.2 11032.6 10039.4 9714.08
12109.6 11413.3 11264.3 10185 9809.28
11810.8 11131.7 11064.9 9892.65 9551.29
11277.4 10628.9 10854.7 9510.79 9187.39
12216.3 11513.8 11199.8 10160.4 9806.62
11821.5 11141.8 11215.5 10054.7 9681.09
7/31/05 12461.7 11745.1 11632.7 10514.2 10106.1
12589.7 11865.8 11526.9 10485.8 10125.3
12867.1 12127.2 11620.2 10685 10284.3
12579 11855.7 11428.2 10404 10054.9
13469.9 12695.4 11862.2 11188.5 10781.9
13783.7 12991.1 11865.7 11278 10768.9
14779 13929.3 12180.2 11752.8 11178.2
14714.1 13868.1 12213.1 11518.9 10984.8
15374.1 14490.1 12365.7 11803.5 11300
15666.2 14765.4 12531.4 11858.9 11277.5
14389.6 13562.2 12170.5 11022.9 10493.7
14010.9 13205.3 12187.6 10854.2 10343.6
7/31/06 13188.6 12430.3 12263.1 10485.2 9981.58
13599.8 12817.8 12555 11229.6 10688.3
14032.5 13225.7 12878.9 11598 11044.2
14465.3 13633.5 13298.8 11952.9 11430.7
15179.4 14306.5 13551.4 12402.2 11803.4
15211.8 14337.1 13741.2 12391 12110.3
15493.1 14602.3 13948.6 12460.4 12227.9
15449.8 14561.5 13675.2 12212.5 12227.9
15677 14775.6 13828.4 12280.8 12227.9
16326.2 15387.4 14441 12898.6 10000
17386.5 16386.8 14945 13307.5 10000
17797.6 16774.2 14696.9 13581.6 10000
7/31/07 17776 16753.9 14241.3 13599.2 13252
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ ONE THREE FIVE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* YEARS* (8/31/01)*
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGAX Class A 34.78% 18.58% 19.29% 10.21%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGBX Class B 33.76 17.70 18.50 9.47
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGCX Class C 33.76 17.69 18.44 9.42
- -----------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class A 27.07% 16.27% 17.88% 9.11%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class B 29.76 16.98 18.39 9.47
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class C 33.76 17.69 18.44 9.42
- -----------------------------------------------------------------------------------------------------------------------
INDEX
- -----------------------------------------------------------------------------------------------------------------------
MSCI AC World IT Index 29.36% 13.00% 13.73% 5.29%
- -----------------------------------------------------------------------------------------------------------------------
MSCI World IT Index 29.31 11.94 13.30 4.41
- -----------------------------------------------------------------------------------------------------------------------
S&P 500 Index 16.13 11.76 11.81 6.16
- -----------------------------------------------------------------------------------------------------------------------
* Average annual return.
Performance data quoted represents past performance and is no guarantee of
future results. Performance results with sales charges reflect the deduction of
the maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 5.75%. Class B shares are subject to a CDSC which
declines from 5% the 1st year to 0% at the beginning of the 7th year. Class C
shares are subject to a CDSC of up to 1% on certain redemptions made within 12
months of purchase. Performance presented at Net Asset Value (NAV), which does
not include a sales charge, would be lower if this charge were reflected. NAV is
the value of one share of the Fund excluding any sales charges. Current
performance may be lower or higher than the performance data quoted. Investment
return and principal value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than original cost. As stated in the current
prospectus, the Fund's annual operating expense ratios (gross) for Class A, B,
and C shares are 2.55%, 3.30%, and 3.30% respectively. However, the Fund's
adviser has agreed to contractually waive a portion of its fees and/or reimburse
expenses such that the total operating expenses do not exceed 2.00%, 2.75% and
2.75% for Class A, B, and C shares, which is in effect until July 31, 2020. The
Fund's audited net expense ratios based on the fiscal year from August 1, 2006
to July 31, 2007 for Class A, B, and C shares are 1.87%, 2.62% and 2.62%
respectively. Shares redeemed within 30 days of purchase may be subject to a
2.0% redemption fee. For the most recent month-end performance, please call
1.866.443.6337 or visit the Funds' website at www.hendersonglobalinvestors.com.
Performance results also reflect expense subsidies and waivers in effect during
certain periods shown. Absent these waivers, results would have been less
favorable for certain periods. All results assume the reinvestment of dividends
and capital gains.
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 Fund used to compare its performance to the MSCI World IT
Index, which consists of 23 developed market countries and aims to capture 60%
of the total market capitalization of each country by various technology-related
industries. Currently, the Fund compares its performance to the MSCI AC World IT
Index, which is a similar index that is comprised of 49 developed and emerging
market countries. The Fund believes that the MSCI AC World IT Index, which
includes emerging market countries, more accurately reflects its strategy and is
now a more appropriate benchmark for the Fund. 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.
9
HENDERSON GLOBAL FUNDS
COMMENTARY
INTERNATIONAL OPPORTUNITIES FUND
During the period, international markets overall performed well. Corporate
profits have continued to rise. China and the Asian markets have seen strong
growth and European markets have continued to rise on the back of continued
merger and acquisition activity and were also supported by US dollar weakness
against European currencies. However, at the end of the period, investors became
unnerved by signs that the problems in the US sub-prime mortgage market would
spread and thus volatility set in. Over the period, the International
Opportunities Fund returned 30.69% (Class A shares at NAV) versus the benchmark,
the MSCI EAFE Index, which posted a return of 24.43%.
Merger and acquisition activity continues to be big news in the UK and
Continental Europe. During 2006, Europe saw record merger and acquisition
activity: $1.7 trillion and nearly half the world's total deals. Late in the
period, however, it became more expensive and difficult for borrowers to fund
mergers and acquisitions, whether corporate deals or private equity. That said,
we continue to believe that European equities are attractive. Corporate profit
growth remains healthy, due to corporate restructuring, subdued wage inflation
and strong productivity. The Fund's top five performing holdings over the period
were located in the European sleeves: Saipem, Rhodia, Capita Group, Kuehne &
Nagel International and Fresenius.
The Japanese stock market significantly underperformed other international
markets over the period, exacerbated by the yen's continued weakness to the US
dollar. Overall, however, the economy performed satisfactorily helped by exports
to both China and the US. We anticipate that leading indicators such as those
relating to the Organization for Economic Cooperation and Development (OECD) and
Japan's industrial production, which had been negative for about 12 months, may
turn to positive territory which could suggest that the market could begin to
perform well.
Asia-Pacific markets performed well, with the Hang Seng, Singapore Straits Times
and the Australian ASX Indices recording all time highs. The Hong Kong market
also reacted positively to an announcement from Chinese securities regulators
lifting constraints that had prohibited domestic fund managers and brokerages
from investing abroad. The Fund's Chinese holdings have performed well helping
to lift overall performance, notably: China COSCO and SRE Group. However, we do
believe there are some signs of over-speculation and overheating in the Chinese
market.
We remain optimistic about the Technology sector. Global Technology has
performed well over the period, shrugging off the concerns over US sub-prime
lending that have dogged other sectors of the market. We believe valuations are
inexpensive relative to other asset classes and excess cash positions on many
company balance sheets are drawing considerable interest from private equity
buyers.
Continued positive returns on equities may be possible due to the growth of both
earnings and global output, coupled with generally low inflation. We believe
these factors indicate that the economic backdrop remains favorable. However,
credit markets have turned and the price of credit has risen while the
availability is deteriorating, which has taken some of the heat out of the
merger and acquisition boom. Stock markets have fallen from their highs and at
the time of writing have reached reasonable valuations. We could expect to be
buyers of the weakness as long as the fundamentals remain in place.
The Straits Times Index (STI) is a market value-weighted stock market index
based on the stocks of 50 representative companies listed on the Singapore
Exchange. You cannot invest directly in an index.
- -----------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- -----------------------------------------------
KUEHNE & NAGEL
INTERNATIONAL AG 2.8%
FRESENIUS AG 2.8
INDUSTRIA DE DISENO
TEXTIL S.A. 2.7
CAPITA GROUP PLC 2.7
KONINKLIJKE (ROYAL)
KPN N.V. 2.6
SAIPEM SPA 2.6
SODEXHO ALLIANCE S.A. 2.5
OAO GAZPROM 2.4
VINCI S.A. 2.3
L'OREAL S.A. 2.3
- -----------------------------------------------
10
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
INTERNATIONAL OPPORTUNITIES FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
Japan 19.9%
Germany 13.8
France 11.1
United Kingdom 7.9
Switzerland 6.8
China 5.4
Other 35.1
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Financials 22.2%
Industrials 17.0
Consumer Discretionary 16.5
Information Technology 12.6
Energy 10.0
Materials 9.4
Other 12.3
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
Int'l Opportunities Fund Int'l Opportunities Fund MSCI EAFE
Class A w/out sales Class A w/sales Index -
charge - $30,275 charge - $28,535 $21,575
8/31/01 10000 9425 10000
9080 8557.9 8989.4
9930 9359.03 9219.26
11430 10772.8 9559.73
11640 10970.7 9616.7
11610 10942.4 9106.44
11290 10640.8 9170.73
11840 11159.2 9715.93
11950 11262.9 9741.39
11940 11253.5 9873.58
11540 10876.5 9484.26
7/31/02 10510 9905.68 8548.73
10410 9811.43 8531.38
9280 8746.4 7617.24
10060 9481.55 8027.2
10710 10094.2 8392.52
10328.5 9734.56 8110.95
10167.4 9582.76 7772.97
9553.31 9004 7594.97
9452.65 8909.12 7451.42
10499.6 9895.86 8190.6
11164 10522.1 8694.33
11647.2 10977.5 8909.08
7/31/03 12070 11376 9126.46
12905.5 12163.5 9348.23
13127 12372.2 9638.03
13972.6 13169.2 10239.4
13972.6 13169.2 10468.8
14889.8 14033.7 11287.5
15501.3 14610 11447.7
15878.4 14965.4 11714.5
16377.8 15436.1 11784.8
15888.6 14975 11527.9
15613.4 14715.7 11563.6
15949.8 15032.6 11836.5
7/31/04 15226.2 14350.7 11454.2
15195.6 14321.8 11506.9
15552.3 14658 11809.5
16163.8 15234.4 12213.4
17125.6 16140.9 13051.2
17901.7 16872.3 13624.2
17767.2 16745.5 13374.8
18491.5 17428.2 13955.3
18253.5 17203.9 13610.6
17705.1 16687 13305.7
17446.4 16443.2 13325.7
17622.3 16609 13508.3
7/31/05 18388 17330.7 13924
19164.1 18062.2 14280.4
19733.2 18598.6 14918.8
19288.3 18179.2 14484.6
19990.5 18842 14842.4
20851.7 19653.7 15534
22272.6 20993.1 16489.4
22165 20891.6 16454.8
23004.6 21683 17006
24156.5 22768.7 17830.8
23252.2 21916.4 17160.3
23316.8 21977.3 17167.2
7/31/06 23166.1 21835.2 17338.9
23769 22403.4 17820.9
23898.1 22525.2 17851.2
24727 23306.5 18547.4
25889.6 24402.3 19107.5
26697.2 25163.4 19709.4
26798.4 25258.8 19843.4
27090.9 25534.5 20006.2
27743.4 26149.6 20526.3
28812.2 27157 21456.2
29768.5 28058.3 21861.7
30308.5 28567.3 21894.5
7/31/07 30274.8 28535.5 21574.8
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ ONE THREE FIVE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* YEARS* (8/31/01)*
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOAX Class A 30.69% 25.75% 23.57% 20.59%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOBX Class B 29.75 24.80 22.68 19.72
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOCX Class C 29.72 24.83 22.67 19.71
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFORX Class R** 30.52 25.45 23.26 20.30
- -----------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class A 23.19% 23.29% 22.11% 19.39%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class B 25.75 24.15 22.59 19.72
- -----------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class C 29.72 24.83 22.67 19.71
- -----------------------------------------------------------------------------------------------------------------------
INDEX
- -----------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 24.43% 23.49% 20.34% 13.88%
- -----------------------------------------------------------------------------------------------------------------------
* Average annual return.
** Class R shares inception was 9/30/05. The performance for Class R shares
for the period prior to 9/30/05 is based on the performance of Class A
shares, adjusted for the higher expenses applicable to R shares. Class R
shares are not subject to a front-end sales charge but are subject to a
distribution fee of 0.50%
Performance data quoted represents past performance and is no guarantee of
future results. Performance results with sales charges reflect the deduction of
the maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 5.75%. Class B shares are subject to a CDSC which
declines from 5% the 1st year to 0% at the beginning of the 7th year. Class C
shares are subject to a CDSC of up to 1% on certain redemptions made within 12
months of purchase. Class R shares have no front-end sales charge or CDSC.
Performance presented at Net Asset Value (NAV), which does not include a sales
charge, would be lower if this charge were reflected. NAV is the value of one
share of the Fund excluding any sales charges. Current performance may be lower
or higher than the performance data quoted. Investment return and principal
value will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than original cost. As stated in the current prospectus, the Fund's
annual operating expense ratios (gross) for Class A, B, C and R shares are
1.71%, 2.46%, 2.46%, and 1.96% respectively. The Fund's audited net expense
ratios based on the fiscal year from August 1, 2006 to July 31, 2007 for Class
A, B, C, and R shares are 1.56%, 2.31%, 2.31% and 1.81% respectively. Shares
redeemed within 30 days of purchase may be subject to a 2.0% redemption fee. For
the most recent month-end performance, please call 1.866.443.6337 or visit the
Funds' website at www.hendersonglobalinvestors.com.
Performance results also reflect expense subsidies and waivers in effect during
certain periods shown. Absent these waivers, results would have been less
favorable for certain periods. All results assume the reinvestment of dividends
and capital gains.
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 may invest in
emerging markets while the Index only consists of companies in developed
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.
11
HENDERSON GLOBAL FUNDS
COMMENTARY
JAPAN-ASIA FOCUS FUND
Despite setting a new record for the longest post war economic expansion, the
Japanese economy began slowing towards the end of 2006. However, gross domestic
product continued to grow on the back of steady increases in capital
expenditures and consumer spending. Real Estate has been a particular area of
strength, where after 16 years of falling house prices, prices in Tokyo and
other big cities rose for the first time. However, economic growth has not quite
lived up to expectations, with wages in particular not growing as expected.
Interest rate rises in July 2006 and February 2007 have had little impact upon
the economy, but have led to notable underperformance for the Financials sector,
particularly banks.
Other Asian markets performed much better over the same period, with the Chinese
market in particular setting new records for trading volumes and performance.
Driven by good economic data and strong investor appetite for Asian equities,
indices performed strongly to reach all time highs in July 2007. In addition,
Chinese securities regulators announced that they will allow some of its sizable
domestic assets to be invested outside China, which also helped sentiment
towards Asian markets.
A variety of holdings have been added to the Fund over the period. In
anticipation of a stronger housing market in Japan, we bought positions in
furniture retailer Otsuka Kagu, and also crane manufacturer Tadano. Adding to
existing holdings in bank shares, we purchased cheaply-rated Kanto Tsukuba Bank.
The Fund also bought shares in Japan's leading timeshare operator, Resorttrust,
which we believe is ideally placed to potentially benefit from Japan's aging
population. During the second quarter of 2007, we purchased two companies from
the Technology sector, Shinko Electric Industries and ITOCHU Techno-Solutions.
We also purchased sports retailer Xebio, as we anticipate its sales of skiing
equipment should recover after last year's very warm winter, and the company may
also benefit from a recent merger.
After reaching our fair value targets, we sold the Fund's positions in software
company OBIC, Fuji Photo Film, and Aioi Insurance. We sold our position in Link
Theory after their recovery story failed to come through as we had anticipated.
We also sold leasing company Sanyo Electric Credit, technology service provider
NEC, and diversified chemicals/house building company Asahi Kasei.
For the period, the Fund returned 4.97% (Class A shares at NAV) versus the
benchmark, the MSCI Japan Index, which posted a return of 7.74%. We were
approximately 88% exposed to Japanese equities, with the remainder invested in
other countries throughout the Asia-Pacific region. The best performing Japanese
company was Tadano, a company that is benefiting strongly from recovering demand
for construction cranes. Other top Japanese performers during the period
included Ube Industries, Shinko Electronic Industries, and Hino Motors. The
worst performing Japanese holdings included Nishi-Nippon City Bank, Sumitomo
Mitsui Financial Group, and Mitsubishi UFJ Financial Group, all banking
companies.
Exposure to the more buoyant Asian markets lifted performance, with
contributions from this region coming from Thoresen Thai Agencies Public, SRE
Group, and BHP Billiton.
Although recent market moves in the US sub-prime mortgage and credit markets
have negatively impacted all world equity markets, we believe there should be
little impact on Japan unless US consumption is adversely affected. However, we
believe consumption will be relatively unscathed, and are sticking with the view
that strong profit growth and rising leading indicators could position the
Japanese markets well over the next 6 to 12 months.
- ------------------------------------------------
JAPAN-ASIA FOCUS FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ------------------------------------------------
TOKEN CORP. 5.2%
MITSUBISHI UFJ FINANCIAL
GROUP, INC. 4.9
SUMITOMO MITSUI
FINANCIAL GROUP, INC. 4.7
NISHI-NIPPON CITY
BANK, LTD. 4.2
SEKISUI CHEMICAL CO., LTD. 3.8
UBE INDUSTRIES, LTD. 3.8
YAMATO HOLDINGS CO., LTD. 3.6
SHINKO ELECTRIC
INDUSTRIES CO., LTD. 3.2
HINO MOTORS, LTD. 3.1
NTT DOCOMO, INC. 2.8
- ------------------------------------------------
12
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
JAPAN-ASIA FOCUS FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
Japan 88.2%
China 3.4
Australia 2.8
Korea 2.5
Singapore 1.6
Thailand 0.8
Other 0.7
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Financials 29.2%
Consumer Discretionary 19.9
Information Technology 18.5
Industrials 14.4
Materials 11.4
Telecom Services 2.9
Other 3.7
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
MSCI Japan-Asia Focus Japan-Asia Focus
Japan Index - Fund Class A w/out Fund Class A w/sale
$10,398 sales charge - $10,130 charge - $9,548
1/31/06 10000 10000 9425
9915 9860 9293.05
10168.8 10360 9764.3
4/30/06 10464.7 10490 9886.83
9813.83 9850 9283.63
9704.9 9920 9349.6
7/31/06 9651.52 9650 9095.13
9796.29 9830 9264.78
9638.57 9750 9189.38
10/31/06 9806.28 9870 9302.48
9875.91 9860 9293.05
10121.8 9860 9293.05
1/31/07 10207.9 9990 9415.58
10618.2 10220 9632.35
10482.3 10010 9434.43
4/30/07 10278.9 9710 9151.68
10446.5 9950 9377.88
10415.1 10150 9566.38
7/31/07 10398.5 10130 9547.53
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ INCEPTION
AT NAV SYMBOL CLASS ONE YEAR (1/31/06)*
- ---------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund HFJAX Class A 4.97% 0.87%
- ---------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund HFJCX Class C 4.26% 0.20%
- ---------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ---------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund Class A -1.07% -3.04%
- ---------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund Class C 4.26% 0.20%
- ---------------------------------------------------------------------------------------------------------------
INDEX
- ---------------------------------------------------------------------------------------------------------------
MSCI Japan Index 7.74% 3.99%
- ---------------------------------------------------------------------------------------------------------------
* Average annual return.
Performance data quoted represents past performance and is no guarantee of
future results. Due to the Fund's relatively small asset base in initial stages,
performance was positively impacted by IPOs to a greater degree than it may be
in the future. IPO investments are not an integral component of the Fund's
investment process and may not be utilized to the same extent in the future.
Performance results with sales charges reflect the deduction of the maximum
front end sales charge or the deduction of the applicable contingent deferred
sales charge ("CDSC"). Class A shares are subject to a maximum front-end sales
charge of 5.75%. Class C shares are subject to a CDSC of up to 1% on certain
redemptions made within 12 months of purchase. Performance presented at Net
Asset Value (NAV), which does not include a sales charge, would be lower if this
charge were reflected. NAV is the value of one share of the Fund excluding any
sales charges. Current performance may be lower or higher than the performance
data quoted. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
As stated in the current prospectus, the Fund's annual operating expense ratio
(gross) for Class A and C shares are 2.45% and 3.20%, respectively. However, the
Fund's adviser has agreed to contractually waive a portion of its fees and/or
reimburse expenses such that total operating expenses do not exceed 2.00% and
2.75%, for Class A and C shares, which is in effect until July 31, 2020. The
Fund's audited net expense ratios based on the fiscal year from August 1, 2006
to July 31, 2007 for Class A and C shares are 1.83% and 2.58% respectively.
Shares redeemed within 30 days of purchase may be subject to a 2.0% redemption
fee. For the most recent month-end performance, please call 1.866.443.6337 or
visit the Funds' website at www.hendersonglobalinvestors.com.
Performance results also reflect expense subsidies and waivers in effect during
certain periods shown. Absent these waivers, results would have been less
favorable for certain periods. All results assume the reinvestment of dividends
and capital gains.
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 Japan Index is a market capitalization weighted index designed to
measure equity market performance in Japan. The Fund may invest in emerging
markets while the Index only consists of companies in developed 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.
13
HENDERSON GLOBAL FUNDS
COMMENTARY
US FOCUS FUND
On November 30, 2006, Henderson took over full management of the U.S. Core
Growth Fund and changed its name to the US Focus Fund. The new portfolio
management team has 61 years of combined investment management experience, and
the Fund now consists of three sub-portfolios that focus on specific areas of
expertise: Fundamental, Special Situations, and Technology.
At the start of the period, economic data pointed in the direction of a soft
landing for the US, while continued mergers and acquisitions activity seemed to
add to a positive sentiment. US equity markets continued their impressive gains,
with both the Dow Jones Industrial Average and the S&P 500 Index reaching record
highs. Expectations that the Federal Reserve would move to reduce interest rates
in 2007 triggered a sell off in the US Treasury market in June, which caused
bond yields to rise and the S&P 500 Index to fall back by 1.8%. Equity markets
took another hit when worries arose from the impact of housing market weakness
on two Bear Stearns hedge funds and possible wider implications for credit
derivatives markets. The S&P 500 Index returned -3.2% in July, its worst month
in three years, following concerns with a number of leading financial stocks hit
by the continuing fallout from the sub-prime mortgage crisis. The Fund, however,
held up during this period of market volatility and over the year ended July 31,
2007 returned 22.55% (Class A shares at NAV) versus the benchmark, the S&P 500
Index, which posted a return of 16.13%.
The Fund was overweight the benchmark in Industrials, which led to positive
results. Specifically, General Cable from the Fundamental sleeve was the best
performing holding in the Fund during the period. We believe this company is
well placed to benefit from the increased spending that is necessary after years
of underinvestment in the electricity transmission and distribution networks in
the US. The worst performing sector in the Fund was Healthcare, where we were
underweight. We sold our position in Health South from the Special Situations
sleeve after months of disappointing performance. The biggest contributors to
the Fund's performance from the Special Situations sleeve were Freeport McMoRan
Copper & Gold and Cablevision Systems. Technology stocks also performed well
during the period, with strong results from Apple, and most recently, CommScope.
We continue to believe that the US economy is most likely to see a soft landing
in 2007 and 2008. While US earnings growth is slowing, the combination of
historically attractive valuations, healthy balance sheets, and a buoyant merger
and acquisition environment could combine to offer modest potential for US
equities.
The Dow Jones Industrial Average consists of 30 stocks that are considered to be
major factors in their industries and that are widely held by individuals and
institutional investors. One cannot invest directly in an index.
- -----------------------------------------------
US FOCUS FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- -----------------------------------------------
GENERAL CABLE CORP. 4.5%
FREEPORT-MCMORAN
COPPER & GOLD, INC. 3.9
APPLE, INC. 3.6
ADOBE SYSTEMS, INC. 3.5
CORRECTIONS CORPORATION
OF AMERICA 3.4
EXELON CORP. 3.4
SNC-LAVALIN GROUP, INC. 3.4
AMERICAN TOWER CORP. 3.4
SHOPPERS DRUG MART CORP. 3.3
CABLEVISION SYSTEMS CORP. 3.2
- -----------------------------------------------
14
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
US FOCUS FUND
PIE CHART:
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Industrials 19.9%
Consumer Staples 15.5
Information Technology 13.6
Financials 10.6
Materials 9.8
Telecommunication Service 9.0
Other 21.6
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
S&P 500 US Focus Fund US Focus Fund
Index - Class A w/out Class A w/sales
$14,010 sales charge - $12,828 charge - $12,090
4/30/04 10000 10000 9425
10137 10160 9575.8
10333.7 10380 9783.15
7/31/04 9991.61 9690 9132.83
10031.6 9420 8878.35
10139.9 9710 9151.68
10296.1 9930 9359.03
10713 10419.8 9820.7
11078.3 10902.1 10275.3
1/31/05 10808 10419.8 9820.7
11035 10510.3 9905.93
10839.6 10399.7 9801.76
10633.7 10108.4 9527.12
10971.8 10620.8 10010.1
10987.2 10640.9 10029
7/31/05 11395.9 10981.5 10351
11292.2 10849.9 10227.9
11383.7 10939.3 10313.1
11193.6 10779.6 10161.6
11616.7 10971.7 10341.8
11620.2 10952.5 10322.7
1/31/06 11928.1 11448 10789.8
11960.3 11306.5 10656.3
12109.8 11387.4 10732.6
12272.1 11589.6 10923.2
11918.7 10932.3 10303.7
11935.3 10891.8 10265.5
7/31/06 12009.3 10467.1 9865.2
12295.2 10982.8 10351.3
12612.4 11185.1 10542
13023.5 11367.1 10713.5
13271 11528.9 10866
13456.8 11597.2 10930.4
1/31/07 13669 11832.6 11152.2
13410.1 11832.6 11152.2
13569.3 12025.2 11333.7
14179.4 12485.2 11767.3
14683.2 13362.5 12594.1
14448.5 13180.6 12422.7
7/31/07 14009.6 12827.6 12090
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ INCEPTION
AT NAV SYMBOL CLASS ONE YEAR THREE YEARS* (4/30/04)*
- ------------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund HFUAX Class A 22.55% 9.80% 7.95%
- ------------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund HFUBX Class B 21.67 8.99 7.15
- ------------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund HFUCX Class C 21.67 8.99 7.15
- ------------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund Class A 15.52% 7.66% 6.00%
- ------------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund Class B 17.67 8.14 6.35
- ------------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund Class C 21.67 8.99 7.15
- ------------------------------------------------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 16.13% 11.76% 10.78%
- ------------------------------------------------------------------------------------------------------------------------
* Average annual return.
Performance data quoted represents past performance and is no guarantee of
future results. Performance results with sales charges reflect the deduction of
the maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 5.75%. Class B shares are subject to a CDSC which
declines from 5% the 1st year to 0% at the beginning of the 7th year. Class C
shares are subject to a CDSC of up to 1% on certain redemptions made within 12
months of purchase. Performance presented at Net Asset Value (NAV), which does
not include a sales charge, would be lower if this charge were reflected. NAV is
the value of one share of the Fund excluding any sales charges. Current
performance may be lower or higher than the performance data quoted. Investment
return and principal value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than original cost. As stated in the current
prospectus, the Fund's annual operating expense ratios (gross) for Class A, B,
and C shares are 2.50%, 3.25%, and 3.25% respectively. However, the Fund's
adviser has agreed to contractually waive a portion of its fees and/or reimburse
expenses such that the total operating expenses do not exceed 1.40%, 2.15%, and
2.15% for Class A, B, and C shares, which is in effect until July 31, 2020. The
Fund's audited net expense ratios based on the fiscal year from August 1, 2006
to July 31, 2007 for Class A, B, and C shares are 1.95%, 2.70% and 2.70%
respectively. Shares redeemed within 30 days of purchase may be subject to a
2.0% redemption fee. For the most recent month-end performance, please call
1.866.443.6337 or visit the Funds' website at www.hendersonglobalinvestors.com.
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 assume the reinvestment of dividends and capital gains.
The investment comparison graph above reflects the change in value of $10,000
hypothetical investment since the Fund's inception, including reinvested
dividends and distributions, compared to a broad based securities market 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 stocks. 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.
15
HENDERSON GLOBAL FUNDS
COMMENTARY
WORLDWIDE INCOME FUND
Throughout most of the period, risk appetite strengthened as equities, emerging
market debt, and high yield corporate bond performance increased based on
confidence in a soft landing for the US economy. Toward the end of the period,
yield spreads compressed to new lows for the cycle which caused an increase in
interest rate sensitivity. As Treasury bond prices began to fall, this led to a
fall in the price of investment grade corporate bonds, which in turn affected
high yield bonds and emerging market debt. Initially, because they are less
sensitive to a change in interest rates, the low duration and floating rate
securities that make up much of the Worldwide Income Fund were relatively
unaffected. In July the market volatility began to negatively affect the price
of all corporate securities but a `flight to quality' boosted the price of
Treasury bonds.
The Fund was largely currency hedged to the US dollar, with the remainder of its
exposure to the British pound and the euro. For the period, the Fund returned
6.71% (Class A shares at NAV) versus the benchmark, the Lehman Brothers Global
Aggregate Bond (ex US MBS) Index, which posted a return of 5.78%.
High yield corporate bonds remained the core asset class, with principal
holdings in Europe and the UK. We reduced the Fund's exposure to these bonds in
December, but since then we have added to existing positions and purchased new
holdings. New additions to the high yield sleeve included Bombardier, M-real
Oyj, and Lottomatica. We also grew our exposure to deeply subordinated financial
issues from banks and insurance companies. Purchases during the period included
Swiss Re Capital, Lloyds TSB Group, and AXA.
We saw credit rating upgrades from emerging market governments driven by
structural improvements in their economies and boosted by strong commodity
prices. During the second quarter we began to reduce exposure to emerging market
debt, however, because we believe there may be greater opportunities for yield
in other areas. We sold our riskiest exposures, Argentina and Venezuela, and
reduced positions in Brazil and Mexico.
The Global Equity sleeve, where we focused on medium and large capitalization
companies, experienced the most activity during the period. Europe's spring
dividend season, when many companies paid a large annual dividend, took place in
April and May. The Fund continued to actively rotate between its European equity
holdings, selling some that had already paid dividends. Toward the end of the
second quarter, when the dividend season came to an end, our overall exposure to
this asset class was marginally reduced.
US GDP bounced back from the weakness in the first quarter as temporary factors
fell away. Economic activity continued to build in the European economy, as
global growth as a whole experienced its strongest period in decades, despite a
number of shocks which included higher commodity and energy prices. We believe
that the rising possibility of a US consumer growth set-back triggered by
lending problems in the sub-prime mortgage market may dent this pattern, but not
stop it. This recent economic backdrop allowed healthy corporate profit growth,
equity buy backs, and credit rating upgrades in emerging markets. However, the
robust global growth cycle requires higher interest rates as a counter balance.
This has recently become uncomfortable for many investors in fixed income
products, including corporate bonds that are sensitive to higher interest rates.
However, we believe that the Fund's portfolio construction and bond selection
could cope within a rising interest rate environment.
- -----------------------------------------------
WORLDWIDE INCOME FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- -----------------------------------------------
DOMINICAN REPUBLIC 2.3%
REPUBLIC OF EL SALVADOR 2.2
NTL CABLE PLC 2.1
NELL AF SARL 2.0
REPUBLIC OF COLUMBIA 1.8
AXA S.A. 1.7
REPUBLIC OF PHILIPPINES 1.7
REPUBLIC OF URUGUAY 1.6
CROWN EUROPEAN
HOLDINGS S.A. 1.5
FS FUNDING AS 1.5
- -----------------------------------------------
16
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
WORLDWIDE INCOME FUND
PIE CHARTS:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United Kingdom 21.5%
United States 20.4
Germany 5.5
Italy 5.5
Netherlands 5.0
France 4.8
Other 37.3
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Sovereign 17.4%
Media Cable 6.5
Banking 5.0
Special Purpose Vehicle 4.5
Insurance 4.3
Apparel/Textiles 3.7
Other 58.6
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
Worldwide Income Fund Worldwide Income Fund Lehman Brothers Global
Class A w/out sales Class A w/sales Aggregate Bond (ex US
charge - $13,872 charge - $13,212 MBS) Index - $11,911
9/30/03 10000 9525 10000
10220 9734.55 9940.62
10570 10067.9 10089.2
11022.6 10499 10457.8
1/31/04 11164.1 10633.9 10492.2
11154 10624.2 10540.3
11235.8 10702.1 10669.2
11143.2 10613.9 10245.4
10957.2 10436.7 10308
11071.5 10545.6 10327.9
7/31/04 11280.6 10744.8 10309.9
11496.1 10950.1 10546.9
11660.1 11106.2 10689.8
11888.8 11324.1 10973.9
12033.3 11461.7 11315.8
12195.5 11616.2 11503.6
1/31/05 12168.3 11590.3 11355.2
12359.3 11772.2 11388
11970 11401.4 11232.9
11832.2 11270.2 11383.3
12028.9 11457.5 11194.8
12226.6 11645.8 11130.7
7/31/05 12416.9 11827.1 11036.5
12464.8 11872.7 11230.9
12388.3 11799.9 11034.2
12243.2 11659.6 10856.7
12374.9 11785 10762.4
12507.4 11911.2 10868.8
1/31/06 12652.3 12050.2 11021.7
12821.4 12212.3 10968.8
12836 12227.2 10857.7
12939.3 12325.6 11095.1
12853.3 12243.7 11263.1
12802.6 12195.4 11157.1
7/31/06 12999.4 12380.8 11260.9
13191.1 12564.4 11385.9
13262.8 12633.5 11372.2
13468.4 12830.4 11487.1
13662.8 13016.5 11789.2
13796.7 13145.1 11614.7
1/31/07 13846.5 13193.5 11482.3
13947.6 13290.7 11733.7
14075.6 13413.6 11760.7
14269.7 13599.6 11904.2
14355 13681.8 11701.8
14179 13515 11650.4
7/31/07 13872 13212 11911.3
TOTAL RETURNS AS OF JULY 31, 2007
SINCE
NASDAQ INCEPTION
AT NAV SYMBOL CLASS ONE YEAR THREE YEARS* (9/30/03)*
- ------------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund HFAAX Class A 6.71% 7.14% 8.91%
- ------------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund HFABX Class B 5.93 6.29 8.05
- ------------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund HFACX Class C 5.92 6.31 8.10
- ------------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund Class A 1.62% 5.40% 7.53%
- ------------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund Class B 1.93 5.40 7.42
- ------------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund Class C 5.92 6.31 8.10
- ------------------------------------------------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Global Aggregate Bond (ex US MBS) Index 5.78% 5.03% 4.67%
- ------------------------------------------------------------------------------------------------------------------------
* Average annual return.
Performance data quoted represents past performance and is no guarantee of
future results. Performance results with sales charges reflect the deduction of
the maximum front end sales charge or the deduction of the applicable contingent
deferred sales charge ("CDSC"). Class A shares are subject to a maximum
front-end sales charge of 4.75%. Class B shares are subject to a CDSC which
declines from 5% the 1st year to 0% at the beginning of the 7th year. Class C
shares are subject to a CDSC of up to 1% on certain redemptions made within 12
months of purchase. Performance presented at Net Asset Value (NAV), which does
not include a sales charge, would be lower if this charge were reflected. NAV is
the value of one share of the Fund excluding any sales charges. Current
performance may be lower or higher than the performance data quoted. Investment
return and principal value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than original cost. As stated in the current
prospectus, the Fund's annual operating expense ratios (gross) for Class A, B,
and C shares are 1.98%, 2.73%, and 2.73%, respectively. However, the Fund's
adviser has agreed to contractually waive a portion of its fees and/or reimburse
expenses such that total operating expenses, do not exceed 1.30%, 2.05%, and
2.05%, for Class A, B, and C shares, which is in effect until July 31, 2020. The
Fund's audited net expense ratios based on the fiscal year from August 1, 2006
to July 31, 2007 for Class A, B, and C shares are 1.30%, 2.05% and 2.05%
respectively. Shares redeemed within 30 days of purchase may be subject to a
2.0% redemption fee. For the most recent month-end performance, please call
1.866.443.6337 or visit the Funds' website at www.hendersonglobalinvestors.com.
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 assume the reinvestment of dividends and capital gains.
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 Fund compares its performance to the Lehman Brothers Global Aggregate Bond
(ex US MBS) Index, which is a broad-based measure of the global investment-grade
fixed-rate debt markets, excluding US Mortgage-Backed Securities. 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.
17
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
COMMON STOCKS - 90.77%
AUSTRALIA - 2.45%
4,000,000 Centamin Egypt, Ltd. * ................. $ 4,799,400
25,675,000 Centamin Egypt, Ltd. * ................. 30,138,390
--------------
34,937,790
--------------
AUSTRIA - 0.43%
10,000 Agrana Beteiligung AG .................. 1,018,090
76,000 Andritz AG ............................. 5,171,869
--------------
6,189,959
--------------
BAHRAIN - 1.59%
900,000 Gulf Finance House E.C.,
GDR (a) * .............................. 22,680,000
--------------
CANADA - 3.67%
3,818,947 European Goldfields, Ltd. * ............ 19,858,875
2,500,000 Lundin Mining Corp. * .................. 32,428,906
--------------
52,287,781
--------------
CYPRUS - 1.87%
1,400,000 AFI Development plc, (a) * ............. 13,346,216
1,950,000 Urals Energy Public
Co., Ltd. * ............................ 13,306,291
--------------
26,652,507
--------------
FRANCE - 3.76%
225,000 Rhodia S.A. * .......................... 10,189,176
248,595 Sanofi-Aventis ......................... 20,780,939
169,411 Schneider Electric S.A. ................ 22,690,530
--------------
53,660,645
--------------
GERMANY - 10.86%
350,000 Bayer AG ............................... 24,679,932
330,000 Beiersdorf AG .......................... 22,937,742
270,000 DaimlerChrysler AG ..................... 24,262,556
369,628 Deutsche Post AG ....................... 10,773,294
567,667 Gerresheimer AG * ...................... 28,658,518
131,897 Hypo Real Estate
Holding AG ............................. 8,056,091
310,000 Pfleiderer AG .......................... 8,210,478
507,343 SAP AG ................................. 27,160,889
--------------
154,739,500
--------------
GREECE - 6.17%
180,000 Coca-Cola Hellenic Bottling
Co. S.A. ............................... 8,066,973
270,000 Hellenic Telecommunications
Organization S.A. ...................... 8,192,860
3,061,150 Marfin Investment
Group S.A. ............................. 29,031,907
465,571 National Bank of
Greece S.A. ............................ 27,484,779
747,000 Sidenor S.A. ........................... 15,199,038
--------------
87,975,557
--------------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
HUNGARY - 1.41%
130,000 MOL Hungarian Oil and
Gas Nyrt. .............................. $ 20,040,739
--------------
IRELAND - 0.47%
2,000,000 Aer Lingus Group plc * ................. 6,626,183
--------------
ITALY - 2.04%
1,000,000 Azimut Holding SpA ..................... 16,705,789
3,500,000 Parmalat SpA ........................... 12,430,752
--------------
29,136,541
--------------
LUXEMBOURG - 0.68%
2,016,000 GlobeOp Financial
Services * ............................. 9,673,724
--------------
NETHERLANDS - 7.89%
410,333 A&D Pharma Holding
N.V., GDR .............................. 8,477,096
280,000 Aalberts Industries N.V. ............... 7,726,720
229,474 Akzo Nobel N.V. ........................ 18,888,930
571,900 AMTEL Vredestein
N.V., GDR * ............................ 3,141,076
352,420 Arcelor Mittal ......................... 21,626,525
147,580 Arcelor Mittal ......................... 9,033,310
150,000 Ballast Nedam N.V. ..................... 7,610,430
393,796 Koninklijke BAM
Groep N.V. ............................. 11,358,371
1,000,000 Wavin N.V. ............................. 24,533,145
--------------
112,395,603
--------------
NORWAY - 2.86%
700,000 SeaDrill, Ltd. * ....................... 14,082,136
910,023 Statoil ASA ............................ 26,716,250
--------------
40,798,386
--------------
PORTUGAL - 2.32%
1,750,000 Portugal Telecom,
SGPS, S.A. ............................. 24,588,233
600,000 Sonae, SGPS S.A. * ..................... 8,491,186
--------------
33,079,419
--------------
RUSSIA - 3.58%
775,000 OAO Gazprom, ADS ....................... 33,389,299
225,000 Novolipetsk Steel, GDR ................. 7,022,227
1,000,000 VTB Bank OJSC, GDR * ................... 10,557,814
--------------
50,969,340
--------------
SPAIN - 3.61%
735,405 Enagas ................................. 17,594,834
2,000,000 Realia Business S.A. ................... 17,484,957
300,000 Union Fenosa, S.A. ..................... 16,346,333
--------------
51,426,124
--------------
SWEDEN - 1.49%
2,000,000 Lundin Petroleum AB * .................. 21,262,039
--------------
See Notes to Financial Statements.
18
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
SWITZERLAND - 7.34%
175,000 Credit Suisse Group .................... $ 11,422,779
23,000 Givaudan S.A. .......................... 21,541,240
190,000 Petroplus Holdings AG * ................ 18,195,251
1,283,333 Temenos Group AG * ..................... 31,415,707
398,539 UBS AG ................................. 22,109,411
--------------
104,684,388
--------------
TURKEY - 1.75%
3,600,136 Turkiye Halk
Bankasi A.S. * ......................... 24,941,143
--------------
UNITED ARAB EMIRATES - 1.97%
3,440,139 Kingdom Hotel
Investments, GDR * ..................... 28,051,055
--------------
UNITED KINGDOM - 22.56%
450,000 Admiral Group plc ...................... 7,367,042
1,344,472 Aero Inventory plc ..................... 12,100,226
1,751,400 Ashmore Group plc ...................... 7,909,417
3,446,589 Ashtead Group plc ...................... 9,927,389
763,158 BlueBay Asset
Management plc * ....................... 5,887,914
2,220,246 British Energy Group plc ............... 22,401,434
20,000,000 Corporate Services
Group plc * ............................ 3,485,246
1,000,000 Dana Petroleum plc * ................... 21,453,953
6,500,000 Debenhams plc .......................... 15,763,593
3,459,793 Evolution Group plc .................... 8,706,494
360,000 Gem Diamonds, Ltd. * ................... 7,627,961
1,750,000 Hochschild Mining plc .................. 12,594,282
4,493,021 Hogg Robinson Group plc * .............. 6,165,383
1,500,000 ICAP plc ............................... 14,416,588
875,000 Investec plc ........................... 10,807,141
3,061,565 IP Group plc * ......................... 9,249,515
1,246,278 Kazakhmys plc .......................... 31,995,679
1,000,000 Lancashire Holdings, Ltd. * ............ 6,801,113
250,000 NDS Group plc, ADR * ................... 10,930,000
1,825,000 Prosperity Minerals
Holdings Ltd. .......................... 6,803,854
2,366,187 Regal Petroleum plc * .................. 10,599,364
2,250,000 Regus Group plc ........................ 5,911,062
1,461,003 Salamander Energy plc * ................ 6,319,293
6,070,333 Sports Direct International ............ 17,911,997
12,500,000 Tau Capital plc * ...................... 13,500,000
1,735,759 Taylor Wimpey plc ...................... 11,470,068
370,000 Xstrata plc ............................ 23,505,235
--------------
321,611,243
--------------
TOTAL LONG TERM
INVESTMENTS 1,293,819,666
(Cost $1,095,064,551) .................. --------------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
SHORT TERM INVESTMENT - 7.59%
108,125,661 Fidelity Institutional Money
Market Funds - Prime Money
Market Portfolio ....................... $ 108,125,661
--------------
TOTAL SHORT TERM
INVESTMENT ............................. 108,125,661
(Cost $108,125,661) --------------
TOTAL INVESTMENTS - 98.36% ........................... 1,401,945,327
(Cost $1,203,190,212) --------------
NET OTHER ASSETS AND
LIABILITIES - 1.64% .................... 23,365,744
--------------
TOTAL NET ASSETS - 100.00%............................ $1,425,311,071
==============
* Non income producing security
(a) 144A securities are those that are exempt from registration under Rule
144A of the Securities Act of 1933, as amended. These securities may
only be resold in transactions exempt from registration which are
normally those transactions with qualified institutional buyers. At
July 31, 2007 these securities had an aggregate value of $22,680,000,
which represented 1.59% of net assets.
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipts
See Notes to Financial Statements.
19
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2007 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Diversified Metal & Mining.................. 6.17%
Integrated Oil & Gas........................ 5.62
Oil & Gas Exploration & Products............ 5.12
Real Estate Management & Development........ 4.13
Gold........................................ 3.84
Asset Management & Custody Banks............ 3.74
Steel....................................... 3.71
Diversified Banks........................... 3.68
Investment Banking & Brokerage.............. 3.66
Industrial Conglomerates.................... 3.60
Diversified Capital Markets................. 3.11
Diversified Chemicals....................... 3.06
Construction & Engineering.................. 3.05
Electric Utilities.......................... 2.72
Application Software........................ 2.67
Integrated Telecommunication Services....... 2.30
Specialty Chemicals......................... 2.23
Systems Software............................ 2.20
Life Sciences Tools & Services.............. 2.01
Automotive Manufacturers.................... 1.70
Personal Products........................... 1.61
Electric Components & Equipment............. 1.59
Trading Company & Distribution.............. 1.55
Pharmaceuticals............................. 1.46
Precious Metal & Mineral.................... 1.42
Oil & Gas Refining & Marketing.............. 1.28
Specialty Stores............................ 1.26
Gas Utilities............................... 1.23
Department Stores........................... 1.11
Oil & Gas Drilling.......................... 0.99
Industrial Machinery........................ 0.90
Packaged Foods & Meats...................... 0.87
Homebuilding................................ 0.80
Air Freight & Logistics..................... 0.76
Forest Products............................. 0.60
Building Products........................... 0.58
Soft Drinks................................. 0.57
Thrifts & Mortgage Finance.................. 0.56
Property & Casualty Insurance............... 0.52
Construction Materials...................... 0.48
Reinsurance................................. 0.48
Airlines.................................... 0.46
Diversified Commercial &
Professional Services................... 0.43
Office Services & Supply.................... 0.41
Human Resources & Employment Services....... 0.24
Tires & Rubber.............................. 0.22
Agricultural Products....................... 0.07
-------
Long Term Investments....................... 90.77
Short Term Investment....................... 7.59
-------
Total Investments........................... 98.36
Net Other Assets and Liabilities............ 1.64
-------
100.00%
=======
See Notes to Financial Statements.
20
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL EQUITY INCOME FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
COMMON STOCKS - 91.95%
FRANCE - 4.66%
130,000 France Telecom S.A. .................. $ 3,489,637
40,000 Natixis .............................. 886,844
25,000 Sanofi-Aventis ....................... 2,089,839
10,000 Schneider Electric S.A. .............. 1,339,378
------------
7,805,698
------------
GERMANY - 6.71%
23,800 Deutsche Bank AG ..................... 3,227,415
84,000 Deutsche Telekom AG .................. 1,437,599
20,000 E.ON AG .............................. 3,154,852
60,000 Heidelberger
Druckmaschinen AG .................... 2,900,896
3,000 Muenchener
Rueckversicherungs-
Gesellschaft AG ...................... 514,859
------------
11,235,621
------------
GREECE - 4.70%
105,000 Hellenic Telecommunications
Organization S.A. .................... 3,186,112
50,000 National Bank of Greece S.A. ......... 2,951,728
50,000 OPAP S.A. ............................ 1,729,977
------------
7,867,817
------------
HONG KONG - 3.87%
620,000 Citic Pacific, Ltd. .................. 3,202,206
2,750,000 CNOOC, Ltd. .......................... 3,274,428
------------
6,476,634
------------
ITALY - 5.39%
400,000 Enel SpA ............................. 4,126,622
140,000 ENI SpA .............................. 4,892,779
------------
9,019,401
------------
LUXEMBOURG - 0.25%
20,000 SES .................................. 422,292
------------
NETHERLANDS - 2.90%
98,671 ING Groep N.V. ....................... 4,173,602
44,000 Koninklijke (Royal) KPN N.V. ......... 679,257
------------
4,852,859
------------
NEW ZEALAND - 1.18%
570,000 Telecom Corporation of
New Zealand, Ltd. .................... 1,969,566
------------
NORWAY - 0.70%
40,000 Statoil ASA .......................... 1,174,311
------------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
SINGAPORE - 2.39%
1,050,000 Singapore Technologies
Engineering, Ltd. .................... $ 2,527,877
650,000 Singapore
Telecommunications, Ltd. ............. 1,481,576
------------
4,009,453
------------
SOUTH AFRICA - 0.33%
4,000 Anglo Platinum, Ltd. ................. 549,830
------------
SPAIN - 2.25%
70,000 Endesa S.A. .......................... 3,775,757
------------
TAIWAN - 8.61%
2,400,000 Far EasTone Telecommunications
Co., Ltd. ............................ 2,789,303
2,500,000 Taiwan Mobile Co., Ltd. .............. 2,959,998
281,399 Taiwan Semiconductor
Manufacturing Co., Ltd. .............. 2,856,200
2,200,000 U-Ming Marine
Transport Corp. * .................... 5,806,091
------------
14,411,592
------------
UNITED KINGDOM - 46.68%
120,000 Alfred McAlpine plc .................. 1,091,220
65,000 Alliance & Leicester plc ............. 1,346,669
300,000 Barclays plc ......................... 4,209,001
27,751 BP plc ............................... 322,183
48,000 British American Tobacco plc ......... 1,549,780
450,000 BT Group plc ......................... 2,864,539
93,333 De La Rue plc ........................ 1,399,667
233,000 Diageo plc ........................... 4,746,658
750,000 Electrocomponents plc ................ 3,761,472
610,000 Friends Provident plc ................ 2,282,663
185,000 GKN plc .............................. 1,429,165
125,000 GlaxoSmithKline plc .................. 3,188,229
333,000 Hiscox, Ltd. ......................... 1,803,888
1,837,176 Kingston Communications
(Hull) plc ........................... 2,799,762
900,000 Legal & General Group plc ............ 2,551,498
450,000 Lloyds TSB Group plc ................. 5,047,174
38,100 Meggitt plc .......................... 235,371
700,000 Northumbrian Water
Group plc ............................ 4,274,467
430,000 Rentokil Initial plc ................. 1,348,594
150,000 Resolution plc ....................... 1,999,969
180,000 Rexam plc ............................ 1,828,496
300,000 Royal Bank of Scotland
Group plc ............................ 3,589,453
90,000 Scottish & Newcastle plc ............. 1,080,024
157,246 Scottish & Southern
Energy plc ........................... 4,573,150
85,000 Severn Trent plc ..................... 2,209,347
50,000 Unilever plc ......................... 1,556,274
See Notes to Financial Statements.
21
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL EQUITY INCOME FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
UNITED KINGDOM - (continued)
94,000 United Utilities plc ................. $ 1,270,834
200,000 Venture Production plc ............... 3,121,806
1,757,749 Vodafone Group plc ................... 5,333,179
198,630 Wincanton plc ........................ 1,540,777
410,000 Yell Group plc ....................... 3,815,257
------------
78,170,566
------------
UNITED STATES - 1.33%
3,438 Altria Group, Inc. ................... 228,524
5,337 Bank of America Corp. ................ 253,081
5,928 Citigroup, Inc. ...................... 276,067
6,528 H.J. Heinz Co. ....................... 285,665
2,379 Kraft Foods, Inc., Class A ........... 77,912
5,694 Merck & Co., Inc. .................... 282,707
9,277 Pfizer, Inc. ......................... 218,102
5,928 Progress Energy, Inc. ................ 258,816
8,306 Verizon Communications, Inc. ......... 354,002
------------
2,234,876
------------
TOTAL LONG TERM
INVESTMENTS .......................... 153,976,273
(Cost $156,887,438) ------------
SHORT TERM INVESTMENT - 4.55%
7,613,474 Fidelity Institutional Money
Market Funds - Prime Money
Market Portfolio ..................... 7,613,474
------------
TOTAL SHORT TERM
INVESTMENT ............................ 7,613,474
(Cost $7,613,474) ------------
TOTAL INVESTMENTS - 96.50%
(Cost $164,500,912) ................... 161,589,747
------------
NET OTHER ASSETS AND LIABILITIES - 3.50% 5,856,668
------------
TOTAL NET ASSETS - 100.00%............................ $167,446,415
============
* Non income producing security OTHER INFORMATION:
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Integrated Telecommunication Services....... 10.91%
Diversified Banks........................... 10.77
Electric Utilities.......................... 9.49
Wireless Telecommunication Services......... 6.62
Life & Health Insurance..................... 4.08
Water Utilities............................. 3.87
Oil & Gas Exploration & Products............ 3.82
Integrated Oil & Gas........................ 3.81
Marine...................................... 3.47
Pharmaceuticals............................. 3.45
Distillers & Vintners....................... 2.83
Other Diversified Financial Services........ 2.81
Publishing.................................. 2.28
Technology Distributors..................... 2.25
Diversified Capital Markets................. 1.93
Industrial Conglomerates.................... 1.91
Industrial Machinery........................ 1.73
Semiconductors.............................. 1.71
Aerospace & Defense......................... 1.65
Packaged Foods & Meats...................... 1.15
Metal & Glass Containers.................... 1.09
Property & Casualty Insurance............... 1.08
Tobacco..................................... 1.06
Casinos & Gaming............................ 1.03
Air Freight & Logistics..................... 0.92
Auto Parts & Equipment...................... 0.85
Commercial Printing......................... 0.83
Environment & Facilities Services........... 0.81
Electric Components & Equipment............. 0.80
Multi-Utilities............................. 0.76
Diversified Commercial &
Professional Services................... 0.65
Brewers..................................... 0.64
Precious Metal & Mineral.................... 0.33
Reinsurance................................. 0.31
Broadcasting & Cable TV..................... 0.25
-------
Long Term Investments....................... 91.95
Short Term Investment....................... 4.55
-------
Total Investments........................... 96.50
Net Other Assets and Liabilities............ 3.50
-------
100.00%
=======
See Notes to Financial Statements.
22
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
COMMON STOCKS - 93.01%
CANADA - 6.61%
1,849 ACE Aviation Holdings, Inc.,
Class A * ............................ $ 44,804
164 Aeroplan Income Fund * ............... 3,253
144 Aeroplan Income Fund ................. 2,826
5,548 BCE, Inc. ............................ 209,936
109 Jazz Air Income Fund * ............... 828
4,577 Oilexco, Inc. * ...................... 55,160
1,314 Shoppers Drug Mart Corp. ............. 64,370
1,495 SNC-Lavalin Group, Inc. .............. 54,107
-----------
435,284
-----------
CHINA - 1.28%
758 Focus Media Holding,
Ltd., ADR* ........................... 31,313
34,000 Lianhua Supermarket
Holdings, Ltd. ....................... 52,831
-----------
84,144
-----------
CYPRUS - 0.53%
2,653 Marfin Popular Bank Public
Co., Ltd. ............................ 35,075
-----------
CZECH REPUBLIC - 2.19%
5,055 Telefonica 02 Czech
Republic a.s. ........................ 144,091
-----------
FINLAND - 0.71%
1,640 Nokia Oyj ............................ 46,911
-----------
FRANCE - 2.75%
700 Parrot S.A. * ........................ 36,066
1,080 Schneider Electric S.A. .............. 144,653
-----------
180,719
-----------
GERMANY - 2.75%
909 E.ON AG .............................. 143,388
299 Siemens AG ........................... 37,570
-----------
180,958
-----------
GREECE - 3.02%
5,553 EFG Eurobank Ergasias ................ 198,998
-----------
HONG KONG - 2.11%
41,000 AMVIG Holdings, Ltd. ................. 55,526
6,000 Henderson Land Development
Co., Ltd. ............................ 43,086
16,800 NWS Holdings, Ltd. ................... 40,248
-----------
138,860
-----------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
ITALY - 2.59%
4,079 ENI SpA .............................. $ 142,555
3,275 UniCredito Italiano SpA .............. 27,632
-----------
170,187
-----------
JAPAN - 12.90%
10,000 Daiwa Securities Group, Inc. ......... 105,977
10,000 Hino Motors, Ltd. .................... 70,478
28,000 Hokuhoku Financial Group, Inc. ....... 88,386
1,600 Leopalace21 Corp. .................... 51,202
300 Nintendo Co., Ltd. ................... 146,908
3,100 NSD Co., Ltd. ........................ 50,270
32 NTT DoCoMo, Inc. ..................... 44,426
8,000 Sekisui Chemical Co., Ltd. ........... 62,780
300 SMC Corp. ............................ 39,889
6 Sumitomo Mitsui Financial
Group, Inc. .......................... 54,476
700 TDK Corp. ............................ 59,723
5,000 Yamato Holdings Co., Ltd. ............ 74,555
-----------
849,070
-----------
KOREA - 1.10%
110 Samsung Electronics Co., Ltd. ........ 72,415
-----------
LUXEMBOURG - 0.59%
806 Tenaris S.A., ADR .................... 38,825
-----------
NETHERLANDS - 0.70%
1,580 ASML Holding N.V. * .................. 46,356
-----------
PHILIPPINES - 0.42%
2,400 Ayala Corp. .......................... 27,728
-----------
SINGAPORE - 0.67%
3,000 United Overseas Bank, Ltd. ........... 43,928
-----------
SPAIN - 2.26%
6,369 Telefonica S.A. ...................... 148,690
-----------
SWITZERLAND - 6.34%
2,273 Compagnie Financiere
Richemont AG ......................... 142,442
2,038 Credit Suisse Group .................. 133,027
487 Zurich Financial Services AG ......... 141,662
-----------
417,131
-----------
TAIWAN - 1.55%
680 High Tech Computer
Corp., GDR * ......................... 49,573
5,200 Taiwan Semiconductor
Manufacturing Co., Ltd., ADR ......... 52,780
-----------
102,353
-----------
THAILAND - 0.81%
33,900 Thoresen Thai Agencies Public
Co., Ltd. ............................ 53,410
-----------
See Notes to Financial Statements.
23
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
UNITED KINGDOM - 8.20%
3,463 Admiral Group plc .................... $ 56,693
7,577 Compass Group plc .................... 51,098
2,730 Dana Petroleum plc * ................. 58,569
23,602 Debenhams plc ........................ 57,239
4,505 Investec plc ......................... 55,641
3,708 Luminar plc .......................... 55,465
3,450 Man Group plc ........................ 39,204
10,875 Premier Foods plc .................... 55,634
8,037 Taylor Woodrow plc ................... 53,109
895 Xstrata plc .......................... 56,857
-----------
539,509
-----------
UNITED STATES - 32.93%
1,113 Abbott Laboratories .................. 56,418
2,338 Adobe Systems, Inc. * ................ 94,198
800 Aecom Technology Corp. * ............. 20,760
3,133 Alcoa, Inc. .......................... 119,681
1,230 ALLTEL Corp. ......................... 81,118
928 American Express Co. ................. 54,325
643 American International
Group, Inc. .......................... 41,268
2,677 American Tower Corp.,
Class A * ............................ 111,524
271 Apple, Inc. * ........................ 35,707
998 Autodesk, Inc. * ..................... 42,285
3,438 C-COR, Inc. * ........................ 46,241
2,435 Cablevision Systems Corp. * .......... 86,662
1,625 CB Richard Ellis Group, Inc.,
Class A * ............................ 56,745
4,306 Cenveo, Inc. * ....................... 90,469
1,648 Cisco Systems, Inc. * ................ 47,644
754 CommScope, Inc. * .................... 41,040
2,038 Corrections Corporation
of America * ......................... 58,796
2,525 CVS/Caremark Corp. ................... 88,855
820 Exelon Corp. ......................... 57,523
1,445 Freeport-McMoRan Copper &
Gold, Inc. ........................... 135,801
832 General Cable Corp. * ................ 66,144
854 Peabody Energy Corp. ................. 36,090
925 PepsiCo, Inc. ........................ 60,698
3,088 Pilgrim's Pride Corp. ................ 104,004
767 Praxair, Inc. ........................ 58,767
2,627 SLM Corp. ............................ 129,170
613 Sunoco, Inc. ......................... 40,899
2,277 The Brink's Co. ...................... 139,239
1,002 The Procter & Gamble Co. ............. 61,984
1,643 The Williams Companies, Inc. ......... 52,987
1,047 Wyeth ................................ 50,800
-----------
2,167,842
-----------
TOTAL COMMON STOCKS 6,122,484
(Cost $5,912,941) .................... -----------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
PREFERRED STOCK - 2.26%
GERMANY - 2.26%
1,871 Fresenius AG ......................... $ 148,652
-----------
TOTAL PREFERRED STOCK ................ 148,652
(Cost $147,321) -----------
TOTAL LONG TERM
INVESTMENTS .......................... 6,271,136
(Cost $6,060,262) -----------
SHORT TERM INVESTMENT - 3.69%
242,969 Fidelity Institutional Money
Market Funds - Prime Money
Market Portfolio ..................... 242,969
-----------
TOTAL SHORT TERM
INVESTMENT ........................... 242,969
-----------
(Cost $242,969)
TOTAL INVESTMENTS - 98.96% 6,514,105
(Cost $6,303,231) .................... -----------
NET OTHER ASSETS AND
LIABILITIES - 1.04% ..................... 68,140
-----------
TOTAL NET ASSETS - 100.00%............................ $ 6,582,245
===========
* Non income producing security
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Notes to Financial Statements.
24
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2007 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Integrated Telecommunication Services....... 7.64%
Diversified Banks........................... 5.47
Wireless Telecommunication Services......... 3.60
Communications Equipment.................... 3.31
Electric Components & Equipment............. 3.20
Electric Utilities.......................... 3.05
Diversified Commercial &
Professional Services................... 3.00
Diversified Metal & Mining.................. 2.93
Diversified Capital Markets................. 2.87
Application Software........................ 2.84
Consumer Finance............................ 2.79
Multi-line Insurance........................ 2.78
Packaged Foods & Meats...................... 2.42
Drug Retail................................. 2.33
Real Estate Management & Development........ 2.30
Health Care Equipment....................... 2.26
Home Entertainment Software................. 2.23
Integrated Oil & Gas........................ 2.17
Apparel, Accessories & Luxury Goods......... 2.16
Semiconductors.............................. 1.90
Aluminum.................................... 1.82
Homebuilding................................ 1.76
Oil & Gas Exploration & Products............ 1.73
Pharmaceuticals............................. 1.63
Restaurants................................. 1.62
Investment Banking & Brokerage.............. 1.61
Commercial Printing......................... 1.37
Regional Banks.............................. 1.34
Broadcasting & Cable TV..................... 1.32
Computer Hardware........................... 1.30
Industrial Conglomerates.................... 1.18
Construction & Engineering.................. 1.14
Air Freight & Logistics..................... 1.13
Construction & Farm Machinery & Trucks...... 1.07
Household Products.......................... 0.94
Soft Drinks................................. 0.92
Electronic Equipment Manufacturing.......... 0.91
Industrial Gases............................ 0.89
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ----------------------------------------------------------
Department Stores........................... 0.87%
Property & Casualty Insurance............... 0.86
Paper Packaging............................. 0.84
Marine...................................... 0.81
Oil & Gas Storage & Transportation.......... 0.81
Hypermarkets & Super Centers................ 0.80
Semiconductor Equipment..................... 0.70
Airlines.................................... 0.69
Oil & Gas Refining & Marketing.............. 0.62
Industrial Machinery........................ 0.61
Asset Management & Custody Banks............ 0.60
Oil & Gas Equipment & Services.............. 0.59
Advertising................................. 0.57
Coal & Consumable Fuels..................... 0.55
Multi-Sector Holdings....................... 0.42
-------
Long Term Investments....................... 95.27
Short Term Investment....................... 3.69
-------
Total Investments........................... 98.96
Net Other Assets and Liabilities............ 1.04
-------
100.00%
=======
See Notes to Financial Statements.
25
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL TECHNOLOGY FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
COMMON STOCKS - 94.82%
CHINA - 1.64%
42,000 China High Speed Transmission
Equipment Group Co., Ltd. * ............. $ 79,962
15,030 China Sunergy Co.,
Ltd., ADR * ............................. 172,995
29,000 Focus Media Holding,
Ltd., ADR * ............................. 1,197,990
-----------
1,450,947
-----------
FINLAND - 2.83%
87,684 Nokia Oyj ............................... 2,508,132
-----------
FRANCE - 7.43%
27,850 Aufeminin.com S.A. * (a) ................ 1,205,220
30,500 Business Objects S.A. * ................. 1,380,741
9,150 Meetic * ................................ 324,939
22,750 Parrot S.A. * ........................... 1,172,142
22,000 Seloger.com * ........................... 1,166,288
20,250 UbiSoft Entertainment S.A. * ............ 1,326,761
-----------
6,576,091
-----------
GERMANY - 4.45%
160,700 Infineon Technologies AG * .............. 2,651,040
24,000 SAP AG .................................. 1,284,853
-----------
3,935,893
-----------
INDIA - 1.15%
20,500 Infosys Technologies, Ltd., ADR ......... 1,016,800
-----------
JAPAN - 5.05%
24,200 Canon, Inc. ............................. 1,285,793
6,500 Nintendo Co., Ltd. ...................... 3,183,018
-----------
4,468,811
-----------
KOREA - 2.49%
12,005 NHN Corp. * ............................. 2,203,534
-----------
NETHERLANDS - 5.94%
39,950 ASML Holding N.V. * ..................... 1,172,112
50,000 Tele Atlas N.V. * ....................... 1,413,603
41,349 TomTom N.V. * ........................... 2,670,460
-----------
5,256,175
-----------
TAIWAN - 5.08%
243,192 Compal Electronics, Inc., GDR ........... 1,361,070
61,541 Hon Hai Precision Industry Co.,
Ltd., GDR ............................... 1,010,894
102,993 Siliconware Precision
Industries Co. .......................... 992,848
111,227 Taiwan Semiconductor
Manufacturing Co., Ltd., ADR ............ 1,128,954
-----------
4,493,766
-----------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
UNITED KINGDOM - 2.71%
369,000 ARM Holdings plc ........................ $ 1,095,460
192,719 Blinkx plc * ............................ 162,788
26,000 NDS Group plc * ......................... 1,136,720
-----------
2,394,968
-----------
UNITED STATES - 56.05%
27,850 Accenture, Ltd., Class A ................ 1,173,321
67,500 Activision, Inc. * ...................... 1,154,925
31,300 Adobe Systems, Inc. * ................... 1,261,077
32,000 Anixter International, Inc. * ........... 2,644,800
17,650 Apple, Inc. * ........................... 2,325,564
91,793 Arris Group, Inc. * ..................... 1,360,372
26,110 Autodesk, Inc. * ........................ 1,106,281
26,800 Automatic Data Processing, Inc. ......... 1,244,056
156,900 Brocade Communications
Systems, Inc. * ......................... 1,104,576
171,533 C-COR, Inc. * ........................... 2,307,119
87,000 Cisco Systems, Inc. * ................... 2,515,170
35,900 Citrix Systems, Inc. * .................. 1,298,503
43,897 CommScope, Inc. * ....................... 2,389,314
40,000 Dell, Inc. * ............................ 1,118,800
50,500 Electronics for Imaging, Inc. * ......... 1,326,130
63,673 EMC Corp. * ............................. 1,178,587
15,000 F5 Networks, Inc. * ..................... 1,300,350
70,000 Foundry Networks, Inc. * ................ 1,231,300
15,050 Garmin, Ltd. ............................ 1,262,695
2,270 Google, Inc., Class A * ................. 1,157,700
29,650 Hewlett-Packard Co. ..................... 1,364,789
53,100 Intel Corp. ............................. 1,254,222
11,250 International Business
Machines Corp. .......................... 1,244,812
27,305 Microchip Technology, Inc. .............. 991,445
22,600 MICROS Systems, Inc. * .................. 1,204,128
53,600 Microsoft Corp. ......................... 1,553,864
111,100 ON Semiconductor Corp. * ................ 1,313,202
59,950 Oracle Corp. * .......................... 1,146,244
25,000 Priceline.com, Inc. * ................... 1,595,000
23,000 QUALCOMM, Inc. .......................... 957,950
27,900 Tessera Technologies, Inc. * ............ 1,147,527
60,000 Texas Instruments, Inc. ................. 2,111,400
28,400 Varian Semiconductor
Equipment Associates, Inc. * ............ 1,334,800
56,000 VistaPrint, Ltd. * ...................... 1,912,400
-----------
49,592,423
-----------
TOTAL LONG TERM
INVESTMENTS ............................. 83,897,540
(Cost $71,213,258) -----------
See Notes to Financial Statements.
26
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL TECHNOLOGY FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
SHORT TERM INVESTMENT - 5.78%
5,114,916 Fidelity Institutional Money
Market Funds - Prime Money
Market Portfolio ........................ $ 5,114,916
-----------
TOTAL SHORT TERM
INVESTMENT .............................. 5,114,916
(Cost $5,114,916) -----------
TOTAL INVESTMENTS - 100.60%
(Cost $76,328,174) ...................... 89,012,456
-----------
NET OTHER ASSETS AND
LIABILITIES - (0.60)% ................... (526,686)
-----------
TOTAL NET ASSETS - 100.00%............................... $88,485,770
===========
* Non income producing security
(a) Security was fair valued under procedures adopted by the Board of
Trustees (see note 2)
ADR American Depositary Receipt
GDR Global Depositary Receipts
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Communications Equipment.................... 17.79%
Semiconductors.............................. 13.04
Application Software........................ 8.44
Computer Hardware........................... 8.38
Internet Software & Services................ 6.51
Home Entertainment Software................. 6.40
Consumer Electronics........................ 6.05
Systems Software............................ 4.41
Semiconductor Equipment..................... 4.13
Computer Storage & Peripheral............... 4.08
Technology Distributors..................... 2.99
Advertising................................. 2.67
IT Consulting & Other Services.............. 2.48
Internet Retail............................. 1.80
Office Electronics.......................... 1.45
Data Processing & Outsourced Services....... 1.41
Publishing.................................. 1.36
Electronic Equipment Manufacturing.......... 1.14
Electric Components & Equipment............. 0.20
Industrial Conglomerates.................... 0.09
-------
Long Term Investments....................... 94.82
Short Term Investment....................... 5.78
-------
Total Investments........................... 100.60
Net Other Assets and Liabilities............ (0.60)
-------
100.00%
=======
See Notes to Financial Statements.
27
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------
COMMON STOCKS - 90.29%
AUSTRALIA - 2.29%
1,525,000 BHP Billiton, Ltd. (a) $ 48,550,703
410,600 Macquarie Bank, Ltd. (a) 28,533,117
--------------
77,083,820
--------------
CHINA - 5.04%
4,400,000 Angang Steel Co., Ltd. (a) 12,110,645
36,500,000 Bank of China, Ltd.,
Class H (a) 19,115,129
23,848,000 China COSCO Holdings
Co., Ltd., Class H (a) 41,974,290
249,000 Focus Media Holding,
Ltd., ADR * (a) 10,286,190
11,125,000 Foxconn International
Holdings, Ltd. * (a) 31,981,262
14,800,000 PetroChina Co., Ltd.,
Class H (a) 21,914,004
77,552,000 SRE Group, Ltd. 32,557,838
--------------
169,939,358
--------------
FINLAND - 0.52%
612,561 Nokia Oyj 17,521,823
--------------
FRANCE - 10.33%
670,000 L'Oreal S.A. 76,586,008
1,000,000 Rhodia S.A. * 45,285,229
476,470 Schneider Electric S.A. 63,817,324
1,276,042 Sodexho Alliance S.A. 83,966,701
1,102,032 Vinci S.A. (a) 78,774,941
--------------
348,430,203
--------------
GERMANY - 10.07%
920,000 Bayer AG 64,872,964
972,000 Beiersdorf AG 67,562,076
750,000 DaimlerChrysler AG 67,395,989
185,874 Puma AG Rudolf
Dassler Sport 74,526,018
1,215,000 SAP AG 65,045,700
--------------
339,402,747
--------------
GREECE - 4.57%
840,000 Coca-Cola Hellenic Bottling
Co., S.A. 37,645,876
5,247,686 Marfin Investment
Group S.A. 49,768,987
1,130,000 National Bank of
Greece S.A. 66,709,052
--------------
154,123,915
--------------
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------
HONG KONG - 1.62%
885,000 China Mobile, Ltd. $ 10,194,706
33,900,000 China Power International
Development, Ltd. (a) 17,836,614
99,200,000 Neo-China Group (Holdings),
Ltd. (a) 26,640,198
--------------
54,671,518
--------------
INDIA - 0.05%
40,000 ICICI Bank, Ltd., ADR (a) 1,772,800
--------------
ITALY - 3.43%
7,608,903 Parmalat SpA 27,024,111
2,475,000 Saipem SpA 88,637,666
--------------
115,661,777
--------------
JAPAN - 18.51%
5,400,000 Daiwa Securities Group, Inc. 57,227,830
10,600,000 Hino Motors, Ltd. (a) 74,706,399
21,000,000 Hokuhoku Financial
Group, Inc. (a) 66,289,405
1,790,000 Leopalace21 Corp. (a) 57,281,967
43,200 Nintendo Co., Ltd. (a) 21,154,826
2,403,400 NSD Co., Ltd. 38,973,611
41,135 NTT DoCoMo, Inc. 57,108,217
8,459,000 Sekisui Chemical Co., Ltd. 66,382,082
6,509 Sumitomo Mitsui Financial
Group, Inc. (a) 59,097,595
673,300 TDK Corp. 57,445,565
4,600,000 Yamato Holdings Co.,
Ltd. (a) 68,590,411
--------------
624,257,908
--------------
KOREA - 3.12%
267,190 Hyundai Marine & Fire
Insurance Co., Ltd. (a) 5,086,736
95,000 NHN Corp. * 17,437,376
40,000 Samsung Electronics
Co., Ltd. 26,332,568
828,718 Shinhan Financial Group
Co., Ltd. (a) 56,322,387
--------------
105,179,067
--------------
NETHERLANDS - 3.17%
604,400 ASML Holding N.V. * 17,732,779
2,210,000 Koninklijke (Royal)
KPN N.V. 89,065,841
--------------
106,798,620
--------------
NORWAY - 2.16%
2,480,000 Statoil ASA 72,807,282
--------------
RUSSIA - 2.40%
1,878,913 OAO Gazprom, ADS 80,949,145
--------------
See Notes to Financial Statements.
28
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------
SINGAPORE - 1.91%
2,935,000 DBS Group Holdings,
Ltd. (a) $ 44,082,221
18,350,000 Noble Group, Ltd. (a) 20,278,148
--------------
64,360,369
--------------
SPAIN - 2.69%
1,511,400 Industria de Diseno
Textil S.A. * (a) 90,601,659
--------------
SWITZERLAND - 6.29%
965,884 Kuehne & Nagel
International AG 94,309,317
520,000 Petroplus Holdings AG * 49,797,528
1,225,000 UBS AG 67,958,289
--------------
212,065,134
--------------
TAIWAN - 0.46%
937,000 Hon Hai Precision Industry
Co., Ltd., GDR 15,391,487
--------------
TURKEY - 1.73%
8,410,286 Turkiye Halk Bankasi A.S.* 58,265,061
--------------
UNITED KINGDOM - 7.33%
6,206,685 Capita Group plc 90,412,023
14,104,801 Debenhams plc 34,206,514
5,150,000 Hochschild Mining plc 37,063,172
190,000 Rio Tinto plc 13,712,416
1,132,000 Xstrata plc 71,913,313
--------------
247,307,438
--------------
UNITED STATES - 2.60%
427,500 Adobe Systems, Inc. * 17,223,975
137,000 Apple, Inc. * 18,051,120
381,450 Autodesk, Inc. * 16,162,036
681,333 Cisco Systems, Inc. * 19,697,337
302,218 CommScope, Inc. * (a) 16,449,726
--------------
87,584,194
--------------
TOTAL COMMON STOCKS 3,044,175,325
(Cost $2,570,500,652) --------------
PREFERRED STOCKS - 2.79%
GERMANY - 2.79%
1,183,654 Fresenius AG 94,041,872
--------------
TOTAL PREFERRED STOCK 94,041,872
(Cost $68,054,943) --------------
TOTAL LONG TERM
INVESTMENTS 3,138,217,197
(Cost $2,638,555,595) --------------
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------
SHORT TERM INVESTMENTS - 21.69%
254,221,352 Fidelity Institutional Money
Market Funds - Prime
Money Market Portfolio $ 254,221,352
477,205,732 State Street Navigator
Securities Lending
Prime Portfolio 477,205,732
--------------
TOTAL SHORT TERM
INVESTMENTS 731,427,084
(Cost $731,427,084) --------------
TOTAL INVESTMENTS - 114.77% 3,869,644,281
(Cost $3,369,982,679) --------------
NET OTHER ASSETS AND
LIABILITIES (14.77)% (498,104,942)
--------------
TOTAL NET ASSETS - 100.00%............................ $3,371,539,339
==============
(a) This security or a partial position of the security was on loan at
July 31, 2007. The total value of securities on loan at July 31, 2007
was $454,208,011, which was collateralized by $477,205,732 invested in
State Street Navigator Securities Lending Prime Portfolio Money Market
Fund.
* Non income producing security
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipts
See Notes to Financial Statements.
29
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2007 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Diversified Banks........................... 9.06%
Integrated Oil & Gas........................ 5.21
Personal Products........................... 4.27
Application Software........................ 4.08
Marine...................................... 4.04
Investment Banking & Brokerage.............. 4.02
Diversified Metal & Mining.................. 3.98
Real Estate Management & Development........ 3.45
Health Care Equipment....................... 2.79
Apparel Retail.............................. 2.69
Human Resources & Employment Services....... 2.68
Consumer Electronics........................ 2.64
Oil & Gas Equipment & Services.............. 2.63
Communications Equipment.................... 2.54
Restaurants................................. 2.49
Construction & Engineering.................. 2.34
Construction & Farm Machinery & Trucks...... 2.22
Footwear.................................... 2.21
Electronic Equipment Manufacturing.......... 2.16
Air Freight & Logistics..................... 2.03
Diversified Capital Markets................. 2.02
Automotive Manufacturers.................... 2.00
Wireless Telecommunication Services......... 1.99
Homebuilding................................ 1.97
Regional Banks.............................. 1.97
Diversified Chemicals....................... 1.92
Electric Components & Equipment............. 1.89
Oil & Gas Refining & Marketing.............. 1.48
Specialty Chemicals......................... 1.34
Soft Drinks................................. 1.12
Precious Metal & Mineral.................... 1.10
Department Stores........................... 1.01
Packaged Foods & Meats...................... 0.80
Semiconductors.............................. 0.78
Home Entertainment Software................. 0.63
Trading Company & Distribution.............. 0.60
Computer Hardware........................... 0.54
Industrial Power Products................... 0.53
Semiconductor Equipment..................... 0.53
Internet Software & Services................ 0.52
Steel....................................... 0.36
Advertising................................. 0.30
Property & Casualty Insurance............... 0.15
-------
Long Term Investments....................... 93.08
Short Term Investments...................... 21.69
-------
Total Investments........................... 114.77
Net Other Assets and Liabilities............ (14.77)
-------
100.00%
=======
See Notes to Financial Statements.
30
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
JAPAN-ASIA FOCUS FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
COMMON STOCKS - 95.52%
AUSTRALIA - 2.64%
81,000 BHP Billiton, Ltd. ................... $ 2,578,759
-----------
CHINA - 3.22%
126,000 Dongfang Electrical Machinery
Co., Ltd., Class H ................... 804,257
300,000 Foxconn International
Holdings, Ltd. * ..................... 862,416
2,409,000 SRE group, Ltd. ...................... 1,011,345
1,000,000 Sinotrans, Ltd., Class H ............. 470,691
-----------
3,148,709
-----------
JAPAN - 84.24%
88,000 Aeon Co., Ltd. ....................... 1,412,710
127,000 Bridgestone Corp. .................... 2,679,942
137,000 Daiwa Securities Group, Inc. ......... 1,451,891
530,000 Furukawa-Sky Aluminum Corp. .......... 2,236,596
432,000 Hino Motors, Ltd. .................... 3,044,638
114,990 Hitachi Systems & Services, Ltd. ..... 2,352,573
237,000 Hitachi, Ltd. ........................ 1,694,922
768,000 Hokuhoku Financial Group, Inc. ....... 2,424,298
43,200 ITOCHU Techno-Solutions Corp. ........ 1,565,476
281,500 Kanto Tsukuba Bank, Ltd. ............. 2,183,206
95,700 Kappa Create Co., Ltd. ............... 1,464,224
84,700 Leopalace21 Corp. .................... 2,710,493
445 Mitsubishi UFJ Financial
Group, Inc. .......................... 4,750,571
293 Nippon Paper Group, Inc. ............. 959,686
1,217,000 Nishi-Nippon City Bank, Ltd. ......... 4,080,589
77,600 Nissha Printing Co., Ltd. ............ 2,005,438
62,000 NS Solutions Corp. ................... 1,746,459
107,000 NSD Co., Ltd. ........................ 1,735,115
1,969 NTT DoCoMo, Inc. ..................... 2,733,587
82,400 Otsuka Kagu, Ltd. .................... 2,087,922
70,200 Resorttrust, Inc. .................... 1,679,460
471,000 Sekisui Chemical Co., Ltd. ........... 3,696,177
128,500 Shinko Electric Industries
Co., Ltd. ............................ 3,117,725
12,400 SMC Corp. ............................ 1,648,730
504 Sumitomo Mitsui Financial
Group, Inc. .......................... 4,576,001
83,000 Tadano, Ltd. ......................... 1,185,312
32,000 Takeda Pharmaceutical Co., Ltd. ...... 2,089,324
36,500 Takefuji Corp. ....................... 1,135,772
30,600 TDK Corp. ............................ 2,610,774
84,070 Token Corp. .......................... 5,106,533
66,000 Toyo Seikan Kaisha, Ltd. ............. 1,155,765
1,219,000 Ube Industries, Ltd. ................. 3,678,973
65,600 Xebio Co., Ltd. ...................... 1,851,300
238,000 Yamato Holdings Co., Ltd. ............ 3,548,808
-----------
82,400,990
-----------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
KOREA - 2.39%
4,600 Hyundai Marine & Fire
Insurance Co., Ltd. .................. $ 87,574
1,400 Samsung Electronics Co., Ltd. ........ 921,640
19,585 Shinhan Financial Group
Co., Ltd. ............................ 1,331,061
-----------
2,340,275
-----------
SINGAPORE - 1.55%
100,900 DBS Group Holdings, Ltd. ............. 1,515,467
-----------
TAIWAN - 0.67%
40,000 Hon Hai Precision Industry
Co., Ltd., GDR ....................... 657,054
-----------
THAILAND - 0.81%
500,000 Thoresen Thai Agencies
Public Co., Ltd. ..................... 787,765
-----------
TOTAL LONG TERM
INVESTMENTS .......................... 93,429,019
(Cost $95,850,800) -----------
SHORT TERM INVESTMENT - 4.14%
4,045,898 Fidelity Institutional Money
Market Funds - Prime Money
Market Portfolio ..................... 4,045,898
-----------
TOTAL SHORT TERM
INVESTMENT ........................... 4,045,898
(Cost $4,045,898) -----------
TOTAL INVESTMENTS - 99.66% ........................... 97,474,917
(Cost $99,896,698) -----------
NET OTHER ASSETS AND
LIABILITIES - 0.34% ..................... 337,114
-----------
TOTAL NET ASSETS - 100.00%............................ $97,812,031
===========
* Non income producing security
GDR Global Depositary Receipts
See Notes to Financial Statements.
31
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
JAPAN-ASIA FOCUS FUND
JULY 31, 2007 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Diversified Banks........................... 12.44%
Homebuilding................................ 9.00
Regional Banks.............................. 8.88
IT Consulting & Other Services.............. 5.80
Electronic Equipment Manufacturing.......... 5.07
Construction & Farm Machinery & Trucks...... 4.32
Semiconductors.............................. 4.13
Air Freight & Logistics..................... 4.11
Real Estate Management & Development........ 3.80
Diversified Chemicals....................... 3.76
Wireless Telecommunication Services......... 2.80
Tires & Rubber.............................. 2.74
Diversified Metal & Mining.................. 2.64
Aluminum.................................... 2.29
Pharmaceuticals............................. 2.14
Home Furnishing Retail...................... 2.14
Commercial Printing......................... 2.05
Apparel Retail.............................. 1.89
Application Software........................ 1.77
Hotels, Resorts & Cruises................... 1.72
Industrial Machinery........................ 1.69
Restaurants................................. 1.50
Investment Banking & Brokerage.............. 1.48
Hypermarkets & Super Centers................ 1.44
Metal & Glass Containers.................... 1.18
Consumer Finance............................ 1.16
Paper Products.............................. 0.98
Communications Equipment.................... 0.88
Heavy Electrical Equipment.................. 0.82
Marine...................................... 0.81
Property & Casualty Insurance............... 0.09
-------
Long Term Investments....................... 95.52
Short Term Investment....................... 4.14
-------
Total Investments........................... 99.66
Net Other Assets and Liabilities............ 0.34
-------
100.00%
=======
See Notes to Financial Statements.
32
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
US FOCUS FUND
JULY 31, 2007
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
COMMON STOCKS - 97.25%
AIRLINES - 2.43%
12,759 ACE Aviation Holdings, Inc.,
Class A (Canada) * ................... $ 309,168
1,339 Jazz Air Income Fund
(Canada) * ........................... 10,167
-----------
319,335
-----------
BEVERAGES - 2.76%
5,513 PepsiCo, Inc. ........................ 361,763
-----------
CHEMICALS - 3.21%
5,491 Praxair, Inc. ........................ 420,720
-----------
COMMERCIAL SERVICES &
SUPPLIES - 8.28%
13,902 Cenveo, Inc. * ....................... 292,081
15,642 Corrections Corporation of
America * ............................ 451,272
5,611 The Brink's Co. ...................... 343,112
-----------
1,086,465
-----------
COMMUNICATIONS
EQUIPMENT - 2.83%
8,784 C-COR, Inc. * ........................ 118,145
4,869 Cisco Systems, Inc. * ................ 140,762
2,060 CommScope, Inc. * .................... 112,126
-----------
371,033
-----------
COMPUTER &
PERIPHERAL - 3.57%
3,555 Apple, Inc. * ........................ 468,407
-----------
CONSTRUCTION &
ENGINEERING - 4.18%
4,000 Aecom Technology Corp. * ............. 103,800
12,296 SNC-Lavalin Group,
Inc. (Canada) ........................ 445,021
-----------
548,821
-----------
CONSUMER FINANCE - 5.06%
5,858 American Express Co. ................. 342,927
6,515 SLM Corp. ............................ 320,343
-----------
663,270
-----------
DIVERSIFIED TELECOMMUNICATION
SERVICES - 2.30%
7,965 BCE, Inc. (Canada) ................... 301,396
-----------
ELECTRIC UTILITIES - 3.43%
6,410 Exelon Corp. ......................... 449,662
-----------
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 4.45%
7,342 General Cable Corp. * ................ $ 583,689
-----------
FOOD & STAPLES
RETAILING - 6.18%
10,840 CVS/Caremark Corp. ................... 381,460
8,761 Shoppers Drug Mart Corp.
(Canada) ............................. 429,180
-----------
810,640
-----------
FOOD PRODUCTS - 3.05%
11,885 Pilgrim's Pride Corp. ................ 400,287
-----------
HOUSEHOLD PRODUCTS - 3.04%
6,447 The Procter & Gamble Co. ............. 398,811
-----------
INSURANCE - 2.39%
4,882 American International
Group, Inc. .......................... 313,327
-----------
INTERNET RETAIL - 0.87%
1,800 Priceline.com, Inc. * ................ 114,840
-----------
INTERNET SOFTWARE &
SERVICES - 0.68%
2,600 VistaPrint, Ltd. * ................... 88,790
-----------
MEDIA - 3.89%
2,009 Aeroplan Income Fund
(Canada) * ........................... 39,849
2,265 Aeroplan Income Fund
(Canada) ............................. 44,459
11,954 Cablevision Systems Corp. * .......... 425,443
-----------
509,751
-----------
METAL & MINING - 6.30%
8,368 Alcoa, Inc. .......................... 319,658
5,395 Freeport-McMoRan Copper
& Gold, Inc. ......................... 507,022
-----------
826,680
-----------
OIL, GAS & CONSUMABLE
FUELS - 7.12%
7,436 Peabody Energy Corp. ................. 314,245
3,000 Sunoco, Inc. ......................... 200,160
13,000 The Williams Companies, Inc. ......... 419,250
-----------
933,655
-----------
PHARMACEUTICALS - 5.77%
7,491 Abbott Laboratories .................. 379,719
7,778 Wyeth ................................ 377,388
-----------
757,107
-----------
See Notes to Financial Statements.
33
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
US FOCUS FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- -----------------------------------------------------------------------
REAL ESTATE MANAGEMENT &
DEVELOPMENT - 2.87%
10,769 CB Richard Ellis Group, Inc.,
Class A * ............................ $ 376,054
-----------
SEMICONDUCTOR &
SEMICONDUCTOR
EQUIPMENT - 0.86%
3,200 Texas Instruments, Inc. .............. 112,608
-----------
SOFTWARE - 5.24%
11,293 Adobe Systems, Inc. * ................ 454,995
2,639 Autodesk, Inc. * ..................... 111,814
2,266 MICROS Systems, Inc. * ............... 120,733
-----------
687,542
-----------
WIRELESS TELECOMMUNICATION
SERVICES - 6.49%
6,158 Alltel Corp. ......................... 406,120
10,676 American Tower Corp.,
Class A * ............................ 444,762
-----------
850,882
-----------
TOTAL LONG TERM
INVESTMENTS .......................... 12,755,535
(Cost $11,280,661) -----------
SHORT TERM INVESTMENT - 1.67%
219,159 Fidelity Institutional Money
Market Funds - Prime Money
Market Portfolio ..................... 219,159
-----------
TOTAL SHORT TERM
INVESTMENT ........................... 219,159
(Cost $219,159) -----------
TOTAL INVESTMENTS - 98.92% ........................... 12,974,694
(Cost $11,499,820) -----------
NET OTHER ASSETS AND
LIABILITIES - 1.08% .................. 141,059
-----------
TOTAL NET ASSETS - 100.00%............................ $13,115,753
===========
* Non income producing security
See Notes to Financial Statements.
34
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2007
FACE VALUE
AMOUNT COUPON MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 48.37%
BELGIUM - 1.48%
USD 327,000 Telenet Group Holding N.V. (a) (b) ........................ 0/11.500% 6/15/14 $ 315,555
EUR 600,000 WDAC Subsidiary Corp. ..................................... 8.500 12/1/14 781,898
-----------
1,097,453
-----------
CANADA - 1.29%
EUR 700,000 Bombardier, Inc. .......................................... 7.250 11/15/16 955,311
-----------
DENMARK - 1.51%
EUR 800,000 FS Funding AS ............................................. 8.875 5/15/16 1,121,883
-----------
FINLAND - 0.87%
EUR 500,000 M-real OYJ (d) ............................................ 8.270 12/15/10 649,871
-----------
FRANCE - 2.40%
USD 400,000 AXA S.A. (c) .............................................. 7.100 11/7/08 390,000
EUR 200,000 Belvedere S.A. (a) (d) .................................... 7.311 5/15/13 271,920
EUR 800,000 Crown European Holdings S.A. .............................. 6.250 9/1/11 1,122,977
-----------
1,784,897
-----------
GERMANY - 2.73%
EUR 750,000 Escada AG (d) ............................................. 7.500 4/1/12 1,031,243
USD 400,000 Kabel Deutschland GmbH .................................... 10.625 7/1/14 416,000
EUR 400,000 Kabel Deutschland GmbH .................................... 10.750 7/1/14 580,096
-----------
2,027,339
-----------
GREECE - 0.55%
EUR 300,000 Hellas Telecommunications Luxembourg V (d) ................ 7.709 10/15/12 407,880
-----------
IRELAND - 1.48%
EUR 300,000 BCM Ireland Finance, Ltd. (a) (d) ......................... 9.061 8/15/16 405,314
EUR 550,000 Ono Finance II ............................................ 8.000 5/16/14 690,403
-----------
1,095,717
-----------
ITALY - 2.93%
EUR 300,000 Lighthouse International Co., S.A. ........................ 8.000 4/30/14 422,245
EUR 700,000 Lottomatica SpA (d) ....................................... 8.250 3/31/66 979,254
USD 750,000 Wind Acquisition Finance S.A. (a) ......................... 10.750 12/1/15 776,250
-----------
2,177,749
-----------
LUXEMBOURG - 3.16%
USD 1,700,000 Nell AF Sarl (a) .......................................... 8.375 8/15/15 1,521,500
EUR 650,000 Cablecom Luxembourg SCA ................................... 8.000 11/1/16 822,600
-----------
2,344,100
-----------
NETHERLANDS - 3.46%
USD 400,000 Allianz Finance II B.V. (c) ............................... 7.250 3/10/08 398,650
USD 1,000,000 Arran Corporate Loans B.V. (d) ............................ 8.610 6/20/25 1,005,100
USD 500,000 Impress Holdings B.V. (a) ................................. 8.485 9/15/13 502,500
USD 700,000 Lukoil International Finance BV (a) ....................... 6.356 6/7/17 660,870
-----------
2,567,120
-----------
See Notes to Financial Statements.
35
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2007 (CONTINUED)
FACE VALUE
AMOUNT COUPON MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
NORWAY - 1.20%
EUR 400,000 Nordic Telephone Company ApS .............................. 8.250% 5/1/16 $ 545,892
EUR 250,000 Nordic Telephone Company ApS (d) .......................... 9.752 5/1/16 342,465
-----------
888,357
-----------
RUSSIA - 0.39%
USD 300,000 VTB Capital S.A. (a) ...................................... 6.250 6/30/35 290,550
-----------
UKRAINE - 1.09%
USD 800,000 City of Kiev .............................................. 8.000 11/6/15 808,840
-----------
UNITED KINGDOM - 10.16%
GBP 350,000 Allied Domecq Financial Services plc ...................... 6.625 6/12/14 706,665
USD 750,000 Barclays Bank plc (a) (c) ................................. 5.926 12/15/16 717,628
GBP 450,000 Corus Finance plc ......................................... 6.750 5/20/08 913,995
GBP 350,000 EMI Group plc ............................................. 9.750 5/20/08 726,880
EUR 400,000 FKI plc ................................................... 6.625 2/22/10 555,469
EUR 260,000 Invensys plc .............................................. 9.875 3/15/11 386,844
USD 750,000 Lloyds TSB Group plc (a) (c) .............................. 6.267 11/14/16 675,076
GBP 750,000 NTL Cable plc ............................................. 9.750 4/15/14 1,542,367
USD 500,000 Old Mutual Capital Funding (c) ............................ 8.000 12/22/08 510,000
GBP 400,000 Pipe Holding plc .......................................... 7.750 11/1/11 806,347
-----------
7,541,271
-----------
UNITED STATES - 13.67%
USD 1,000,000 AXA S.A. (a) (c) .......................................... 6.463 12/14/18 893,508
EUR 392,000 Central European Distribution Corp. ....................... 8.000 7/25/12 552,404
GBP 350,000 Constellation Brands, Inc. ................................ 8.500 11/15/09 735,766
USD 1,000,000 Freescale Semiconductor, Inc. (a) ......................... 8.875 12/15/14 917,500
EUR 650,000 Fresenius Medical Care Capital Trust V (Preferred) ........ 7.375 6/15/11 913,753
GBP 500,000 HCA, Inc. ................................................. 8.750 11/1/10 1,040,939
USD 550,000 Hertz Corp. ............................................... 8.875 1/1/14 552,750
USD 150,000 Hertz Corp. ............................................... 10.500 1/1/16 156,000
EUR 450,000 Huntsman International LLC (a) ............................ 7.500 1/1/15 646,451
USD 1,000,000 Levi Strauss & Co. ........................................ 12.250 12/15/12 1,070,000
USD 100,000 Mohegan Tribal Gaming Authority ........................... 6.125 2/15/13 93,750
EUR 400,000 Rockwood Specialties Group, Inc. .......................... 7.625 11/15/14 543,156
USD 500,000 Sungard Data Systems, Inc. (a) ............................ 10.250 8/15/15 502,500
USD 750,000 Swiss Re Capital I LP (a) (c) ............................. 6.854 5/25/16 747,769
GBP 300,000 WMG Acquisition Corp. ..................................... 8.125 4/15/14 594,097
USD 200,000 Wynn Las Vegas LLC ........................................ 6.625 12/1/14 186,500
-----------
10,146,843
-----------
TOTAL CORPORATE BONDS ..................................... 35,905,181
(Cost $36,149,846) -----------
FOREIGN SOVEREIGN BONDS - 13.23%
ARGENTINA - 0.82%
USD 1,075,000 Republic of Argentina (d) ................................. 5.401 8/3/12 611,944
-----------
COLUMBIA - 1.80%
USD 1,200,000 Republic of Columbia ...................................... 8.250 12/22/14 1,335,000
-----------
See Notes to Financial Statements.
36
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2007 (CONTINUED)
FACE VALUE
AMOUNT COUPON MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
DOMINICAN REPUBLIC - 2.28%
USD 1,530,170 Dominican Republic ........................................ 9.040% 1/23/18 $ 1,690,837
-----------
EL SALVADOR - 2.19%
USD 1,500,000 Republic of El Salvador ................................... 8.500 7/25/11 1,627,500
-----------
INDONESIA - 1.36%
USD 1,000,000 Republic of Indonesia ..................................... 6.750 3/10/14 1,008,654
-----------
PHILIPPINES - 1.72%
USD 1,200,000 Republic of Philippines ................................... 8.000 1/15/16 1,275,000
-----------
TURKEY - 1.48%
USD 1,000,000 Republic of Turkey ........................................ 9.000 6/30/11 1,096,800
-----------
URUGUAY - 1.58%
USD 1,000,000 Republic of Uruguay ....................................... 9.250 5/17/17 1,175,000
-----------
TOTAL FOREIGN SOVEREIGN BONDS ............................. 9,820,735
(Cost $9,926,329) -----------
TOTAL CORPORATE AND FOREIGN SOVEREIGN BONDS ............... 45,725,916
(Cost $46,076,175) -----------
COMMON STOCKS - 14.23%
SHARES
FRANCE - 1.23%
8,300 France Telecom S.A. ....................................... 222,800
2,600 Sanofi-Aventis ............................................ 217,343
1,280 Schneider Electric S.A. ................................... 171,440
5,681 Suez S.A. ................................................. 297,758
-----------
909,341
-----------
GERMANY - 1.44%
2,000 Deutsche Bank AG .......................................... 271,211
2,400 Deutsche Telekom AG ....................................... 41,074
1,900 E.ON AG ................................................... 299,711
5,116 Heidelberger Druckmaschinen AG ............................ 247,350
1,225 Muenchener Rueckversicherungs-Gesellschaft AG ............. 210,234
-----------
1,069,580
-----------
GREECE - 0.34%
4,300 National Bank of Greece S.A. .............................. 253,849
-----------
HONG KONG - 0.79%
18,250 Cheung Kong Holdings, Ltd. ................................ 255,857
64,000 Citic Pacific, Ltd. ....................................... 330,550
-----------
586,407
-----------
See Notes to Financial Statements.
37
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2007 (CONTINUED)
SHARES (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
ITALY - 1.20%
46,000 Compagnia Assicuratrice Unipol SpA ........................ $ 153,878
20,740 Enel SpA .................................................. 213,965
15,000 Eni SpA ................................................... 524,226
-----------
892,069
-----------
NETHERLANDS - 0.35%
6,037 ING Groep N.V. ............................................ 255,354
-----------
NEW ZEALAND - 0.26%
55,000 Telecom Corp of New Zealand, Ltd. ......................... 190,046
-----------
NORWAY - 0.25%
6,400 Statoil ASA ............................................... 187,890
-----------
SINGAPORE - 0.17%
55,000 Singapore Telecommunications, Ltd. ........................ 125,364
-----------
SWEDEN - 0.22%
9,500 Atlas Copco AB ............................................ 163,229
-----------
UNITED KINGDOM - 6.16%
23,000 Barclays plc .............................................. 322,690
21,342 BP plc .................................................... 247,776
45,000 BT Group plc .............................................. 286,454
18,100 Diageo plc ................................................ 368,732
76,000 Friends Provident plc ..................................... 284,397
100,000 Kingston Communications plc ............................... 152,395
75,000 Legal & General Group plc ................................. 212,625
24,504 Lloyds TSB Group plc ...................................... 274,835
18,600 National Grid plc ......................................... 263,330
13,800 Resolution plc ............................................ 183,997
18,500 Rexam plc ................................................. 187,929
26,000 Royal Bank of Scotland Group plc .......................... 311,086
20,500 Scottish & Newcastle plc .................................. 246,006
12,700 Scottish & Southern Energy plc ............................ 369,351
9,250 Severn Trent plc .......................................... 240,429
12,500 United Utilities plc ...................................... 168,994
149,000 Vodafone Group plc ........................................ 452,080
-----------
4,573,106
-----------
See Notes to Financial Statements.
38
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2007 (CONTINUED)
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
UNITED STATES - 1.82%
2,643 Altria Group, Inc. ........................................ $ 175,680
4,104 Bank of America Corp. ..................................... 194,612
5,020 H.J. Heinz Co. ............................................ 219,675
1,829 Kraft Foods, Inc., Class A ................................ 59,900
2,686 Merck & Co., Inc. ......................................... 133,360
4,211 Pfizer, Inc. .............................................. 99,001
4,558 Progress Energy, Inc. ..................................... 199,002
6,387 Verizon Communications, Inc. .............................. 272,214
-----------
1,353,444
-----------
TOTAL COMMON STOCKS ....................................... 10,559,679
(Cost $10,744,906) -----------
TOTAL LONG TERM INVESTMENTS ............................... 56,285,595
(Cost $56,821,081) -----------
SHORT TERM INVESTMENT - 21.72%
16,123,740 Fidelity Institutional Money Market Funds - Prime
Money Market Portfolio .................................... 16,123,740
-----------
TOTAL SHORT TERM INVESTMENT ............................... 16,123,740
(Cost $16,123,740) -----------
TOTAL INVESTMENTS - 97.55% .................................................. 72,409,335
(Cost $72,944,821) -----------
NET OTHER ASSETS AND LIABILITIES - 2.45% .................................... 1,815,209
-----------
TOTAL NET ASSETS - 100.00% .................................................. $74,224,544
===========
(a) 144A securities are those that are exempt from registration under Rule 144A
of the Securities Act of 1933, as amended. These securities may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers. At July 31, 2007, these
securities had an aggregate value of $9,449,953, which represented 12.73%
of net assets.
(b) Security is a step coupon bond where the coupon increases on a
predetermined date.
(c) Maturity date is perpetual. Maturity date presented represents the next
call date.
(d) Security is a floating rate bond where the interest rate is adjusted
quarterly according to LIBOR interest rate changes.
See Notes to Financial Statements.
39
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2007 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Sovereign................................... 13.23%
Media Cable................................. 4.90
Banking..................................... 3.79
Special Purpose Vehicle..................... 3.40
Insurance................................... 3.27
Apparel/Textiles............................ 2.83
Health Services............................. 2.63
Steel Production............................ 2.32
Beverage.................................... 2.31
Integrated Telecommunication ............... 2.29
Packaging................................... 2.19
Electric Utilities.......................... 1.81
Integrated Telecommunication Services....... 1.74
Gaming...................................... 1.70
Chemicals................................... 1.60
Diversified Media .......................... 1.55
Building.................................... 1.51
Integrated Oil & Gas........................ 1.29
Diversified Manufacturing................... 1.29
Diversified Capital......................... 1.27
Electronics................................. 1.24
Media Services.............................. 1.23
Diversified Banks........................... 1.13
Advertising Services........................ 1.05
Wireless Telecommunication ................. 1.05
Support Services............................ 0.95
Life & Health Insurance..................... 0.92
Energy...................................... 0.89
Paper....................................... 0.88
Wholesale................................... 0.74
Investments & Miscellaneous Finance......... 0.69
Software/Services........................... 0.68
Multi-Utilities............................. 0.63
Wireless Telecommunication Services......... 0.61
Other Diversified Financial Services........ 0.61
Pharmaceuticals............................. 0.61
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- ---------------------------------------------------------
Cable TV.................................... 0.56%
Industrial Machinery........................ 0.55
Distillers & Vintners....................... 0.50
Industrial Conglomerates.................... 0.44
Packaged Foods & Meats...................... 0.38
Diversified Capital Markets................. 0.37
Real Estate Management & Development........ 0.34
Brewers..................................... 0.33
Water Utilities............................. 0.32
Reinsurance................................. 0.28
Metal & Glass Containers.................... 0.25
Tobacco..................................... 0.24
Electric Components & Equipment............. 0.23
Multi-line Insurance........................ 0.21
-------
Long Term Investments....................... 75.83
Short Term Investment....................... 21.72
-------
Total Investments........................... 97.55
Net Other Assets and Liabilities............ 2.45
-------
100.00%
=======
See Notes to Financial Statements.
40
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41
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2007
EUROPEAN GLOBAL EQUITY GLOBAL
FOCUS INCOME OPPORTUNITIES
FUND FUND FUND
=========================================================================================================================
ASSETS:
Investments, at value
Securities $1,293,819,666 $153,976,273 $6,271,136
Short Term investments 108,125,661 7,613,474 242,969
- -------------------------------------------------------------------------------------------------------------------------
Total investments, at value 1,401,945,327 161,589,747 6,514,105
Cash -- -- 38,222
Foreign cash, at value 10,172,869 804,958 --
Dividends and interest receivable 1,518,262 1,278,179 6,086
Receivable from investment adviser -- 29,100 11,144
Receivable for investment securities sold 42,099 -- 42,557
Receivable for fund shares sold 36,301,720 4,148,025 106,170
Forward foreign currency contracts -- -- --
Prepaid expenses and other assets 39,939 38,858 27,200
- -------------------------------------------------------------------------------------------------------------------------
Total Assets 1,450,020,216 167,888,867 6,745,484
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased 19,167,052 -- 89,572
Payable for collateral on securities loaned -- -- --
Payable for fund shares redeemed 3,133,403 106,265 --
Foreign cash overdraft, at value -- -- 5,820
Payable to custodian -- -- --
Payable for dividends -- 6,430 --
Payable to investment adviser 1,267,024 136,293 6,612
Payable for 12b-1 distribution and service fees 549,376 78,282 2,928
Accrued expenses and other payables 592,290 115,182 58,307
- -------------------------------------------------------------------------------------------------------------------------
Total Liabilities 24,709,145 442,452 163,239
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,425,311,071 $167,446,415 $6,582,245
=========================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $1,134,619,339 $169,578,478 $6,268,565
Accumulated undistributed net investment income/(loss) (443,909) 177,885 38,016
Accumulated net realized gain/(loss) on investments 92,402,444 591,419 65,913
Net unrealized appreciation/(depreciation) of investments
and foreign currency translations 198,733,197 (2,901,367) 209,751
- -------------------------------------------------------------------------------------------------------------------------
$1,425,311,071 $167,446,415 $6,582,245
=========================================================================================================================
NET ASSETS:
Class A Shares $1,010,786,433 $94,376,556 $4,051,971
=========================================================================================================================
Class B Shares 67,668,413 N/A N/A
=========================================================================================================================
Class C Shares 346,856,225 73,069,859 2,530,274
=========================================================================================================================
Class R Shares N/A N/A N/A
=========================================================================================================================
SHARES OUTSTANDING:
Class A Shares (unlimited number of shares authorized) 27,292,315 8,864,727 355,207
=========================================================================================================================
Class B Shares (unlimited number of shares authorized) 1,908,264 N/A N/A
=========================================================================================================================
Class C Shares (unlimited number of shares authorized) 9,781,833 6,880,420 219,449
=========================================================================================================================
Class R Shares (unlimited number of shares authorized) N/A N/A N/A
=========================================================================================================================
CLASS A SHARES:
Net asset value and redemption price per share $37.04 $10.65 $11.41
=========================================================================================================================
Maximum sales charge * 5.75% 5.75% 5.75%
Maximum offering price per share $39.30 $11.30 $12.11
=========================================================================================================================
CLASS B SHARES:
Net asset value and offering price per share $35.46 N/A N/A
=========================================================================================================================
CLASS C SHARES:
Net asset value and offering price per share $35.46 $10.62 $11.53
=========================================================================================================================
CLASS R SHARES:
Net asset value and offering price per share N/A N/A N/A
=========================================================================================================================
Investments, at cost $1,203,190,212 $164,500,912 $6,303,231
=========================================================================================================================
Foreign cash, at cost $10,281,208 $808,419 $(5,906)
=========================================================================================================================
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2007
GLOBAL INTERNATIONAL JAPAN-ASIA US WORLDWIDE
TECHNOLOGY OPPORTUNITIES FOCUS FOCUS INCOME
FUND FUND FUND FUND FUND
==================================================================================================================================
ASSETS:
Investments, at value
Securities $83,897,540 $3,138,217,197 $93,429,019 $12,755,535 $56,285,595
Short Term investments 5,114,916 731,427,084 4,045,898 219,159 16,123,740
- -----------------------------------------------------------------------------------------------------------------------------------
Total investments, at value 89,012,456 3,869,644,281 97,474,917 12,974,694 72,409,335
Cash -- 2,000 -- -- --
Foreign cash, at value 946,801 2 41,487 -- 5,247
Dividends and interest receivable 67,697 2,357,226 36,160 9,583 884,258
Receivable from investment adviser -- -- -- 18,827 24,909
Receivable for investment securities sold 1,757,326 23,464,237 439,476 85,062 134,375
Receivable for fund shares sold 1,784,812 24,623,401 646,629 204,257 1,347,256
Forward foreign currency contracts -- -- -- -- 141,704
Prepaid expenses and other assets 12,034 62,529 16,890 11,965 12,121
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets 93,581,126 3,920,153,676 98,655,559 13,304,388 74,959,205
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased 4,816,500 60,206,524 -- 113,393 124,118
Payable for collateral on securities loaned -- 477,205,732 -- -- --
Payable for fund shares redeemed 70,868 4,950,134 385,295 10,826 244,520
Foreign cash overdraft, at value -- -- -- -- --
Payable to custodian -- -- 232,580 -- --
Payable for dividends -- -- -- -- 193,937
Payable to investment adviser 82,556 3,217,867 95,993 13,052 61,372
Payable for 12b-1 distribution and service fees 34,877 1,492,559 44,132 5,377 36,286
Accrued expenses and other payables 90,555 1,541,521 85,528 45,987 74,428
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 5,095,356 548,614,337 843,528 188,635 734,661
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $88,485,770 $3,371,539,339 $97,812,031 $13,115,753 $74,224,544
===================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $74,361,522 $2,632,091,016 $97,008,407 $9,967,971 $75,405,645
Accumulated undistributed net investment income/(loss) 3,996 (4,288,004) (68,559) (5,507) 365,306
Accumulated net realized gain/(loss) on investments 1,435,158 244,045,053 3,294,832 1,678,411 (1,157,643)
Net unrealized appreciation/(depreciation) of investments
and foreign currency translations 12,685,094 499,691,274 (2,422,649) 1,474,878 (388,764)
- -----------------------------------------------------------------------------------------------------------------------------------
$88,485,770 $3,371,539,339 $97,812,031 $13,115,753 $74,224,544
===================================================================================================================================
NET ASSETS:
Class A Shares $60,328,649 $2,166,597,539 $61,316,376 $9,327,814 $39,470,497
===================================================================================================================================
Class B Shares 2,620,725 130,557,830 N/A 998,458 5,002,532
===================================================================================================================================
Class C Shares 25,536,396 1,073,480,611 36,495,655 2,789,481 29,751,515
===================================================================================================================================
Class R Shares N/A 903,359 N/A N/A N/A
===================================================================================================================================
SHARES OUTSTANDING:
Class A Shares (unlimited number of shares authorized) 3,672,599 80,502,996 6,050,387 777,808 3,632,739
===================================================================================================================================
Class B Shares (unlimited number of shares authorized) 166,153 5,050,944 N/A 85,201 461,491
===================================================================================================================================
Class C Shares (unlimited number of shares authorized) 1,623,105 41,552,449 3,639,902 237,976 2,738,959
===================================================================================================================================
Class R Shares (unlimited number of shares authorized) N/A 33,737 N/A N/A N/A
===================================================================================================================================
CLASS A SHARES:
Net asset value and redemption price per share $16.43 $26.91 $10.13 $11.99 $10.87
===================================================================================================================================
Maximum sales charge * 5.75% 5.75% 5.75% 5.75% 4.75%
Maximum offering price per share $17.43 $28.55 $10.75 $12.72 $11.41
===================================================================================================================================
CLASS B SHARES:
Net asset value and offering price per share $15.77 $25.85 N/A $11.72 $10.84
===================================================================================================================================
CLASS C SHARES:
Net asset value and offering price per share $15.73 $25.83 $10.03 $11.72 $10.86
===================================================================================================================================
CLASS R SHARES:
Net asset value and offering price per share N/A $26.78 N/A N/A N/A
===================================================================================================================================
Investments, at cost $76,328,174 $3,369,982,679 $99,896,698 $11,499,820 $72,944,821
===================================================================================================================================
Foreign cash, at cost $952,510 $2 $41,386 -- $5,270
===================================================================================================================================
The Funds may impose a redemption fee of 2.00% on shares redeemed within 30 days
of purchase.
N/A Not Applicable, share class in not offered by the respective Fund.
*On sales of $50,000 or more, the sales charge will be reduced.
42-43 spread
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2007
EUROPEAN GLOBAL EQUITY GLOBAL
FOCUS INCOME OPPORTUNITIES
FUND FUND* FUND*
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $15,386,302 $6,632,938 $42,475
Interest 2,679,190 179,070 4,949
Net securities lending income -- -- --
Foreign taxes withheld (1,386,309) (574,231) (3,752)
- --------------------------------------------------------------------------------------------------------------------------
Total Investment Income 16,679,183 6,237,777 43,672
- --------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 8,272,517 439,551 23,064
12b-1 distribution and service fees:
Class A Shares 1,558,870 72,107 3,550
Class B Shares 503,851 -- --
Class C Shares 1,935,818 199,963 6,766
Class R Shares -- -- --
Transfer agent fees 1,047,819 73,258 3,145
Custodian fees 861,418 91,525 80,636
Administrative fees 305,452 25,309 11,374
Printing and postage fees 186,676 11,095 2,042
Registration and filing fees 168,876 28,221 2,041
Accounting fees 67,241 31,032 88,526
Chief Compliance Officer fees 42,534 1,096 64
Legal fees 35,541 1,895 81
Trustees' fees and expenses 32,182 1,836 61
Audit fees 30,966 31,936 20,846
Offering expenses -- 32,144 32,269
Organizational expenses -- 10,424 10,538
Miscellaneous fees 58,664 2,582 1,128
- --------------------------------------------------------------------------------------------------------------------------
Total Expenses 15,108,425 1,053,974 286,131
- --------------------------------------------------------------------------------------------------------------------------
Fees waived and expenses reimbursed
by investment adviser -- (220,257) (240,170)
- --------------------------------------------------------------------------------------------------------------------------
Previously reimbursed expenses
recovered by investment adviser -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net Expenses 15,108,425 833,717 45,961
- --------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 1,570,758 5,404,060 (2,289)
- --------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investment transactions 110,552,796 591,419 65,913
Foreign currency transactions (2,014,504) (268,380) (3,233)
Net change in unrealized appreciation/
(depreciation) of:
Investments 114,634,706 (2,911,165) 209,710
Translation of other assets and liabilities (20,619) 9,798 41
- --------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) 223,152,379 (2,578,328) 272,431
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $224,723,137 $2,825,732 $270,142
==========================================================================================================================
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2007
GLOBAL INTERNATIONAL JAPAN-ASIA US WORLDWIDE
TECHNOLOGY OPPORTUNITIES FOCUS FOCUS INCOME
FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $345,943 $36,960,929 $1,023,175 $203,832 $517,460
Interest 104,244 5,727,191 135,031 11,040 3,146,994
Net securities lending income -- 868,873 -- -- --
Foreign taxes withheld (29,986) (4,111,077) (77,631) (9,255) (40,593)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 420,201 39,445,916 1,080,575 205,617 3,623,861
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 577,889 23,942,383 799,330 130,304 428,788
12b-1 distribution and service fees:
Class A Shares 97,723 3,861,425 131,051 24,749 68,112
Class B Shares 17,073 1,041,207 -- 10,516 53,623
Class C Shares 169,923 7,642,712 275,125 27,650 178,385
Class R Shares -- 1,978 -- -- --
Transfer agent fees 92,704 3,336,927 116,191 21,090 63,737
Custodian fees 60,817 2,066,194 85,713 39,643 48,743
Administrative fees 45,277 818,115 42,659 31,262 42,743
Printing and postage fees 14,340 575,220 18,165 9,669 9,383
Registration and filing fees 37,329 315,670 32,665 35,658 35,102
Accounting fees 65,777 126,252 61,148 67,761 74,928
Chief Compliance Officer fees 2,912 123,312 4,112 1,058 2,688
Legal fees 2,353 99,556 3,210 398 1,953
Trustees' fees and expenses 1,965 82,753 2,747 3,466 1,722
Audit fees 30,905 33,424 30,601 27,252 52,336
Offering expenses -- -- 46,238 -- --
Organizational expenses -- -- -- -- --
Miscellaneous fees 4,578 163,764 5,523 2,927 5,759
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,221,565 44,230,892 1,654,478 433,403 1,068,002
- -----------------------------------------------------------------------------------------------------------------------------------
Fees waived and expenses reimbursed
by investment adviser (3,209) -- -- (137,315) (238,202)
- -----------------------------------------------------------------------------------------------------------------------------------
Previously reimbursed expenses
recovered by investment adviser -- -- 12,495 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 1,218,356 44,230,892 1,666,973 296,088 829,800
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (798,155) (4,784,976) (586,398) (90,471) 2,794,061
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investment transactions 3,673,624 263,202,295 4,152,651 2,377,294 1,347,352
Foreign currency transactions (17,535) (3,715,446) 32,286 (5,303) (1,593,404)
Net change in unrealized appreciation/
(depreciation) of:
Investments 13,120,231 363,645,270 (419,842) 502,047 (1,005,031)
Translation of other assets and liabilities 743 (1,399,831) (143,621) 4 311,127
- -----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) 16,777,063 621,732,288 3,621,474 2,874,042 (939,956)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $15,978,908 $616,947,312 $3,035,076 $2,783,571 $1,854,105
===================================================================================================================================
* Inception for the Henderson Global Equity Income Fund and Global
Opportunities Fund was November 30, 2006.
See Notes to Financial Statements.
44-45 spread
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
EUROPEAN FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
Net investment income $1,570,758 $706,013
Net realized gain on investments and foreign currency transactions 108,538,292 41,658,462
Net change in unrealized appreciation of investments
and foreign currency translations 114,614,087 32,009,858
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 224,723,137 74,374,333
- -------------------------------------------------------------------------------------------------------------------------
Distribution to shareholders from net realized gains:
Class A Shares (38,551,565) (13,594,949)
Class B Shares (3,570,555) (1,787,715)
Class C Shares (11,808,492) (5,118,807)
- -------------------------------------------------------------------------------------------------------------------------
(53,930,612) (20,501,471)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 517,056,361 148,230,982
Class B Shares 21,434,151 4,723,768
Class C Shares 200,992,402 24,206,421
- -------------------------------------------------------------------------------------------------------------------------
739,482,914 177,161,171
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 910,275,439 231,034,033
NET ASSETS:
Beginning of year 515,035,632 284,001,599
- -------------------------------------------------------------------------------------------------------------------------
End of year $1,425,311,071 $515,035,632
=========================================================================================================================
Accumulated undistributed net investment loss $(443,909) --
=========================================================================================================================
See Notes to Financial Statements.
46
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
GLOBAL EQUITY INCOME FUND
PERIOD ENDED
JULY 31, 2007*
=========================================================================================================================
Net investment income $5,404,060
Net realized gain on investments and foreign currency transactions 323,039
Net change in unrealized depreciation of investments and foreign currency translations (2,901,367)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,825,732
- -------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (2,970,395)
Class C Shares (2,050,235)
- -------------------------------------------------------------------------------------------------------------------------
(5,020,630)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 95,255,778
Class C Shares 74,385,535
- -------------------------------------------------------------------------------------------------------------------------
169,641,313
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 167,446,415
NET ASSETS:
Beginning of period --
- -------------------------------------------------------------------------------------------------------------------------
End of period $167,446,415
=========================================================================================================================
Accumulated undistributed net investment income $177,885
=========================================================================================================================
* Inception for the Henderson Global Equity Income Fund was November 30,
2006.
See Notes to Financial Statements.
47
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2007*
=========================================================================================================================
Net investment loss $(2,289)
Net realized gain on investments and foreign currency transactions 62,680
Net change in unrealized appreciation of investments and foreign currency translations 209,751
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 270,142
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 3,845,288
Class C Shares 2,466,815
- -------------------------------------------------------------------------------------------------------------------------
6,312,103
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 6,582,245
NET ASSETS:
Beginning of period --
- -------------------------------------------------------------------------------------------------------------------------
End of period $6,582,245
=========================================================================================================================
Accumulated undistributed net investment income $38,016
=========================================================================================================================
* Inception for the Henderson Global Opportunities Fund was November 30,
2006.
See Notes to Financial Statements.
48
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL TECHNOLOGY FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
Net investment loss $(798,155) $(355,949)
Net realized gain/(loss) on investments and foreign currency transactions 3,656,089 (1,309,764)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 13,120,974 (1,122,511)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 15,978,908 (2,788,224)
- -------------------------------------------------------------------------------------------------------------------------
Distribution to shareholders from net realized gains:
Class A Shares -- (86,660)
Class B Shares -- (14,034)
Class C Shares -- (30,862)
- -------------------------------------------------------------------------------------------------------------------------
-- (131,556)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 24,800,914 23,258,647
Class B Shares 977,190 306,941
Class C Shares 10,105,419 10,383,722
- -------------------------------------------------------------------------------------------------------------------------
35,883,523 33,949,310
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 51,862,431 31,029,530
NET ASSETS:
Beginning of year 36,623,339 5,593,809
- -------------------------------------------------------------------------------------------------------------------------
End of year $88,485,770 $36,623,339
=========================================================================================================================
Accumulated undistributed net investment income/(loss) $3,996 $(42,881)
=========================================================================================================================
See Notes to Financial Statements.
49
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
INTERNATIONAL OPPORTUNITIES FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006*
=========================================================================================================================
Net investment income/(loss) $(4,784,976) $4,157,324
Net realized gain on investments and foreign currency transactions 259,486,849 89,437,621
Net change in unrealized appreciation of investments
and foreign currency translations 362,245,439 95,948,395
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 616,947,312 189,543,340
- -------------------------------------------------------------------------------------------------------------------------
Distribution to shareholders from net investment income:
Class A Shares (2,136,324) --
Class B Shares -- --
Class C Shares -- --
Class R Shares (571) --
- -------------------------------------------------------------------------------------------------------------------------
(2,136,895) --
- -------------------------------------------------------------------------------------------------------------------------
Distribution to shareholders from net realized gains:
Class A Shares (56,615,357) (18,561,810)
Class B Shares (4,176,812) (1,924,012)
Class C Shares (28,828,659) (9,420,710)
Class R Shares (10,914) (984)
- -------------------------------------------------------------------------------------------------------------------------
(89,631,742) (29,907,516)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 819,438,737 573,122,320
Class B Shares 30,601,289 30,922,243
Class C Shares 413,154,636 287,290,698
Class R Shares 696,610 125,500
- -------------------------------------------------------------------------------------------------------------------------
1,263,891,272 891,460,761
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 1,789,069,947 1,051,096,585
NET ASSETS:
Beginning of year 1,582,469,392 531,372,807
- -------------------------------------------------------------------------------------------------------------------------
End of year $3,371,539,339 $1,582,469,392
=========================================================================================================================
Accumulated undistributed net investment income/(loss) $(4,288,004) $706,682
=========================================================================================================================
* Inception for the Henderson International Opportunities Fund Class R was
September 30, 2005.
See Notes to Financial Statements.
50
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
JAPAN-ASIA FOCUS FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2007 JULY 31, 2006*
=========================================================================================================================
Net investment loss $(586,398) $(171,973)
Net realized gain/(loss) on investments and foreign currency transactions 4,184,937 (356,653)
Net change in unrealized depreciation of investments
and foreign currency translations (563,463) (1,859,186)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 3,035,076 (2,387,812)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A Shares 19,818,182 40,833,226
Class C Shares 17,069,362 19,443,997
- -------------------------------------------------------------------------------------------------------------------------
36,887,544 60,277,223
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 39,922,620 57,889,411
NET ASSETS:
Beginning of year 57,889,411 --
- -------------------------------------------------------------------------------------------------------------------------
End of year $97,812,031 $57,889,411
=========================================================================================================================
Accumulated undistributed net investment loss $(68,559) $(142,848)
=========================================================================================================================
* Inception for the Henderson Japan-Asia Focus Fund was January 31, 2006.
See Notes to Financial Statements.
51
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
US FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
Net investment loss $(90,471) $(300,778)
Net realized gain on investments and foreign currency transactions 2,371,991 329,110
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 502,051 (666,142)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 2,783,571 (637,810)
- -------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A Shares (558,014) (99,798)
Class B Shares (58,901) (19,507)
Class C Shares (147,453) (26,965)
- -------------------------------------------------------------------------------------------------------------------------
(764,368) (146,270)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from Fund share transactions:
Class A Shares (3,135,931) (3,301,660)
Class B Shares (442,836) (1,569,594)
Class C Shares (673,216) (599,798)
- -------------------------------------------------------------------------------------------------------------------------
(4,251,983) (5,471,052)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets (2,232,780) (6,255,132)
NET ASSETS:
Beginning of year 15,348,533 21,603,665
- -------------------------------------------------------------------------------------------------------------------------
End of year $13,115,753 $15,348,533
=========================================================================================================================
Accumulated undistributed net investment loss $(5,507) --
=========================================================================================================================
See Notes to Financial Statements.
52
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
WORLDWIDE INCOME FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
Net investment income $2,794,061 $2,081,967
Net realized loss on investments and foreign currency transactions (246,052) (343,333)
Net change in unrealized depreciation of investments
and foreign currency translations (693,904) (347,885)
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,854,105 1,390,749
- -------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (1,578,752) (1,135,106)
Class B Shares (268,356) (289,236)
Class C Shares (904,659) (753,373)
- -------------------------------------------------------------------------------------------------------------------------
(2,751,767) (2,177,715)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares 22,042,048 1,932,347
Class B Shares (250,622) 563,433
Class C Shares 17,043,610 (128,275)
- -------------------------------------------------------------------------------------------------------------------------
38,835,036 2,367,505
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 37,937,374 1,580,539
NET ASSETS:
Beginning of year 36,287,170 34,706,631
- -------------------------------------------------------------------------------------------------------------------------
End of year $74,224,544 $36,287,170
=========================================================================================================================
Accumulated undistributed net investment income/(loss) $365,306 $(5,086)
=========================================================================================================================
See Notes to Financial Statements.
53
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
EUROPEAN FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $583,733,880 $202,174,294
Issued as reinvestment of dividends 30,086,882 11,136,219
Redeemed (96,764,401) (65,079,531)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $517,056,361 $148,230,982
=========================================================================================================================
CLASS B SHARES:
Sold $23,725,492 $9,111,483
Issued as reinvestment of dividends 3,135,149 1,665,731
Redeemed (5,426,490) (6,053,446)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $21,434,151 $4,723,768
=========================================================================================================================
CLASS C SHARES:
Sold $211,991,034 $41,099,100
Issued as reinvestment of dividends 9,243,863 4,628,651
Redeemed (20,242,495) (21,521,330)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $200,992,402 $24,206,421
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 16,600,158 7,269,079
Issued as reinvestment of dividends 936,119 459,226
Redeemed (2,799,265) (2,399,760)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 14,737,012 5,328,545
=========================================================================================================================
CLASS B SHARES:
Sold 705,828 335,527
Issued as reinvestment of dividends 101,395 70,642
Redeemed (165,424) (231,032)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 641,799 175,137
=========================================================================================================================
CLASS C SHARES:
Sold 6,198,864 1,500,714
Issued as reinvestment of dividends 298,960 196,296
Redeemed (605,084) (811,717)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 5,892,740 885,293
=========================================================================================================================
See Notes to Financial Statements.
54
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL EQUITY INCOME FUND
PERIOD ENDED
JULY 31, 2007*
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $95,412,516
Issued as reinvestment of dividends 1,849,093
Redeemed (2,005,831)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $95,255,778
=========================================================================================================================
CLASS C SHARES:
Sold $74,660,145
Issued as reinvestment of dividends 1,156,689
Redeemed (1,431,299)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $74,385,535
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 8,879,461
Issued as reinvestment of dividends 168,637
Redeemed (183,371)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 8,864,727
=========================================================================================================================
CLASS C SHARES:
Sold 6,909,729
Issued as reinvestment of dividends 105,451
Redeemed (134,760)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 6,880,420
=========================================================================================================================
* Inception for the Henderson Global Equity Income Fund was November 30,
2006. See Notes to Financial Statements.
55
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL OPPORTUNITIES FUND
PERIOD ENDED
JULY 31, 2007*
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $3,950,905
Redeemed (105,617)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $3,845,288
=========================================================================================================================
CLASS C SHARES:
Sold $2,466,491
Redeemed 324
- -------------------------------------------------------------------------------------------------------------------------
Net increase $2,466,815
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 365,208
Redeemed (10,001)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 355,207
=========================================================================================================================
CLASS C SHARES:
Sold 219,450
Redeemed (1)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 219,449
=========================================================================================================================
* Inception for the Henderson Global Opportunities Fund was November 30,
2006.
See Notes to Financial Statements.
56
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL TECHNOLOGY FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $37,655,443 $26,848,979
Issued as reinvestment of dividends -- 83,132
Redeemed (12,854,529) (3,673,464)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $24,800,914 $23,258,647
=========================================================================================================================
CLASS B SHARES:
Sold $1,155,565 $609,908
Issued as reinvestment of dividends -- 13,597
Redeemed (178,375) (316,564)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $977,190 $306,941
=========================================================================================================================
CLASS C SHARES:
Sold $12,444,285 $11,006,123
Issued as reinvestment of dividends -- 28,016
Redeemed (2,338,866) (650,417)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $10,105,419 $10,383,722
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 2,545,756 2,011,592
Issued as reinvestment of dividends -- 6,704
Redeemed (898,621) (278,107)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 1,647,135 1,740,189
=========================================================================================================================
CLASS B SHARES:
Sold 78,627 45,853
Issued as reinvestment of dividends -- 1,127
Redeemed (13,131) (25,931)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 65,496 21,049
=========================================================================================================================
CLASS C SHARES:
Sold 876,252 844,506
Issued as reinvestment of dividends -- 2,329
Redeemed (167,583) (51,845)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 708,669 794,990
=========================================================================================================================
See Notes to Financial Statements.
57
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
INTERNATIONAL OPPORTUNITIES FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006*
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $996,738,165 $651,069,244
Issued as reinvestment of dividends 48,254,983 16,858,442
Redeemed (225,554,411) (94,805,366)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $819,438,737 $573,122,320
=========================================================================================================================
CLASS B SHARES:
Sold $35,885,549 $33,811,342
Issued as reinvestment of dividends 3,232,119 1,753,313
Redeemed (8,516,379) (4,642,412)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $30,601,289 $30,922,243
=========================================================================================================================
CLASS C SHARES:
Sold $465,540,531 $303,720,414
Issued as reinvestment of dividends 21,797,360 8,194,859
Redeemed (74,183,255) (24,624,575)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $413,154,636 $287,290,698
=========================================================================================================================
CLASS R SHARES:
Sold $943,642 $125,500
Issued as reinvestment of dividends 11,484 --
Redeemed (258,516) --
- -------------------------------------------------------------------------------------------------------------------------
Net increase $696,610 $125,500
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 40,856,884 31,820,253
Issued as reinvestment of dividends 2,059,538 905,862
Redeemed (9,228,765) (4,616,308)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 33,687,657 28,109,807
=========================================================================================================================
CLASS B SHARES:
Sold 1,538,619 1,717,102
Issued as reinvestment of dividends 142,888 96,868
Redeemed (361,696) (232,817)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 1,319,811 1,581,153
=========================================================================================================================
CLASS C SHARES:
Sold 19,789,822 15,353,195
Issued as reinvestment of dividends 964,485 453,256
Redeemed (3,108,746) (1,230,243)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 17,645,561 14,576,208
=========================================================================================================================
CLASS R SHARES:
Sold 37,101 6,111
Issued as reinvestment of dividends 492 --
Redeemed (9,967) --
- -------------------------------------------------------------------------------------------------------------------------
Net increase 27,626 6,111
=========================================================================================================================
* Inception for the Henderson International Opportunities Fund Class R was
September 30, 2005.
See Notes to Financial Statements.
58
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
JAPAN-ASIA FOCUS FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2007 JULY 31, 2006*
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $47,666,150 $42,803,721
Redeemed (27,847,968) (1,970,495)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $19,818,182 $40,833,226
=========================================================================================================================
CLASS C SHARES:
Sold $26,704,508 $19,928,861
Redeemed (9,635,146) (484,864)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $17,069,362 $19,443,997
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 4,768,595 4,282,056
Redeemed (2,798,330) (201,934)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 1,970,265 4,080,122
=========================================================================================================================
CLASS C SHARES:
Sold 2,695,738 1,973,735
Redeemed (979,648) (49,923)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 1,716,090 1,923,812
=========================================================================================================================
* Inception for the Henderson Japan-Asia Focus Fund was January 31, 2006.
See Notes to Financial Statements.
59
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
US FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $4,485,071 $5,453,192
Issued as reinvestment of dividends 462,720 96,301
Redeemed (8,083,722) (8,851,153)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease $(3,135,931) $(3,301,660)
=========================================================================================================================
CLASS B SHARES:
Sold $107,626 $144,759
Issued as reinvestment of dividends 46,993 18,707
Redeemed (597,455) (1,733,060)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease $(442,836) $(1,569,594)
=========================================================================================================================
CLASS C SHARES:
Sold $461,626 $1,185,604
Issued as reinvestment of dividends 127,402 25,900
Redeemed (1,262,244) (1,811,302)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease $(673,216) $(599,798)
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 393,663 498,363
Issued as reinvestment of dividends 42,766 8,827
Redeemed (720,552) (795,287)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease (284,123) (288,097)
=========================================================================================================================
CLASS B SHARES:
Sold 9,143 13,093
Issued as reinvestment of dividends 4,421 1,731
Redeemed (55,027) (164,865)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease (41,463) (150,041)
=========================================================================================================================
CLASS C SHARES:
Sold 40,784 109,891
Issued as reinvestment of dividends 11,985 2,396
Redeemed (115,333) (166,496)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease (62,564) (54,209)
=========================================================================================================================
See Notes to Financial Statements.
60
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
WORLDWIDE INCOME FUND
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $33,703,105 $8,564,436
Issued as reinvestment of dividends 715,957 720,158
Redeemed (12,377,014) (7,352,247)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $22,042,048 $1,932,347
=========================================================================================================================
CLASS B SHARES:
Sold $1,964,069 $1,077,925
Issued as reinvestment of dividends 94,922 124,733
Redeemed (2,309,613) (639,225)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $(250,622) $563,433
=========================================================================================================================
CLASS C SHARES:
Sold $21,898,093 $4,399,286
Issued as reinvestment of dividends 488,694 437,771
Redeemed (5,343,177) (4,965,332)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $17,043,610 $(128,275)
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 3,010,086 789,653
Issued as reinvestment of dividends 64,224 66,507
Redeemed (1,104,123) (678,752)
- -------------------------------------------------------------------------------------------------------------------------
Net increase 1,970,187 177,408
=========================================================================================================================
CLASS B SHARES:
Sold 176,021 99,708
Issued as reinvestment of dividends 8,545 11,545
Redeemed (207,057) (59,127)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (22,491) 52,126
=========================================================================================================================
CLASS C SHARES:
Sold 1,955,018 407,295
Issued as reinvestment of dividends 43,914 40,437
Redeemed (480,101) (459,595)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 1,518,831 (11,863)
=========================================================================================================================
See Notes to Financial Statements.
61
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
INCOME (LOSS) FROM INVESTMENT OPERATIONS: LESS DISTRIBUTIONS:
------------------------------------------- ----------------------------------------
NET DIVIDENDS DISTRIBUTIONS
NET ASSET NET REALIZED AND TOTAL FROM FROM NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
EUROPEAN FOCUS
CLASS A
Year Ended 7/31/2007 $29.36 0.13 (b) 10.19 10.32 0.00 (2.64) (2.64)
Year Ended 7/31/2006 25.30 0.12 (b) 5.54 5.66 0.00 (1.60) (1.60)
Year Ended 7/31/2005 20.88 0.04 (b) 6.76 6.80 0.00 (2.38) (2.38)
Year Ended 7/31/2004 15.47 (0.01)(b) 6.30 6.29 (0.06) (0.82) (0.88)
Year Ended 7/31/2003 11.61 0.16 (b) 3.76 3.92 (0.06) 0.00 (0.06)
CLASS B
Year Ended 7/31/2007 $28.41 (0.15)(b) 9.84 9.69 0.00 (2.64) (2.64)
Year Ended 7/31/2006 24.71 (0.11)(b) 5.41 5.30 0.00 (1.60) (1.60)
Year Ended 7/31/2005 20.57 (0.15)(b) 6.67 6.52 0.00 (2.38) (2.38)
Year Ended 7/31/2004 15.30 (0.21)(b) 6.30 6.09 0.00 (0.82) (0.82)
Year Ended 7/31/2003 11.54 0.02 (b) 3.76 3.78 (0.02) 0.00 (0.02)
CLASS C
Year Ended 7/31/2007 $28.40 (0.10)(b) 9.80 9.70 0.00 (2.64) (2.64)
Year Ended 7/31/2006 24.70 (0.10)(b) 5.40 5.30 0.00 (1.60) (1.60)
Year Ended 7/31/2005 20.57 (0.14)(b) 6.65 6.51 0.00 (2.38) (2.38)
Year Ended 7/31/2004 15.30 (0.20)(b) 6.29 6.09 0.00 (0.82) (0.82)
Year Ended 7/31/2003 11.53 0.03 (b) 3.76 3.79 (0.02) 0.00 (0.02)
GLOBAL EQUITY INCOME
CLASS A
Period Ended 7/31/2007 (a) $10.00 0.83 (b) 0.25 1.08 (0.43) 0.00 (0.43)
CLASS C
Period Ended 7/31/2007 (a) $10.00 0.77 (b) 0.25 1.02 (0.40) 0.00 (0.40)
GLOBAL OPPORTUNITIES
CLASS A
Period Ended 7/31/2007 (a) $10.00 0.01 (b) 1.40 1.41 0.00 0.00 0.00
CLASS C
Period Ended 7/31/2007 (a) $10.00 (0.05)(b) 1.58 1.53 0.00 0.00 0.00
RATIOS TO AVERAGE NET ASSETS:
-----------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSET NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
VALUE, END OF EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE EXPENSES TURNOVER
THE PERIOD RETURN (c) (000) NET ASSETS NET ASSETS REIMBURSED RATE
- ------------------------------------------------------------------------------------------------------------------------------------
EUROPEAN FOCUS
CLASS A
Year Ended 7/31/2007 $37.04 36.52% $1,010,786 1.53% 0.39% 1.53% 61%
Year Ended 7/31/2006 29.36 23.72 368,593 1.59 0.44 1.59 64
Year Ended 7/31/2005 25.30 34.43 182,831 2.00 0.18 1.73 51
Year Ended 7/31/2004 20.88 41.89 79,459 2.00 (0.04) 2.15 88
Year Ended 7/31/2003 15.47 33.93 20,647 2.00 1.20 4.60 76
CLASS B
Year Ended 7/31/2007 $35.46 35.47% $67,668 2.28% (0.46)% 2.28% 61%
Year Ended 7/31/2006 28.41 22.79 35,977 2.34 (0.41) 2.34 64
Year Ended 7/31/2005 24.71 33.54 26,964 2.75 (0.67) 2.48 51
Year Ended 7/31/2004 20.57 40.92 15,246 2.75 (1.06) 2.90 88
Year Ended 7/31/2003 15.30 32.83 9,420 2.75 0.16 5.35 76
CLASS C
Year Ended 7/31/2007 $35.46 35.52% $346,856 2.28% (0.31)% 2.28% 61%
Year Ended 7/31/2006 28.40 22.80 110,465 2.34 (0.39) 2.34 64
Year Ended 7/31/2005 24.70 33.48 74,207 2.75 (0.62) 2.48 51
Year Ended 7/31/2004 20.57 40.92 38,684 2.75 (1.02) 2.90 88
Year Ended 7/31/2003 15.30 32.94 22,285 2.75 0.24 5.35 76
GLOBAL EQUITY INCOME
CLASS A
Period Ended 7/31/2007 (a) $10.65 10.68% $94,377 1.40% 11.36% 1.85% 100%
CLASS C
Period Ended 7/31/2007 (a) $10.62 10.11% $73,070 2.15% 10.64% 2.60% 100%
GLOBAL OPPORTUNITIES
CLASS A
Period Ended 7/31/2007 (a) $11.41 14.10% $4,052 1.95% 0.15% 13.40% 40%
CLASS C
Period Ended 7/31/2007 (a) $11.53 15.30% $2,530 2.70% (0.66)% 14.15% 40%
(a) The Henderson Global Equity Income and Global Opportunities Fund commenced
operations on November 30, 2006.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Non-annualized total return for the period excluding any applicable sales
charge.
See Notes to Financial Statements.
62-63 spread
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
INCOME (LOSS) FROM INVESTMENT OPERATIONS: LESS DISTRIBUTIONS:
------------------------------------------- ----------------------------------------
NET DIVIDENDS DISTRIBUTIONS
NET ASSET NET REALIZED AND TOTAL FROM FROM NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
GLOBAL TECHNOLOGY
CLASS A
Year Ended 7/31/2007 $12.19 (0.17)(a) 4.41 4.24 0.00 0.00 0.00
Year Ended 7/31/2006 11.68 (0.19)(a) 0.87 0.68 0.00 (0.17) (0.17)
Year Ended 7/31/2005 10.54 (0.14)(a) 1.91 1.77 0.00 (0.63) (0.63)
Year Ended 7/31/2004 9.56 (0.20)(a) 1.18 0.98 0.00 0.00 0.00
Year Ended 7/31/2003 7.36 (0.13)(a) 2.41 2.28 (0.08) 0.00 (0.08)
CLASS B
Year Ended 7/31/2007 $11.79 (0.26)(a) 4.24 3.98 0.00 0.00 0.00
Year Ended 7/31/2006 11.39 (0.28)(a) 0.85 0.57 0.00 (0.17) (0.17)
Year Ended 7/31/2005 10.36 (0.21)(a) 1.87 1.66 0.00 (0.63) (0.63)
Year Ended 7/31/2004 9.48 (0.27)(a) 1.15 0.88 0.00 0.00 0.00
Year Ended 7/31/2003 7.31 (0.18)(a) 2.43 2.25 (0.08) 0.00 (0.08)
CLASS C
Year Ended 7/31/2007 $11.76 (0.26)(a) 4.23 3.97 0.00 0.00 0.00
Year Ended 7/31/2006 11.35 (0.28)(a) 0.86 0.58 0.00 (0.17) (0.17)
Year Ended 7/31/2005 10.34 (0.21)(a) 1.85 1.64 0.00 (0.63) (0.63)
Year Ended 7/31/2004 9.45 (0.27)(a) 1.16 0.89 0.00 0.00 0.00
Year Ended 7/31/2003 7.31 (0.18)(a) 2.40 2.22 (0.08) 0.00 (0.08)
RATIOS TO AVERAGE NET ASSETS:
----------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSET NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
VALUE, END OF EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE EXPENSES TURNOVER
THE PERIOD RETURN (b) (000) NET ASSETS NET ASSETS REIMBURSED RATE
- ------------------------------------------------------------------------------------------------------------------------------------
GLOBAL TECHNOLOGY
CLASS A
Year Ended 7/31/2007 $16.43 34.78% $60,329 1.87% (1.14)% 1.87% 129%
Year Ended 7/31/2006 12.19 5.83 24,685 1.99 (1.41) 2.50 159
Year Ended 7/31/2005 11.68 16.90 3,331 2.00 (1.26) 6.58 164
Year Ended 7/31/2004 10.54 10.25 1,371 2.00 (1.75) 7.01 234
Year Ended 7/31/2003 9.56 31.38 409 2.00 (1.74) 22.78 238
CLASS B
Year Ended 7/31/2007 $15.77 33.76% $2,621 2.62% (1.89)% 2.62% 129%
Year Ended 7/31/2006 11.79 5.01 1,187 2.74 (2.20) 3.25 159
Year Ended 7/31/2005 11.39 16.10 906 2.75 (1.92) 7.33 164
Year Ended 7/31/2004 10.36 9.28 794 2.75 (2.45) 7.76 234
Year Ended 7/31/2003 9.48 31.10 816 2.75 (2.48) 23.53 238
CLASS C
Year Ended 7/31/2007 $15.73 33.76% $25,536 2.62% (1.89)% 2.62% 129%
Year Ended 7/31/2006 11.76 5.11 10,752 2.74 (2.15) 3.25 159
Year Ended 7/31/2005 11.35 15.93 1,356 2.75 (1.96) 7.33 164
Year Ended 7/31/2004 10.34 9.42 957 2.75 (2.47) 7.76 234
Year Ended 7/31/2003 9.45 30.69 456 2.75 (2.50) 23.53 238
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Non-annualized total return for the period excluding any applicable sale
charge.
See Notes to Financial Statements.
64-65 spread
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
INCOME (LOSS) FROM INVESTMENT OPERATIONS: LESS DISTRIBUTIONS:
------------------------------------------- ----------------------------------------
NET DIVIDENDS DISTRIBUTIONS
NET ASSET NET REALIZED AND TOTAL FROM FROM NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2007 $21.52 0.02 (b) 6.43 6.45 (0.04) (1.02) (1.06)
Year Ended 7/31/2006 17.77 0.14 (b) 4.36 4.50 0.00 (0.75) (0.75)
Year Ended 7/31/2005 14.94 0.00 (b),(*) 3.08 3.08 0.00 (0.25) (0.25)
Year Ended 7/31/2004 11.99 (0.10)(b) 3.22 3.12 0.00 (0.17) (0.17)
Year Ended 7/31/2003 10.51 0.00 (b),(*) 1.55 1.55 (0.07) 0.00 (0.07)
CLASS B
Year Ended 7/31/2007 $20.82 (0.17)(b) 6.22 6.05 0.00 (1.02) (1.02)
Year Ended 7/31/2006 17.35 (0.03)(b) 4.25 4.22 0.00 (0.75) (0.75)
Year Ended 7/31/2005 14.70 (0.14)(b) 3.04 2.90 0.00 (0.25) (0.25)
Year Ended 7/31/2004 11.88 (0.22)(b) 3.21 2.99 0.00 (0.17) (0.17)
Year Ended 7/31/2003 10.44 (0.12)(b) 1.59 1.47 (0.03) 0.00 (0.03)
CLASS C
Year Ended 7/31/2007 $20.81 (0.16)(b) 6.20 6.04 0.00 (1.02) (1.02)
Year Ended 7/31/2006 17.33 (0.01)(b) 4.24 4.23 0.00 (0.75) (0.75)
Year Ended 7/31/2005 14.68 (0.13)(b) 3.03 2.90 0.00 (0.25) (0.25)
Year Ended 7/31/2004 11.88 (0.22)(b) 3.19 2.97 0.00 (0.17) (0.17)
Year Ended 7/31/2003 10.44 (0.12)(b) 1.59 1.47 (0.03) 0.00 (0.03)
CLASS R
Year Ended 7/31/2007 $21.46 0.01 (b) 6.38 6.39 (0.05) (1.02) (1.07)
Period Ended 7/31/2006 (a) 19.07 0.09 (b) 3.05 3.14 0.00 (0.75) (0.75)
JAPAN-ASIA FOCUS FUND
CLASS A
Year Ended 7/31/2007 $9.65 (0.05)(b) 0.53 0.48 0.00 0.00 0.00
Period Ended 7/31/2006 (a) 10.00 (0.03)(b) (0.32) (0.35) 0.00 0.00 0.00
CLASS C
Year Ended 7/31/2007 $9.62 (0.12)(b) 0.53 0.41 0.00 0.00 0.00
Period Ended 7/31/2006 (a) 10.00 (0.07)(b) (0.31) (0.38) 0.00 0.00 0.00
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSET NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
VALUE, END OF EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE EXPENSES TURNOVER
THE PERIOD RETURN (c) (000) NET ASSETS NET ASSETS REIMBURSED RATE
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2007 $26.91 30.69% $2,166,598 1.56% 0.07% 1.56% 79%
Year Ended 7/31/2006 21.52 25.98 1,007,241 1.66 0.68 1.66 100
Year Ended 7/31/2005 17.77 20.77 332,370 2.00 (0.01) 1.84 79
Year Ended 7/31/2004 14.94 26.15 104,255 2.00 (0.68) 2.21 132
Year Ended 7/31/2003 11.99 14.84 8,371 2.00 0.01 7.21 190
CLASS B
Year Ended 7/31/2007 $25.85 29.75% $130,558 2.31% (0.71)% 2.31% 79%
Year Ended 7/31/2006 20.82 24.97 77,695 2.41 (0.16) 2.41 100
Year Ended 7/31/2005 17.35 19.87 37,291 2.75 (0.84) 2.59 79
Year Ended 7/31/2004 14.70 25.29 16,559 2.75 (1.52) 2.96 132
Year Ended 7/31/2003 11.88 14.10 3,888 2.75 (1.13) 7.96 190
CLASS C
Year Ended 7/31/2007 $25.83 29.72% $1,073,481 2.31% (0.67)% 2.31% 79%
Year Ended 7/31/2006 20.81 25.06 497,402 2.41 (0.05) 2.41 100
Year Ended 7/31/2005 17.33 19.90 161,712 2.75 (0.80) 2.59 79
Year Ended 7/31/2004 14.68 25.12 63,396 2.75 (1.46) 2.96 132
Year Ended 7/31/2003 11.88 14.12 7,560 2.75 (1.14) 7.96 190
CLASS R
Year Ended 7/31/2007 $26.78 30.52% $903 1.81% 0.04% 1.81% 79%
Period Ended 7/31/2006 (a) 21.46 17.07 131 1.91 0.54 1.91 100
JAPAN-ASIA FOCUS FUND
CLASS A
Year Ended 7/31/2007 $10.13 4.97% $61,316 1.83% (0.47)% 1.84% 61%
Period Ended 7/31/2006 (a) 9.65 (3.50) 39,381 2.00 (0.63) 2.40 29
CLASS C
Year Ended 7/31/2007 $10.03 4.26% $36,496 2.58% (1.23)% 2.59% 61%
Period Ended 7/31/2006 (a) 9.62 (3.80) 18,508 2.75 (1.37) 3.15 29
(a) The Henderson International Opportunities Fund Class R commenced operations
on September 30, 2005. The Henderson Japan-Asia Focus Fund commenced
operations on January 31, 2006.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Non-annualized total return for the period excluding any applicable sales
charge.
(*) Amount represents less than $0.01.
See Notes to Financial Statements.
66-67 spread
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
INCOME (LOSS) FROM INVESTMENT OPERATIONS: LESS DISTRIBUTIONS:
------------------------------------------- ----------------------------------------
NET DIVIDENDS DISTRIBUTIONS
NET ASSET NET REALIZED AND TOTAL FROM FROM NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
US FOCUS FUND
CLASS A
Year Ended 7/31/2007 $10.35 (0.05)(b) 2.32 2.27 0.00 (0.63) (0.63)
Year Ended 7/31/2006 10.93 (0.13)(b) (0.38) (0.51) 0.00 (0.07) (0.07)
Year Ended 7/31/2005 9.69 (0.12)(b) 1.41 1.29 (0.05) 0.00 (0.05)
Period Ended 7/31/2004 (a) 10.00 (0.04)(b) (0.27) (0.31) 0.00 0.00 0.00
CLASS B
Year Ended 7/31/2007 $10.20 (0.13)(b) 2.28 2.15 0.00 (0.63) (0.63)
Year Ended 7/31/2006 10.85 (0.21)(b) (0.37) (0.58) 0.00 (0.07) (0.07)
Year Ended 7/31/2005 9.67 (0.19)(b) 1.39 1.20 (0.02) 0.00 (0.02)
Period Ended 7/31/2004 (a) 10.00 (0.05)(b) (0.28) (0.33) 0.00 0.00 0.00
CLASS C
Year Ended 7/31/2007 $10.20 (0.14)(b) 2.29 2.15 0.00 (0.63) (0.63)
Year Ended 7/31/2006 10.85 (0.21)(b) (0.37) (0.58) 0.00 (0.07) (0.07)
Year Ended 7/31/2005 9.67 (0.20)(b) 1.40 1.20 (0.02) 0.00 (0.02)
Period Ended 7/31/2004 (a) 10.00 (0.05)(b) (0.28) (0.33) 0.00 0.00 0.00
WORLDWIDE INCOME FUND
CLASS A
Year Ended 7/31/2007 $10.78 0.66 (b) 0.08 0.74 (0.65) 0.00 (0.65)
Year Ended 7/31/2006 11.03 0.71 (b) (0.22) 0.49 (0.74) 0.00 (0.74)
Year Ended 7/31/2005 10.73 0.66 (b) 0.40 1.06 (0.72) (0.04) (0.76)
Period Ended 7/31/2004 (a) 10.00 0.54 (b) 0.73 1.27 (0.54) 0.00 (0.54)
CLASS B
Year Ended 7/31/2007 $10.76 0.57 (b) 0.07 0.64 (0.56) 0.00 (0.56)
Year Ended 7/31/2006 11.00 0.62 (b) (0.20) 0.42 (0.66) 0.00 (0.66)
Year Ended 7/31/2005 10.72 0.58 (b) 0.38 0.96 (0.64) (0.04) (0.68)
Period Ended 7/31/2004 (a) 10.00 0.47 (b) 0.73 1.20 (0.48) 0.00 (0.48)
CLASS C
Year Ended 7/31/2007 $10.78 0.57 (b) 0.07 0.64 (0.56) 0.00 (0.56)
Year Ended 7/31/2006 11.02 0.63 (b) (0.21) 0.42 (0.66) 0.00 (0.66)
Year Ended 7/31/2005 10.73 0.58 (b) 0.39 0.97 (0.64) (0.04) (0.68)
Period Ended 7/31/2004 (a) 10.00 0.46 (b) 0.75 1.21 (0.48) 0.00 (0.48)
RATIOS TO AVERAGE NET ASSETS:
--------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSET NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
VALUE, END OF EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE EXPENSES TURNOVER
THE PERIOD RETURN (c) (000) NET ASSETS NET ASSETS REIMBURSED RATE
- -----------------------------------------------------------------------------------------------------------------------------------
US FOCUS FUND
CLASS A
Year Ended 7/31/2007 $11.99 22.55% $9,328 1.95% (0.45)% 2.95% 167%
Year Ended 7/31/2006 10.35 (4.69) 10,991 2.00 (1.18) 2.45 98
Year Ended 7/31/2005 10.93 13.34 14,752 2.00 (1.19) 3.37 80
Period Ended 7/31/2004 (a) 9.69 (3.10) 1,467 2.00 (1.41) 22.58 11
CLASS B
Year Ended 7/31/2007 $11.72 21.67% $998 2.70% (1.23)% 3.70% 167%
Year Ended 7/31/2006 10.20 (5.38) 1,292 2.75 (1.92) 3.20 98
Year Ended 7/31/2005 10.85 12.46 3,002 2.75 (1.84) 4.12 80
Period Ended 7/31/2004 (a) 9.67 (3.30) 1,483 2.75 (2.21) 23.32 11
CLASS C
Year Ended 7/31/2007 $11.72 21.67% $2,789 2.70% (1.21)% 3.70% 167%
Year Ended 7/31/2006 10.20 (5.38) 3,065 2.75 (1.93) 3.20 98
Year Ended 7/31/2005 10.85 12.46 3,849 2.75 (1.95) 4.12 80
Period Ended 7/31/2004 (a) 9.67 (3.30) 356 2.75 (2.21) 23.32 11
WORLDWIDE INCOME FUND
CLASS A
Year Ended 7/31/2007 $10.87 6.71% $39,470 1.30% 5.89% 1.77% 73%
Year Ended 7/31/2006 10.78 4.70 17,927 1.30 6.51 1.93 161
Year Ended 7/31/2005 11.03 10.07 16,375 1.30 5.98 2.08 137
Period Ended 7/31/2004 (a) 10.73 12.81 7,628 1.30 5.89 3.49 327
CLASS B
Year Ended 7/31/2007 $10.84 5.93% $5,003 2.05% 5.17% 2.52% 73%
Year Ended 7/31/2006 10.76 3.93 5,210 2.05 5.77 2.68 161
Year Ended 7/31/2005 11.00 9.07 4,751 2.05 5.23 2.83 137
Period Ended 7/31/2004 (a) 10.72 12.08 3,344 2.05 5.29 4.24 327
CLASS C
Year Ended 7/31/2007 $10.86 5.92% $29,752 2.05% 5.11% 2.52% 73%
Year Ended 7/31/2006 10.78 3.92 13,150 2.05 5.78 2.68 161
Year Ended 7/31/2005 11.02 9.16 13,580 2.05 5.23 2.83 137
Period Ended 7/31/2004 (a) 10.73 12.18 8,047 2.05 5.26 4.24 327
(a) The Henderson US Focus Fund commenced operations on April 30, 2004. The
Henderson Worldwide Income Fund commenced operations on September 30, 2003.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Non-annualized total return for the period excluding any applicable sales
charge.
See Notes to Financial Statements.
68-69 spread
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 that are divided among
eight series. Henderson European Focus Fund ("European Focus"), Henderson Global
Equity Income Fund ("Global Equity Income"), Henderson Global Opportunities Fund
("Global Opportunities"), Henderson Global Technology Fund ("Global
Technology"), Henderson International Opportunities Fund ("International
Opportunities"), Henderson Japan-Asia Focus Fund ("Japan-Asia Focus"), Henderson
US Focus Fund ("US Focus") (formerly Henderson U.S. Core Growth Fund) and
Henderson Worldwide Income Fund ("Worldwide Income") collectively (the "Funds")
are each a separate series of the Trust. Each of the Funds are diversified,
except Global Equity Income, Global Opportunities and Japan-Asia Focus, which
are non-diversified. Each of the Funds except Global Equity Income, Global
Opportunities and Japan-Asia Focus, offer Class A shares, Class B shares and
Class C shares. Global Equity Income, Global Opportunities and Japan-Asia Focus
offer Class A shares and Class C Shares. Class A shares generally provide for a
front-end sales charge, and Class B shares and Class C shares provide for a
contingent deferred sales charge. International Opportunities also offers Class
R shares which are not subject to a front-end or 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
SECURITY VALUATION
Securities traded on a recognized exchange or market are generally valued at the
last reported sale price or at the official closing price. 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.
Debt securities are valued at the last sales price or market value by
independent pricing services approved by the Trustees of the Trust. If the
pricing services are unable to provide valuations, the securities are valued at
the mean between the last bid and asked prices or if no ask is available, then
the last bid price obtained from one or more broker dealers. Such pricing
services may use various pricing techniques, which take into account appropriate
factors such as yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other data, as well as broker quotes.
Short term investments purchased with an original or remaining maturity of 60
days or less are valued at amortized cost, which approximates market value.
If market quotations are not readily available, or if the investment adviser
determines that a quotation of a security does not represent a fair value, then
the security is valued at a fair value as determined in good faith using
procedures approved by the Trustees of the Trust. The Trust has retained an
independent statistical fair value pricing service to assist in the fair
valuation process for securities principally traded in a foreign market in order
to adjust for possible changes in value that may occur between the close of the
foreign exchange and the time at which Fund shares are priced. If a security is
valued at a "fair value", that value may be different from the last quoted
market price for the security. As a result, it is possible that fair value
prices will be used by European Focus, Global Equity Income, Global
Opportunities, Global Technology, International Opportunities, Japan-Asia Focus
and Worldwide Income.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on trade date. Interest income is
recorded on an accrual basis. Dividend income is recorded on the ex-dividend
date. Bond premium is amortized and discount is accreted over the expected life
of each applicable security. Corporate actions involving foreign securities,
including dividends, are recorded as soon as the information becomes available.
Withholding taxes on foreign dividends are accrued in accordance with 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 US 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 US 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
70
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
included with the net realized and unrealized gain or loss from investments on
the Statement of Operations.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade date and
settlement date on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Funds' books and the US 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.
INDEMNIFICATIONS
Under the Trust's organizational documents, its officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business the Trust
enters into contracts that provide general indemnifications to other parties.
The Trust's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Trust that have not yet been
asserted.
USE OF ESTIMATES
The preparation of financial statements, in conformity with United States
generally accepted accounting principles, 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.
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-US 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
include net gains or losses on contracts that have matured or which a Fund has
terminated by entering into offsetting closing transactions. Forward foreign
currency contracts are valued daily and the unrealized appreciation is reflected
as Forward foreign currency contracts in the Statement of Assets and
Liabilities. These instruments involve market risk, credit risk, or both kinds
of risks, in excess of the amount recognized in the Statement of Operations.
These risks arise from the possible inability of counterparties to meet the
terms of their contracts and from unfavorable currency fluctuations.
The following Fund held the following open forward foreign currency contracts at
July 31, 2007:
LOCAL
VALUE AMOUNT CURRENT UNREALIZED
DATE (000'S) VALUE APPRECIATION
- --------------------------------------------------------
WORLDWIDE INCOME
- --------------------------------------------------------
British
Pound
Short 8/20/07 2,409 $4,890,545 $39,694
- --------------------------------------------------------
Euro
Short 8/20/07 10,973 15,023,091 102,010
========================================================
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 falls below the value of the
repurchase price plus accrued interest, the Funds 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. The Funds did not
hold any repurchase agreements at July 31, 2007.
SECURITIES LOANS
The Funds may make secured loans of its portfolio securities amounting to not
more than 33 1/3% of its total assets (taken at market value at the time of such
loan), thereby realizing additional income. The risks in lending portfolio
securities, as with other extensions of credit, consist of possible delay in
recovery of the securities or possible loss of rights in the collateral should
the borrower fail financially. Securities loans are made to banks and
broker-dealers, via State Street Bank and Trust Company as lending agent,
pursuant to agreements requiring that loans be continuously secured by
collateral at least equal at all times to the value of the securities on loan.
Collateral is invested in a money market fund. The borrower pays to the fund an
amount equal to any dividends or interest received on securities lent. The Funds
receive a fee from the borrower or retain all or a portion of the interest
received on investment of the cash collateral. Income earned from securities
lending is reflected as Net securities lending income on the Statement of
71
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
Operations. The Funds may call such loans in order to sell the securities
involved. During the year ended July 31, 2007, International Opportunities
transacted in securities lending.
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 daily net assets or on another reasonable basis.
DEFERRED OFFERING COSTS
Costs incurred in connection with the offering and initial registration of
Global Equity Income, Global Opportunities and Japan-Asia Focus have been
deferred in conformity with United States generally accepted accounting
principles and are being amortized on a straight-line basis over the first
twelve months after commencement of operations.
FEDERAL INCOME TAXES
The Trust's policy is that each Fund continue to comply with the requirements of
Subchapter M of the Internal Revenue Code that are applicable to regulated
investment companies and to distribute substantially 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, 2007, Worldwide Income had $688,147 accumulated capital loss
carryforward, of which, for tax purposes $341,836 expires July 31, 2014 and
$346,311 expires July 31, 2015.
At July 31, 2006, the following funds deferred post-October losses which were
recognized on August 1, 2006:
CURRENCY LOSS CAPITAL LOSS
DEFERRED DEFERRED
- ---------------------------------------------------------
Global Technology $42,881 $1,229,093
Worldwide Income 89,942 178,335
=========================================================
At July 31, 2007, the following funds deferred post-October losses which will be
recognized on the first day of the following year:
CURRENCY LOSS CAPITAL LOSS
DEFERRED DEFERRED
- ---------------------------------------------------------
International Opportunities $4,338,523 $--
Japan-Asia Focus 68,559 --
US Focus 5,303 --
Worldwide Income -- 59,351
=========================================================
On July 13th, 2006, the Financial Accounting Standards Board ("FASB") released
interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48").
Fin 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more likely than not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more likely than not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows
implementing FIN 48 in fund NAV calculations as late as the Funds' NAV
calculation in the first required financial statement reporting period. As a
result, the Funds will adopt FIN 48 in its semi annual report on January 31,
2008. At this time, management is evaluating the implications of FIN 48 and its
impact in the financial statements has not yet been determined.
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 United States generally accepted accounting principles. 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, 2007, the Funds reclassified the following amounts
between paid-in capital, undistributed net investment income (loss) and
accumulated net realized gain (loss):
ACCUMULATED
UNDISTRIBUTED ACCUMULATED
PAID-IN NET INVESTMENT NET REALIZED
CAPITAL INCOME/(LOSS) GAIN/(LOSS)
- -------------------------------------------------------------
European Focus $163 $(2,014,667) $2,014,504
Global
Equity Income (62,835) (205,545) 268,380
Global
Opportunities (43,538) 40,305 3,233
Global Technology 163 845,032 (845,195)
International
Opportunities 163 1,927,185 (1,927,348)
Japan-Asia Focus (44,974) 660,687 (615,713)
US Focus 2,321 84,964 (87,285)
Worldwide
Income 4,823 328,098 (332,921)
=============================================================
72
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
These reclassifications relate to the deductibility of certain expenses and the
character of realized gain/losses on foreign currency transactions and PFIC
transactions for tax purposes and had no impact on the net asset value of the
Funds.
The tax character of distributions paid by the following Funds during the year
ended July 31, 2007 and July 31, 2006 were as follows:
YEAR ENDED ORDINARY LONG TERM
JULY 31, 2007 INCOME CAPITAL GAINS
- ----------------------------------------------------------
European Focus $22,099,995 $31,830,617
Global Equity Income 5,020,630 --
International Opportunities 49,724,872 42,043,765
US Focus 153,245 611,123
Worldwide Income 2,751,767 --
==========================================================
YEAR ENDED ORDINARY LONG TERM
JULY 31, 2006 INCOME CAPITAL GAINS
- ----------------------------------------------------------
European Focus $9,939,146 $10,562,352
Global Technology -- 131,556
International Opportunities 15,982,117 13,925,399
US Focus -- 146,270
Worldwide Income 2,177,715 --
==========================================================
As of July 31, 2007, the components of distributable earnings on a tax basis
were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNREALIZED
ORDINARY LONG TERM APPRECIATION
INCOME CAPITAL GAIN (DEPRECIATION)
- -----------------------------------------------------------
European
Focus $72,374,682 $43,699,507 $174,617,542
- -----------------------------------------------------------
Global
Equity Income 945,239 -- (3,070,872)
- -----------------------------------------------------------
Global
Opportunities 105,310 -- 208,370
- -----------------------------------------------------------
Global
Technology 875,040 609,461 12,639,747
- -----------------------------------------------------------
International
Opportunities 200,586,422 44,238,566 498,961,859
- -----------------------------------------------------------
Japan-Asia
Focus 1,865,744 1,537,625 (2,531,185)
- -----------------------------------------------------------
US Focus 490,515 1,188,848 1,473,722
- -----------------------------------------------------------
Worldwide
Income 559,243 -- (798,910)
===========================================================
Ordinary income and net realized gains/losses may differ for book 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, tax deferral on wash
sales and PFIC transactions.
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 Henderson Group plc. 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 daily net assets (or average daily managed assets with the respect to
Worldwide Income) at the following annual rates:
European Focus First $500 million 1.00%
Next $1 billion 0.90%
Over $1.5 billion 0.85%
- ------------------------------------------------------------
Global Equity Income First $500 million 0.90%
Next $500 million 0.80%
Next $500 million 0.70%
Over $1.5 billion 0.60%
- ------------------------------------------------------------
Global Opportunities First $1 billion 1.10%
Next $1 billion 0.95%
Over $2 billion 0.85%
- ------------------------------------------------------------
Global Technology First $500 million 1.00%
Next $500 million 0.95%
Over $1 billion 0.90%
- ------------------------------------------------------------
International Opportunities First $1 billion 1.10%
Next $1 billion 0.95%
Over $2 billion 0.85%
- ------------------------------------------------------------
Japan-Asia Focus First $500 million 1.00%
Next $1 billion 0.90%
Over $1.5 billion 0.85%
- ------------------------------------------------------------
US Focus First $150 million 0.95%
Over $150 million 0.85%
- ------------------------------------------------------------
Worldwide Income1 First $500 million 0.85%
Next $500 million 0.75%
Next $500 million 0.70%
Over $1.5 billion 0.65%
============================================================
1 The fee for Worldwide Income is based upon the Fund's average daily managed
assets. Managed assets mean the total assets of the Fund (including any
assets attributable to any leverage that may be outstanding) minus the sum
of accrued liabilities (other than debt representing financial leverage).
Since the Fund pays the Adviser based on the Fund's average daily managed
assets, the Adviser's fee will be higher if the Fund is leveraged.
Pursuant to separate contractual 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 daily net assets for European
Focus, Global Technology, International Opportunities and Japan-Asia Focus, to
1.15% of average
73
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
daily net assets for Global Equity, to 1.70% of average daily net assets for
Global Opportunities and to 1.05% of average daily net assets for Worldwide
Income. Prior to July 1, 2007 the annual expense limit, less distribution and
service fee, for US Focus was 1.75%. Effective July 1, 2007 the annual expense
limitation, less distribution and service fees, for US Focus was reduced to
1.15%. These agreements are effective through July 31, 2020.
Prior to July 1, 2007, under the Expense Limitation Agreements, the annual
expense limit including distribution and service fees as a percentage of average
daily net assets was as follows:
CLASS A CLASS B OR C CLASS R
- -----------------------------------------------------------
European
Focus 2.00% 2.75% N/A
- -----------------------------------------------------------
Global Equity
Income 1.40 2.15 N/A
- -----------------------------------------------------------
Global
Opportunities 1.95 2.70 N/A
- -----------------------------------------------------------
Global
Technology 2.00 2.75 N/A
- -----------------------------------------------------------
International
Opportunities 2.00 2.75 2.25%
- -----------------------------------------------------------
Japan-Asia
Focus 2.00 2.75 N/A
- -----------------------------------------------------------
US Focus
Prior to July 1, 2007 2.00 2.75 N/A
Effective July 1, 2007 1.40 2.15 N/A
- -----------------------------------------------------------
Worldwide
Income 1.30 2.05 N/A
===========================================================
HGINA may recover from Global Equity Income and Global Opportunities reimbursed
expenses relating to previous years provided the Fund's current expense ratio
falls below the expense limitation. The recovery of reimbursed expenses is
effective through November 30, 2009 for Global Equity Income and Global
Opportunities. The remaining amount of potentially recoverable expenses at July
31, 2007 for Global Equity Income and Global Opportunities was $220,257 and
$240,170, respectively. During the year ended July 31, 2007, the Advisor
recovered previously reimbursed expenses of $12,495 from Japan-Asia Focus.
Henderson Investment Management Limited ("HIML") is the sub-adviser for European
Focus, Global Equity Income, Global Opportunities, Global Technology,
International Opportunities, and Japan-Asia Focus pursuant to a Sub-Advisory
Agreement. HIML is a direct wholly owned subsidiary of Henderson Global
Investors (Holdings) plc.
Prior to December 29, 2006 HIML received a fee for its services, paid by HGINA
from its management fee, based on each Fund's average daily net assets as set
forth below:
European Focus First $500 million 0.90%
Next $1 billion 0.80%
Over $1.5 billion 0.75%
- --------------------------------------------------------------
Global Equity Income First $500 million 0.80%
Next $500 million 0.70%
Next $500 million 0.60%
Over $1.5 billion 0.50%
- --------------------------------------------------------------
Global Opportunities First $1 billion 1.00%
Next $1 billion 0.85%
Over $2 billion 0.75%
- --------------------------------------------------------------
Global Technology First $500 million 0.90%
Next $500 million 0.85%
Over $1 billion 0.80%
- --------------------------------------------------------------
International Opportunities First $1 billion 1.00%
Next $1 billion 0.85%
Over $2 billion 0.75%
- --------------------------------------------------------------
Japan-Asia Focus First $500 million 0.90%
Next $1 billion 0.80%
Over $1.5 billion 0.75%
==============================================================
Effective December 29, 2006 HIML receives a fee for its services, paid by HGINA
from its management fee, based on each Fund's average daily net assets as set
forth below:
European Focus First $500 million 0.45%
Next $1 billion 0.35%
Over $1.5 billion 0.30%
- --------------------------------------------------------------
Global Equity Income First $500 million 0.40%
Next $1 billion 0.30%
Next $500 million 0.25%
Over $2 billion 0.20%
- --------------------------------------------------------------
Global Opportunities First $1 billion 0.45%
Next $1 billion 0.30%
Over $2 billion 0.25%
- --------------------------------------------------------------
Global Technology First $500 million 0.45%
Next $500 million 0.40%
Over $1 billion 0.35%
- --------------------------------------------------------------
International Opportunities First $1 billion 0.50%
Next $1 billion 0.35%
Over $2 billion 0.25%
- --------------------------------------------------------------
Japan-Asia Focus First $500 million 0.45%
Next $1 billion 0.35%
Over $1.5 billion 0.30%
==============================================================
74
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
Shares of the Funds are often purchased through financial intermediaries who are
agents of the Funds for the limited purpose of completing purchases and sales.
These intermediaries may provide certain networking and sub-transfer agent
services with respect to Fund shares held by that intermediary for its
customers, and the intermediary may charge the Adviser a fee for those services.
Effective October 1, 2006, the Funds began reimbursing the Adviser for such fees
with limits specified by the Board of Trustees. The fees are included in
Transfer agent fees in the Statement of Operations.
The Funds bear a portion of the compensation paid to the Chief Compliance
Officer of the Trust. This compensation is reflected as Chief Compliance Officer
fees in the Statement of Operations.
At July 31, 2007, HGINA owned the following number of shares in the following
Funds:
SHARES
- ----------------------------------------------------------
Global Equity Income Class A 23,383
Global Equity Income Class C 2,592
Global Technology Class A 14,179
==========================================================
HGINA is a direct subsidiary of Henderson International Inc. ("HII"). At July
31, 2007, HII owned the following number of shares in the following Funds:
SHARES
- ----------------------------------------------------------
European Focus Class A 584
Global Equity Income Class A 732
Global Opportunities Class A 60,000
Global Opportunities Class C 5,000
Global Technology Class A 721
International Opportunities Class A 793
International Opportunities Class R 1,371
US Focus Class A 10,780
Worldwide Income Class A 3,282
==========================================================
NOTE 4. COMPENSATION OF TRUSTEES AND OFFICERS
Certain officers and Trustees of the Trust are also officers of HGINA. None of
the Trust's officers, other than the Chief Compliance Officer, are compensated
by the Trust. The Trust makes no direct payment to Trustees affiliated with
HGINA. Fees paid to Trustees are reflected as Trustees' fees and expenses in the
Statement of Operations.
NOTE 5. DISTRIBUTION
The Trust has adopted a distribution plan for Class A, Class B, Class C and
Class R 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, an annual fee of 1.00% of the average daily net assets attributable to
its Class B and C shares, and an annual fee of .50% of average daily net assets
attributable to its Class R shares. 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 6. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities, excluding short term investments,
for the Funds during the year ended July 31, 2007, were as follows:
PURCHASES SALES
- ---------------------------------------------------------
European Focus $1,069,452,759 $493,956,498
Global Equity Income 233,194,067 76,898,048
Global Opportunities 7,341,593 1,349,958
Global Technology 104,519,196 72,352,421
International
Opportunities 2,840,610,246 1,812,383,439
Japan-Asia Focus 81,187,105 46,610,758
US Focus 22,396,905 27,877,304
Worldwide Income 57,218,117 34,109,436
=========================================================
The U.S. federal income tax basis of the Funds' investments excluding foreign
currency and foreign forward currency contracts at July 31, 2007, and the gross
unrealized appreciation and depreciation, were as follows:
GLOBAL
EUROPEAN EQUITY
FOCUS INCOME
- ----------------------------------------------------------
Cost $1,227,263,768 $164,670,417
- ----------------------------------------------------------
Gross unrealized appreciation 211,449,093 3,081,619
- ----------------------------------------------------------
Gross unrealized depreciation (36,767,534) (6,162,289)
- ----------------------------------------------------------
Net unrealized appreciation/
(depreciation) 174,681,559 (3,080,670)
==========================================================
GLOBAL GLOBAL
OPPORTUNITIES TECHNOLOGY
- ----------------------------------------------------------
Cost $6,305,765 $76,377,517
- ----------------------------------------------------------
Gross unrealized appreciation 370,987 13,632,172
- ----------------------------------------------------------
Gross unrealized depreciation (162,647) (997,233)
- ----------------------------------------------------------
Net unrealized appreciation 208,340 12,634,939
==========================================================
75
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
INTERNATIONAL JAPAN-ASIA
OPPORTUNITIES FOCUS
- ----------------------------------------------------------
Cost $3,370,762,613 $100,005,234
- ----------------------------------------------------------
Gross unrealized appreciation 571,488,276 4,678,219
- ----------------------------------------------------------
Gross unrealized depreciation (72,606,608) (7,208,536)
- ----------------------------------------------------------
Net unrealized appreciation/
(depreciation) 498,881,668 (2,530,317)
==========================================================
WORLDWIDE
US FOCUS INCOME
- ----------------------------------------------------------
Cost $11,500,976 $73,214,666
- ----------------------------------------------------------
Gross unrealized appreciation 1,633,768 760,138
- ----------------------------------------------------------
Gross unrealized depreciation (160,050) (1,565,469)
- ----------------------------------------------------------
Net unrealized appreciation/
(depreciation) 1,473,718 (805,331)
==========================================================
Identified cost may differ for book and tax basis reporting purposes primarily
due to tax deferral of losses on wash sales, PFIC transactions and amortization
of premiums reflected as of July 31, 2007.
NOTE 7. SIGNIFICANT CONCENTRATIONS
European Focus, Global Equity Income, Global Opportunities, Global Technology,
International Opportunities, Japan-Asia Focus and Worldwide Income invest a
substantial percentage of their assets in securities of foreign issuers.
Worldwide Income may also invest a substantial percentage of its net assets in
securities of emerging market 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. Some countries in
which the Funds invest may require government approval for repatriation of
investment income, capital or the proceeds for sales of securities by foreign
investors. In addition, if there is deterioration in a country's balance of
payments or for other reasons, a country may impose temporary restrictions on
foreign capital remittances abroad. 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.
Worldwide Income invests primarily in income producing securities with a focus
on foreign investment grade debt. It may also invest in lower quality high yield
securities. Investing in high yield securities may involve greater risks and
considerations not typically associated with investing in US Government bonds
and other high quality fixed-income securities. These securities are
non-investment grade securities, often referred to as "junk bonds". Economic
downturns may disrupt the high yield market and impair the ability of issuers to
repay principal and interest. Also, an increase in interest rates would likely
have an adverse impact on the value of such obligations. More over, high yield
securities may be less liquid due to the extent that there is no established
secondary market and because of a decline in value of such 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,
Global Technology 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 8. BORROWING ARRANGEMENTS
Prior to June 30, 2007 the Trust had an $80 million credit facility which was
entered into to facilitate portfolio liquidity. Effective June 30, 2007, the
Trust increased the credit facility to $140 million. Interest is charged to each
participating fund based on its borrowings at a rate per annum equal to the
Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.10% per annum
is accrued and apportioned among the participating funds based on their pro-rata
portion of the utilized line of credit. The commitment fee is included in
Miscellaneous fees on the Statement of Operations. No amounts were borrowed
under this facility during the year ended July 31, 2007.
76
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
NOTE 9. 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 Amount
redeemed on the Statements of Changes - Capital Stock Activity. Redemptions fees
during the year ended July 31, 2007 were as follows:
REDEMPTION FEES
- ----------------------------------------------------------
European Focus $26,948
Global Equity Income 5,671
Global Opportunities 1,177
Global Technology 2,115
International Opportunities 36,070
Japan-Asia Focus 11,912
US Focus 173
Worldwide Income 14,291
==========================================================
NOTE 10. RECENT ACCOUNTING STANDARDS
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statements on Financial Accounting Standards No. 157, "Fair Value Measurements"
(FAS 157). This standard clarifies the definition of fair value for financial
reporting, establishes a framework for measuring fair value and requires
additional disclosure about the use of fair value measurements. FAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years. As of July 31,
2007, the Funds do not believe the adoption of FAS 157 will impact the amounts
reported in the financial statements, however, additional disclosures will be
required about the inputs used to develop the measurements of fair value and the
effect of certain of the measurements reported in the statement of operations
for a fiscal period.
NOTE 11. SUBSEQUENT EVENT
Effective August 1, 2007, European Focus was closed to purchases by new
investors as described in the Prospectus supplement dated May 11, 2007. This
step was taken to facilitate management of the Fund's portfolio. The Fund
reserves the right to re-open the Fund to new investors.
77
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78
HENDERSON GLOBAL FUNDS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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 Equity Income Fund, Henderson Global Opportunities Fund, Henderson Global
Technology Fund, Henderson International Opportunities Fund, Henderson
Japan-Asia Focus Fund, Henderson US Focus Fund (formerly the Henderson U.S. Core
Growth Fund), and Henderson Worldwide Income Fund (collectively, the "Funds"),
comprising the Henderson Global Funds, as of July 31, 2007, and the related
statements of operations, the statements of changes in net assets and the
financial highlights for the periods indicated therein. 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 the standards of the Public Company
Accounting Oversight Board (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. Our
audits included consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the
Funds' internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements and financial
highlights, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
Our procedures included confirmation of securities owned as of July 31, 2007, by
correspondence with the custodian and brokers or by other appropriate auditing
procedures where replies from brokers were not received. 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,
2007, and the results of their operations, changes in their net assets and their
financial highlights for the periods indicated therein in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
September 12, 2007
79
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80
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
PROXY VOTING POLICIES
The Funds have filed with the Securities and Exchange Commission their proxy
voting records for the 12-month period ending June 30, 2007 on Form N-PX, which
must be filed each year by August 31. Form N-PX is available on the Securities
and Exchange Commission's website at http://www.sec.gov. The Funds' proxy voting
records and proxy voting policies and procedures are also available without
charge, upon request, by calling 866.443.6337 or by visiting the Funds' website
at http://www.hendersonglobalfunds.com.
QUARTERLY PORTFOLIO OF INVESTMENTS
A Portfolio of Investments is filed as of the end of the first and third quarter
of each fiscal year on Form N-Q. The Funds have filed with the Securities and
Exchange Commission the Form N-Q and it is available on the Securities and
Exchange Commission's website at http://www.sec.gov. Additionally, the Portfolio
of Investments may be reviewed and copied at the Commission's Public Reference
Room in Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling 1.800.SEC.0330. The quarterly Portfolio of
Investments are also available without charge, upon request, by calling
866.443.6337 or by visiting the Funds' website at
http://www.hendersonglobalfunds.com.
PORTFOLIO TURNOVER
The US Focus Fund experienced above average portfolio turnover during the most
recent fiscal year due to a change in the portfolio management of the Fund.
Effective November 30,2007, HGINA assumed complete portfolio management
responsibilities of the Fund, which had previously been subadvised by an
unaffiliated subadviser, Gardner Lewis Asset Management L.P. Subsequently, there
was an unusually high degree of portfolio activity during the period related to
this transition.
The Worldwide Income Fund experienced low portfolio turnover relative to its
historical average due to a change in the Fund's portfolio management and
investment strategy, which was effective May 19, 2006. Prior to the change, the
Fund employed an investment strategy whereby it produced a higher level of
portfolio turnover.
APPROVAL OF CONTINUATION OF INVESTMENT ADVISORY AGREEMENT
The Board of Trustees of Henderson Global Funds, a majority of whom are not
affiliated with the Adviser or the Sub-adviser ("Independent Trustees"),
oversees the management of each of the Funds and, as required by law, determines
at least annually whether to continue the investment advisory agreement and the
sub-advisory agreement for the respective Funds.
In connection with their most recent consideration of those agreements for the
Funds (other than Global Equity Income and Global Opportunities, for which the
initial term of the advisory agreements will terminate on August 30, 2008), the
Trustees received and reviewed a substantial amount of information provided by
Henderson Global Investors (North America) Inc. (the "Adviser") and the
Sub-adviser in response to detailed requests of the Independent Trustees and
their independent legal counsel. The Trustees also discussed with
representatives of management the operations of the Funds and the nature and
quality of the advisory and other services provided to the Funds by the Adviser
and the Sub-adviser. The Independent Trustees also received and reviewed a
memorandum from their counsel regarding their responsibilities in considering
continuation of the agreements. Throughout their consideration of the agreements
the Independent Trustees were advised by their independent legal counsel. The
Independent Trustees met on two separate occasions with management to consider
the agreements, and at each of those meetings they also met separately in
executive session with their counsel.
At a meeting held on June 14, 2007, based on their evaluation of the information
provided by the Adviser and the Sub-advisers and other information, the Trustees
determined that the overall arrangements between each Fund (other than Global
Equity Income and Global Opportunities, for which the initial term of the
advisory agreements will terminate on August 30, 2008) and the Adviser were fair
and reasonable in light of the nature and quality of the services provided by
the Adviser and the Sub-adviser, the fees charged for those services, and other
matters that the Trustees considered relevant in the exercise of their business
judgment. At that meeting the Trustees, including all of the Independent
Trustees, unanimously approved the continuation of the investment advisory
agreement and the sub-advisory agreement (in the case of US Focus and Worldwide
Income (the "Sub-advised Funds") for each Fund (other than Global Equity Income
and Global Opportunities, for which the initial term of the advisory agreements
will terminate on August 30, 2008) through August 30, 2008, subject to earlier
termination as provided in each agreement.
In considering the continuation of the agreements, the Trustees reviewed and
analyzed various factors that they determined were relevant, including the
factors described below, none of which by itself was considered dispositive.
However, the material factors and conclusions that formed the basis for the
Trustees' determination to approve the continuation of the agreements are
discussed separately below.
81
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
1. NATURE, EXTENT AND QUALITY OF SERVICES
The Trustees reviewed and considered the nature, extent and quality of the
services provided to the Funds by the Adviser and (in the case of the
Sub-advised Funds) the Sub-adviser, taking into account the investment objective
and strategy of each Fund and the knowledge they had gained from their regular
meetings with management on at least a quarterly basis. In addition, the
Trustees reviewed the resources and key personnel of the Adviser and the
Sub-adviser, especially the personnel who provide investment management services
to the Funds. The Trustees also considered other services provided to the Funds
by the Adviser and the Sub-adviser, such as managing the execution of portfolio
transactions and the selection of broker-dealers for those transactions,
monitoring adherence to the Funds' investment restrictions, producing
shareholder reports, providing support services for the Trustees and Trustee
committees and overseeing the activities of other service providers, including
monitoring compliance with various policies and procedures of the Funds and with
applicable securities laws and regulations.
The Trustees concluded that the nature and extent of the services provided to
each Fund by the Adviser and (in the case of the Sub-advised Funds) the
Sub-adviser were appropriate and consistent with the terms of the respective
advisory agreements, that the quality of those services had been consistent with
or superior to quality norms in the industry and that the Funds were likely to
benefit from the continued provision of those services. They also concluded that
the Adviser and the Sub-adviser had sufficient personnel, with the appropriate
education and experience, to serve the Funds effectively and had demonstrated
their continuing ability to attract and retain well-qualified personnel.
2. PERFORMANCE OF THE FUNDS
The Trustees considered each Fund's investment performance over various time
periods. They reviewed information comparing each Fund's performance with the
performance of the Fund's benchmark and with the performance of comparable funds
and peer groups identified by Lipper Inc. ("Lipper"), an independent provider of
investment company data. They concluded that the performance of each Fund was
good to very good, except in the case of US Focus during its first two years of
operation, while it was managed by an independent Sub-adviser, and that each
Fund and its shareholders were benefiting from the current management of the
Fund.
3. COSTS OF SERVICES PROVIDED AND PROFITS REALIZED BY THE ADVISER
The Trustees examined information on the fees and other expenses paid by each
Fund in comparison to information for other comparable funds as provided by
Lipper. They noted that the contractual rate of management fees for each Fund
before fee waivers, and the Fund's total expense ratio, were above the mean
management fee rate and expense ratio of the respective peer group of funds
selected by Lipper. However, they also noted that the relatively small asset
size of most of the Funds contributed to their high expense ratios. Moreover,
they noted that the Adviser had agreed to reduce significantly the maximum
operating expense ratio for US Focus, above which the Adviser would reimburse
the Fund.
The Trustees considered the methodology used by the Adviser and the Sub-adviser
in determining compensation payable to portfolio managers, the very competitive
environment for investment management talent and the competitive market for
mutual funds in different distribution channels.
The Trustees also reviewed the management fees of the Adviser and the
Sub-adviser for certain affiliated funds and separate accounts and certain
non-affiliated sub-advised funds (for which the Adviser or the Sub-adviser
provides only portfolio management services). Although in some instances the fee
rates for various investment strategies were lower than management fees for
Funds having a similar strategy, the Trustees noted that the Adviser and the
Sub-adviser perform significant additional services for the Funds that it does
not provide to those other clients, including administrative services, oversight
of the Funds' other service providers, trustee support, regulatory compliance
and numerous other services and that, in serving the Funds, the Adviser assumes
many legal risks that it does not assume in serving its other clients. The
Trustees reviewed information on the profitability of (or loss) to the Adviser
and its affiliates of their relationships with each Fund, as well as an
explanation of the methodology utilized in allocating various expenses among the
Funds and other clients.
The Trustees also reviewed the financial statements of the Adviser and financial
information related to its parent company and its corporate structure. In their
review, the Trustees considered whether the Adviser and the Sub-adviser receive
adequate incentives to manage the Funds effectively. The Trustees recognized
that profitability comparisons among fund managers are difficult because very
little comparative information is publicly available and profitability of any
manager is affected by numerous factors, including the organizational structure
of the particular manager, the types of funds and other accounts it manages,
possible other lines of business, the methodology for allocating expenses and
the manager's capital structure and cost of capital. However, based on the
information available and taking those factors into account, the Trustees
concluded that the Adviser's profitability with
82
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
respect to each Fund in relation to the services rendered was not unreasonable.
Finally, the Trustees considered the financial condition of the Adviser and the
Sub-adviser, which they found to be sound.
The Trustees concluded that the management fees and other compensation payable
by each Fund to the Adviser, as well as the fees paid by the Adviser to the
Sub-adviser, were reasonable in relation to the nature and quality of the
services provided, taking into account the fees charged by other advisers for
managing comparable mutual funds with similar strategies and the fees the
Adviser and the Sub-adviser charge to other clients. The Trustees also concluded
that the overall expense ratio of each Fund was reasonable (in the case of US
Focus, after the reduction in the maximum operating expense ratio), taking into
account the size of the Fund, the quality of services provided by the Adviser
and (in the case of the Sub-advised Funds) the Sub-adviser, the investment
performance of the Fund and the expense limitations agreed to by the Adviser.
4. ECONOMIES OF SCALE
The Trustees received and considered information about the potential of the
Adviser to experience economies of scale as the assets of the Funds increase.
They noted that the contractual management fee rates of the Funds were above the
respective mean management fee rates of the Funds' respective peer groups
selected by Lipper; but, by virtue of the expense limitations, the Adviser is
subsidizing most Funds because they have not reached adequate scale. The
Trustees also noted that the advisory agreement included breakpoints in the fee
schedule for each Fund, thereby sharing more economies of scale with each Fund
if the assets of the Fund increase significantly. Based on all of the
information they reviewed, the Trustees concluded that the current fee structure
of each Fund was reasonable and that those rates of fees do reflect a sharing
between the Adviser and the Fund of economies of scale at the current asset
level of the Fund.
5. OTHER BENEFITS TO THE ADVISER
The Trustees also considered benefits that accrue to the Adviser and the
Sub-adviser from their relationship with the Funds and their use of commissions
paid on portfolio brokerage transactions of the Funds to obtain research
products and services benefiting the Fund and/or other clients. The Trustees
concluded that the use by the Adviser and the Sub-adviser of commissions paid by
the Funds to obtain research products and services was consistent with
regulatory requirements and was likely to benefit the Funds.
After full consideration of the above factors as well as other factors that were
instructive in analyzing the management arrangements, the Trustees, including
all of the Independent Trustees, concluded that the continuation of the
investment advisory and (in the case of the Sub-advised Funds) sub-advisory
agreement for each Fund was in the best interest of the Fund and its
shareholders.
FEDERAL TAX INFORMATION
Certain tax information for the Funds is required to be provided to shareholders
based on the Funds' income and distributions for the taxable year ended July 31,
2007. The amounts shown may differ from those elsewhere in this report due to
differences between tax and financial reporting requirements. In January 2008,
shareholders will receive Form 1099-DIV which will include their share of
foreign tax credit, qualified dividends and capital gains distributed during the
calendar year 2007. Shareholders are advised to check with their tax advisors
for information on the treatment of these amounts on their individual income tax
returns.
Under Section 853 of the Internal Revenue Code, the Funds designated foreign
taxes paid and foreign source income for the fiscal year ended July 31, 2007 as
follow:
FOREIGN FOREIGN
TAXES PAID SOURCE INCOME
- ----------------------------------------------------------
European Focus $1,343,270 $15,386,302
- ----------------------------------------------------------
Global Equity Income 439,975 6,632,938
- ----------------------------------------------------------
International
Opportunities 3,528,109 36,960,929
- ----------------------------------------------------------
Worldwide Income 36,035 517,460
==========================================================
Under Section 854 (b)(2) of the Internal Revenue Code, the Funds designated
qualified dividends for the fiscal year ended July 31, 2007 as follows:
- ----------------------------------------------------------
European Focus $14,765,323
- ----------------------------------------------------------
Global Equity Income 5,535,001
- ----------------------------------------------------------
Global Opportunities 38,098
- ----------------------------------------------------------
Global Technology 235,542
- ----------------------------------------------------------
International Opportunities 27,978,830
- ----------------------------------------------------------
Japan-Asia Focus 951,823
- ----------------------------------------------------------
US Focus 194,700
- ----------------------------------------------------------
Worldwide Income 424,940
==========================================================
83
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
The funds designate long term capital gains for the fiscal year ended July 31,
2007 as follows:
European Focus $31,830,617
- ----------------------------------------------------------
International Opportunities 42,043,765
- ----------------------------------------------------------
US Focus 611,123
==========================================================
SHAREHOLDER EXPENSE
As a shareholder of the Funds, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and redemption fees
and (2) ongoing costs, including management fees, distribution (12b-1) fees,
shareholder services fees and other Fund expenses. The example in Table 1 and
Table 2 is intended to help you understand your ongoing costs of investing in
the Funds and to compare these costs with ongoing costs of investing in other
mutual funds. It is based on an investment of $1,000 invested at the beginning
of the period and held for the six-month period ended July 31, 2007.
ACTUAL EXPENSES
Table 1 provides information about actual account values and actual expenses.
You may use the information in this line, together with the amount invested, to
estimate the expenses that you incurred over the period. Simply divide your
account value at the end of the period by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the result by the number under the
heading entitled "Expenses paid during period" to estimate the expenses
attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
Table 2 provides information about hypothetical account values and hypothetical
expenses based on the Funds' actual expense ratios and an assumed rate of return
of 5% per year before expenses, which is not the Funds' actual return. Thus you
should not use the hypothetical account values and expenses to estimate your
actual ending account balance or the expense attributable to your investment
during the period. Rather, these figures are provided to enable you to compare
the ongoing costs of investing in the Funds and other funds. To do so, compare
the 5% hypothetical examples with the 5% hypothetical examples that appear in
the shareholder reports of other funds.
Expenses paid during the period include amounts reflected in the Funds'
Statement of Operations net of reimbursement by the investment advisor. The
annualized expense ratios used in the example are as follows:
CLASS A CLASS B CLASS C CLASS R
- -----------------------------------------------------------
European Focus 1.51% 2.26% 2.26% N/A
- -----------------------------------------------------------
Global Equity
Income 1.40 N/A 2.15 N/A
- -----------------------------------------------------------
Global
Opportunities 1.95 N/A 2.70 N/A
- -----------------------------------------------------------
Global
Technology 1.81 2.56 2.56 N/A
- -----------------------------------------------------------
International
Opportunities 1.54 2.29 2.29 1.79%
- -----------------------------------------------------------
Japan-Asia
Focus 1.74 N/A 2.49 N/A
- -----------------------------------------------------------
US Focus 1.95 2.70 2.70 N/A
- -----------------------------------------------------------
Worldwide
Income 1.30 2.05 2.05 N/A
===========================================================
Please note that the expenses do not reflect shareowner transaction costs such
as front end sales charges and redemption fees. These fees are described for
each Fund and share class in the Performance summary of this report on pages 3,
5, 7, 9, 11, 13, 15 and 17. Table 2 is useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transaction costs were included, your costs would
have been higher.
84
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
TABLE 1
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES
VALUE VALUE PAID
FEBRUARY 1, JULY 31, DURING
ACTUAL 2007 2007 THE PERIOD*
- ------------------------------------------------------------
European Focus
Class A $1,000.00 $1,100.10 $7.86
Class B 1,000.00 1,095.80 11.75
Class C 1,000.00 1.095.80 11.75
- ------------------------------------------------------------
Global Equity Income
Class A 1,000.00 1,074.60 7.20
Class C 1,000.00 1,070.10 11.04
- ------------------------------------------------------------
Global Opportunities
Class A 1,000.00 1,094.00 10.12
Class C 1,000.00 1,106.50 14.10
- ------------------------------------------------------------
Global Technology
Class A 1,000.00 1,147.30 9.61
Class B 1,000.00 1,142.80 13.58
Class C 1,000.00 1,142.30 13.58
- ------------------------------------------------------------
International Opportunities
Class A 1,000.00 1,129.70 8.15
Class B 1,000.00 1,125.90 12.09
Class C 1,000.00 1,125.50 12.09
Class R 1,000.00 1,129.00 9.47
- ------------------------------------------------------------
Japan-Asia Focus
Class A 1,000.00 1,014.00 8.69
Class C 1,000.00 1,011.10 12.42
- ------------------------------------------------------------
US Focus
Class A 1,000.00 1,084.10 10.08
Class B 1,000.00 1,080.20 13.93
Class C 1,000.00 1,080.20 13.93
- ------------------------------------------------------------
Worldwide Income
Class A 1,000.00 1,001.30 6.45
Class B 1,000.00 996.70 10.15
Class C 1,000.00 996.70 10.15
============================================================
TABLE 2
BEGINNING ENDING
HYPOTHETICAL ACCOUNT ACCOUNT EXPENSES
(ASSUMING A VALUE VALUE PAID
5% RETURN FEBRUARY 1, JULY 31, DURING
BEFORE EXPENSES) 2007 2007 THE PERIOD*
- -------------------------------------------------------------
European Focus
Class A $1,000.00 $ 1,017.51 $ 7.56
Class B 1,000.00 1,013.79 11.29
Class C 1,000.00 1,013.79 11.29
- -------------------------------------------------------------
Global Equity Income
Class A 1,000.00 1,018.06 7.01
Class C 1,000.00 1,014.34 10.74
- -------------------------------------------------------------
Global Opportunities
Class A 1,000.00 1,015.33 9.74
Class C 1,000.00 1,011.61 13.47
- -------------------------------------------------------------
Global Technology
Class A 1,000.00 1,016.05 9.03
Class B 1,000.00 1,012.33 12.75
Class C 1,000.00 1,012.33 12.75
- -------------------------------------------------------------
International Opportunities
Class A 1,000.00 1,017.34 7.72
Class B 1,000.00 1,013.62 11.45
Class C 1,000.00 1,013.62 11.45
Class R 1,000.00 1,016.10 8.97
- -------------------------------------------------------------
Japan-Asia Focus
Class A 1,000.00 1,016.37 8.70
Class C 1,000.00 1,012.65 12.43
- -------------------------------------------------------------
US Focus
Class A 1,000.00 1,015.33 9.74
Class B 1,000.00 1,011.61 13.47
Class C 1,000.00 1,011.61 13.47
- -------------------------------------------------------------
Worldwide Income
Class A 1,000.00 1,018.55 6.51
Class B 1,000.00 1,014.83 10.24
Class C 1,000.00 1,014.83 10.24
=============================================================
* Expenses are equal to the Funds' Class A, Class B, Class C and Class R
shares annualized net expense ratio multiplied by the average account value
over the period multiplied by 181 days in the period and divided by 365 (to
reflect the one-half year period).
85
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
POSITION(S) TERM OF OTHER
NAME, ADDRESS AND WITH OFFICE AND PRINCIPAL OCCUPATIONS DIRECTORSHIPS
AGE1 THE TRUST2 TIME SERVED3 DURING PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
C . Gary Gerst, 68 Chairman Since 2001 President, KCI Inc. (private s-corporation Director, Florida Office
and Trustee investing in non-public investments.) Property Company Inc.
(real estate
investment fund).
Roland C. Baker, 68 Trustee Since 2001 Consultant to financial services industry. Director, Quanta
Capital Holdings, Inc.
(provider of property
and casualty reinsur-
ance); Director, North
American Company for
Life and Health
Insurance (a provider of
life insurance, health
insurance and annu-
ities); Director, Golden
State Mutual Life
Insurance Co. (provider
of life insurance and
annuities to African
Americans); Trustee,
Scottish Widows
Investment Partnership
Trust.
Faris F. Chesley, 68 Trustee Since 2002 Chairman, Chesley, Taft & Associates, LLC, None
since 2001; Vice Chairman, ABN-AMRO, Inc.
(a financial services company), 1998-2001.
INTERESTED TRUSTEES AND OFFICERS OF THE TRUST
- ------------------------------------------------------------------------------------------------------------------------------------
Charles H. Trustee Since 2001 Managing Director, Henderson Global None
Wurtzebach4, 58 Investors (North America) Inc. ("HGINA").
Sean M. Dranfield4, 41 Trustee and Since 2001 Director, North American Retail Distribution, None
President HGINA; Executive Director, North American
Business Development, Henderson
Investment Management Limited.
Kenneth A. Kalina, 47 Chief Since 2005 Chief Compliance Officer, HGINA, 2005; Chief N/A
Compliance Compliance Officer, Columbia Wanger Asset
Officer Management, L.P., 2004-2005; Compliance
Officer, Treasurer and Chief Financial Officer
Columbia Wanger Asset Management, L.P.,
2000-2005; Assistant Treasurer, Columbia
Acorn Trust and Wanger Advisors Trust,
1995-2005.
Alanna N. Palmer, 32 Vice President Since 2002 Director, Retail Marketing and Product N/A
Management, HGINA, since 2006 and
Associate Director, Head of Marketing and
Products Management, HGINA, 2003-2006;
and Product Manager 2001-2003.
Scott E. Volk, 36 Vice President Since 2001 Director, Retail Finance and Operations, N/A
HGINA.
Karen Buiter, 42 Treasurer Since 2004 Operations Manager, HGINA, since 2004; N/A
Assistant Controller, Code Hennessey &
Simmons, 2002-2004.
86
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
POSITION(S) TERM OF OTHER
NAME, ADDRESS AND WITH OFFICE AND PRINCIPAL OCCUPATIONS DIRECTORSHIPS
AGE1 THE TRUST2 TIME SERVED3 DURING PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES AND OFFICERS OF THE TRUST
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher K. Secretary Since 2004 Legal Counsel, HGINA, since 2004; Attorney, N/A
Yarbrough, 32 Bell, Boyd & Lloyd LLC, 2000-2004.
Richard J. Assistant Since 2007 Assistant Treasurer, HGINA, since 2007; N/A
Mitchell, 44 Treasurer Assistant Treasurer, Bank of New York,
2006-2007; Supervisor, The BISYS Group;
2002-2006.
1. Each person's address is 737 North Michigan Avenue, Suite 1700, Chicago, IL
60611. Age is as of July 31, 2007.
2. Currently, all Trustees oversee all eight 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., 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).
87
HENDERSON GLOBAL FUNDS
TRUSTEES
C. Gary Gerst, Chairman
Roland C. Baker
Faris F. Chesley
Sean Dranfield
Charles H. Wurtzebach
OFFICERS
Sean Dranfield, President
Alanna N. Palmer, Vice President
Scott E. Volk, Vice President
Karen Buiter, Treasurer
Christopher K. Yarbrough, Secretary
Kenneth A. Kalina, Chief Compliance Officer
Richard J. Mitchell, Assistant Treasurer
INVESTMENT ADVISER
Henderson Global Investors (North America) Inc.
737 North Michigan Avenue, Suite 1700
Chicago, IL 60611
TRANSFER AGENT
State Street Bank & Trust Company
State Street Financial Center
One Lincoln Street
Boston, MA 02111
FOR MORE INFORMATION
Please call 1.866.4HENDERSON
(1.866.443.6337)
or visit our website:
www.hendersonglobalinvestors.com
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. This report is submitted for the general information of the
shareholders of the Funds. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus, which
includes information regarding the Funds' risks, objectives, fees and expenses,
experience of its management, and other information. Henderson Global Investors
is the name under which various subsidiaries of Henderson Group plc, a UK
limited company, provide investment products and services.
88
This page deliberately left blank.
89
This page deliberately left blank.
90
PRIVACY NOTICE
HENDERSON GLOBAL FUNDS
This notice describes the privacy practices followed by Henderson Global
Funds.
Your privacy is our top priority. Our policy is to respect the privacy of
current and former shareholders and to protect personal information entrusted to
us. We do not share any nonpublic personal information of shareholders or former
shareholders with any nonaffiliated third parties, except as permitted by law or
as authorized by our shareholders.
In the course of providing products and services to you, we collect
nonpublic personal information about you from various sources such as account
applications or agreements, other account forms, transactions in your account,
and from information captured on our website, including any information captured
through our use of "cookies." Such information may include your name, address,
account or tax identification number, the types and amounts of investments, and
bank account information. More detailed information about our Internet policy is
available on our website, www.hendersonglobalinvestors.com.
In the normal course of serving shareholders, we may share information we
collect with entities that help us process information or service your request,
such as transfer agents, custodians, broker-dealers and marketing service firms,
as well as with other financial institutions with whom we have joint marketing
agreements. We may share information in connection with servicing accounts or to
inform shareholders of products and services that we believe may be of interest
to them. The organizations that receive shareholder information will use that
information only for the services required and as allowed by applicable law or
regulation, and are not permitted to share or use this information for any other
purpose. We will disclose your personal information to government agencies, law
enforcement officials, and others in the limited circumstances where we believe,
in good faith, that such disclosure is required or permitted by law. For
example, we will disclose your personal information in order to comply with a
court order, to cooperate with government or industry regulators, or law
enforcement authorities.
Access to customers' nonpublic personal information is restricted to
employees who need to access that information. To guard shareholder's nonpublic
personal information, we use industry standard physical, electronic, and
procedural safeguards. A shareholder's right to privacy extends to all forms of
contact with us, including telephone, written correspondence, and electronic
media, such as the Internet.
For questions concerning this policy, please contact us by writing to:
Alanna Palmer, Henderson Global Investors (North America) Inc., 737 North
Michigan Avenue, Suite 1700, Chicago, Illinois 60611.
Henderson Global Funds
737 N. Michigan Avenue, Suite 1700
Chicago, IL 60611
1.866.4HENDERSON (1.866.443.6337)
www.hendersonglobalinvestors.com
Foreside Fund Services, LLC, Distributor (September, 2007)
Item 2. Code of Ethics.
(a) Henderson Global Funds (the "Trust" or the "registrant") has adopted a Code
of Ethics that applies to the Trust's principal executive officer and
principal financial officer (the "Code").
(b) No disclosures are required by this Item 2(b).
(c) There have been no amendments to the Code during the reporting period for
Form N-CSR.
(d) There have been no waivers granted by the Trust to individuals covered by
the Code during the reporting period for Form N-CSR.
(e) Not applicable.
(f) A copy of the Code may be obtained free of charge by calling 866-343-6337.
Item 3. Audit Committee Financial Expert.
(a) (1) The Board of Trustees of the Trust has determined that it has three
audit committee financial experts serving on the Trust's Audit
Committee that possess the attributes identified in Item 3(b) to
Form N-CSR.
(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.
(a) Audit Fees - $180,100 and $140,500 are the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant to the registrant for the audit of the registrant's annual
financial statements or services normally provided by the accountant in
connection with statutory and regulatory filings or engagements for the those
fiscal years.
(b) Audit Related Fees - There were no fees billed in each of the last two
fiscal years for assurance and related services rendered by the principal
accountant to the registrant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item 4.
There were no fees billed in each of the last two fiscal years for assurance and
related services rendered by the principal accountant to the investment adviser
that are reasonably related to the performance of the audit of the registrant's
financial statements that were required to be pre-approved by the Audit
Committee as described in paragraph (e)(1) of this Item 4.
(c) Tax Fees - $39,200 and $27,000 are the aggregate fees billed in each
of the last two fiscal years for professional services rendered by the principal
accountant to the registrant for tax compliance, tax advice, tax planning and
tax return preparation. These services consisted of the principal accountant
reviewing the registrant's excise tax returns, distribution requirements and RIC
tax returns, as well as consults regarding the tax consequences of specific
investments.
$38,700 and $0 are the aggregate fees billed in each of the last two fiscal
years for professional services rendered by the principal accountant to the
investment adviser for tax compliance, tax advice and tax planning that were
required to be pre-approved by the Audit Committee as described in paragraph
(e)(1) of this Item 4.
(d) All Other Fees - There were no fees billed in each of the last two
fiscal years for products and services provided by the principal accountant to
the registrant, other than the services reported in paragraph (a) - (c) of this
Item 4.
There were no fees billed in each of the last two fiscal years for products and
services provided by the principal accountant to the investment adviser that
were required to be pre-approved by the Audit Committee as described in
paragraph (e)(1) of this Item 4.
(e) Pre-Approval Policies and Procedures
(1) Pursuant to the registrant's Audit Committee Charter, the Audit
Committee shall pre-approve any engagement of the independent auditors to
provide any services (other than prohibited non-audit services) to the Trust,
the investment adviser and any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing services to the
Trust (if the engagement relates directly to the operations and financial
reporting of the Trust) (collectively, the "Adviser"), including the fees and
other compensation to be paid to the independent auditors. Any member of the
Audit Committee may grant such pre-approval. Any such delegated pre-approval
shall be presented to the Audit Committee by the member who approved the
engagement. Pre-approval of non-audit services is not required, if: (a) the
aggregate amount of all non-audit services provided to the Trust is less than 5%
of the total fees paid by the Trust to its independent auditors during the
fiscal year in which the non-audit services are provided; (b) the services were
not recognized by management at the time of the engagement as non-audit
services; and (c) such services are promptly brought to the attention of the
Audit Committee by management and the Audit Committee approves them (which may
be by delegation as provided for above) prior to the completion of the audit.
The independent auditors shall not perform any of the following non-audit
services for the Trust ("prohibited non-audit services"): (a) bookkeeping or
other services related to the accounting records or financial statements of the
Trust; (b) financial information systems design and implementation; (c)
appraisal or valuation services, fairness opinions, or contribution-in-kind
reports; (d) actuarial services; (e) internal audit outsourcing services; (f)
management functions or human resources; (g) broker or dealer, investment
adviser, or investment banking services; (h) legal services and expert services
unrelated to the audit; and (i) any other services that the Public Company
Accounting Oversight Board determines are impermissible.
(2) None of the services provided to the registrant described in paragraphs
(b)-(d) of Item 4 were pre-approved by the Audit Committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X. All of the fees billed for services
provided to the Adviser described in paragraphs (b)-(d) of Item 4 were required
to be pre-approved by the Audit Committee as described in paragraph (e)(1) of
Item 4.
(f) No disclosures are required by this Item 4(f).
(g) $77,900 and $27,000 are the approximate aggregate non-audit fees
billed in each of the last two fiscal years for services rendered by the
principal accountant to the registrant. $292,298 and $185,070 are the
approximate aggregate non-audit fees billed in each of the last two fiscal years
for services rendered by the principal accountant to the Adviser.
(h) The registrant's Audit Committee has determined that the non-audit
services E&Y has rendered to the Adviser that were not required to be
pre-approved by the Audit Committee because they did not relate directly to the
operations and financial reporting of the registrant were compatible with
maintaining E&Y's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Schedule of Investments is included as a part of the report to shareholders
filed under Item 1 of this Form N-CSR. Item 7. Disclosure of Proxy Voting
Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of trustees, where those
changes were implemented after the registrant last provided disclosure in
response to this Item.
Item 11. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial
officer have evaluated the registrant's disclosure controls and
procedures within 90 days of this filing and have concluded that the
registrant's disclosure controls and procedures were effective, as of
that date, in ensuring that information required to be disclosed by the
registrant in this Form N-CSR was recorded, processed, summarized and
reported timely.
(b) There were no changes in the registrant's internal controls over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal controls over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) The certifications required by Rule 30a-2(a) under the 1940 Act
(17 CFR 270.30a-2(a)) are attached hereto.
(a)(3) Not applicable.
(b) The certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)) 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 28, 2007
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 28, 2007
By: /s/ Karen Buiter
----------------
Karen Buiter
Treasurer (principal financial officer) of Henderson Global Funds
Date: September 28, 2007