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 P.C.
CHICAGO, ILLINOIS 60611 222 NORTH LASALLE STREET
CHICAGO, ILLINOIS 60601
Registrant's telephone number, including area code: (312) 397-1122
Date of fiscal year end: July 31
Date of reporting period: July 31, 2008
Item 1: Report to Shareholders.
HENDERSON GLOBAL INVESTORS
HENDERSON GLOBAL FUNDS
ANNUAL REPORT
JULY 31, 2008
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 ........................................ 40
STATEMENT OF OPERATIONS .................................................... 42
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 44
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY ............................. 52
FINANCIAL HIGHLIGHTS ....................................................... 60
NOTES TO FINANCIAL STATEMENTS .............................................. 68
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM .................... 76
OTHER INFORMATION .......................................................... 77
TRUSTEES AND OFFICERS ...................................................... 82
International investing involves certain risks and increased volatility not
associated with investing solely in the US. These risks include currency
fluctuations, economic or financial instability, lack of timely or reliable
financial information or unfavorable political or legal developments. The Funds
may invest in securities issued by smaller companies, which typically involves
greater risk than investing in larger companies. Also, the Funds may invest in
limited geographic areas and/or sectors which may result in greater market
volatility. In addition, some of the Funds are non- diversified meaning they may
invest in a smaller number of issuers. As such, investing in these funds may
involve greater risk and volatility than investing in more diversified funds.
Technology companies may react similarly to certain market pressure 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. As a result, the Global Technology Fund's returns may be
considerably more volatile than a fund that does not invest in technology
companies.
The Worldwide Income Fund may invest in high yield, lower rated (junk) bonds
which 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. Moreover, the Fund is subject to interest rate risk
which is the risk that 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, 2008,
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.
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, 2008.
The market volatility which began in 2007 has continued throughout this year,
causing considerable concern around the world over the global economic outlook.
Rising oil prices have added to inflation worries as global inflation has risen
to nearly 6% - its highest level since 1999. In the US, consumer confidence has
slumped as a result of the combination of falling house prices, rising
unemployment and high food and energy costs. Risk aversion has therefore been
dominating market sentiment, and many investors have been flooding into bonds
and commodities in a "flight to safety."
Over the past few months, equity markets have fallen sharply as investors worry
that higher oil prices will lead to a nasty combination of weaker growth and
higher inflation and interest rates. However, this decrease may indicate that
equity markets appear to be offering potential for value. The price/earnings
ratio of the MSCI World Index (based on analysts' estimates of company earnings
in 12 months time) has fallen to 11.7 - its lowest level since late 1990.
Looking forward, we believe global economic growth is likely to slow in 2008 and
into 2009, reflecting the lagged effects of higher interest rates, the credit
squeeze and higher food and energy prices. Equity markets are likely to remain
volatile in the short term and could continue to decrease following further bad
news from the financial sector, more inflation worries or signs that economic
growth will be disappointing. However, by the middle of next year, assuming the
outlook for 2009 is brighter, we believe equities could be staging a sustained
recovery.
The most important message we can send to our shareholders in these uncertain
markets is that, in times like these, we believe that it is imperative to retain
a long-term perspective. Many investors have reasonably long-term investment
goals, such as retirement savings, college educations for their children or
providing an inheritance for their heirs, and therefore needn't be overly
worried about short-term market events or volatility. Additionally, we must
remember that every decade has had its own crises - whether it was the oil
crisis of the 1970s, the savings and loan crisis of the 1980s, the Asian
financial crisis of the 1990s or the Tech bust of the early 2000s - but the Dow
Jones Industrial Average ended each of those decades higher than where it
started, although it is important to note past performance is not an indicator
of future results.
The fact is that markets tend to follow a cyclical pattern which repeats over
time. Investors who retain a long-term perspective and continue investing even
during market crises often end up looking very smart later, because they were
the ones "buying low"in the out-of-favor asset classes rather than buying
popular asset classes at peak prices. For example, investors who bought gold in
January 1980 (at $850 an ounce) had to wait 27 years before the price of gold
returned to the level at which they bought.
At Henderson, we remain focused on seeking out global investment opportunities
with favorable valuations that may be overlooked by other investors. Now, as
much as ever, we believe the "Henderson Difference" will come into play, as we
look for investments that differentiate our Funds from the competition and help
to diversify your portfolios. We refuse to be distracted by short-term
volatility, "noise" from the media or the daily market gyrations that could
divert us from this goal. Our portfolio managers have enough years of experience
in these markets to know that a long-term perspective is the only kind worth
having, and we plan to put that experience and perspective to work for our
shareholders.
Thank you for investing in the Henderson Global Funds. We appreciate your trust
and support in our Funds and look forward to serving your financial needs in the
years to come.
/s/ Sean Dranfield
Sean Dranfield
President, Henderson Global Funds
* Dow Jones Industrial Average is a price - weighted average of 30 significant
stocks traded on the New York Stock Exchange and the Nasdaq. One cannot invest
directly in an index or an average.
1
HENDERSON GLOBAL FUNDS
COMMENTARY
EUROPEAN FOCUS FUND
It has been a difficult period for equity markets as the `credit crunch' and
fears over a sharply weakening US economy shattered investor confidence. Some
investors remain concerned over the prospects for global growth, and have become
increasingly worried about inflation, which has been evidenced by the negative
correlation between equity markets and bond yields. The prospect of stagflation
presents a dilemma for central banks. The concern is that record oil and
commodity prices will squeeze spending power but will also boost inflation
expectations.
In the UK, inflation is close to double the official target, yet the Bank of
England is unlikely to raise rates in the face of falling house prices and
rising unemployment. For much of the period the European Central Bank (ECB) has
been more hawkish and has hinted very strongly that interest rates will have to
rise to counter inflationary pressures. This stance appears to have changed in
recent weeks following the ECB president's comments that growth in the eurozone
would be "particularly weak" in the third quarter.
For the year ended July 31, 2008 the European Focus Fund returned -13.28% (Class
A Shares at NAV) versus a return of -11.50% for the MSCI Europe Index. Our
underweight position in the Financials sector was positive, while our holdings
in the Materials and Consumer Discretionary sectors had a negative impact on
performance.
For some time we have been wary of mainstream Financials in Europe. We expect to
see further recapitalizations and we struggle to see how the banks will be able
to meet earnings estimates in a world of tighter regulation, less leverage and
slowing global growth. As a result, our exposure to the sector is limited to a
small number of special situations which have not been exposed to the sub-prime
fallout. Examples include Turkish lender, HalkBank which continues to enjoy
strong loan growth from its core small and medium sized enterprise customers and
Gulf Finance which has benefited from its exposure from the fast growing areas
of megaproject development and Shariah-compliant investing in the Middle East.
Companies with exposure to the building sector were hurt during the period as
further signs of falling house prices emerged from the US and the UK. Plastic
pipe manufacturer Wavin, and construction materials manufacturer CRH both
detracted from performance. Consumer-related stocks also underperformed on fears
over the slowing global economy. Retailers Debenhams and Sports Direct were
particularly impacted as falling house prices in the UK dented consumer
confidence.
Swiss banking software company Temenos performed strongly over the period,
following a series of strong quarterly results statements. The company is
currently benefiting from structural growth in the banking software market. It
has a very high win rate in major deals against competition from big players
which shows the strength of its product offering.
European economies are facing many of the same challenges as the US,
specifically the collateral damage of the credit crisis, rising inflation and
slowing growth. It is important to note, however, that we do not invest in
European gross domestic product (GDP) growth, rather in a portfolio of
interesting companies that we believe are attractively valued and whose
prospects are determined by their competitive positioning, strong management and
sound financial positions rather than the general economic outlook.
We expect world markets to remain volatile until the outlook for the global
economy settles. Investors may have more bad news to digest over the coming
months in the form of weak economic data, inflation worries and central bank
rhetoric. Despite such concerns we believe that there could be opportunities to
find well-run growth companies at attractive valuations. In fact, European
equities are trading at their lowest level in over 15 years. Therefore, although
the current market environment is challenging, it is also providing some very
interesting opportunities.
EUROPEAN FOCUS FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- -----------------------------------------------
OAO GAZPROM, ADR 3.8%
GULF FINANCE PROMISSORY
NOTE 3.7
VIVENDI S.A. 3.7
CENTAMIN EGYPT, LTD. 3.4
TEMENOS GROUP AG 3.3
FRANCE TELECOM S.A. 2.8
KAZAKHMYS PLC 2.6
TURKIYE HALK BANKASI A.S. 2.5
KAZMUNAIGAS EXPLORATION PRODUCTION 2.4
TULLOW OIL PLC 2.3
2
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
EUROPEAN FOCUS FUND
Pie charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United Kingdom 33.8%
France 11.5
Netherlands 7.1
Germany 6.4
Switzerland 4.7
Russia 3.8
Other 32.7
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Materials 23.8%
Energy 19.5
Financials 17.1
Consumer Discretionary 12.8
Information Technology 8.3
Industrials 8.2
Other 10.3
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
European Focus Fund Class A w/out sales charge - $43,443
European Focus Fund Class A w/sales charge - $40,945
MSCI Europe Index - $19,808
European Focus European Focus
Fund Class A Fund Class A MSCI Europe
w/out sales charge w/sales charge Index
8/31/01 10000 9425 10000
9910 9340 9002
10960 10330 9288
12120 11423 9661
12250 11546 9908
12110 11414 9391
12450 11734 9390
12980 12234 9902
13080 12328 9834
13280 12516 9816
12850 12111 9479
7/31/02 11610 10942 8426
11890 11206 8426
10610 10000 7318
11580 10914 8026
12520 11800 8420
12524 11804 8115
12353 11643 7732
11891 11207 7480
11700 11027 7372
13469 12694 8379
14665 13822 8932
15007 14144 9024
7/31/03 15549 14655 9209
16142 15214 9193
16786 15820 9381
17821 16796 10009
18650 17577 10436
20277 19111 11292
21819 20565 11426
23267 21929 11762
22696 21391 11398
22686 21381 11317
22485 21192 11495
23299 21959 11675
7/31/04 22062 20794 11355
21904 20644 11365
23193 21859 11820
24165 22776 12248
26072 24573 13150
27901 26296 13707
28252 26628 13455
29858 28141 14130
29284 27600 13779
28006 26396 13451
26822 25280 13518
27936 26329 13710
7/31/05 29659 27954 14211
30714 28948 14426
30726 28959 14776
29483 27788 14312
30420 28671 14559
31858 30026 15072
34457 32476 16057
35195 33171 16072
36532 34431 16703
39444 37176 17575
37282 35138 17120
36744 34631 17183
7/31/06 36694 34584 17448
37857 35680 18003
38144 35951 18158
40344 38024 18938
42593 40144 19616
44821 42244 20246
45538 42920 20368
45808 43175 20294
47743 44997 21039
49812 46948 22426
50718 47802 22861
50907 47980 22865
7/31/07 50096 47215 22380
48784 45979 22137
51597 48630 23259
54356 51231 24346
50542 47636 23572
50513 47609 23159
46864 44169 20746
48460 45674 21084
47533 44800 21179
49069 46247 22176
51654 48684 22331
47214 44499 20392
7/31/08 43443 40945 19808
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE THREE FIVE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* YEARS* (8/31/01)*
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFEAX Class A -13.28% 13.57% 22.81% 23.65%
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFEBX Class B -13.92 12.71 21.93 22.76
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund HFECX Class C -13.92 12.73 21.93 22.75
- ------------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class A -18.27% 11.35% 21.37% 22.60%
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class B -17.92 11.92 21.84 22.76
- ------------------------------------------------------------------------------------------------------------------------
Henderson European Focus Fund Class C -13.92 12.73 21.93 22.75
- ------------------------------------------------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------------------------------------------------
MSCI Europe Index -11.50% 11.71% 16.55% 10.39%
- ------------------------------------------------------------------------------------------------------------------------
* 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 1.54%, 2.29%, and 2.29% respectively. The Fund's audited net
expense ratios based on the fiscal year from August 1, 2007 to July 31, 2008 for
Class A, B, and C shares are 1.46%, 2.21% and 2.21% 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
Equity markets have been extremely volatile over the reporting period. Events in
the Financials sector drove the markets; Bear Stearns' collapse, along with the
collapse of IndyMac rocked confidence and drove Financial sector shares lower.
Accelerating inflation has risen up the list of many investors' concerns in
recent months as the price of oil and other commodities has hit new highs.
Although this has put pressure on consumers and companies in the short term, we
are currently more concerned about the outlook for economic growth. The
continued weakness in the US, coupled with signs of a slowdown in Europe,
implies that initial expectations of a second half recovery may prove unfounded.
A prolonged slowdown now looks likely.
Against this background, the Fund has continued to follow its strategy of
focusing on dividend paying companies that we believe have strong balance sheet
positions and that are well managed. The Fund marginally outperformed over the
one-year period ended July 31, 2008, returning -9.99% (Class A shares at NAV)
versus the benchmark, the MSCI World Index, which posted a return of -10.39%.
Lackluster performance was both stock and sector related. Energy, Mining and
Commodity related stocks were the strong performers over the period. The Fund
was underweight all of these areas as those companies traditionally have very
low dividend streams.
The Fund was overweight European Telecommunications where a number of factors
had hurt their performance, including: rumors on termination rates and possible
acquisitions by certain big players. It is a market where we believe rumor has
had more substance than fact, and the sector has been hit hard, while the actual
reported numbers and dividend payments have continued to be strong. In fact, at
the end of the period the most significant contributors to positive performance
included a number of the Fund's holdings in the Telecommunications sector.
France Telecom and Telefonica both reported earnings and outlooks in line with
forecasts, which increased confidence in their defensive attributes. Both
companies also increased their dividends.
As an income fund, the market correction has presented us with an almost
unprecedented number of opportunities across a wide range of sectors; it is hard
to remember when so many companies were yielding over 3% with historically low
valuation multiples. We believe the majority of companies we invest in have
sound financial positions, good cash flows, and attractive income yields versus
the long bond, which are characteristics we believe underpin their valuations.
If sentiment is correct then a number of companies may face earnings cuts, but
it is often the case in times like this that fear overwhelms fundamentals and
some companies may prove to have been oversold. We are finding a wide range of
investment opportunities around the world that may allow us to achieve the
Fund's primary objective of delivering income to our investors, without
compromising the ability to select companies that could also be poised to
provide capital growth. We hope to achieve these goals in 2008.
GLOBAL EQUITY INCOME FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- --------------------------------------------
VODAFONE GROUP PLC 3.0%
PEARSON PLC 2.7
GLAXOSMITHKLINE PLC 2.7
DEUTSCHE TELEKOM AG 2.5
ATMOS ENERGY CORP. 2.5
KEPPEL CORP., LTD. 2.4
ENI SPA 2.4
FRANCE TELECOM S.A. 2.3
PROGRESS ENERGY, INC. 2.2
TOTAL S.A. 2.2
4
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL EQUITY INCOME FUND
Pie charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United Kingdom 40.0%
United States 10.7
Taiwan 7.4
Italy 6.9
Hong Kong 6.7
France 6.4
Other 21.9
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Telecommunication Services 21.5%
Financials 14.9
Utilities 13.6
Industrials 9.6
Energy 9.5
Consumer Discretionary 8.6
Other 22.3
Line Chart:
INVESTMENT COMPARISON
Value of $10,000
Global Equity Income Fund Class A w/out sales charge - $9,963
Global Equity Income Fund Class A w/sales charge - $9,390
MSCI World Index - $9,794
Global Equity Global Equity
Income Fund Income Fund MSCI
Class A w/out Class A w/sales World
sales charge charge Index
11/30/06 10000 10000 9425
10230 10206 9642
1/31/07 10300 10328 9708
10250 10279 9661
10600 10471 9991
11120 10939 10481
11393 11256 10738
11313 11173 10663
7/31/07 11068 10928 10432
11332 10925 10680
11801 11448 11123
12208 11802 11506
11806 11325 11127
11634 11182 10965
1/31/08 10877 10330 10252
10692 10275 10077
10588 10182 9979
10823 10725 10201
10943 10902 10314
10079 10037 9499
7/31/08 9963 9794 9390
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE INCEPTION
AT NAV SYMBOL CLASS YEAR (11/30/06)*
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Equity Income Fund HFQAX Class A -9.99% -0.22%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Equity Income Fund HFQCX Class C -10.66 -0.98
- -----------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Equity Income Fund Class A -15.17% -3.70%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Equity Income Fund Class C -10.66 -0.98
- -----------------------------------------------------------------------------------------------------------------------
INDEX
- -----------------------------------------------------------------------------------------------------------------------
MSCI World Index -10.39% -1.24%
- -----------------------------------------------------------------------------------------------------------------------
* 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 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 1.86% and 2.61%,
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 August 1, 2007 to July 31, 2008 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
During the second half of 2007, global equity markets were subjected to the
issues of the US sub-prime fallout and the lack of liquidity that followed. The
downward shift has been broad-based, with no sector or region immune to events.
Areas of the market that had been considered "safe havens" in the latter stages
of last year, such as technology and growth stocks, have been hit more recently.
In short, almost no area of the market has escaped unscathed.
Toward the end of the period, economic news in the US continued to deteriorate
with the collapse of IndyMac and Bear Stearns. The US economy continued to grow,
despite misgivings about the durability of consumer spending. Tax rebates were
almost certainly a factor, but the weak dollar also made itself felt as
companies turned to overseas markets for growth. Problems were not limited to
the US as data has shown a slowdown in the emerging market growth boom; the
catalyst has been in part weaker external export demand and part erosion in real
incomes due to the sharp rise in food and energy prices. Also, Europe has
started to feel the pain. What had been problems in housing and consumer
spending in the UK and Spain, has now spread to the rest of developed Europe
with slowdowns in France and Germany.
For the year ended July 31, 2008, the Global Opportunities Fund returned -11.67%
(Class A shares at NAV) versus the benchmark, MSCI World Index, which returned
- -10.39%. Positive performance was led by the Fund's holdings in both the Energy
and Industrials sectors in general, and specifically in the following companies:
Demag Cranes, Peabody Energy, Dana Petroleum and SNC-Lavalin Group. Less
impressive was the performance of holdings in the Financials sector such as:
Marfin Popular, Storebrand, Leopalace 21 and Fortis.
In early 2008, the Fund placed a hedge against the sterling and the euro on the
belief that both currencies were overvalued relative to the US Dollar. Currency
hedging in the British pound was positive over the period, but the hedge to the
euro was negative for Fund performance. We believed that the European Central
Bank (ECB) had been keeping interest rates high and that they may start to ease
off that position. The ECB did not cut interest rates, preferring to fight
inflation rather than support growth. As a result, the euro has remained strong
against a continually weakening dollar.
The problems that are apparent in the US are not localized, they are
international, and may soon become global. We believe economic conditions will
likely deteriorate over the summer and while we expect interest rates may begin
to come down in certain markets in response to weaker growth it could take time
for the benefits to be felt. The coming period may feature a tug-of-war between
evidence of slowing economies on the one hand, and lower oil prices on the
other. We believe the faster the oil price slows, the more the markets can
expect lower interest rates, which may offset the disappointment on earnings.
Conversely if the oil price fails to respond to slower growth, or if a
supply-side shock unfolds, investors may continue to ignore any valuation
attractions for a while longer.
GLOBAL OPPORTUNITIES FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
MARFIN POPULAR BANK
PUBLIC CO., LTD. 4.0%
COMPAGNIE FINANCIERE
RICHEMONT AG 2.9
STOREBRAND ASA 2.6
PUBLIC POWER CORP. S.A. 2.6
DEMAG CRANES AG 2.6
TELEFONICA S.A. 2.5
FRESENIUS AG 2.4
DEUTSCHE POST AG 2.4
CARLSBERG A 2.3
REPUBLIC SERVICES, INC. 2.3
6
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL OPPORTUNITIES FUND
Pie charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United States 42.8%
Germany 11.0
Japan 10.4
United Kingdom 9.1
Cyprus 4.1
Switzerland 3.8
Other 18.8
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Industrials 22.7%
Financials 17.6
Consumer Staples 11.1
Information Technology 10.8
Consumer Discretionary 7.5
Health Care 6.9
Other 23.4
Line chart:
INVESTMENT COMPARISON
Value of $10,000
Global Opportunities Fund Class A w/out sales charge - $10,079
Global Opportunities Fund Class A w/sales charge - $9,499
MSCI World Index - $9,794
Global Opportunities Global Opportunities MSCI
Fund Class A Fund Class A World
w/out sales charge w/sales charge Index
11/30/06 10000 10000 9425
10300 10206 9708
1/31/07 10430 10328 9830
10530 10279 9925
10720 10471 10104
11120 10939 10481
11700 11256 11027
11550 11173 10886
7/31/07 11410 10928 10754
11320 10925 10669
11840 11448 11159
12490 11802 11772
12040 11325 11348
11923 11182 11237
1/31/08 10915 10330 10288
10885 10275 10259
10613 10182 10003
11238 10725 10592
11480 10902 10820
10482 10037 9879
7/31/08 10079 9794 9499
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE INCEPTION
AT NAV SYMBOL CLASS YEAR (11/30/06)*
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund HFPAX Class A -11.67% 0.47%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund HFPCX Class C -12.26 0.69
- -----------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund Class A -16.77% -3.03%
- -----------------------------------------------------------------------------------------------------------------------
Henderson Global Opportunities Fund Class C -12.26 0.69
- -----------------------------------------------------------------------------------------------------------------------
INDEX
- -----------------------------------------------------------------------------------------------------------------------
MSCI World Index -10.39% -1.24%
- -----------------------------------------------------------------------------------------------------------------------
* 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 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 13.40% and 14.15%,
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 August 1, 2007 to July 31, 2008 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
Global technology markets have experienced a volatile 12 months. The period
began strongly, thanks to a largely solid start to the reporting season, with
particular strength from sector heavyweights such as Apple, Microsoft and
Google. However, following eight consecutive months of positive returns, the
Technology sector corrected sharply in November on fears that the credit crunch
would spill over into the real economy and impact spending on technology.
Volatility continued into the new year, on concerns of a hard landing in the US
and contagion to the rest of the world. Against this backdrop, many technology
stocks have been sold off aggressively, as many investors have sought to take
profits in one of last year's best performing sectors and rotated into more
defensive areas.
Technology stocks staged something of a rebound in the second quarter of 2008
thanks to positive company announcements. Companies exposed to the corporate
sector appear to be weathering the current downturn particularly well, while
those exposed to the consumer have experienced a degree of pain. We believe this
would suggest that corporate clients are unable to lower their information
technology (IT) budgets aggressively due to past under-spending, a positive sign
for the sector. We have seen aggressive selling in certain areas - particularly
those that did well last year where investors have taken profits.
A case in point is the alternative energy space, which had a very strong 2007,
but sold off sharply at the beginning of this year - the investment thesis
hasn't changed, if anything it has become stronger with oil prices continuing to
rise and heightened public awareness of climate change, but the market has not
been overly interested in fundamentals of late. We remain bullish on this sector
and have seen our patience rewarded in the last month or so. Top ten holding
Vestas Wind Systems in particular has been very strong. We have continued to see
irrational selling by investors who have taken the merest hint of bad news as an
excuse to offload their holdings or initiate short positions. Take online
printing company Vistaprint for example. The stock suffered a 12% fall when
online retailer Amazon announced the launch of a new office supplies store. The
rationale for the fall was that this would lead to increased competition for
Vistaprint, but we believe this is a very simplistic response. Amazon will be
selling commodity office supplies, a very different product to the customized
printed materials that Vistaprint offers its customers at a fraction of the
price of traditional printing companies.
The Fund has been hurt by a couple of stock-specific issues, namely Tessera
Technologies and Focus Media. Tessera is a semiconductor intellectual property
company. The market reacted very badly to pronouncements made by the US patent
office on patent reviews. We sold our position on the news.
The issue at Focus Media was that a big customer of its SMS advertising service
decided it would move the work in-house. This represented around 4% of revenues,
and the market reacted very badly. The company has also been hurt by a slowdown
in advertising revenues due to the earthquake in China. We believe the company's
profits are loaded to the second half of the year, and expect solid performance
as margins improve from a low base in 1Q08. It's now trading on just 12x
earnings for 50% revenue growth!
Our holdings in the internet space had a positive effect on performance, with
online travel agent, Priceline.com particularly strong. The majority of the
company's profits come from the fragmented and under-penetrated European market.
The company has been able to gain considerable share there and beat analysts'
forecasts as a result. UK software company Autonomy has also performed very well
for the Fund thanks to strong demand for its unstructured search software from
banking clients.
We have stepped away from the global positioning system (GPS) theme on the back
of weaker-than-expected sales in Europe and concerns over consumer spending
trends. We sold out of TomTom and Garmin but not before we had taken a degree of
pain. We still have some exposure to the theme through Trimble Navigation which
makes Satelite Navigation devices for the agricultural industry (among other
things) - helping farmers get better yields on their fields and a play on
'agflation.'
We continue to play a number of themes with strong long-term secular growth such
as the internet and green technology (mentioned above). A new theme in the
portfolio is wireless broadband.
We had been bears on wireless data for several years for a number of reasons,
most importantly because it was incredibly slow and unreliable and there was a
lack of decent devices, regardless of price. This has changed in recent months
and wireless data speeds are now really very good and in some cases are faster
than wireline. We also have these "dongles" that plug into a laptop and enable
internet access on the move. As well as Apple's new 3G iPhone, there is going to
be an awful lot of new products hitting the shelves from virtually every
manufacturer in the second half of 2008. The prices of these devices are coming
down rapidly, especially the dongles, and the service price costs are also
attractive.
We have seen confirmation of our positive view on wireless data in recent weeks,
with better-than-expected results from a number of companies, including
Commscope and Powerwave, and the Fund has benefited as a result.
The gloomy global macroeconomic picture continues to weigh on all equity
sectors. There is risk to the earnings outlook for technology stocks that are
related to consumer and corporate spending, particularly in developed economies.
So far, technology companies' earnings have not been particularly badly hit and
this may continue given that emerging market demand has remained quite robust.
However, we remain cautious in the near term.
GLOBAL TECHNOLOGY FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ----------------------------------------------
INTERNATIONAL BUSINESS
MACHINES CORP. 4.7%
ADOBE SYSTEMS, INC. 3.4
TEKELEC 3.3
AUTOMATIC DATA
PROCESSING, INC. 3.2
VESTAS WIND SYSTEMS A/S 3.2
MICROSOFT CORP. 3.2
QUALCOMM, INC. 3.1
INTEL CORP. 3.1
AUTONOMY CORP., PLC 3.0
COMMSCOPE, INC. 2.9
8
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL TECHNOLOGY FUND
Pie charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United States 67.9%
United Kingdom 6.7
Taiwan 4.6
Denmark 3.4
China 3.0
Sweden 3.0
Other 11.4
PORTFOLIO COMPOSITION BY INDUSTRY
(AS A % OF LONG-TERM INVESTMENTS)
Software 23.7%
Semiconductors & Semi Equipment 19.1
Communications Equipment 18.0
Computers & Peripherals 12.1
Internet Software & Services 8.8
IT Services 5.3
Other 13.0
Line Chart:
INVESTMENT COMPARISON
Value of $10,000
Global Technology Fund Class A w/out sales charge - $15,249
Global Technology Fund Class A w/sales charge - $14,372
MSCI AC World IT Index - $12,191
S&P 500 Index - $12,662
Global Technology Fund Global Technology Fund MSCI AC
Class A w/out Class A World IT S&P 500
sales charge w/sales charge Index Index
8/31/01 10000 9425 10000 10000
7850 7399 8223 9192
8980 8464 9555 9368
10690 10075 11151 10086
11040 10405 11045 10175
10910 10283 10966 10026
9660 9105 9829 9833
10480 9877 10463 10202
9480 8935 9293 9584
8940 8426 8908 9513
8140 7672 7876 8836
7/31/02 7360 6937 7129 8148
6930 6532 7042 8201
5920 5580 5825 7309
6900 6503 6952 7952
7890 7436 8058 8421
6918 6520 6895 7926
6989 6587 6802 7718
6969 6568 6864 7602
6878 6482 6741 7676
7464 7035 7380 8308
8395 7912 8020 8746
8810 8303 8099 8858
7/31/03 9669 9113 8626 9014
10266 9676 9199 9190
10104 9523 9135 9093
10873 10248 9948 9607
11055 10419 10002 9692
11237 10591 10222 10200
11894 11211 10798 10387
12077 11382 10571 10532
11925 11239 10413 10373
11278 10629 9794 10210
11632 10963 10055 10350
12036 11344 10312 10550
7/31/04 10661 10048 9399 10201
10135 9552 9044 10242
10782 10162 9285 10353
11540 10877 9720 10511
12376 11665 10217 10937
12792 12057 10535 11309
12099 11403 10039 11033
12110 11413 10185 11264
11811 11132 9893 11065
11277 10629 9511 10855
12216 11514 10160 11200
11822 11142 10055 11216
7/31/05 12462 11745 10514 11633
12590 11866 10486 11527
12867 12127 10685 11620
12579 11856 10404 11428
13470 12695 11188 11862
13784 12991 11278 11866
14779 13929 11753 12180
14714 13868 11519 12213
15374 14490 11803 12366
15666 14765 11859 12531
14390 13562 11023 12171
14011 13205 10854 12188
7/31/06 13189 12430 10485 12263
13600 12818 11230 12555
14033 13226 11598 12879
14465 13634 11953 13299
15179 14307 12402 13551
15212 14337 12391 13741
15493 14602 12460 13949
15450 14561 12212 13675
15677 14776 12281 13828
16326 15387 12899 14441
17386 16387 13307 14945
17798 16774 13582 14697
7/31/07 17776 16754 13599 14241
18122 17080 13856 14455
19107 18008 14437 14996
20124 18967 15187 15234
18901 17814 14113 14597
18699 17623 14147 14496
16446 15501 12488 13626
15677 14776 12323 13184
15370 14486 12244 13127
16293 15356 13134 13766
17314 16319 13757 13944
15600 14703 12431 12769
7/31/08 15249 14372 12191 12662
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE THREE FIVE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* YEARS* (8/31/01)*
- ------------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGAX Class A -14.22% 6.96% 9.54% 6.29%
- ------------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGBX Class B -14.82 6.16 8.71 5.57
- ------------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund HFGCX Class C -14.79 6.21 8.73 5.54
- ------------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class A -19.14% 4.88% 8.26% 5.38%
- ------------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class B -18.82 5.27 8.56 5.57
- ------------------------------------------------------------------------------------------------------------------------
Henderson Global Technology Fund Class C -14.79 6.21 8.73 5.54
- ------------------------------------------------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------------------------------------------------
MSCI AC World IT Index -10.36% 4.97% 7.11% 2.87%
- ------------------------------------------------------------------------------------------------------------------------
S&P 500 Index -11.09 2.85 7.03 3.47
- ------------------------------------------------------------------------------------------------------------------------
* 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 1.87%, 2.62%, and 2.62% respectively. The Fund's audited net
expense ratios based on the fiscal year from August 1, 2007 to July 31, 2008 for
Class A, B, and C shares are 1.57%, 2.32% and 2.32% 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 MSCI AC World Info Tech Index is a free float-adjusted market
capitalization index designed to measure equity market performance in the global
developed and emerging markets, the index is comprised of 49 developed and
emerging market country indices. 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
Over the reporting year international equity markets have been dominated by the
issues surrounding the US sub-prime problems, the credit crunch that followed
and fears over a sharply weakening US economy that shattered investor
confidence. The Financials sector has dominated the headlines, most notably the
collapse of Bear Stearns. As oil breached $140, economic data came in decisively
weaker and banks continued to release poor results and increase bad debt
provisions.
Generally, corporate earnings have held up well so far, and as a result
sell-side analysts have been slow to revise downwards their earnings estimates.
In fact, while forecasts for financial services companies have been slashed,
forecasts for the rest of the market have barely moved. Common sense tells us
that other companies will inevitably experience some effect on their sales,
particularly those with significant exposure to the beleaguered financial
services industry.
For the year ended July 31, 2008, the International Opportunities Fund returned
- -10.54% (Class A shares at NAV) versus the benchmark, the MSCI EAFE Index, which
posted a return of -11.73%. Positive performance was led by the Fund's holdings
in the Energy and Industrials sectors; notably: Akzo Nobel Group, A.P.
Moller-Maersk and Statoilhydro. Holdings in the materials sector have also done
well thanks to high commodity prices, supply constraints and M&A speculation.
Diversified miners, Xstrata and BHP Billiton were particularly strong
performers.
The Fund slightly increased the allocation to the Japanese sub-portfolio in the
second quarter of 2008. While Japan has had inexpensive valuations for many
months, what appears to have peaked the interest of many investors are
positives, such as slightly rising inflation, wage growth and mildly positive
newsflow. While the Fund's exposure to Japan has been a drag on performance, we
remain optimistic in this area as we feel that certain Japanese holdings offer
strong growth opportunities yet trade at a discount to their global peers.
In early 2008, the Fund placed a hedge against Sterling and the Euro on the
belief that both currencies were overvalued relative to the US dollar. Currency
hedging in the British pound was positive over the period, but the hedge to the
Euro has been negative for Fund performance. We believed that the European
Central Bank (ECB) had been keeping interest rates high and that they may start
to ease off that position; however the ECB did not cut rates, preferring to
fight inflation rather than support growth. As a result, the Euro has remained
strong against a continually weakening dollar.
World markets may remain difficult until the outlook for the global economy
settles. Growth may slow due to the past tightening of monetary policies, a
credit squeeze and higher oil prices. Despite such concerns, valuations on a
certain number stocks still appear attractive. Due to the nature of the
sell-off, there are certain areas of the market where lower earnings have
already been priced in. Therefore, although the current market environment is
challenging, it is also providing some very interesting opportunities to the
stock-picker.
The MSCI EAFE Index tracks the stocks of approximately 1,000 international
companies in Europe, Australasia and the Far East.
INTERNATIONAL OPPORTUNITIES FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
VIVENDI UNIVERSAL S.A. 3.4%
CAPITA GROUP PLC 3.1
A P MOLLER - MAERSK A/S 3.0
FRESENIUS AG 2.9
DEUTSCHE BOERSE AG 2.9
OAO GAZPROM, ADR 2.8
SODEXHO ALLIANCE S.A. 2.7
FRANCE TELECOM S.A. 2.7
SAIPEM SPA 2.7
INDUSTRIA DE DISENO
TEXTIL S.A. 2.6
10
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
INTERNATIONAL OPPORTUNITIES FUND
Pie Charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
Japan 19.9%
France 15.2
Germany 10.0
United Kingdom 8.7
Switzerland 6.7
China 5.0
Other 34.5
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Financials 21.2%
Industrials 19.9
Consumer Discretionary 13.7
Information Technology 12.3
Materials 10.1
Energy 8.2
Other 14.6
Line Chart:
INVESTMENT COMPARISON
Value of $10,000
Int'l Opportunities Fund Class A w/out sales charge - $27,084
Int'l Opportunities Fund Class A w/sales charge - $25,528
MSCI EAFE Index - $19,043
Int'l Opportunities Int'l Opportunities MSCI
Fund Class A Fund Class A EAFE
w/out sales charge w/sales charge Index
8/31/01 10000 9425 10000
9080 8558 8989
9930 9359 9219
11430 10773 9560
11640 10971 9617
11610 10942 9106
11290 10641 9171
11840 11159 9716
11950 11263 9741
11940 11253 9874
11540 10876 9484
7/31/02 10510 9906 8549
10410 9811 8531
9280 8746 7617
10060 9482 8027
10710 10094 8393
10328 9735 8111
10167 9583 7773
9553 9004 7595
9453 8909 7451
10500 9896 8191
11164 10522 8694
11647 10977 8909
7/31/03 12070 11376 9126
12906 12163 9348
13127 12372 9638
13973 13169 10239
13973 13169 10469
14890 14034 11287
15501 14610 11448
15878 14965 11714
16378 15436 11785
15889 14975 11528
15613 14716 11564
15950 15033 11836
7/31/04 15226 14351 11454
15196 14322 11507
15552 14658 11809
16164 15234 12213
17126 16141 13051
17902 16872 13624
17767 16746 13375
18492 17428 13955
18254 17204 13611
17705 16687 13306
17446 16443 13326
17622 16609 13508
7/31/05 18388 17331 13924
19164 18062 14280
19733 18599 14919
19288 18179 14485
19990 18842 14842
20852 19654 15534
22273 20993 16489
22165 20892 16455
23005 21683 17006
24156 22769 17831
23252 21916 17160
23317 21977 17167
7/31/06 23166 21835 17339
23769 22403 17821
23898 22525 17851
24727 23306 18547
25890 24402 19108
26697 25163 19709
26798 25259 19843
27091 25535 20006
27743 26150 20526
28812 27157 21456
29768 28058 21862
30309 28567 21894
7/31/07 30275 28535 21575
29971 28249 21243
32064 30222 22383
33605 31674 23265
31861 30031 22506
31604 29789 22001
28407 26775 19971
28444 26810 20263
28371 26741 20060
29939 28219 21174
30784 29015 21421
27795 26198 19673
7/31/08 27084 25528 19043
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE THREE FIVE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* YEARS* (8/31/01)*
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOAX Class A -10.54% 13.78% 17.55% 15.49%
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOBX Class B -11.20 12.92 16.68 14.66
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFOCX Class C -11.17 12.95 16.67 14.66
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund HFORX Class R** -10.75 13.52 17.26 15.22
- ------------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class A -15.68% 11.56% 16.16% 14.51%
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class B -15.20 12.13 16.57 14.66
- ------------------------------------------------------------------------------------------------------------------------
Henderson Int'l Opportunities Fund Class C -11.17 12.95 16.67 14.66
- ------------------------------------------------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index -11.73% 11.00% 15.84% 9.76%
- ------------------------------------------------------------------------------------------------------------------------
* 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
1.56%, 2.31%, 2.31%, and 181% respectively. The Fund's audited net expense
ratios based on the fiscal year from August 1, 2007 to July 31, 2008 for Class
A, B, C, and R shares are 1.45%, 2.20%, 2.20% and 1.70% 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
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
The concerns that had weighed heavily on Japan in 2007 continued into 2008:
lackluster economic growth, poor stock market performance and a moribund
government. There were also increased concerns that Japan's fragile economy
would not be able to withstand a sharp slowdown in the US, its second biggest
export market behind China. We believe this concern may be exaggerated, as only
a quarter of Japanese exports go to the US while Asia now accounts for over half
of its exports. Against a backdrop of heavy selling by foreign investors, Japan
initially fared worse than other major markets in the second half of 2007, but
it has been the best performing equity market globally in the first half of
2008.
The gains in the market came largely in the month of April, where the market was
led by rises in Financials, but succumbed to profit taking towards the end of
the period as the threat of higher inflation and slower growth impacted equities
globally. By sector, Oil, Mining, Steel and Paper performed well over the
quarter, while defensive sectors such as Foods and Utilities underperformed,
along with Airlines on the back of the weaker yen. Economic data reflected a
weakening environment from both a domestic and external perspective. Domestic
activity has been impacted by the spectre of higher inflation, which has
constrained consumption, while the export sector witnessed a slowdown. There has
been some resilience however, as bank lending continued on a recovery trend.
For the year ended July 31, 2008, the Fund returned -20.25% (Class A shares at
NAV) versus the benchmark, the MSCI Japan Index, which posted a return of
- -14.80%. Poor performance was largely stock related, notably: technology company
TDK, which has been hurt by the stronger yen, and housing company Leopalace21,
which issued a profit warning. We believe TDK's valuation has already discounted
the worst case for future profits and currency. The poor performance of
Leopalace21 was a surprise, as we knew a profit warning was coming and believed
the market did too, coming from a temporary delay in booking some sales.
Throughout the period, the Fund was weighted towards domestic sectors in Japan
and away from export-related shares. The Fund also had low weightings in sectors
such as steel, trading houses and shipping, which are all heavily dependent on
overseas demand. In general, the Fund has been overweight smaller companies in
Japan, rather than the more export-dependent larger companies. The Fund has
focused on attractively valued companies with good earnings growth in
domestic-orientated sectors. Over the last few months we have also been actively
cutting back the Fund's exposure to Asian companies, specifically to seek to
take advantage of the growing number of attractive stocks in Japan.
We believe Japanese equities look attractive as compared to other markets,
partly because valuations are reasonable and partly because the market has
fallen sharply to discount an economic showdown. Activity within Japan has been
slightly weaker than expected, hindered by falling capital expenditure and
subdued consumer spending, while the export sector is witnessing a slowdown much
as anticipated.
However, we believe corporate profits in Japan should prove relatively resilient
to the slowdown, as companies had already tightened up on costs and the domestic
economy is not slowing down as much as expected. The labor market remained
healthy with no sign of rising unemployment, so consumption is unlikely to fall,
and exports have continued to contribute to GDP growth, driven by the economic
expansion in Asia. Equity valuations, meanwhile, have already discounted a
recession, leaving Japan looking cheap relative to other markets.
JAPAN-ASIA FOCUS FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ----------------------------------------------
SUMITOMO MITSUI
FINANCIAL GROUP, INC. 5.9%
TDK CORP. 5.3
NTT DOCOMO, INC. 5.3
TAKEDA PHARMACEUTICAL
CO., LTD. 5.2
NISHI-NIPPON CITY
BANK, LTD. 4.4
LEOPALACE21 CORP. 4.2
XEBIO CO., LTD. 3.9
SEKISUI CHEMICAL CO., LTD. 3.8
MITSUBISHI UFJ FINANCIAL
GROUP, INC. 3.7
KANTO TSUKUBA BANK, LTD. 3.5
12
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
JAPAN-ASIA FOCUS FUND
Pie charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
Japan 97.1%
Singapore 1.2
Malaysia 0.9
Hong Kong 0.8
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Financials 35.6%
Consumer Discretionary 20.5
Information Technology 17.3
Materials 8.7
Telecommunication Services 5.2
Health Care 5.2
Other 7.5
Line Chart:
INVESTMENT COMPARISON
Value of $10,000
Japan-Asia Focus Fund Class A w/out sales charge - $8,079
Japan-Asia Focus Fund Class A w/sales charge - $7,614
MSCI Japan Index - $8,860
Japan-Asia Focus Japan-Asia Focus MSCI
Fund Class A Fund Class A Japan
w/out sales w/sales charge Index
charge
1/31/06 10000 10000 9425
9915 9860 9293
10169 10360 9764
10465 10490 9887
9814 9850 9284
9705 9920 9350
7/31/06 9652 9650 9095
9796 9830 9265
9639 9750 9189
9806 9870 9302
9876 9860 9293
10122 9860 9293
10208 9990 9416
10618 10220 9632
10482 10010 9434
10279 9710 9152
10446 9950 9378
10415 10150 9566
7/31/07 10398 10130 9548
10093 9730 9171
10330 9730 9171
10291 9770 9208
10102 9440 8897
9703 9090 8567
9259 8548 8056
9323 8235 7762
8951 8089 7624
9601 8819 8312
9843 8975 8459
9172 8194 7722
7/31/08 8860 8079 7614
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE INCEPTION
AT NAV SYMBOL CLASS YEAR (1/31/06)*
- ----------------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund HFJAX Class A -20.25% -8.18%
- ----------------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund HFJCX Class C -20.97 -8.87
- ----------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- ----------------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund Class A -24.85% -10.33%
- ----------------------------------------------------------------------------------------------------------------------
Henderson Japan-Asia Focus Fund Class C -20.97 -8.87
- ----------------------------------------------------------------------------------------------------------------------
INDEX
- ----------------------------------------------------------------------------------------------------------------------
MSCI Japan Index -14.80% -4.72%
- ----------------------------------------------------------------------------------------------------------------------
* 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 1.83% and 2.58%, respectively. The Fund's
audited net expense ratios based on the fiscal year from August 1, 2007 to July
31, 2008 for Class A and C shares are 1.75% and 2.50% 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
All major US indices fell during the period. Economic statistics deteriorated
with consumer confidence close to record lows and a rise in unemployment
provided further ammunition to those arguing for a prolonged recession. The
Federal Reserve reduced interest rates to 2.0% in an effort to limit the impact
of the dislocation in the financial markets on the broader economy, but rising
inflation provided another headache for the market. Falling home prices and
excessive inventories also suggest the bottom in housing is at least a year
away. It is our view that the US economy has already slowed very significantly,
and whether a recession occurs now or not is an academic issue, as the impact
will be felt regardless.
The US equity market has fallen to a level that appears to offer attractive
valuations, however, what is in question is the ability of companies to achieve
projected earnings. We believe that the key to investment performance may be the
ability to side-step the worst disappointments through bottom-up stock-picking
while gradually adding exposure to a cyclical recovery that could become more
evident in late 2008.
The Fund performed well on a relative basis over the one-year period ended July
31, 2008, returning -7.20% (Class A shares at NAV) versus the benchmark, the S&P
500 Index, which posted a return of -11.09%. Performance was led by stock
selection in all three sub-portfolios. Not surprisingly the best performing
sectors for Fund performance were found in the Energy and Industrials sectors as
the prices of commodities and oil hit new highs. Over the course of the year our
stock selections gradually reshaped the portfolio to what we felt was a
reasonably defensive stance, in expectation of a slowing macro environment. Also
impressive was the performance of the Special Situations sub-portfolio,
especially given a dearth of merger and acquisitions activity. The managers
successfully averted a number of broken transactions and navigated a number of
complicated deals by finding attractive entry points of stocks for inclusion in
the Fund.
The largest detriment to performance was found in the Fund's exposure to the
Financials sector. That said, the Fund remains underweight in the Financials
sector as we continue to struggle to find valuations low enough to support the
stocks in such an unpredictable environment.
Our new ideas for the Fund have been focused on investments that we think can
produce attractive returns in a wide variety of economic outcomes. One example
is multi-line insurer Assurant. One of Assurant's niche businesses insures homes
that the owners are no longer insuring. We believe that this business performs
best when owners are struggling to pay their mortgage, thus the company has been
performing very well in the current environment.
The outlook for US equities remains uncertain as weak economic growth coupled
with higher energy and food costs make it difficult for the Federal Reserve to
engineer a recovery while taming inflation. Global growth is also at risk and
could put further pressure on earnings growth this year. Despite the negatives,
we believe many valuations are attractive, balance sheets outside of the
financial sector are generally strong and the weak dollar has improved the
competitiveness of many US corporations.
US FOCUS FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
ADOBE SYSTEMS, INC. 4.9%
CORRECTIONS CORPORATION
OF AMERICA 4.8
AMERICAN TOWER CORP. 4.4
ABBOTT LABORATORIES 4.2
REPUBLIC SERVICES, INC. 4.0
BURLINGTON NORTHERN
SANTA FE CORP. 4.0
THE BRINK'S CO. 3.9
PEPSICO, INC. 3.7
SOUTHERN CO. 3.6
GENERAL CABLE CORP. 3.5
14
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
US FOCUS FUND
Pie chart:
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Industrials 26.3%
Information Technology 14.6
Consumer Staples 13.0
Energy 11.1
Materials 8.8
Financials 8.4
Other 17.8
Line Chart:
INVESTMENT COMPARISON
Value of $10,000
US Focus Fund Class A w/out sales charge - $11,903
US Focus Fund Class A w/sales charge - $11,219
S&P 500 Index - $12,554
US Focus Fund US Focus Fund
Class A w/out Class A S&P 500
sales charge w/sales charge Index
4/30/04 10000 10000 9425
10137 10160 9576
10334 10380 9783
7/31/04 9992 9690 9133
10032 9420 8878
10140 9710 9152
10296 9930 9359
10713 10420 9821
11078 10902 10275
10808 10420 9821
11035 10510 9906
10840 10400 9802
10634 10108 9527
10972 10621 10010
10987 10641 10029
7/31/05 11396 10982 10351
11292 10850 10228
11384 10939 10313
11194 10780 10162
11617 10972 10342
11620 10952 10323
11928 11448 10790
11960 11306 10656
12110 11387 10733
12272 11590 10923
11919 10932 10304
11935 10892 10266
7/31/06 12009 10467 9865
12295 10983 10351
12612 11185 10542
13024 11367 10714
13271 11529 10866
13457 11597 10930
13669 11833 11152
13410 11833 11152
13569 12025 11334
14179 12485 11767
14683 13362 12594
14448 13181 12423
7/31/07 14010 12828 12090
14229 12763 12029
14770 13469 12695
15014 14047 13239
14395 13448 12675
14304 13402 12632
13455 11928 11242
13027 11965 11277
12980 11705 11032
13621 12362 11651
13807 13031 12281
12652 12126 11429
7/31/08 12554 11903 11219
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE THREE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* (4/30/04)*
- -----------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund HFUAX Class A -7.20% 2.72% 4.18%
- -----------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund HFUBX Class B -7.95 1.95 3.39
- -----------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund HFUCX Class C -7.95 1.95 3.39
- -----------------------------------------------------------------------------------------------------------------------
WITH SALES CHARGE
- -----------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund Class A -12.53% 0.70% 2.74%
- -----------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund Class B -11.95 0.98 2.97
- -----------------------------------------------------------------------------------------------------------------------
Henderson US Focus Fund Class C -7.95 1.95 3.39
- -----------------------------------------------------------------------------------------------------------------------
INDEX
- -----------------------------------------------------------------------------------------------------------------------
S&P 500 Index -11.09% 2.85% 5.19%
- -----------------------------------------------------------------------------------------------------------------------
* 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 2.95%, 3.70%, and 3.70% 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, 2007
to July 31, 2008 for Class A, B, and C shares are 1.40%, 2.15% 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
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.
Effective November 30, 2006, the U.S. Core Growth Fund changed its name and
certain investment policies and became the US Focus Fund. The Fund's historical
performance may not represent current investment policies. 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
The combination of weak economic data and a massive withdrawal of liquidity and
risk appetite led to a fall in a wide range of financial securities during the
second half of 2007. The credit markets continued to slip considerably but did
achieve a tentative stability at the end of the reporting period. Inflation
concerns, soaring commodity prices, equity volatility, higher bond yields and
profit warnings in a number of sectors have all played their part. High
inflation precludes interest rate cuts and rising commodity prices are boosting
inflation. Large segments of the credit markets remain locked with prices in
extended freefalls. Securitized products such as mortgage-backed securities
(MBS) and Auction-Rate Securities (ARS) are some of the more important examples
of how falling collateral values and rising liquidity premiums have adversely
affected asset values. The Fund does not own any MBS or ARS.
For the year ended July 31, 2008, the Fund returned -7.16% (Class A share at
NAV), versus the benchmark, the Lehman Global Aggregate Bond (ex US MBS) Index,
which posted a return of 11.40%. The principal drag on the Fund's performance
came from high yield corporate bonds. The Fund has experienced increased
volatility in a couple of high yield corporate bonds as the credit crisis has
morphed into a wider economic slowdown. Default levels have been low but rising
and stock selection is critical at this stage of the cycle. From a
macro-economic perspective, high yield has had no supply overhang and investors
have shunned additional leverage beyond that present in the debt.
The Fund finished the period substantially invested and further trimmed the
exposure to high-dividend stocks. We believe the yield available from depressed
bond markets offers equity-like return prospects but with historically reduced
vulnerability to lower earnings. The Fund remained fully hedged to US dollars as
we believe a period of strength is overdue and the dollar is extremely cheap.
The Fund began reducing its equity weighting in late 2007. By the first week of
January the exposure was almost halved, which helped to mitigate some of the
price weakness experienced by equities globally. The Fund also began to
moderately increase its exposure to foreign currency, but by the end of 2007 the
dollar began to stabilize and we believe it became oversold. We increased the
Fund's hedge in stages, and at the end of the period the Fund was approximately
99.5% hedged to the US dollar.
We believe the weak state of the US economy has been accepted by the market, but
the reduction in US import demand and the demand-sapping effect of high
commodity prices on the global economy have not been fully reflected. The weak
growth path of the global economy may have been the driving factor behind the
change in market sentiment and performance since mid-May. This initially stopped
the rise in Treasury yields but lately has led to lower international yields
despite high current inflation rates. The weak Japanese and European economies
have been in the international spotlight with outcomes appearing worse than the
US, primarily in the UK, Spain and Ireland. Whereas US weakness has been focused
on collapses in airlines, autos and housing, the European weakness has been
milder but based across a broader range of industries and consumer demand
specifically.
WORLDWIDE INCOME FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ---------------------------------------------
REPUBLIC OF TURKEY 3.2%
REPUBLIC OF SRI LANKA 2.9
KABEL DEUTSCHLAND GMBH 2.5
IMPRESS HOLDINGS B.V. 2.4
STANDARD CHARTERED PLC 2.4
HCA, INC. 2.4
VIRGIN MEDIA PLC 2.4
COGNIS GMBH 2.4
ROYAL BANK OF SCOTLAND
GROUP PLC 2.3
BCM IRELAND FINANCE, LTD. 2.3
16
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
WORLDWIDE INCOME FUND
Pie charts:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United Kingdom 23.5%
United States 17.9
Netherlands 7.9
France 7.0
Luxembourg 5.7
Germany 5.6
Other 32.4
Portfolio composition by sector
(as a % of long-term investments)
Banking 14.9%
Sovereign 12.9
Telecommunication - Integrated 8.9
Media - Services 7.2
Insurance 6.5
Chemicals 5.3
Other 44.3
Line chart:
INVESTMENT COMPARISON
Value of $10,000
Worldwide Income Fund Class A w/out sales charge - $12,951
Worldwide Income Fund Class A w/sales charge - $12,356
Lehman Brothers Global Aggregate Bond (ex US MBS) Index - $13,261
Lehman
Brothers
Worldwide Worldwide Global
Income Fund Income Fund Aggregate
Class A Class A Bond
w/out w/sales (ex US MBS)
sales charge charge Index
9/30/03 10000 9525 10000
10220 9735 9941
10570 10068 10089
11023 10499 10458
11164 10634 10492
11154 10624 10540
11236 10702 10669
11143 10614 10245
10957 10437 10308
11072 10546 10328
7/31/04 11281 10745 10310
11496 10950 10547
11660 11106 10690
11889 11324 10974
12033 11462 11316
12195 11616 11504
12168 11590 11355
12359 11772 11388
11970 11401 11233
11832 11270 11383
12029 11458 11195
12227 11646 11131
7/31/05 12417 11827 11037
12465 11873 11231
12388 11800 11034
12243 11660 10857
12375 11785 10762
12507 11911 10869
12652 12050 11022
12821 12212 10969
12836 12227 10858
12939 12326 11095
12853 12244 11263
12803 12195 11157
7/31/06 12999 12381 11261
13191 12564 11386
13263 12634 11372
13468 12830 11487
13663 13017 11789
13797 13145 11615
13847 13193 11482
13948 13291 11734
14076 13414 11761
14270 13600 11904
14355 13682 11702
14176 13512 11650
7/31/07 13859 13211 11911
13937 13286 12049
14298 13631 12348
14509 13834 12561
14188 13528 12802
14249 13587 12753
13706 13070 13126
13477 12853 13380
13338 12721 13683
13764 13129 13380
13815 13178 13223
13282 12671 13237
7/31/08 12951 12356 13261
TOTAL RETURNS AS OF JULY 31, 2008
SINCE
NASDAQ ONE THREE INCEPTION
AT NAV SYMBOL CLASS YEAR YEARS* (9/30/03)*
- ----------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund HFAAX Class A -6.47% 1.47% 5.53%
- ----------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund HFABX Class B -7.00 0.79 4.75
- ----------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund HFACX Class C -7.09 0.75 4.76
- ----------------------------------------------------------------------------------------------------------------------
With sales charge
- ----------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund Class A -10.90% -0.16% 4.47%
- ----------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund Class B -11.00 -0.21 4.40
- ----------------------------------------------------------------------------------------------------------------------
Henderson Worldwide Income Fund Class C -7.09 0.75 4.76
- ----------------------------------------------------------------------------------------------------------------------
Index
- ----------------------------------------------------------------------------------------------------------------------
Lehman Brothers Global Aggregate Bond (ex US MBS) Index 11.40% 6.33% 6.03%
- ----------------------------------------------------------------------------------------------------------------------
* 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 1.77%, 2.52%, and 2.52%, 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, 2007
to July 31, 2008 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.
Effective May 19, 2006, the Henderson Income Advantage Fund changed its name,
investment objective and policies and became the Henderson Worldwide Income
Fund. The Fund's historical performance may not represent current investment
policies. 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, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 100.13%
AUSTRALIA - 3.41%
28,125,000 Centamin Egypt, Ltd. * ... $ 30,514,969
4,000,000 Centamin Egypt, Ltd. * ... 4,297,085
--------------
34,812,054
--------------
AUSTRIA - 0.44%
76,000 Andritz AG ............... 4,536,738
--------------
BAHRAIN - 3.72%
9,900,000 Gulf Finance Promissory
Note (a) ................. 37,962,302
--------------
CANADA - 2.82%
3,818,947 European Goldfields,
Ltd. * ................... 11,430,271
3,250,000 Lundin Mining Corp. * .... 17,373,470
--------------
28,803,741
--------------
CYPRUS - 2.42%
1,400,000 AFI Development plc,
GDR (a) (b) .............. 8,610,000
8,100,000 Urals Energy Public
Co., Ltd. * .............. 16,130,785
--------------
24,740,785
--------------
FRANCE - 11.53%
300,000 Cap Gemini S.A. .......... 19,249,779
900,000 France Telecom S.A. ...... 28,576,095
835,149 Rhodia S.A. .............. 15,785,824
149,411 Schneider Electric S.A. .. 16,500,900
900,000 Vivendi S.A. ............. 37,617,589
--------------
117,730,187
--------------
GERMANY - 6.39%
230,000 Beiersdorf AG * .......... 14,831,795
360,000 Gerresheimer AG * ........ 18,680,302
120,000 RWE AG ................... 14,392,525
299,398 SAP AG ................... 17,329,470
--------------
65,234,092
--------------
GREECE - 2.50%
208,000 National Bank of
Greece S.A. .............. 9,910,416
1,000,000 Sidenor S.A. ............. 15,618,225
--------------
25,528,641
--------------
IRELAND - 1.75%
700,000 CRH plc .................. 17,872,487
--------------
ITALY - 1.48%
800,000 Azimut Holding SpA ....... 6,440,296
3,500,000 Parmalat SpA ............. 8,673,532
--------------
15,113,828
--------------
VALUE
SHARES (NOTE 2)
------ --------
KAZAKHSTAN - 2.44%
975,636 KazMunaiGas Exploration
Production, GDR .......... $ 24,878,718
--------------
LUXEMBOURG - 0.78%
2,016,000 GlobeOp Financial
Services ................. 7,912,024
--------------
NETHERLANDS - 7.08%
410,333 A&D Pharma Holding N.V.,
GDR * .................... 1,408,128
340,000 Akzo Nobel N.V. 19,412,990
414,902 AMTEL Vredestein N.V., GDR
(a)* ..................... 663,843
32,350 Ballast Nedam N.V. ....... 1,084,102
546,000 New World Resources
B.V. * ................... 16,825,224
1,200,000 Wavin N.V. ............... 9,633,929
1,000,000 Wolters Kluwer N.V. ...... 23,214,674
--------------
72,242,890
--------------
NORWAY - 1.61%
548,329 SeaDrill, Ltd. ........... 16,476,243
--------------
PORTUGAL - 1.81%
1,000,000 Galp Energia, SGPS,
S.A., B Shares ........... 18,493,607
--------------
RUSSIA - 3.75%
800,000 OAO Gazprom, ADR ......... 38,329,179
--------------
SPAIN - 0.67%
1,483,319 Realia Business S.A. ..... 6,808,686
--------------
SWEDEN - 1.55%
1,200,000 Lundin Petroleum AB * .... 15,841,150
--------------
SWITZERLAND - 4.67%
220,000 Compagnie Financiere
Richemont AG ............. 13,201,526
1,333 Givaudan S.A. ............ 1,086,007
1,136,157 Temenos Group AG * ....... 33,389,409
--------------
47,676,942
--------------
TURKEY - 2.46%
3,700,000 Turkiye Halk Bankasi
A.S. ..................... 25,060,515
--------------
UNITED ARAB EMIRATES - 2.06%
3,820,139 Kingdom Hotel Investments,
GDR * .................... 21,010,764
--------------
See Notes to Financial Statements.
18
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
UNITED KINGDOM - 33.80%
2,200,000 Aero Inventory plc ....... $ 19,976,387
4,725,000 Afren plc * .............. 11,603,173
2,500,000 Ashmore Group plc ........ 12,291,711
11,500,000 Ashtead Group plc ........ 15,402,614
763,158 BlueBay Asset
Management plc ........... 4,249,694
903,876 Bovis Homes Group plc .... 5,954,338
234,116 Cairn Energy plc * ....... 12,622,377
2,104,471 Daily Mail & General
Trust plc ................ 13,139,233
495,000 Dana Petroleum plc * ..... 14,075,340
6,500,000 Debenhams plc ............ 5,198,848
700,000 Eurasian Natural
Resources Corp. * ........ 14,530,446
3,000,000 Evolution Group plc ...... 5,572,825
2,000,000 Fresnillo plc * .......... 15,597,104
300,000 Gem Diamonds, Ltd. * ..... 6,105,234
1,599,460 Hochschild Mining plc .... 9,700,631
396,825 Impellam Group plc * ..... 542,701
493,553 Imperial Tobacco
Group plc ................ 18,446,888
1,661,356 Informa plc .............. 14,351,808
875,000 Investec plc ............. 5,854,261
2,700,000 IP Group plc * ........... 5,829,659
5,000,000 Juridica Investments,
Ltd. * ................... 10,753,157
900,100 Kazakhmys plc ............ 26,477,259
2,000,000 Lancashire Holdings, Ltd. 12,158,695
1,709,325 Melrose plc .............. 5,377,345
250,000 NDS Group plc, ADR * ..... 14,435,000
1,825,000 Prosperity Minerals
Holdings, Ltd. ........... 3,834,876
2,326,851 Regal Petroleum plc * .... 7,712,928
6,070,333 Sports Direct
International ............ 7,662,074
7,500,000 Tau Capital plc * ........ 5,400,000
1,500,000 Tullow Oil plc ........... 23,288,841
235,161 Xstrata plc .............. 16,857,905
--------------
345,003,352
--------------
UNITED STATES - 0.99%
900,000 Virgin Media, Inc. ....... 10,098,000
--------------
TOTAL INVESTMENTS - 100.13%
(Cost $1,088,519,037) .... 1,022,166,925
--------------
VALUE
SHARES (NOTE 2)
------ --------
NET OTHER ASSETS AND
LIABILITIES - (0.13)% .... $ (1,340,324)
--------------
TOTAL NET ASSETS - 100.00%.............. $1,020,826,601
==============
* Non income producing security.
(a) Fair valued at July 31, 2008 as determined in good faith using procedures
approved by the Trustees of the Trust.
(b) 144A securities are those that are exempt from registration under 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, 2008 the
security had an aggregate value of $8,610,000, which represented 0.84% of
net assets.
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Notes to Financial Statements.
19
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
EUROPEAN FOCUS FUND
JULY 31, 2008 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Oil & Gas Exploration & Production.......... 12.36%
Diversified Metal & Mining.................. 9.02
Application Software........................ 6.38
Integrated Oil & Gas........................ 5.57
Publishing.................................. 4.97
Gold........................................ 4.53
Investment Banking & Brokerage.............. 4.26
Movies & Entertainment...................... 3.68
Real Estate Management & Development........ 3.57
Trading Company & Distributors.............. 3.47
Diversified Banks........................... 3.43
Asset Management & Custody Banks............ 3.35
Precious Metal & Mineral.................... 3.08
Integrated Telecomm Services................ 2.80
Construction Materials...................... 2.13
Diversified Chemicals....................... 1.90
IT Consulting & Other Services.............. 1.89
Life Sciences Tools / Services.............. 1.83
Tobacco..................................... 1.81
Specialty Chemicals......................... 1.65
Electric Component & Equipment.............. 1.62
Oil & Gas Drilling.......................... 1.61
Steel....................................... 1.53
Personal Products........................... 1.45
Multi-Utilities............................. 1.41
Apparel, Accessories & Luxury Goods......... 1.29
Reinsurance................................. 1.19
Industrial Conglomerates.................... 1.11
Construction & Engineering.................. 1.05
Broadcasting & Cable TV..................... 0.99
Industrial Machinery........................ 0.97
Packaged Foods & Meats...................... 0.85
Other Diversified Financial Services........ 0.77
Specialty Stores............................ 0.75
Homebuilding................................ 0.58
Diversified Capital Markets................. 0.57
Department Stores........................... 0.51
Pharmaceuticals............................. 0.14
Tires & Rubber.............................. 0.06
--------
Total Investments........................... 100.13
Net Other Assets and Liabilities............ (0.13)
--------
100.00%
========
See Notes to Financial Statements.
20
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL EQUITY INCOME FUND
JULY 31, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 97.08%
AUSTRALIA - 1.16%
860,000 Transurban Group .......... $ 4,137,899
------------
BAHRAIN - 0.22%
202,980 Gulf Finance House
Promissory Note (a) ....... 778,342
------------
CHINA - 1.87%
50,000 PetroChina Co., Ltd ....... 6,673,000
------------
CYPRUS - 1.01%
280,000 Prosafe Production
Public, Ltd. * ............ 1,174,955
280,000 ProSafe SE ................ 2,437,024
------------
3,611,979
------------
CZECH REPUBLIC - 1.41%
150,000 Telefonica 02 Czech
Republic a.s. ............. 5,031,309
------------
FRANCE - 6.26%
50,000 Casino Guichard-
Perrachon S.A. ............ 4,972,980
260,000 France Telecom S.A. ....... 8,255,316
20,000 Sanofi-Aventis ............ 1,403,590
100,000 Total S.A. ................ 7,666,934
------------
22,298,820
------------
GERMANY - 5.43%
80,000 Bayer AG .................. 6,914,329
520,000 Deutsche Telekom AG ....... 9,039,546
28,365 RWE AG .................... 3,402,033
------------
19,355,908
------------
GREECE - 2.03%
75,000 EFG Eurobank Ergasias ..... 1,858,406
150,000 OPAP S.A. ................. 5,379,698
------------
7,238,104
------------
HONG KONG - 6.46%
2,800,000 BOC Hong Kong
(Holdings), Ltd. .......... 7,058,184
620,000 Citic Pacific, Ltd. ....... 2,373,328
3,800,000 Cosco Pacific, Ltd. ....... 6,649,209
11,000,000 PCCW, Ltd. ................ 6,940,169
------------
23,020,890
------------
ITALY - 6.73%
250,000 Enel SpA .................. 2,316,659
250,000 ENI SpA ................... 8,456,806
600,000 Intesa Sanpaolo ........... 3,381,029
VALUE
SHARES (NOTE 2)
------ --------
ITALY - (continued)
1,600,000 Terna - Rete Elettrica
Nationale SpA ............. $ 6,645,575
531,960 UniCredito Italiano SpA ... 3,169,979
------------
23,970,048
------------
NETHERLANDS - 1.09%
118,671 ING Groep N.V. ............ 3,879,374
------------
NEW ZEALAND - 2.05%
2,638,333 Telecom Corporation of
New Zealand, Ltd. ......... 7,302,196
------------
SINGAPORE - 3.16%
1,100,000 Keppel Corp., Ltd. ........ 8,461,808
1,400,000 Singapore Technologies
Engineering, Ltd. ......... 2,818,068
------------
11,279,876
------------
SOUTH AFRICA - 1.85%
135,000 Impala Platinum
Holdings, Ltd. ............ 4,507,108
1,300,000 Woolworths Holdings, Ltd. . 2,079,065
------------
6,586,173
------------
TAIWAN - 7.17%
4,877,050 China Steel Corp. ......... 6,958,205
2,963,000 Chungwha Telecom Co.,
Ltd. ...................... 7,463,920
2,819,764 Taiwan Mobile Co., Ltd. ... 5,077,308
639,272 Taiwan Semiconductor
Manufacturing Co., Ltd., .. 6,073,084
------------
25,572,517
------------
UNITED KINGDOM - 38.80%
453,403 Aviva plc ................. 4,498,723
677,436 Barclays plc .............. 4,549,421
636,251 BP plc .................... 6,534,906
1,872,883 BT Group plc .............. 6,297,264
750,000 Dairy Crest Group plc ..... 5,820,518
1,717,274 DS Smith plc .............. 3,726,840
750,000 Electrocomponents plc ..... 2,290,677
537,604 FirstGroup plc ............ 5,491,094
550,000 GKN plc ................... 2,309,068
410,636 GlaxoSmithKline plc ....... 9,559,960
250,000 Greene King plc ........... 2,547,459
1,000,000 Hiscox, Ltd. .............. 3,941,152
1,837,176 Kingston Communications
(Hull) plc ................ 1,298,805
3,400,000 Legal & General Group
plc ....................... 6,538,252
818,570 Lloyds TSB Group plc ...... 4,778,650
200,000 Man Group plc ............. 2,415,975
800,000 Marston's plc ............. 2,818,877
175,000 National Express Group
plc ....................... 3,363,517
See Notes to Financial Statements.
21
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL EQUITY INCOME FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
UNITED KINGDOM - (continued)
324,487 National Grid plc ......... $ 4,276,380
582,500 Northumbrian Water
Group plc ................. 3,562,110
750,000 Pearson plc ............... 9,612,066
800,000 Premier Farnell plc ....... 2,672,563
270,000 Provident Financial plc ... 4,669,625
400,000 Rexam plc ................. 2,990,847
263,141 Scottish & Southern
Energy plc ................ 7,283,607
2,980,000 Smiths News plc ........... 4,294,713
400,000 Tate & Lyle plc ........... 3,082,926
1,500,000 Topps Tiles plc ........... 1,425,452
158,725 United Utilities plc ...... 2,180,985
205,409 United Utilities Group plc,
B Shares .................. 692,157
4,000,000 Vodafone Group plc ........ 10,739,916
325,000 William Hill plc .......... 2,012,978
------------
138,277,483
------------
UNITED STATES - 10.38%
331,600 Atmos Energy Corp. ........ 8,777,452
130,000 Bemis Co., Inc. ........... 3,660,800
3,739 Fairpoint
Communications, Inc. ...... 25,949
121,528 H.J. Heinz Co. ............ 6,122,580
74,438 Philip Morris
International, Inc. ....... 3,844,723
184,928 Progress Energy, Inc. ..... 7,824,304
198,306 Verizon Communications,
Inc. ...................... 6,750,336
------------
37,006,144
------------
TOTAL LONG TERM
INVESTMENTS ............... 346,020,062
(Cost $399,028,891) ------------
SHORT TERM INVESTMENT - 0.57%
2,027,411 Fidelity Institutional
Treasury Portfolio ........ 2,027,411
------------
TOTAL SHORT TERM
INVESTMENT ................ 2,027,411
(Cost $2,027,411) ------------
TOTAL INVESTMENTS - 97.65% 348,047,473
(Cost $401,056,302) ....... ------------
NET OTHER ASSETS AND
LIABILITIES - 2.35% 8,387,608
------------
TOTAL NET ASSETS - 100.00%................ $356,435,081
============
* Non income producing security
(a) Fair valued at July 31, 2008 as determined in good faith using procedures
approved by the Trustees of the Trust.
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Integrated Telecommunication Services....... 16.39%
Integrated Oil & Gas........................ 8.23
Diversified Banks........................... 6.96
Electric Utilities.......................... 6.75
Pharmaceuticals............................. 5.02
Wireless Telecommunication Services......... 4.44
Packaged Foods & Meats...................... 4.22
Industrial Conglomerates.................... 3.04
Multi - Utilities........................... 2.96
Publishing.................................. 2.70
Gas Utilities............................... 2.46
Casinos & Gaming............................ 2.07
Paper Packaging............................. 2.07
Steel....................................... 1.95
Marine Ports & Services..................... 1.87
Life & Health Insurance..................... 1.83
Semiconductors.............................. 1.70
Trucking.................................... 1.54
Food Retail................................. 1.40
Technology Distributors..................... 1.39
Consumer Finance............................ 1.31
Precious Metal & Mineral.................... 1.26
Multi - line Insurance...................... 1.26
Distributors................................ 1.20
Highways & Rail tracks...................... 1.16
Property & Casualty Insurance............... 1.11
Other Diversified Financial Services........ 1.09
Tobacco..................................... 1.08
Oil & Gas Equipment & Services.............. 1.01
Water Utilities............................. 1.00
Railroads................................... 0.94
Metal & Glass Containers.................... 0.84
Brewers..................................... 0.79
Aerospace & Defense......................... 0.79
Restaurants................................. 0.71
Asset Management & Custody Banks............ 0.68
Auto Parts & Equipment...................... 0.65
Department Stores........................... 0.58
Home Improvement Retail..................... 0.40
Investment Banking & Brokerage.............. 0.22
--------
Long Term Investments....................... 97.08
Short Term Investment....................... 0.57
--------
Total Investments........................... 97.65
Net Other Assets and Liabilities............ 2.35
--------
100.00%
========
See Notes to Financial Statements.
22
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 94.91%
AUSTRALIA - 0.84%
44,000 Boart Longyear Group ...... $ 84,518
12,300 Paladin Energy, Ltd. * .... 63,120
-----------
147,638
-----------
CANADA - 0.97%
164 Groupe Aeroplan, Inc. ..... 2,369
109 Jazz Air Income
Fund (a) (b) (c) .......... 543
3,077 SNC-Lavalin Group, Inc. ... 167,350
-----------
170,262
-----------
CYPRUS - 3.99%
98,700 Marfin Popular Bank Public
Co., Ltd. ................. 701,733
-----------
DENMARK - 2.33%
5,053 Carlsberg A/S ............. 409,955
-----------
GERMANY - 8.25%
4,500 Bayer AG .................. 388,931
8,185 Demag Cranes AG ........... 449,040
17,723 Deutsche Post AG .......... 416,271
1,594 Siemens AG ................ 195,544
-----------
1,449,786
-----------
GREECE - 2.60%
14,753 Public Power Corp. S.A. ... 456,992
-----------
HONG KONG - 1.39%
46,000 BOC Hong Kong (Holdings),
Ltd. ...................... 116,863
10,000 Henderson Land Development
Co., Ltd. ................. 62,552
32,000 Sino Land Co. Ltd. ........ 64,397
-----------
243,812
-----------
ISRAEL - 0.41%
3,140 Check Point Software
Technologies, Ltd * ....... 71,686
-----------
JAPAN - 10.10%
17,000 Daiwa Securities
Group, Inc. ............... 149,066
59,000 Hokuhoku Financial
Group, Inc. ............... 152,032
2,900 HOYA Corp. ................ 59,944
13,100 Leopalace21 Corp. ......... 177,160
16,800 Mitsubishi UFJ Financial
Group, Inc. ............... 148,031
VALUE
SHARES (NOTE 2)
------ --------
JAPAN - (continued)
400 Nintendo Co., Ltd. ........ $ 192,888
5,800 NSD Co., Ltd. ............. 67,201
123 NTT DoCoMo, Inc. .......... 199,062
21,000 Sekisui Chemical Co., Ltd. 133,920
24 Sumitomo Mitsui Financial
Group, Inc. ............... 188,645
3,000 TDK Corp. ................. 180,748
10,000 Yamato Holdings Co., Ltd. . 125,319
-----------
1,774,016
-----------
NORWAY - 2.64%
67,200 Storebrand ASA ............ 464,680
-----------
SINGAPORE - 3.23%
8,000 DBS Group Holdings, Ltd. .. 112,330
39,000 Keppel Corp., Ltd. ........ 301,559
48,000 Wilmar International, Ltd. 153,203
-----------
567,092
-----------
SPAIN - 2.47%
16,660 Telefonica S.A. ........... 434,017
-----------
SWEDEN - 0.57%
9,500 Telefonaktiebolaget LM
Ericsson, B shares. ....... 99,553
-----------
SWITZERLAND - 3.75%
8,530 Compagnie Financiere
Richemont AG .............. 511,859
3,340 Nestle S.A. ............... 146,378
-----------
658,237
-----------
TAIWAN - 0.44%
1,235 High Tech Computer
Corp., GDR ................ 76,941
-----------
THAILAND - 0.47%
330,000 Krung Thai Bank PCL ....... 83,264
-----------
UNITED KINGDOM - 8.83%
57,084 Afren plc * ............... 140,181
7,873 Aggreko plc ............... 110,219
14,322 Aquarius Platinum, Ltd. ... 141,169
5,273 Autonomy Corp., plc * ..... 111,168
3,818 Carnival plc .............. 133,325
6,842 Dana Petroleum plc * ...... 194,552
32,042 Fenner plc ................ 154,376
2,738 Intermediate Capital
Group plc ................. 72,871
20,216 Tui Travel plc ............ 79,686
14,641 United Business Media, Ltd. 163,153
50,289 Vodafone Group plc ........ 135,025
1,615 Xstrata plc ............... 115,774
-----------
1,551,499
-----------
See Notes to Financial Statements.
23
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
UNITED STATES - 41.63%
4,471 Abbott Laboratories ....... $ 251,896
8,100 Adobe Systems, Inc. * ..... 334,935
3,816 American Express Co. ...... 141,650
9,682 American Tower Corp.
Class A * ................. 405,676
4,884 Anheuser-Busch Cos, Inc. .. 330,940
1,135 Apple, Inc. * ............. 180,408
2,900 Assurant, Inc. ............ 174,348
6,230 Bank of America Corp. ..... 204,967
2,675 Burlington Northern
Santa Fe Corp. ............ 278,548
28,985 Cenveo, Inc. * ............ 267,821
3,179 Citrix Systems, Inc. * .... 84,689
5,758 Coach, Inc. * ............. 146,887
2,250 CommScope, Inc. * ......... 100,327
10,720 Corrections Corporation
of America * .............. 300,482
11,269 El Paso Corp. ............. 202,053
3,548 Freeport-McMoRan Copper &
Gold, Inc. ................ 343,269
3,875 General Cable Corp. * ..... 223,316
8,058 Herbalife, Ltd. ........... 348,025
13,585 Horsehead Holding Corp. * . 165,737
4,600 Intel Corp. ............... 102,074
989 International Business
Machines Corp. ............ 126,572
3,700 Marathon Oil Corp. ........ 183,039
3,468 Merck & Co., Inc. ......... 114,097
4,748 Owens-Illinois, Inc. * .... 200,555
2,719 Peabody Energy Corp. ...... 183,940
3,512 PepsiCo, Inc. ............. 233,759
5,475 Philip Morris
International, Inc. ....... 282,784
945 Priceline.com, Inc. * ..... 108,628
12,610 Republic Services, Inc. ... 409,825
6,400 Southern Co. .............. 226,496
5,708 The Brink's Co. ........... 393,624
6,667 The Williams Companies,
Inc. ...................... 213,677
1,553 Trimble Navigation,
Ltd. * .................... 51,560
-----------
7,316,604
-----------
TOTAL COMMON STOCK ........ 16,677,767
(Cost $18,158,447) -----------
PREFERRED STOCK - 2.43%
GERMANY - 2.43%
5,252 Fresenius AG .............. 427,672
-----------
TOTAL PREFERRED STOCK ..... 427,672
(Cost $414,961) -----------
TOTAL LONG TERM
INVESTMENTS ............... 17,105,439
(Cost $18,573,408) -----------
VALUE
SHARES (NOTE 2)
------ --------
SHORT TERM INVESTMENT - 2.74%
481,045 Fidelity Institutional
Treasury Portfolio ........ $ 481,045
-----------
TOTAL SHORT TERM
INVESTMENT ................ 481,045
(Cost $481,045) -----------
TOTAL INVESTMENTS - 100.08% ............ 17,586,484
(Cost $19,054,453) -----------
NET OTHER ASSETS AND
LIABILITIES - (0.08)% ..... (13,403)
-----------
TOTAL NET ASSETS - 100.00%.............. $17,573,081
===========
* Non income producing security
(a) Restricted security.
(b) 144A securities are those that are exempt from registration under 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, 2008 these
securities had an aggregate value of $543, which represented 0.00% of net
assets.
(c) Fair valued at July 31, 2008 as determined in good faith using procedures
approved by the Trustees of the Trust.
GDR Global Depositary Receipts
See Notes to Financial Statements.
24
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL OPPORTUNITIES FUND
JULY 31, 2008 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Diversified Banks........................... 7.69%
Diversified Commercial & Professional Services 4.58
Pharmaceuticals............................. 4.30
Brewers..................................... 4.22
Wireless Telecommunication Services......... 4.21
Electric Utilities.......................... 3.89
Apparel, Accessories & Luxury Goods......... 3.75
Diversified Metal & Mining.................. 3.55
Application Software........................ 3.40
Air Freight & Logistics..................... 3.08
Industrial Conglomerates.................... 2.83
Life & Health Insurance..................... 2.65
Construction & Farm Machinery & Truck....... 2.56
Integrated Telecommunication Services....... 2.47
Health Care Equipment....................... 2.43
Oil & Gas Storage & Transportation.......... 2.37
Environment & Facilities Services........... 2.33
Computer Hardware........................... 2.19
Personal Products........................... 1.98
Oil & Gas Exploration & Production.......... 1.91
Real Estate Management & Development........ 1.73
Tobacco..................................... 1.61
Railroads................................... 1.58
Commercial Printing......................... 1.52
Construction & Engineering.................. 1.43
Coal & Consumable Fuels..................... 1.41
Electronic Equipment Manufacturing.......... 1.37
Soft Drinks................................. 1.33
Electric Component & Equipment.............. 1.27
Hotels, Resorts & Cruise.................... 1.21
Other Diversified Financial Services........ 1.17
Metal & Glass Containers.................... 1.14
Communications Equipment.................... 1.14
Home Entertainment Software................. 1.10
Integrated Oil & Gas........................ 1.04
Multi-line Insurance........................ 0.99
Publishing.................................. 0.93
Industrial Machinery........................ 0.88
Agricultural Products....................... 0.87
Regional Banks.............................. 0.86
Investment Banking & Brokerage.............. 0.85
Packaged Foods & Meats...................... 0.83
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Consumer Finance............................ 0.81%
Precious Metal & Mineral.................... 0.80
Homebuilding................................ 0.76
Internet Retail............................. 0.62
Semiconductors.............................. 0.58
Asset Management & Custody Banks............ 0.41
Systems Software............................ 0.41
Electronic Manufacturing Services........... 0.29
Advertising................................. 0.01
-------
Long Term Investments....................... 97.34
Short Term Investment....................... 2.74
-------
Total Investments........................... 100.08
Net Other Assets and Liabilities............ (0.08)
-------
100.00%
=======
See Notes to Financial Statements.
25
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL TECHNOLOGY FUND
JULY 31, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 93.82%
CHINA - 2.86%
103,463 Focus Media Holding,
Ltd., ADR * ................. $ 3,073,886
93,754 Shanda Interactive
Entertainment, Ltd., ADR * .. 2,421,666
------------
5,495,552
------------
DENMARK - 3.18%
46,575 Vestas Wind Systems A/S * ... 6,123,019
------------
FRANCE - 1.77%
53,000 Cap Gemini S.A. ............. 3,400,794
------------
GERMANY - 2.16%
71,883 SAP AG ...................... 4,160,663
------------
ISRAEL - 2.47%
210,000 Ceragon Networks, Ltd. * .... 1,652,700
136,000 Check Point Software
Technologies, Ltd.* ......... 3,104,880
------------
4,757,580
------------
JAPAN - 1.53%
6,100 Nintendo Co., Ltd. .......... 2,941,541
------------
2,941,541
------------
KOREA - 1.52%
136,000 Gmarket, Inc. ADR * ......... 2,915,840
------------
2,915,840
------------
SINGAPORE - 1.27%
110,093 Verigy, Ltd. * .............. 2,447,367
------------
SWEDEN - 2.80%
514,532 Telefonaktiebolaget LM
Ericsson, B Shares .......... 5,391,929
------------
TAIWAN - 4.32%
454,661 Powertech Technology, Inc.,
GDR ......................... 2,606,480
334,000 Richtek Technolog Corp. ..... 2,876,525
297,492 Taiwan Semiconductor
Manufacturing Co.,
Ltd., ADR ................... 2,826,178
------------
8,309,183
------------
UNITED KINGDOM - 6.27%
1,700,000 ARM Holdings plc ............ 3,204,927
276,953 Autonomy Corp., plc * ....... 5,838,880
1,124,000 Vodafone Group plc .......... 3,017,917
------------
12,061,724
------------
VALUE
SHARES (NOTE 2)
------ --------
UNITED STATES - 63.67%
155,990 Adobe Systems, Inc. * ....... $ 6,450,186
76,091 Akamai Technologies,
Inc. * ...................... 1,775,964
144,000 Altera Corp. ................ 3,160,800
37,254 Amazon.com, Inc. * .......... 2,843,970
18,929 Apple, Inc. * ............... 3,008,765
145,777 Automatic Data Processing,
Inc. ........................ 6,226,136
130,000 Cisco Systems, Inc. * ....... 2,858,700
106,224 Citrix Systems, Inc. * ...... 2,829,807
123,585 CommScope, Inc. * ........... 5,510,655
122,000 ComScore, Inc. * ............ 2,327,760
124,298 Dell, Inc. * ................ 3,054,002
76,250 DTS, Inc. * ................. 2,179,987
237,673 EMC Corp. * ................. 3,567,472
5,600 Google, Inc., Class A * ..... 2,653,000
71,111 Hewlett-Packard Co. ......... 3,185,773
265,087 Intel Corp. ................. 5,882,281
71,127 International Business
Machines Corp. .............. 9,102,833
369,000 Marvell Technology
Group, Ltd. * ............... 5,457,510
93,750 McAfee, Inc. * .............. 3,070,312
237,671 Microsoft Corp. ............. 6,112,898
371,397 ON Semiconductor Corp. * .... 3,487,418
140,000 Oracle Corp. * .............. 3,014,200
850,000 Powerwave Technologies,
Inc. * ...................... 3,485,000
26,167 Priceline.com, Inc. * ....... 3,007,897
106,787 QUALCOMM, Inc. .............. 5,909,593
41,750 Sohu.com, Inc. * ............ 3,151,290
100,050 Starent Networks Corp. * .... 1,310,655
126,486 Take-Two Interactive
Software, Inc. * ............ 2,883,881
410,000 Tekelec * ................... 6,391,900
87,187 Trimble Navigation, Ltd. * .. 2,894,608
87,735 Varian Semiconductor
Equipment Associates, Inc. * 2,563,617
121,500 VistaPrint, Ltd. ............ 3,131,055
------------
122,489,925
------------
TOTAL LONG TERM
INVESTMENTS ................. 180,495,117
(Cost $181,775,987) ------------
See Notes to Financial Statements.
26
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
GLOBAL TECHNOLOGY FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
SHORT TERM INVESTMENT - 4.63%
8,919,334 Fidelity Institutional
Treasury Portfolio .......... $ 8,919,334
------------
TOTAL SHORT TERM
INVESTMENT 8,919,334
(Cost $8,919,334) ........... ------------
TOTAL INVESTMENTS - 98.45% ............... 189,414,451
(Cost $190,695,321) ------------
NET OTHER ASSETS AND
LIABILITIES - 1.55% ......... 2,974,669
------------
TOTAL NET ASSETS - 100.00% ............... $192,389,120
============
* Non income producing security
ADR American Depositary Receipt
GDR Global Depositary Receipt
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Communications Equipment.................... 16.90%
Semiconductors.............................. 15.33
Application Software........................ 10.02
Computer Hardware........................... 9.54
Internet Software & Services................ 8.29
Systems Software............................ 7.96
Home Entertainment Software................. 4.29
Data Processing & Outsourced Services....... 3.24
Heavy Electrical Equipment.................. 3.18
Internet Retail............................. 3.04
Semiconductor Equipment..................... 2.60
Computer Storage & Peripheral............... 1.86
IT Consulting & Other Services.............. 1.77
Advertising................................. 1.60
Wireless Telecomm Services.................. 1.57
Electronic Manufacture Services............. 1.50
Electronic Equipment Manufacturing.......... 1.13
-------
Long Term Investments....................... 93.82
Short Term Investment....................... 4.63
-------
Total Investments........................... 98.45
Net Other Assets and Liabilities............ 1.55
-------
100.00%
=======
See Notes to Financial Statements.
27
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 89.16%
AUSTRALIA - 1.05%
1,145,000 BHP Billiton, Ltd. ....... $ 42,812,625
--------------
CHINA - 4.65%
50,000,000 Bank of China, Ltd.,
Class H .................. 22,944,012
77,647,000 China CITIC Bank,
Class H .................. 49,564,456
14,448,000 China Shipping
Development Co., Ltd. .... 44,446,267
9,192,000 Harbin Power Equipment
Co., Ltd. ................ 14,421,411
125,809,000 SRE Group, Ltd. .......... 14,835,967
24,042,000 Yanzhou Coal Mining Co.,
Ltd., Class H ............ 44,006,327
--------------
190,218,440
--------------
DENMARK - 2.95%
10,400 A P Moller - Maersk A/S .. 120,820,069
--------------
FRANCE - 14.04%
1,315,149 Essilor International S.A. 65,000,694
3,460,000 France Telecom S.A. ...... 109,859,209
3,838,351 Rhodia S.A. .............. 72,551,765
700,000 Schneider Electric S.A. .. 77,307,763
1,710,219 Sodexho Alliance S.A. .... 111,423,075
3,320,000 Vivendi S.A. ............. 138,767,105
--------------
574,909,611
--------------
GERMANY - 6.24%
972,000 Beiersdorf AG * .......... 62,680,457
1,033,000 Deutsche Boerse AG ....... 117,784,889
1,299,000 SAP AG ................... 75,187,478
--------------
255,652,824
--------------
GREECE - 0.80%
691,600 National Bank of
Greece S.A. .............. 32,952,133
--------------
HONG KONG - 3.61%
9,437,000 Beijing Enterprises
Holdings, Ltd. ........... 35,804,861
6,060,000 China Mobile, Ltd. ....... 81,482,517
7,399 HKC Holdings, Ltd. * ..... 121
1,785,000 Hong Kong Exchanges &
Clearing, Ltd. ........... 26,609,349
24,565,000 Neo-China Group (Holdings),
Ltd. (a) ................. 4,006,737
--------------
147,903,585
--------------
IRELAND - 1.24%
1,990,000 CRH plc .................. 50,808,927
--------------
VALUE
SHARES (NOTE 2)
------ --------
ISRAEL - 0.45%
810,586 Check Point Software
Technologies, Ltd. * ..... $ 18,505,678
--------------
ITALY - 2.84%
2,615,849 Parmalat SpA ............. 6,482,471
2,836,564 Saipem SpA ............... 109,689,619
--------------
116,172,090
--------------
JAPAN - 18.31%
9,483,000 Daiwa Securities
Group, Inc. .............. 83,152,598
28,905,000 Hokuhoku Financial
Group, Inc. .............. 74,482,922
1,464,000 HOYA Corp. ............... 30,261,111
6,906,200 Leopalace21 Corp. ........ 93,397,097
3,571,000 NSD Co., Ltd. ............ 41,375,075
64,058 NTT DoCoMo, Inc. ......... 103,670,824
9,873,000 Sekisui Chemical Co., Ltd. 62,961,709
12,372 Sumitomo Mitsui
Financial Group, Inc. .... 97,246,661
1,516,700 TDK Corp. ................ 91,380,173
5,744,000 Yamato Holdings
Co., Ltd. ................ 71,983,019
--------------
749,911,189
--------------
KOREA - 0.92%
1,837,600 Hyundai Marine & Fire
Insurance Co., Ltd. ...... 37,585,416
--------------
NETHERLANDS - 2.37%
1,700,000 Akzo Nobel N.V. .......... 97,064,949
--------------
RUSSIA - 2.80%
2,390,000 OAO Gazprom, ADR ......... 114,508,423
--------------
SINGAPORE - 3.01%
4,529,000 DBS Group Holdings, Ltd. . 63,592,804
37,805,800 Noble Group, Ltd. ........ 59,719,561
--------------
123,312,365
--------------
SPAIN - 2.61%
2,220,344 Industria de Diseno
Textil S.A. .............. 106,713,583
--------------
SWEDEN - 0.61%
2,400,000 Telefonaktiebolaget LM
Ericsson, B Shares ....... 25,150,291
--------------
SWITZERLAND - 6.19%
3,975,330 ABB, Ltd. * .............. 104,753,532
930,000 Compagnie Financiere
Richemont S.A. ........... 55,806,451
1,113,566 Kuehne & Nagel
International AG ......... 92,946,201
--------------
253,506,184
--------------
See Notes to Financial Statements.
28
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
TURKEY - 2.02%
12,200,000 Turkiye Halk
Bankasi A.S. ............. $ 82,631,968
--------------
UNITED KINGDOM - 8.02%
1,487,738 Autonomy Corp., plc * .... 31,365,335
731,613 Cairn Energy plc * ....... 39,444,957
9,451,491 Capita Group plc ......... 128,701,078
14,104,801 Debenhams plc ............ 11,281,341
8,104,063 Hochschild Mining plc .... 49,150,665
952,433 Xstrata plc .............. 68,276,735
--------------
328,220,111
--------------
UNITED STATES - 4.43%
674,100 Adobe Systems, Inc. * .... 27,874,035
893,763 Citrix Systems, Inc. * ... 23,809,846
515,000 CommScope, Inc. * ........ 22,963,850
1,327,669 Intel Corp. .............. 29,460,975
257,306 International Business
Machines Corp. ........... 32,930,022
270,000 Priceline.com, Inc. * .... 31,036,500
400,933 Trimble Navigation, Ltd. * 13,310,976
--------------
181,386,204
--------------
TOTAL COMMON STOCK ....... 3,650,746,665
(Cost $3,759,010,754) --------------
PREFERRED STOCK - 2.93%
GERMANY - 2.93%
1,473,654 Fresenius AG ............. 120,000,226
--------------
TOTAL PREFERRED STOCK .... 120,000,226
(Cost $90,927,261) --------------
TOTAL LONG TERM
INVESTMENTS .............. 3,770,746,891
(Cost $3,849,938,015) --------------
VALUE
SHARES (NOTE 2)
------ --------
SHORT TERM INVESTMENT - 8.20%
335,907,263 Fidelity Institutional
Treasury Portfolio ....... $ 335,907,263
--------------
TOTAL SHORT TERM
INVESTMENT ............... 335,907,263
(Cost $335,907,263) --------------
TOTAL INVESTMENTS - 100.29% ............ 4,106,654,154
(Cost $4,185,845,278) --------------
NET OTHER ASSETS AND
LIABILITIES - (0.29)% .... (11,744,159)
--------------
TOTAL NET ASSETS - 100.00%.............. $4,094,909,995
==============
* Non income producing security
(a) Fair valued at July 31, 2008 as determined in good faith using
procedures approved by the Trustees of the Trust.
ADR American Depositary Receipt
See Notes to Financial Statements.
29
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
INTERNATIONAL OPPORTUNITIES FUND
JULY 31, 2008 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Diversified Banks........................... 8.52%
Marine...................................... 6.31
Application Software........................ 4.88
Wireless Telecommunication Services......... 4.52
Specialized Finance......................... 3.53
Movies & Entertainment...................... 3.39
Human Resource & Employment Services........ 3.14
Electronic Equip Manufacturing.............. 2.97
Health Care Equipment....................... 2.93
Heavy Electrical Equipment.................. 2.91
Integrated Oil & Gas........................ 2.80
Real Estate Management & Development........ 2.74
Restaurants................................. 2.72
Diversified Metal & Mining.................. 2.71
Integrated Telecommunication Services....... 2.68
Oil & Gas Equipment & Services.............. 2.68
Apparel Retail.............................. 2.61
Diversified Chemicals....................... 2.37
Investment Banking & Brokerage.............. 2.03
Electric Component & Equipment.............. 1.89
Regional Banks.............................. 1.82
Specialty Chemicals......................... 1.77
Air Freight & Logistics..................... 1.76
Health Care Supplies........................ 1.59
Homebuilding................................ 1.54
Personal Products........................... 1.53
Trading Company & Distribution.............. 1.46
Apparel, Accessories & Luxury Goods......... 1.36
Construction Materials...................... 1.24
Precious Metal & Mineral.................... 1.20
Communications Equipment.................... 1.17
Coal & Consumable Fuels..................... 1.07
Oil & Gas Exploration & Production.......... 0.96
Property & Casualty Insurance............... 0.92
Industrial Conglomerates.................... 0.87
Computer Hardware........................... 0.80
Internet Retail............................. 0.76
Semiconductors.............................. 0.72
Systems Software............................ 0.45
Electronic Manufacturing Services........... 0.33
Department Stores........................... 0.28
Packaged Foods & Meats...................... 0.16
-------
Long Term Investments....................... 92.09
Short Term Investment....................... 8.20
-------
Total Investments........................... 100.29
Net Other Assets and Liabilities............ (0.29)
-------
100.00%
=======
See Notes to Financial Statements.
30
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
JAPAN-ASIA FOCUS FUND
JULY 31, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 100.67%
HONG KONG - 0.75%
195,000 Sino Land Co., Ltd. ........... $ 392,419
-----------
JAPAN - 97.77%
91,200 Aeon Co., Ltd. ................ 1,115,855
96,000 Bridgestone Corp. ............. 1,570,561
82,000 Daiwa House Industry
Co., Ltd. ..................... 779,070
165,000 Daiwa Securities Group, Inc. .. 1,446,818
689,000 Furukawa-Sky Aluminum Corp. ... 1,743,495
109,790 Hitachi Systems & Services,
Ltd. .......................... 1,674,047
653,000 Hokuhoku Financial Group, Inc. 1,682,662
60,000 HOYA Corp. .................... 1,240,210
183,000 J Front Retailing Co., Ltd. ... 997,395
197,000 Japan Asia Investment Co.,
Ltd. .......................... 891,097
365,200 Kanto Tsukuba Bank, Ltd. ...... 1,797,481
45,750 Kappa Create Co., Ltd. ........ 877,810
160,000 Leopalace21 Corp. ............. 2,163,786
214,800 Mitsubishi UFJ Financial
Group, Inc. ................... 1,933,270
459 Nippon Paper Group, Inc. ...... 1,297,632
778,000 Nishi-Nippon City Bank, Ltd. .. 2,271,586
58,700 NS Solutions Corp. ............ 1,123,562
73,400 NSD Co., Ltd. ................. 850,443
1,686 NTT DoCoMo, Inc. .............. 2,728,605
138,000 Otsuka Kagu, Ltd. ............. 1,274,023
102,400 Resorttrust, Inc. ............. 1,339,263
313,000 Sekisui Chemical Co., Ltd. .... 1,996,051
101,800 Shinko Electric Industries
Co., Ltd. ..................... 1,365,385
389 Sumitomo Mitsui Financial
Group, Inc. ................... 3,057,626
25,050 T&D Holdings, Inc. ............ 1,585,869
50,800 Takeda Pharmaceutical Co., Ltd. 2,707,513
46,100 TDK Corp. ..................... 2,777,495
16,560 Token Corp. ................... 652,361
424,000 Ube Industries, Ltd. .......... 1,532,743
157 West Japan Railway Co. ........ 745,090
97,400 Xebio Co., Ltd. ............... 2,008,759
124,000 Yamato Holdings Co., Ltd. ..... 1,553,951
-----------
50,781,514
-----------
MALAYSIA - 0.96%
193,000 Tenaga Nasional Berhad ........ 497,912
-----------
SINGAPORE - 1.19%
44,000 DBS Group Holdings, Ltd. ...... 617,815
-----------
TOTAL INVESTMENTS - 100.67% 52,289,660
(Cost $62,645,878) ............ -----------
NET OTHER ASSETS AND
LIABILITIES - (0.67)% ......... (348,657)
-----------
TOTAL NET ASSETS - 100.00%.................. $51,941,003
===========
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Regional Banks.............................. 11.07%
Diversified Banks........................... 10.80
Electronic Equipment Manufacturing.......... 7.73
Real Estate Management & Development........ 6.42
IT Consulting & Other Services.............. 5.39
Wireless Telecommunication Services......... 5.25
Pharmaceuticals............................. 5.21
Homebuilding................................ 5.10
Specialty Stores............................ 3.87
Aluminum.................................... 3.36
Life & Health Insurance..................... 3.05
Tires & Rubber.............................. 3.02
Air Freight & Logistics..................... 2.99
Diversified Chemicals....................... 2.95
Investment Banking & Brokerage.............. 2.79
Semiconductors.............................. 2.63
Hotels, Resorts & Cruise.................... 2.58
Paper Products.............................. 2.50
Home Furnishing Retail...................... 2.45
Hypermarkets & Super Centers................ 2.15
Department Stores........................... 1.92
Asset Management & Custody Banks............ 1.72
Restaurants................................. 1.69
Application Software........................ 1.64
Railroads................................... 1.43
Electric Utilities.......................... 0.96
-------
Total Investments........................... 100.67
Net Other Assets and Liabilities............ (0.67)
-------
100.00%
=======
See Notes to Financial Statements.
31
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
US FOCUS FUND
JULY 31, 2008
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 97.48%
AIRLINES - 0.07%
1,339 Jazz Air Income Fund
(Canada) (a) (b) (c) .......... $ 6,669
-----------
BEVERAGES - 6.43%
3,743 Anheuser-Busch Cos, Inc. ...... 253,626
5,093 PepsiCo, Inc. ................. 338,990
-----------
592,616
-----------
COMMERCIAL SERVICES
& SUPPLIES - 15.37%
26,550 Cenveo, Inc. * ................ 245,322
15,642 Corrections Corporation
of America * .................. 438,445
11,467 Republic Services, Inc. ....... 372,678
5,229 The Brink's Co. ............... 360,592
-----------
1,417,037
-----------
COMMUNICATIONS
EQUIPMENT - 1.86%
2,000 CommScope, Inc. * ............. 89,180
20,000 Powerwave Technologies,
Inc. * ........................ 82,000
-----------
171,180
-----------
COMPUTER &
PERIPHERAL - 4.30%
1,885 Apple, Inc. * ................. 299,621
755 International Business
Machines Corp. ................ 96,625
-----------
396,246
-----------
CONSTRUCTION &
ENGINEERING - 2.65%
4,484 SNC-Lavalin Group,
Inc. (Canada) ................. 243,873
-----------
CONSUMER FINANCE - 2.36%
5,858 American Express Co. .......... 217,449
-----------
CONSUMER STAPLES - 3.44%
7,334 Herbalife, Ltd. ............... 316,755
-----------
CONTAINERS & PACKAGING - 3.48%
7,600 Owens-Illinois, Inc. * ........ 321,024
-----------
DIVERSIFIED FINANCIAL
SERVICES - 3.00%
8,400 Bank of America Corp. ......... 276,360
-----------
ELECTRIC UTILITIES - 3.65%
9,500 Southern Co. .................. 336,205
-----------
VALUE
SHARES (NOTE 2)
------ --------
ELECTRICAL EQUIPMENT - 3.53%
5,642 General Cable Corp. * ......... $ 325,148
-----------
ELECTRONIC EQUIPMENT &
INSTRUMENTS - 0.44%
1,209 Trimble Navigation, Ltd. * .... 40,139
-----------
INSURANCE - 2.80%
4,300 Assurant, Inc. ................ 258,516
-----------
INTERNET RETAIL - 0.81%
650 Priceline.com, Inc. * ......... 74,717
-----------
MEDIA - 0.31%
2,009 Groupe Aeroplan,
Inc. (Canada) ................. 29,018
-----------
METAL & MINING - 5.09%
3,291 Freeport-McMoRan Copper
& Gold, Inc. .................. 318,404
12,364 Horsehead Holding Corp. * ..... 150,841
-----------
469,245
-----------
OIL, GAS & CONSUMABLE
FUELS - 10.82%
9,666 El Paso Corp. ................. 173,311
5,500 Marathon Oil Corp. ............ 272,085
3,906 Peabody Energy Corp. .......... 264,241
8,970 The Williams Companies, Inc. .. 287,489
-----------
997,126
-----------
PHARMACEUTICALS - 6.00%
6,861 Abbott Laboratories ........... 386,549
5,050 Merck & Co., Inc. ............. 166,145
-----------
552,694
-----------
ROAD & RAIL - 4.03%
3,570 Burlington Northern Santa
Fe Corp. ...................... 371,744
-----------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT - 2.00%
3,750 Intel Corp. ................... 83,212
10,800 ON Semiconductor Corp. * ...... 101,412
-----------
184,624
-----------
SOFTWARE - 5.65%
10,893 Adobe Systems, Inc. * ......... 450,426
2,650 Citrix Systems, Inc. * ........ 70,596
-----------
521,022
-----------
See Notes to Financial Statements.
32
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
US FOCUS FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
------ --------
TEXTILE, APPAREL &
LUXURY GOODS - 2.18%
7,858 Coach, Inc. * ................. $ 200,458
-----------
TOBACCO - 2.81%
5,015 Philip Morris International,
Inc. .......................... 259,025
-----------
WIRELESS TELECOMMUNICATION
SERVICES - 4.40%
9,676 American Tower Corp.
Class A * ..................... 405,424
-----------
TOTAL LONG TERM
INVESTMENTS
(Cost $8,524,819) ............. 8,984,314
-----------
SHORT TERM INVESTMENTS - 2.52%
232,579 Fidelity Institutional
Treasury Portfolio ............ 232,579
-----------
TOTAL SHORT TERM
INVESTMENT .................... 232,579
(Cost $232,579) -----------
TOTAL INVESTMENTS - 100.00% ................ 9,216,893
(Cost $8,757,398) -----------
NET OTHER ASSETS AND
LIABILITIES - (0.00%) ......... (33)
-----------
TOTAL NET ASSETS - 100.00%.................. $ 9,216,860
===========
* Non income producing security
(a) Restricted security.
(b) 144A securities are those that are exempt from registration under 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,
2008 these securities represent $6,669, which represented 0.07% of net
assets.
(c) Fair valued at July 31, 2008 as determined in good faith using
procedures approved by the Trustees of the Trust.
See Notes to Financial Statements.
33
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2008
FACE VALUE
AMOUNT COUPON MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 78.99%
BELGIUM - 1.48%
USD 1,515,000 Petroplus Finance, Ltd. (a) .................................. 7.000% 5/1/17 $ 1,318,050
EUR 600,000 WDAC Subsidiary Corp. ........................................ 8.500 12/1/14 657,477
------------
1,975,527
------------
CANADA - 2.22%
EUR 2,000,000 Bombardier, Inc. ............................................. 7.250 11/15/16 2,955,917
------------
CROATIA - 0.62%
EUR 550,000 Agrokor D.D. ................................................. 7.000 11/23/11 829,607
------------
DENMARK - 2.00%
EUR 1,950,000 FS Funding AS ................................................ 8.875 5/15/16 2,661,495
------------
FINLAND - 0.87%
EUR 1,000,000 M-real OYJ (b) ............................................... 9.333 12/15/10 1,162,089
------------
FRANCE - 6.27%
USD 400,000 AXA S.A. (c) ................................................. 7.100 11/7/08 374,000
EUR 200,000 Belvedere S.A. (a) (d) ....................................... 8.106 5/15/13 1,161,932
USD 3,000,000 Credit Agricole S.A. (c) ..................................... 6.637 5/31/17 2,372,172
EUR 1,120,000 Crown European Holdings S.A. ................................. 6.250 9/1/11 1,642,211
EUR 2,000,000 Rhodia S.A. (b) .............................................. 7.713 10/15/13 2,815,531
------------
8,365,846
------------
GERMANY - 4.90%
EUR 2,200,000 Cognis GmbH .................................................. 9.500 5/15/14 3,174,296
USD 1,100,000 Kabel Deutschland GmbH ....................................... 10.625 7/1/14 1,130,250
EUR 1,400,000 Kabel Deutschland GmbH ....................................... 10.750 7/1/14 2,238,386
------------
6,542,932
------------
GREECE - 0.31%
EUR 300,000 Hellas Telecommunications Luxembourg V (b) ................... 8.463 10/15/12 416,480
------------
IRELAND - 2.89%
EUR 1,900,000 BCM Ireland Finance, Ltd. (a) ................................ 9.856 8/15/16 2,615,480
EUR 300,000 BCM Ireland Finance, Ltd. (a) (b) ............................ 9.856 8/15/16 412,970
USD 850,000 VIP Finance Ireland, Ltd. (a) ................................ 9.125 4/30/18 832,652
------------
3,861,102
------------
ITALY - 4.36%
EUR 300,000 Lighthouse International Co., S.A. ........................... 8.000 4/30/14 341,607
EUR 1,900,000 Lottomatica SpA (c) .......................................... 8.250 3/31/16 2,548,796
EUR 1,400,000 Wind Acquisition Finance S.A. ................................ 9.750 12/1/15 2,151,034
USD 750,000 Wind Acquisition Finance S.A. (a) ............................ 10.750 12/1/15 780,000
------------
5,821,437
------------
See Notes to Financial Statements.
34
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2008 (CONTINUED)
FACE VALUE
AMOUNT COUPON MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
LUXEMBOURG - 5.56%
EUR 2,200,000 Cablecom Luxembourg SCA ...................................... 8.000% 11/1/16 $ 2,993,790
GBP 400,000 Glencore Finance Europe S.A. ................................. 6.500 2/27/19 699,604
EUR 2,300,000 Hellas Telecommunications Luxembourg II (b) .................. 10.963 1/15/15 2,672,804
USD 1,700,000 Nell AF Sarl ................................................. 8.375 8/15/15 1,054,000
------------
7,420,198
------------
NETHERLANDS - 7.29%
USD 2,575,000 Allianz Finance II B.V. (c) .................................. 7.250 9/10/08 2,435,986
USD 2,000,000 Arran Corporate Loans B.V. Class E3 (b) ...................... 6.053 6/20/25 1,326,600
USD 500,000 Impress Holdings B.V. (a) (b) ................................ 5.916 9/15/13 445,000
EUR 2,000,000 Impress Holdings B.V. (b) .................................... 8.088 9/15/13 2,819,430
USD 3,000,000 Lukoil International Finance B.V. (a) ........................ 6.356 6/7/17 2,692,500
------------
9,719,516
------------
NORWAY - 2.23%
EUR 400,000 Nordic Telephone Company ApS ................................. 8.250 5/1/16 561,546
EUR 1,600,000 Nordic Telephone Company ApS (b) ............................. 10.357 5/1/16 2,408,410
------------
2,969,956
------------
RUSSIA - 0.20%
USD 300,000 VTB Capital S.A. (a) ......................................... 6.250 6/30/35 269,250
------------
UKRAINE - 1.53%
USD 2,300,000 City of Kiev ................................................. 8.000 11/6/15 2,035,500
------------
UNITED KINGDOM - 20.56%
USD 3,800,000 Aberdeen Asset Management plc (c) ............................ 7.900 5/29/12 2,850,000
GBP 350,000 Allied Domecq Financial Services plc ......................... 6.625 6/12/14 638,895
USD 3,250,000 Barclays Bank plc (a) (c) .................................... 5.926 12/15/16 2,572,849
USD 2,250,000 Catlin Insurance Co., Ltd. (a) (c) ........................... 7.249 1/19/17 1,342,588
EUR 1,000,000 Colt Telecom Group S.A. ...................................... 7.625 12/15/09 1,559,851
EUR 365,000 FKI plc ...................................................... 6.625 2/22/10 563,652
EUR 200,000 Investec Tier I UK LP plc (c) ................................ 7.075 6/24/15 212,992
EUR 2,500,000 Lehman Brothers UK Capital Funding IV LP (c) (+) ............. 5.750 4/25/12 1,877,670
USD 3,191,000 Lloyds TSB Group plc (a) (c) ................................. 6.267 11/14/16 2,514,751
GBP 1,800,000 Virgin Media plc ............................................. 9.750 4/15/14 3,211,081
USD 3,000,000 Old Mutual Capital Funding (c) ............................... 8.000 12/22/08 2,812,500
GBP 550,000 Pipe Holding plc ............................................. 7.750 11/1/11 926,655
USD 3,700,000 Royal Bank of Scotland Group plc (c) ......................... 7.640 9/29/17 3,095,457
USD 4,000,000 Standard Chartered plc (c) ................................... 6.409 1/30/17 3,239,200
------------
27,418,141
------------
UNITED STATES - 15.70%
USD 3,000,000 AXA S.A. (a) (c) ............................................. 6.463 12/14/18 2,414,820
USD 1,900,000 BayernLB Capital Trust I (c) ................................. 6.203 5/31/17 1,313,470
EUR 900,000 Central European Distribution Corp. .......................... 8.000 7/25/12 1,354,730
GBP 1,400,000 Constellation Brands, Inc. ................................... 8.500 11/15/09 2,768,071
EUR 650,000 Fresenius Medical Care Capital Trust V (Preferred) ........... 7.375 6/15/11 1,003,764
GBP 1,700,000 HCA, Inc. .................................................... 8.750 11/1/10 3,218,018
USD 1,550,000 Hertz Corp. .................................................. 8.875 1/1/14 1,429,875
USD 1,400,000 Hertz Corp. .................................................. 10.500 1/1/16 1,225,000
EUR 450,000 Huntsman International LLC ................................... 7.500 1/1/15 621,211
EUR 1,700,000 Levi Strauss & Co. ........................................... 8.625 4/1/13 2,237,411
See Notes to Financial Statements.
35
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2008 (CONTINUED)
FACE VALUE
AMOUNT COUPON MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
UNITED STATES (CONTINUED)
USD 500,000 Sungard Data Systems, Inc. ................................... 10.250% 8/15/15 $ 510,000
USD 1,500,000 Swiss Re Capital I LP (a) (c) ................................ 6.854 5/25/16 1,287,819
GBP 300,000 WMG Acquisition Corp. ........................................ 8.125 4/15/14 460,850
USD 1,200,000 Wynn Las Vegas LLC ........................................... 6.625 12/1/14 1,092,000
------------
20,937,039
------------
TOTAL CORPORATE BONDS ........................................ 105,362,032
(Cost $117,399,057) ------------
FOREIGN SOVEREIGN BONDS - 10.95%
ARGENTINA - 2.20%
USD 7,400,000 Republic of Argentina (b) .................................... 3.127 8/3/12 2,939,819
------------
DOMINICAN REPUBLIC - 1.15%
USD 1,530,170 Dominican Republic ........................................... 9.040 1/23/18 1,533,995
------------
EL SALVADOR - 0.16%
USD 200,000 Republic of El Salvador ...................................... 8.500 7/25/11 211,200
------------
SRI LANKA - 2.92%
USD 4,300,000 Republic of Sri Lanka (a) .................................... 8.250 10/24/12 3,891,500
------------
TURKEY - 3.18%
USD 3,900,000 Republic of Turkey ........................................... 9.000 6/30/11 4,241,250
------------
URUGUAY - 1.34%
USD 1,500,000 Republic of Uruguay .......................................... 9.250 5/17/17 1,785,000
------------
TOTAL FOREIGN SOVEREIGN BONDS ................................ 14,602,764
(Cost $15,571,296) ------------
TOTAL CORPORATE AND FOREIGN SOVEREIGN BONDS .................. 119,964,796
(Cost $132,970,353 ------------
SHARES
- ------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 6.82%
AUSTRALIA - 0.09%
25,500 Transurban Group ............................................. 122,694
------------
CYPRUS - 0.08%
13,000 ProSafe SE ................................................... 113,148
------------
FRANCE - 0.48%
7,294 France Telecom S.A. .......................................... 231,593
5,350 Total S.A. ................................................... 410,181
------------
641,774
------------
See Notes to Financial Statements.
36
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
GERMANY - 0.48%
2,900 Bayer AG ..................................................... $ 250,644
5,500 Deutsche Post AG ............................................. 129,182
14,772 Deutsche Telekom AG .......................................... 256,793
------------
636,619
------------
HONG KONG - 0.34%
89,000 BOC Hong Kong (Holdings), Ltd. ............................... 224,350
370,000 PCCW, Ltd. ................................................... 233,442
------------
457,792
------------
ITALY - 0.37%
7,800 Eni SpA ...................................................... 263,852
56,400 Terna - Rete Elettrica Nationale SpA ......................... 234,257
------------
498,109
------------
NETHERLANDS - 0.33%
13,500 ING Groep N.V. ............................................... 441,317
------------
NEW ZEALAND - 0.33%
157,778 Telecom Corp. of New Zealand, Ltd. ........................... 436,687
------------
SINGAPORE - 0.15%
26,000 Keppel Corp., Ltd. ........................................... 200,006
------------
TAIWAN - 0.31%
83,335 Chungwha Telecom Co., Ltd. ................................... 209,924
21,106 Taiwan Semiconductor Manufacturing Co., Ltd., ADR ............ 200,506
------------
410,430
------------
UNITED KINGDOM - 2.22%
29,871 Barclays plc ................................................. 200,603
52,082 BT Group plc ................................................. 175,117
25,000 Dairy Crest Group plc ........................................ 194,017
85,000 Electrocomponents plc ........................................ 259,610
36,000 GKN plc ...................................................... 151,139
7,680 GlaxoSmithKline plc .......................................... 178,797
4,427 Greene King plc .............................................. 45,110
59,000 Hiscox, Ltd. ................................................. 232,528
180,000 Kingston Communications plc .................................. 127,252
13,922 Lloyds TSB Group plc ......................................... 81,274
9,800 National Express Group plc ................................... 188,357
6,898 National Grid plc ............................................ 90,908
15,700 Northumbrian Water Group plc ................................. 96,009
17,200 Pearson plc .................................................. 220,437
51,000 Topps Tiles plc .............................................. 48,465
11,359 United Utilities plc ......................................... 156,080
14,700 United Utilities Group plc, B shares ......................... 49,534
109,000 Vodafone Group plc ........................................... 292,663
33,000 Wincanton plc ................................................ 169,659
------------
2,957,559
------------
See Notes to Financial Statements.
37
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2008 (CONTINUED)
VALUE
SHARES (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
UNITED STATES - 1.64%
10,300 Atmos Energy Corp. ........................................... $ 272,641
9,804 Bank of America Corp. ........................................ 322,552
500 Bank of America Corp. ........................................ 466,500
6,320 H.J. Heinz Co. ............................................... 318,402
9,708 Progress Energy, Inc. ........................................ 410,745
11,537 Verizon Communications, Inc. ................................. 392,719
------------
2,183,559
------------
TOTAL COMMON STOCKS .......................................... 9,099,694
(Cost $10,809,923) ------------
TOTAL LONG TERM INVESTMENTS .................................. 129,064,490
(Cost $143,780,276) ------------
SHORT TERM INVESTMENT - 0.72%
952,892 Fidelity Institutional Treasury Portfolio .................... 952,892
------------
TOTAL SHORT TERM INVESTMENT .................................. 952,892
(Cost $952,892) ------------
TOTAL INVESTMENTS - 97.48% ..................................................... 130,017,382
(Cost $144,733,168) ------------
NET OTHER ASSETS AND LIABILITIES - 2.52% ....................................... 3,364,701
------------
TOTAL NET ASSETS - 100.00% ..................................................... $133,382,083
============
(a) 144A securities are those that are exempt from registration under 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, 2008 these
securities had an aggregate value of $28,069,280, which represented 21.04%
of net assets. Each of these securities have been deemed to be liquid by
the Investment Adviser.
(b) Security is a floating rate bond where the interest rate is adjusted
quarterly according to LIBOR interest rate changes.
(c) Maturity date is perpetual. Maturity date presented represents the next
call date.
(d) In default
(+) On September 15, 2008, Lehman Brothers Inc. filed for bankruptcy
protection. As a result on September 17th, 2008, the security was deemed to
have no value as determined in good faith using procedures approved by the
Trustees of the Trust.
ADR American Depositary Receipt
See Notes to Financial Statements.
38
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
WORLDWIDE INCOME FUND
JULY 31, 2008 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Banking..................................... 14.40%
Sovereign................................... 12.47
Telecommunication - Integrated.............. 8.61
Media - Services............................ 6.93
Insurance................................... 6.26
Chemicals................................... 5.14
Investments & Miscellaneous Finance......... 4.24
Packaging................................... 3.68
Beverage.................................... 3.42
Energy...................................... 3.31
Health Services............................. 3.17
Gaming...................................... 2.73
Diversified Manufacturing................... 2.22
Telecommunication - Wireless................ 2.20
Building.................................... 2.00
Support services............................ 1.99
Special Purpose Vehicle..................... 1.79
Telecommunications.......................... 1.77
Apparel / Textiles.......................... 1.68
Wholesale................................... 1.02
Food- Miscellaneous Diversified............. 1.01
Paper....................................... 0.87
Cable TV.................................... 0.85
Steel production............................ 0.69
Mining...................................... 0.52
Advertising services........................ 0.49
Diversified Capital......................... 0.42
Software / Services......................... 0.38
Utility - Integrated........................ 0.34
Integrated energy........................... 0.31
Oil - Integrated............................ 0.20
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------
Diversified Operations...................... 0.18
Electric - Transmission..................... 0.18
Multimedia.................................. 0.17
Water....................................... 0.15
Semiconductors.............................. 0.15
Transportation.............................. 0.14
Pharmaceuticals............................. 0.13
Storage / Warehousing....................... 0.13
Manufacturing............................... 0.11
Transportation - Services................... 0.10
Infrastructure.............................. 0.09
Oil - Field Services........................ 0.08
Retail - Floor Coverings.................... 0.04
-------
Long Term Investments....................... 96.76
Short Term Investment....................... 0.72
-------
Total Investments........................... 97.48
Net Other Assets and Liabilities............ 2.52
-------
100.00%
=======
See Notes to Financial Statements.
39
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2008
EUROPEAN GLOBAL EQUITY GLOBAL
FOCUS INCOME OPPORTUNITIES
FUND FUND FUND
========================================================================================================================
ASSETS:
Investments, at value
Securities $1,022,166,925 $346,020,062 $17,105,439
Short term investments -- 2,027,411 481,045
- ------------------------------------------------------------------------------------------------------------------------
Total investments, at value 1,022,166,925 348,047,473 17,586,484
Cash -- 778,422 21,349
Foreign cash, at value -- 5,401,821 168
Dividends and interest receivable 797,636 3,809,289 21,950
Receivable for investment securities sold 5,453,296 -- 22,112
Receivable for fund shares sold 2,944,820 1,791,558 14,995
Receivable for open forward foreign currency contracts 2,233,664 -- 21,218
Prepaid expenses and other assets 48,119 22,390 19,594
- ------------------------------------------------------------------------------------------------------------------------
Total Assets 1,033,644,460 359,850,953 17,707,870
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased 4,111,853 1,471,566 27,987
Payable for fund shares redeemed 3,953,560 712,655 18,952
Payable to custodian 2,937,221 -- --
Payable for dividends -- -- --
Payable for open forward foreign currency contracts -- 580,735 --
Payable to investment adviser 985,220 309,666 20,123
Payable for 12b-1 distribution and service fees 421,915 181,595 7,090
Accrued expenses and other payables 408,090 159,655 60,637
- ------------------------------------------------------------------------------------------------------------------------
Total Liabilities 12,817,859 3,415,872 134,789
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,020,826,601 $356,435,081 $17,573,081
========================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $1,055,740,614 $432,689,778 $20,469,656
Accumulated undistributed net investment income (loss) (8,137,753) 1,595,298 86,952
Accumulated net realized gain (loss) on investments
and foreign currency transactions 37,352,222 (24,246,786) (1,536,717)
Net unrealized appreciation (depreciation) of investments
and foreign currencies (64,128,482) (53,603,209) (1,446,810)
- ------------------------------------------------------------------------------------------------------------------------
$1,020,826,601 $356,435,081 $17,573,081
========================================================================================================================
NET ASSETS:
Class A Shares $719,751,705 $189,489,575 $12,290,749
========================================================================================================================
Class B Shares $50,948,791 N/A N/A
========================================================================================================================
Class C Shares $250,126,105 $166,945,506 $5,282,332
========================================================================================================================
Class R Shares N/A N/A N/A
========================================================================================================================
SHARES OUTSTANDING:
Class A Shares (unlimited number of shares authorized) 25,189,659 21,419,419 1,228,773
========================================================================================================================
Class B Shares (unlimited number of shares authorized) 1,874,899 N/A N/A
========================================================================================================================
Class C Shares (unlimited number of shares authorized) 9,206,126 18,926,658 524,737
========================================================================================================================
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 $28.57 $8.85 $10.00
- ------------------------------------------------------------------------------------------------------------------------
Maximum sales charge * 5.75% 5.75% 5.75%
Maximum offering price per share $30.31 $9.39 $10.61
========================================================================================================================
CLASS B SHARES:
Net asset value and offering price per share $27.17 N/A N/A
========================================================================================================================
CLASS C SHARES:
Net asset value and offering price per share $27.17 $8.82 $10.07
========================================================================================================================
CLASS R SHARES:
Net asset value and offering price per share N/A N/A N/A
========================================================================================================================
Investments, at cost $1,088,519,037 $401,056,302 $19,054,453
========================================================================================================================
Foreign cash, at cost -- $5,441,360 $173
========================================================================================================================
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2008
GLOBAL INTERNATIONAL JAPAN-ASIA US WORLDWIDE
TECHNOLOGY OPPORTUNITIES FOCUS FOCUS INCOME
FUND FUND FUND FUND FUND
====================================================================================================================================
ASSETS:
Investments, at value
Securities $180,495,117 $3,770,746,891 $52,289,660 $8,984,314 $129,064,490
Short term investments 8,919,334 335,907,263 -- 232,579 952,892
- ------------------------------------------------------------------------------------------------------------------------------------
Total investments, at value 189,414,451 4,106,654,154 52,289,660 9,216,893 130,017,382
Cash -- -- -- 20,404 --
Foreign cash, at value 958,173 3,123,662 15,214 -- 301,950
Dividends and interest receivable 243,299 2,284,792 10,820 9,823 2,297,857
Receivable for investment securities sold 1,803,154 5,616,212 -- 13,321 925,000
Receivable for fund shares sold 681,504 8,526,339 8,777 9,360 342,860
Receivable for open forward foreign
currency contracts -- 4,911,471 -- -- 552,979
Prepaid expenses and other assets 40,370 124,164 16,594 17,845 37,568
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 193,140,951 4,131,240,794 52,341,065 9,287,646 134,475,596
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased -- 21,452,476 103 18,243 49,646
Payable for fund shares redeemed 363,320 7,935,157 94,873 11,711 322,586
Payable to custodian -- -- 181,354 -- 62,642
Payable for dividends -- -- -- -- 379,734
Payable for open forward foreign
currency contracts -- -- -- -- --
Payable to investment adviser 205,443 3,882,055 51,209 3,362 116,120
Payable for 12b-1 distribution and service fees 86,649 1,678,304 23,901 3,865 73,098
Accrued expenses and other payables 96,419 1,382,807 48,622 33,605 89,687
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 751,831 36,330,799 400,062 70,786 1,093,513
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $192,389,120 $4,094,909,995 $51,941,003 $9,216,860 $133,382,083
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $230,173,538 $4,214,494,390 $72,344,187 $8,651,697 $156,175,174
Accumulated undistributed net investment
income (loss) (117,497) 7,349,664 (136,632) (204) 363,940
Accumulated net realized gain (loss)
on investments and foreign
currency transactions (36,379,945) (52,613,465) (9,871,466) 105,872 (8,990,666)
Net unrealized appreciation (depreciation)
of investments and foreign currencies (1,286,976) (74,320,594) (10,395,086) 459,495 (14,166,365)
- ------------------------------------------------------------------------------------------------------------------------------------
$192,389,120 $4,094,909,995 $51,941,003 $9,216,860 $133,382,083
====================================================================================================================================
NET ASSETS:
Class A Shares $123,128,556 $2,811,487,759 $32,021,433 $6,226,954 $64,687,126
====================================================================================================================================
Class B Shares $7,465,111 $126,231,394 N/A $661,836 $5,788,612
====================================================================================================================================
Class C Shares $61,795,453 $1,155,137,487 $19,919,570 $2,328,070 $62,906,345
====================================================================================================================================
Class R Shares N/A $2,053,355 N/A N/A N/A
====================================================================================================================================
SHARES OUTSTANDING:
Class A Shares (unlimited number of
shares authorized) 8,868,365 127,137,984 4,133,815 647,994 6,843,193
====================================================================================================================================
Class B Shares (unlimited number of
shares authorized) 564,589 6,011,499 N/A 71,283 613,451
====================================================================================================================================
Class C Shares (unlimited number of
shares authorized) 4,685,913 55,044,229 2,620,431 250,741 6,656,657
====================================================================================================================================
Class R Shares (unlimited number of
shares authorized) N/A 93,605 N/A N/A N/A
====================================================================================================================================
CLASS A SHARES:
Net asset value and redemption price per share $13.88 $22.11 $7.75 $9.61 $9.45
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum sales charge * 5.75% 5.75% 5.75% 5.75% 4.75%
Maximum offering price per share $14.73 $23.46 $8.22 $10.20 $9.92
====================================================================================================================================
CLASS B SHARES:
Net asset value and offering price per share $13.22 $21.00 N/A $9.28 $9.44
====================================================================================================================================
CLASS C SHARES:
Net asset value and offering price per share $13.19 $20.99 $7.60 $9.28 $9.45
====================================================================================================================================
CLASS R SHARES:
Net asset value and offering price per share N/A $21.94 N/A N/A N/A
====================================================================================================================================
Investments, at cost $190,695,321 $4,185,845,278 $62,645,878 $8,757,398 $144,733,168
====================================================================================================================================
Foreign cash, at cost $965,676 $3,142,416 $15,172 -- $303,228
====================================================================================================================================
The Funds may impose a redemption fee of 2.00% on shares redeemed within 30 days
of purchase.
* On sales of $50,000 or more, the sales charge will be reduced.
See Notes to Financial Statements.
40-41 spread
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2008
EUROPEAN GLOBAL EQUITY GLOBAL
FOCUS INCOME OPPORTUNITIES
FUND FUND FUND
=================================================================================================================
INVESTMENT INCOME:
Dividends $30,283,117 $32,513,218 $420,782
Interest 1,534,804 501,034 25,515
Securities lending income -- -- --
Foreign taxes withheld (1,996,710) (1,753,304) (22,559)
- -----------------------------------------------------------------------------------------------------------------
Total Investment Income 29,821,211 31,260,948 423,738
- -----------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 11,993,200 2,745,804 174,439
12b-1 distribution and service fees:
Class A Shares 2,291,235 412,927 28,143
Class B Shares 625,921 -- --
Class C Shares 3,142,141 1,399,186 46,008
Class R Shares -- -- --
Transfer agent fees 1,540,614 327,044 22,470
Custodian fees 1,045,285 162,952 53,113
Administrative fees 323,329 76,272 3,965
Printing and postage fees 322,816 85,596 4,247
Registration and filing fees 62,635 65,742 20,248
Accounting fees 61,810 51,942 114,186
Chief Compliance Officer fees 44,844 9,024 464
Legal fees 39,509 8,852 457
Trustees' fees and expenses 39,957 9,468 519
Audit fees 37,410 48,166 48,160
Offering expenses -- 17,069 17,153
Miscellaneous fees 477,250 18,228 1,811
- -----------------------------------------------------------------------------------------------------------------
Total Expenses 22,047,956 5,438,272 535,383
- -----------------------------------------------------------------------------------------------------------------
Fees waived and expenses
reimbursed by investment adviser (373,077) (117,632) (191,645)
- -----------------------------------------------------------------------------------------------------------------
Net Expenses 21,674,879 5,320,640 343,738
- -----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 8,146,332 25,940,308 80,000
- -----------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investment transactions 96,506,250 (23,310,939) (1,351,206)
Foreign currency transactions (13,464,333) (1,880,137) (167,041)
Futures Transactions -- -- --
Net change in unrealized
appreciation/(depreciation) of:
Investments (265,107,227) (50,097,664) (1,678,848)
Translation of other assets and liabilities 2,245,548 (604,178) 22,287
Net Increase from payments by affiliates -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) (179,819,762) (75,892,918) (3,174,808)
=================================================================================================================
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $(171,673,430) $(49,952,610) $(3,094,808)
=================================================================================================================
GLOBAL INTERNATIONAL JAPAN-ASIA US WORLDWIDE
TECHNOLOGY OPPORTUNITIES FOCUS FOCUS INCOME
FUND FUND FUND FUND FUND
===========================================================================================================================
INVESTMENT INCOME:
Dividends $1,381,111 $85,868,780 $1,396,460 $125,131 $1,394,014
Interest 353,599 9,296,656 29,464 11,622 9,288,780
Securities lending income -- 1,126,272 -- -- --
Foreign taxes withheld (83,522) (8,677,437) (99,021) (2,438) (67,146)
- ---------------------------------------------------------------------------------------------------------------------------
Total Investment Income 1,651,188 87,614,271 1,326,903 134,315 10,615,648
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 2,113,222 37,625,570 723,444 109,859 1,101,840
12b-1 distribution and service fees:
Class A Shares 359,530 6,638,307 115,746 20,473 167,613
Class B Shares 69,102 1,369,306 -- 7,897 56,329
Class C Shares 606,000 12,215,671 260,460 25,854 569,500
Class R Shares -- 6,554 -- -- --
Transfer agent fees 296,554 5,219,206 110,836 14,685 135,605
Custodian fees 77,877 2,306,329 72,836 15,970 49,213
Administrative fees 52,831 1,003,693 18,086 2,891 32,407
Printing and postage fees 58,406 1,069,821 18,399 2,824 41,327
Registration and filing fees 62,156 197,732 26,403 32,961 43,137
Accounting fees 60,019 105,104 62,144 65,982 73,598
Chief Compliance Officer fees 6,533 130,424 2,721 355 3,904
Legal fees 6,404 124,184 2,382 366 3,971
Trustees' fees and expenses 6,856 125,094 2,195 351 4,144
Audit fees 37,362 41,409 35,337 31,048 41,955
Offering expenses -- -- -- -- --
Miscellaneous fees 14,575 287,884 7,492 2,482 13,181
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 3,827,427 68,466,288 1,458,481 333,998 2,337,724
- ---------------------------------------------------------------------------------------------------------------------------
Fees waived and expenses
reimbursed by investment adviser -- -- -- (146,788) (183,186)
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses -- -- -- 187,210 2,154,538
- ---------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (2,176,239) 19,147,983 (131,578) (52,895) 8,461,110
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investment transactions (32,683,645) 79,715,955 (9,825,360) 129,128 (1,985,310)
Foreign currency transactions (193,467) (33,305,708) (161,180) 126,774 (5,313,667)
Futures Transactions -- -- 62,431 -- --
Net change in unrealized
appreciation/(depreciation) of:
Investments (13,965,153) (578,852,726) (7,934,437) (1,015,379) (14,180,299)
Translation of other assets
and liabilities (6,917) 4,840,858 (38,001) (4) 402,699
Net Increase from payments
by affiliates -- -- 217,824 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) (46,849,182) (527,601,621) (17,678,723) (759,481) (21,076,577)
===========================================================================================================================
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $(49,025,421) $(508,453,638) $(17,810,301) $(812,376) $(12,615,467)
===========================================================================================================================
See Notes to Financial Statements.
42-43 spread
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
EUROPEAN FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
Net investment income $8,146,332 $1,570,758
Net realized gain on investments and foreign currency transactions 83,041,917 108,538,292
Net change in net unrealized appreciation/(depreciation) of investments
and foreign currency translations (262,861,679) 114,614,087
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (171,673,430) 224,723,137
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (23,094,109) --
Class B Shares (1,230,976) --
Class C Shares (6,379,802) --
- ------------------------------------------------------------------------------------------------------------------------
(30,704,887) --
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A Shares (86,292,903) (38,551,565)
Class B Shares (6,056,327) (3,570,555)
Class C Shares (31,345,585) (11,808,492)
- ------------------------------------------------------------------------------------------------------------------------
(123,694,815) (53,930,612)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares (62,680,371) 517,056,361
Class B Shares (617,540) 21,434,151
Class C Shares (15,113,427) 200,992,402
- ------------------------------------------------------------------------------------------------------------------------
(78,411,338) 739,482,914
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets (404,484,470) 910,275,439
NET ASSETS:
Beginning of year 1,425,311,071 515,035,632
- ------------------------------------------------------------------------------------------------------------------------
End of year $1,020,826,601 $1,425,311,071
========================================================================================================================
Accumulated undistributed net investment loss $(8,137,753) $(443,909)
========================================================================================================================
See Notes to Financial Statements.
44
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL EQUITY INCOME FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2008 JULY 31, 2007*
========================================================================================================================
Net investment income $25,940,308 $5,404,060
Net realized gain/(loss) on investments and foreign currency transactions (25,191,076) 323,039
Net change in net unrealized appreciation/(depreciation) of investments
and foreign currency translations (50,701,842) (2,901,367)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (49,952,610) 2,825,732
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (13,162,566) (2,970,395)
Class C Shares (10,263,709) (2,050,235)
- ------------------------------------------------------------------------------------------------------------------------
(23,426,275) (5,020,630)
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A shares (430,582) --
Class C shares (330,899) --
- ------------------------------------------------------------------------------------------------------------------------
(761,481) --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A shares 135,758,138 95,255,778
Class C shares 127,370,894 74,385,535
- ------------------------------------------------------------------------------------------------------------------------
263,129,032 169,641,313
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 188,988,666 167,446,415
NET ASSETS:
Beginning of year 167,446,415 --
- ------------------------------------------------------------------------------------------------------------------------
End of year $356,435,081 $167,446,415
========================================================================================================================
Accumulated undistributed net investment income $1,595,298 $177,885
========================================================================================================================
* Inception date for the Henderson Global Equity Income Fund was November 30,
2006.
See Notes to Financial Statements.
45
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL OPPORTUNITIES FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007*
========================================================================================================================
Net investment income (loss) $80,000 $(2,289)
Net realized gain/(loss) on investments and foreign currency transactions (1,518,247) 62,680
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations (1,656,561) 209,751
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (3,094,808) 270,142
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (46,290) --
- ------------------------------------------------------------------------------------------------------------------------
(46,290) --
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A Shares (66,331) --
Class C Shares (19,371) --
- ------------------------------------------------------------------------------------------------------------------------
(85,702) --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund Share transactions:
Class A Shares 10,624,227 3,845,288
Class C Shares 3,593,409 2,466,815
- ------------------------------------------------------------------------------------------------------------------------
14,217,636 6,312,103
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 10,990,836 6,582,245
NET ASSETS:
Beginning of year 6,582,245 --
- ------------------------------------------------------------------------------------------------------------------------
End of year $17,573,081 $6,582,245
========================================================================================================================
Accumulated undistributed net investment income $86,952 $38,016
========================================================================================================================
* Inception date for the Henderson Global Opportunities Fund was November 30,
2006.
See Notes to Financial Statements.
46
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL TECHNOLOGY FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
Net investment loss $(2,176,239) $(798,155)
Net realized gain/(loss) on investments and foreign currency transactions (32,877,112) 3,656,089
Net change in net unrealized appreciation/(depreciation) of investments
and foreign currency translations (13,972,070) 13,120,974
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (49,025,421) 15,978,908
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A shares (2,002,409) --
Class B shares (86,833) --
Class C shares (803,051) --
- ------------------------------------------------------------------------------------------------------------------------
(2,892,293) --
- ------------------------------------------------------------------------------------------------------------------------
Return of capital:
Class A shares (951,556) --
Class B shares (41,263) --
Class C shares (381,614) --
- ------------------------------------------------------------------------------------------------------------------------
(1,374,433) --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions:
Class A shares 98,975,948 24,800,914
Class B shares 6,506,346 977,190
Class C shares 51,713,203 10,105,419
- ------------------------------------------------------------------------------------------------------------------------
157,195,497 35,883,523
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 103,903,350 51,862,431
NET ASSETS:
Beginning of year 88,485,770 36,623,339
- ------------------------------------------------------------------------------------------------------------------------
End of year $192,389,120 $88,485,770
========================================================================================================================
Accumulated undistributed net investment income/(loss) $(117,497) $3,996
========================================================================================================================
See Notes to Financial Statements.
47
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
INTERNATIONAL OPPORTUNITIES FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
Net investment income (loss) $19,147,983 $(4,784,976)
Net realized gain on investments and foreign currency transactions 46,410,247 259,486,849
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations (574,011,868) 362,245,439
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (508,453,638) 616,947,312
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares -- (2,136,324)
Class R Shares -- (571)
- ------------------------------------------------------------------------------------------------------------------------
-- (2,136,895)
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A Shares (224,251,818) (56,615,357)
Class B Shares (12,792,493) (4,176,812)
Class C Shares (113,562,527) (28,828,659)
Class R Shares (93,917) 10,914
- ------------------------------------------------------------------------------------------------------------------------
(350,700,755) (89,631,742)
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Fund Share transactions:
Class A Shares 1,205,596,480 819,438,737
Class B Shares 24,831,979 30,601,289
Class C Shares 350,640,217 413,154,636
Class R Shares 1,456,373 696,610
- ------------------------------------------------------------------------------------------------------------------------
1,582,525,049 1,263,891,272
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 723,370,656 1,789,069,947
NET ASSETS:
Beginning of year 3,371,539,339 1,582,469,392
- ------------------------------------------------------------------------------------------------------------------------
End of year $4,094,909,995 $3,371,539,339
========================================================================================================================
Accumulated undistributed net investment income/(loss) $7,349,664 $(4,288,004)
========================================================================================================================
See Notes to Financial Statements.
48
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
JAPAN-ASIA FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
Net investment loss $(131,578) $(586,398)
Net realized gain/(loss) on investments, futures and foreign currency transactions (9,924,109) 4,184,937
Net change in unrealized appreciation/(depreciation) of investments and
foreign currency translations (7,972,438) (563,463)
Net increase from payments by affiliates 217,824 --
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (17,810,301) 3,035,076
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A Shares (2,162,016) --
Class C Shares (1,242,495) --
- ------------------------------------------------------------------------------------------------------------------------
(3,404,511) --
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from Fund Share transactions:
Class A Shares (16,062,623) 19,818,182
Class C Shares (8,593,593) 17,069,362
- ------------------------------------------------------------------------------------------------------------------------
(24,656,216) 36,887,544
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets (45,871,028) 39,922,620
NET ASSETS:
Beginning of year 97,812,031 57,889,411
- ------------------------------------------------------------------------------------------------------------------------
End of year $51,941,003 $97,812,031
========================================================================================================================
Accumulated undistributed net investment loss $(136,632) $(68,559)
========================================================================================================================
See Notes to Financial Statements.
49
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
US FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
Net investment loss $(52,895) $(90,471)
Net realized gain on investments and foreign currency transactions 255,902 2,371,991
Net change in net unrealized appreciation/(depreciation) of investments and
foreign currency translations (1,015,383) 502,051
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (812,376) 2,783,571
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A shares (1,265,868) (558,014)
Class B shares (124,735) (58,901)
Class C shares (376,415) (147,453)
- ------------------------------------------------------------------------------------------------------------------------
(1,767,018) (764,368)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets from Fund share transactions:
Class A shares (1,303,100) (3,135,931)
Class B shares (150,728) (442,836)
Class C shares 134,329 (673,216)
- ------------------------------------------------------------------------------------------------------------------------
(1,319,499) (4,251,983)
- ------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets (3,898,893) (2,232,780)
NET ASSETS:
Beginning of year 13,115,753 15,348,533
- ------------------------------------------------------------------------------------------------------------------------
End of year $9,216,860 $13,115,753
========================================================================================================================
Accumulated undistributed net investment loss (204) $(5,507)
========================================================================================================================
See Notes to Financial Statements.
50
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
WORLDWIDE INCOME FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
Net investment income $8,461,110 $2,794,061
Net realized loss on investments and foreign currency transactions (7,298,977) (246,052)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations (13,777,600) (693,904)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (12,615,467) 1,854,105
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (4,903,337) (1,578,752)
Class B Shares (369,541) (268,356)
Class C Shares (3,726,741) (904,659)
- ------------------------------------------------------------------------------------------------------------------------
(8,999,619) (2,751,767)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares 36,286,829 22,042,048
Class B Shares 1,617,551 (250,622)
Class C Shares 42,868,245 17,043,610
- ------------------------------------------------------------------------------------------------------------------------
80,772,625 38,835,036
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 59,157,539 37,937,374
NET ASSETS:
Beginning of year 74,224,544 36,287,170
- ------------------------------------------------------------------------------------------------------------------------
End of year $133,382,083 $74,224,544
========================================================================================================================
Accumulated undistributed net investment income $363,940 $365,306
========================================================================================================================
See Notes to Financial Statements.
51
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
EUROPEAN FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $218,204,655 $583,733,880
Issued as reinvestment of dividends 81,755,743 30,086,882
Redeemed+ (362,640,769) (96,764,401)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $(62,680,371) $517,056,361
========================================================================================================================
CLASS B SHARES:
Sold $3,376,551 $23,725,492
Issued as reinvestment of dividends 6,174,569 3,135,149
Redeemed+ (10,168,660) (5,426,490)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $(617,540) $21,434,151
========================================================================================================================
CLASS C SHARES:
Sold $41,167,940 $211,991,034
Issued as reinvestment of dividends 25,852,246 9,243,863
Redeemed+ (82,133,613) (20,242,495)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $(15,113,427) $200,992,402
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 6,537,985 16,600,158
Issued as reinvestment of dividends 2,464,006 936,119
Redeemed (11,104,647) (2,799,265)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (2,102,656) 14,737,012
========================================================================================================================
CLASS B SHARES:
Sold 104,921 705,828
Issued as reinvestment of dividends 194,720 101,395
Redeemed (333,006) (165,424)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (33,365) 641,799
========================================================================================================================
CLASS C SHARES:
Sold 1,274,126 6,198,864
Issued as reinvestment of dividends 815,271 298,960
Redeemed (2,665,104) (605,084)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (575,707) 5,892,740
========================================================================================================================
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
52
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL EQUITY INCOME FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2008 JULY 31, 2007*
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $199,747,411 $95,412,516
Issued as reinvestment of dividends 6,732,521 1,849,093
Redeemed+ (70,721,794) (2,005,831)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $135,758,138 $95,255,778
========================================================================================================================
CLASS C SHARES:
Sold $144,142,506 $74,660,145
Issued as reinvestment of dividends 4,268,408 1,156,689
Redeemed+ (21,040,020) (1,431,299)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $127,370,894 $74,385,535
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 19,000,396 8,879,461
Issued as reinvestment of dividends 680,072 168,637
Redeemed (7,125,776) (183,371)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 12,554,692 8,864,727
========================================================================================================================
CLASS C SHARES:
Sold 13,774,272 6,909,729
Issued as reinvestment of dividends 432,490 105,451
Redeemed (2,160,524) (134,760)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 12,046,238 6,880,420
========================================================================================================================
* Inception date for the Henderson Global Equity Income Fund was November 30,
2006.
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
53
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL OPPORTUNITIES FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007*
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $15,328,797 $3,950,905
Issued as reinvestment of dividends 98,102 --
Redeemed+ (4,802,672) (105,617)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $10,624,227 $3,845,288
========================================================================================================================
CLASS C SHARES:
Sold $4,351,904 $2,466,491
Issued as reinvestment of dividends 15,705 --
Redeemed+ (774,200) 324
- ------------------------------------------------------------------------------------------------------------------------
Net increase $3,593,409 $2,466,815
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 1,309,014 365,208
Issued as reinvestment of dividends 8,087 --
Redeemed (443,535) (10,001)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 873,566 355,207
========================================================================================================================
CLASS C SHARES:
Sold 375,458 219,450
Issued as reinvestment of dividends 1,281 --
Redeemed (71,451) (1)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 305,288 219,449
========================================================================================================================
* Inception date for the Henderson Global Opportunities Fund was November 30,
2006.
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
54
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL TECHNOLOGY FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $188,184,755 $37,655,443
Issued as reinvestment of dividends 2,263,659 --
Redeemed+ (91,472,466) (12,854,529)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $98,975,948 $24,800,914
========================================================================================================================
CLASS B SHARES:
Sold $7,198,389 $1,155,565
Issued as reinvestment of dividends 95,909 --
Redeemed+ (787,952) (178,375)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $6,506,346 $977,190
========================================================================================================================
CLASS C SHARES:
Sold $62,161,721 $12,444,285
Issued as reinvestment of dividends 802,013 --
Redeemed+ (11,250,531) (2,338,866)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $51,713,203 $10,105,419
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 11,162,143 2,545,756
Issued as reinvestment of dividends 129,057 --
Redeemed (6,095,434) (898,621)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 5,195,766 1,647,135
========================================================================================================================
CLASS B SHARES:
Sold 445,232 78,627
Issued as reinvestment of dividends 5,712 --
Redeemed (52,508) (13,131)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 398,436 65,496
========================================================================================================================
CLASS C SHARES:
Sold 3,803,017 876,252
Issued as reinvestment of dividends 47,910 --
Redeemed (788,119) (167,583)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 3,062,808 708,669
========================================================================================================================
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
55
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
INTERNATIONAL OPPORTUNITIES FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $1,650,273,824 $996,738,165
Issued as reinvestment of dividends 181,190,040 48,254,983
Redeemed+ (625,867,384) (225,554,411)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $1,205,596,480 $819,438,737
========================================================================================================================
CLASS B SHARES:
Sold $26,898,413 $35,885,549
Issued as reinvestment of dividends 9,672,534 3,232,119
Redeemed+ (11,738,968) (8,516,379)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $24,831,979 $30,601,289
========================================================================================================================
CLASS C SHARES:
Sold $463,213,087 $465,540,531
Issued as reinvestment of dividends 78,279,669 21,797,360
Redeemed+ (190,852,539) (74,183,255)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $350,640,217 $413,154,636
========================================================================================================================
CLASS R SHARES:
Sold $1,863,708 $943,642
Issued as reinvestment of dividends 34,828 11,484
Redeemed+ (442,163) (258,516)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $1,456,373 $696,610
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 65,709,665 40,856,884
Issued as reinvestment of dividends 6,834,762 2,059,538
Redeemed (25,909,439) (9,228,765)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 46,634,988 33,687,657
========================================================================================================================
CLASS B SHARES:
Sold 1,084,139 1,538,619
Issued as reinvestment of dividends 382,314 142,888
Redeemed (505,898) (361,696)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 960,555 1,319,811
========================================================================================================================
CLASS C SHARES:
Sold 18,734,494 19,789,822
Issued as reinvestment of dividends 3,096,506 964,485
Redeemed (8,339,220) (3,108,746)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 13,491,780 17,645,561
========================================================================================================================
CLASS R SHARES:
Sold 77,320 37,101
Issued as reinvestment of dividends 1,322 492
Redeemed (18,774) (9,967)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 59,868 27,626
========================================================================================================================
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
56
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
JAPAN-ASIA FOCUS FUND
YEAR ENDED PERIOD ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $13,163,437 $47,666,150
Issued as reinvestment of dividends 1,632,825 --
Redeemed+ (30,858,885) (27,847,968)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $(16,062,623) $19,818,182
========================================================================================================================
CLASS C SHARES:
Sold $5,782,866 $26,704,508
Issued as reinvestment of dividends 733,701 --
Redeemed+ (15,110,160) (9,635,146)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $(8,593,593) $17,069,362
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 1,487,337 4,768,595
Issued as reinvestment of dividends 175,008 --
Redeemed (3,578,917) (2,798,330)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (1,916,572) 1,970,265
========================================================================================================================
CLASS C SHARES:
Sold 683,295 2,695,738
Issued as reinvestment of dividends 79,750 --
Redeemed (1,782,516) (979,648)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (1,019,471) 1,716,090
========================================================================================================================
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
57
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
US FOCUS FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
=========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $1,803,221 $4,485,071
Issued as reinvestment of dividends 956,290 462,720
Redeemed (4,062,611) (8,083,722)+
- -------------------------------------------------------------------------------------------------------------------------
Net decrease $(1,303,100) $(3,135,931)
=========================================================================================================================
CLASS B SHARES:
Sold $133,562 $107,626
Issued as reinvestment of dividends 84,857 46,993
Redeemed (369,147) (597,455)+
- -------------------------------------------------------------------------------------------------------------------------
Net decrease $(150,728) $(442,836)
=========================================================================================================================
CLASS C SHARES:
Sold $404,143 $461,626
Issued as reinvestment of dividends 337,451 127,402
Redeemed (607,265) (1,262,244)+
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $134,329 $(673,216)
=========================================================================================================================
SHARES
CLASS A SHARES:
Sold 157,209 393,663
Issued as reinvestment of dividends 86,856 42,766
Redeemed (373,879) (720,552)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease (129,814) (284,123)
=========================================================================================================================
CLASS B SHARES:
Sold 13,087 9,143
Issued as reinvestment of dividends 7,938 4,421
Redeemed (34,943) (55,027)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease (13,918) (41,463)
=========================================================================================================================
CLASS C SHARES:
Sold 37,863 40,784
Issued as reinvestment of dividends 31,567 11,985
Redeemed (56,665) (115,333)
- -------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 12,765 (62,564)
=========================================================================================================================
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
58
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
WORLDWIDE INCOME FUND
YEAR ENDED YEAR ENDED
JULY 31, 2008 JULY 31, 2007
========================================================================================================================
AMOUNT
CLASS A SHARES:
Sold $65,114,608 $33,703,105
Issued as reinvestment of dividends 2,520,171 715,957
Redeemed+ (31,347,950) (12,377,014)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $36,286,829 $22,042,048
========================================================================================================================
CLASS B SHARES:
Sold $2,700,545 $1,964,069
Issued as reinvestment of dividends 117,361 94,922
Redeemed+ (1,200,355) (2,309,613)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) $1,617,551 $(250,622)
========================================================================================================================
CLASS C SHARES:
Sold $57,057,085 $21,898,093
Issued as reinvestment of dividends 1,642,537 488,694
Redeemed+ (15,831,377) (5,343,177)
- ------------------------------------------------------------------------------------------------------------------------
Net increase $42,868,245 $17,043,610
========================================================================================================================
SHARES
CLASS A SHARES:
Sold 6,022,496 3,010,086
Issued as reinvestment of dividends 243,976 64,224
Redeemed (3,056,018) (1,104,123)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 3,210,454 1,970,187
========================================================================================================================
CLASS B SHARES:
Sold 255,183 176,021
Issued as reinvestment of dividends 11,344 8,545
Redeemed (114,567) (207,057)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 151,960 (22,491)
========================================================================================================================
CLASS C SHARES:
Sold 5,279,726 1,955,018
Issued as reinvestment of dividends 159,668 43,914
Redeemed (1,521,696) (480,101)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 3,917,698 1,518,831
========================================================================================================================
+ Amounts shown are inclusive of redemption fees.
See Notes to Financial Statements.
59
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) (b) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
EUROPEAN FOCUS
CLASS A
Year Ended 7/31/2008 $37.04 0.28 (4.64) (4.36) (0.87) (3.25) (4.12)
Year Ended 7/31/2007 29.36 0.13 10.19 10.32 0.00 (2.64) (2.64)
Year Ended 7/31/2006 25.30 0.12 5.54 5.66 0.00 (1.60) (1.60)
Year Ended 7/31/2005 20.88 0.04 6.76 6.80 0.00 (2.38) (2.38)
Year Ended 7/31/2004 15.47 (0.01) 6.30 6.29 (0.06) (0.82) (0.88)
CLASS B
Year Ended 7/31/2008 $35.46 0.04 (4.43) (4.39) (0.66) (3.25) (3.91)
Year Ended 7/31/2007 28.41 (0.15) 9.84 9.69 0.00 (2.64) (2.64)
Year Ended 7/31/2006 24.71 (0.11) 5.41 5.30 0.00 (1.60) (1.60)
Year Ended 7/31/2005 20.57 (0.15) 6.67 6.52 0.00 (2.38) (2.38)
Year Ended 7/31/2004 15.30 (0.21) 6.30 6.09 0.00 (0.82) (0.82)
CLASS C
Year Ended 7/31/2008 $35.46 0.03 (4.42) (4.39) (0.66) (3.25) (3.91)
Year Ended 7/31/2007 28.40 (0.10) 9.80 9.70 0.00 (2.64) (2.64)
Year Ended 7/31/2006 24.70 (0.10) 5.40 5.30 0.00 (1.60) (1.60)
Year Ended 7/31/2005 20.57 (0.14) 6.65 6.51 0.00 (2.38) (2.38)
Year Ended 7/31/2004 15.30 (0.20) 6.29 6.09 0.00 (0.82) (0.82)
GLOBAL EQUITY INCOME
CLASS A
Year Ended 7/31/2008 $10.65 0.89 (1.88) (0.99) (0.78) (0.03) (0.81)
Period Ended 7/31/2007 (a) 10.00 0.83 0.25 1.08 (0.43) 0.00 (0.43)
CLASS C
Year Ended 7/31/2008 $10.62 0.82 (1.88) (1.06) (0.71) (0.03) (0.74)
Period Ended 7/31/2007 (a) 10.00 0.77 0.25 1.02 (0.40) 0.00 (0.40)
GLOBAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2008 $11.41 0.08 (1.39) (1.31) (0.04) (0.06) (0.10)
Period Ended 7/31/2007 (a) 10.00 0.01 1.40 1.41 0.00 0.00 0.00
CLASS C
Year Ended 7/31/2008 $11.53 (0.01) (1.39) (1.40) 0.00 (0.06) (0.06)
Period Ended 7/31/2007 (a) 10.00 (0.05) 1.58 1.53 0.00 0.00 0.00
NET ASSET NET ASSETS,
VALUE, END OF
REDEMPTION END OF TOTAL PERIOD
FEES THE PERIOD RETURN (c) (000)
- --------------------------------------------------------------------------------------
EUROPEAN FOCUS
CLASS A
Year Ended 7/31/2008 0.01 $28.57 (13.28)% $719,752
Year Ended 7/31/2007 0.00 37.04 36.52 1,010,786
Year Ended 7/31/2006 0.00 29.36 23.72 368,593
Year Ended 7/31/2005 0.00 25.30 34.43 182,831
Year Ended 7/31/2004 0.00 20.88 41.89 79,459
CLASS B
Year Ended 7/31/2008 0.01 $27.17 (13.92)% $50,949
Year Ended 7/31/2007 0.00 35.46 35.47 67,668
Year Ended 7/31/2006 0.00 28.41 22.79 35,977
Year Ended 7/31/2005 0.00 24.71 33.54 26,964
Year Ended 7/31/2004 0.00 20.57 40.92 15,246
CLASS C
Year Ended 7/31/2008 0.01 $27.17 (13.92)% $250,126
Year Ended 7/31/2007 0.00 35.46 35.52 346,856
Year Ended 7/31/2006 0.00 28.40 22.80 110,465
Year Ended 7/31/2005 0.00 24.70 33.48 74,207
Year Ended 7/31/2004 0.00 20.57 40.92 38,684
GLOBAL EQUITY INCOME
CLASS A
Year Ended 7/31/2008 0.00(*) $8.85 (9.99)% $189,490
Period Ended 7/31/2007 (a) 0.00 10.65 10.68 94,377
CLASS C
Year Ended 7/31/2008 0.00(*) $8.82 (10.66)% $166,946
Period Ended 7/31/2007 (a) 0.00 10.62 10.11 73,070
GLOBAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2008 0.00(*) $10.00 (11.67)% $12,291
Period Ended 7/31/2007 (a) 0.00 11.41 14.10 4,052
CLASS C
Year Ended 7/31/2008 0.00(*) $10.07 (12.26)% $5,282
Period Ended 7/31/2007 (a) 0.00 11.53 15.30 2,530
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
OPERATING NET INVESTMENT ASSETS WITHOUT
EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
AVERAGE TO AVERAGE EXPENSES TURNOVER
NET ASSETS NET ASSETS REIMBURSED RATE
- ------------------------------------------------------------------------------------------------
EUROPEAN FOCUS
CLASS A
Year Ended 7/31/2008 1.46% 0.85% 1.49% 70%
Year Ended 7/31/2007 1.53 0.39 1.53 61
Year Ended 7/31/2006 1.59 0.44 1.59 64
Year Ended 7/31/2005 2.00 0.18 1.73 51
Year Ended 7/31/2004 2.00 (0.04) 2.15 88
CLASS B
Year Ended 7/31/2008 2.21% 0.11% 2.24% 70%
Year Ended 7/31/2007 2.28 (0.46) 2.28 61
Year Ended 7/31/2006 2.34 (0.41) 2.34 64
Year Ended 7/31/2005 2.75 (0.67) 2.48 51
Year Ended 7/31/2004 2.75 (1.06) 2.90 88
CLASS C
Year Ended 7/31/2008 2.21% 0.10% 2.24% 70%
Year Ended 7/31/2007 2.28 (0.31) 2.28 61
Year Ended 7/31/2006 2.34 (0.39) 2.34 64
Year Ended 7/31/2005 2.75 (0.62) 2.48 51
Year Ended 7/31/2004 2.75 (1.02) 2.90 88
GLOBAL EQUITY INCOME
CLASS A
Year Ended 7/31/2008 1.40% 8.83% 1.44% 155%
Period Ended 7/31/2007 (a) 1.40 11.36 1.85 100
CLASS C
Year Ended 7/31/2008 2.15% 8.12% 2.19% 155%
Period Ended 7/31/2007 (a) 2.15 10.64 2.60 100
GLOBAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2008 1.95% 0.74% 3.12% 135%
Period Ended 7/31/2007 (a) 1.95 0.15 13.40 40
CLASS C
Year Ended 7/31/2008 2.70% (0.06)% 4.01% 135%
Period Ended 7/31/2007 (a) 2.70 (0.66) 14.15 40
(a) The Global Equity Income Fund and Global Opportunities Fund commenced
operations on November 30,2006.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(*) Amount represents less than $0.01.
See Notes to Financial Statements.
60-61 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 RETURN
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF TOTAL
OF PERIOD (LOSS) (a) INVESTMENTS OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
GLOBAL TECHNOLOGY
CLASS A
Year Ended 7/31/2008 $16.43 (0.13) (2.15) (2.28) 0.00 (0.18) (0.09) (0.27)
Year Ended 7/31/2007 12.19 (0.17) 4.41 4.24 0.00 0.00 0.00 0.00
Year Ended 7/31/2006 11.68 (0.19) 0.87 0.68 0.00 (0.17) 0.00 (0.17)
Year Ended 7/31/2005 10.54 (0.14) 1.91 1.77 0.00 (0.63) 0.00 (0.63)
Year Ended 7/31/2004 9.56 (0.20) 1.18 0.98 0.00 0.00 0.00 0.00
CLASS B
Year Ended 7/31/2008 $15.77 (0.23) (2.06) (2.29) 0.00 (0.18) (0.09) (0.27)
Year Ended 7/31/2007 11.79 (0.26) 4.24 3.98 0.00 0.00 0.00 0.00
Year Ended 7/31/2006 11.39 (0.28) 0.85 0.57 0.00 (0.17) 0.00 (0.17)
Year Ended 7/31/2005 10.36 (0.21) 1.87 1.66 0.00 (0.63) 0.00 (0.63)
Year Ended 7/31/2004 9.48 (0.27) 1.15 0.88 0.00 0.00 0.00 0.00
CLASS C
Year Ended 7/31/2008 $15.73 (0.23) (2.04) (2.27) 0.00 (0.18) (0.09) (0.27)
Year Ended 7/31/2007 11.76 (0.26) 4.23 3.97 0.00 0.00 0.00 0.00
Year Ended 7/31/2006 11.35 (0.28) 0.86 0.58 0.00 (0.17) 0.00 (0.17)
Year Ended 7/31/2005 10.34 (0.21) 1.85 1.64 0.00 (0.63) 0.00 (0.63)
Year Ended 7/31/2004 9.45 (0.27) 1.16 0.89 0.00 0.00 0.00 0.00
NET ASSET NET ASSETS,
VALUE, END OF
REDEMPTION END OF TOTAL PERIOD
FEES THE PERIOD RETURN (b) (000)
- ---------------------------------------------------------------------------------
GLOBAL TECHNOLOGY
CLASS A
Year Ended 7/31/2008 0.00(*) $13.88 (14.22)% $123,129
Year Ended 7/31/2007 0.00 16.43 34.78 60,329
Year Ended 7/31/2006 0.00 12.19 5.83 24,685
Year Ended 7/31/2005 0.00 11.68 16.90 3,331
Year Ended 7/31/2004 0.00 10.54 10.25 1,371
CLASS B
Year Ended 7/31/2008 0.01 $13.22 (14.82)% $7,465
Year Ended 7/31/2007 0.00 15.77 33.76 2,621
Year Ended 7/31/2006 0.00 11.79 5.01 1,187
Year Ended 7/31/2005 0.00 11.39 16.10 906
Year Ended 7/31/2004 0.00 10.36 9.28 794
CLASS C
Year Ended 7/31/2008 0.00(*) $13.19 (14.79)% $61,795
Year Ended 7/31/2007 0.00 15.73 33.76 25,536
Year Ended 7/31/2006 0.00 11.76 5.11 10,752
Year Ended 7/31/2005 0.00 11.35 15.93 1,356
Year Ended 7/31/2004 0.00 10.34 9.42 957
RATIOS TO AVERAGE NET ASSETS:
------------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
OPERATING NET INVESTMENT ASSETS WITHOUT
EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
AVERAGE TO AVERAGE EXPENSES TURNOVER
NET ASSETS NET ASSETS REIMBURSED RATE
- ----------------------------------------------------------------------------------------
GLOBAL TECHNOLOGY
CLASS A
Year Ended 7/31/2008 1.57% (0.80)% 1.57% 196%
Year Ended 7/31/2007 1.87 (1.14) 1.87 129
Year Ended 7/31/2006 1.99 (1.41) 2.50 159
Year Ended 7/31/2005 2.00 (1.26) 6.58 164
Year Ended 7/31/2004 2.00 (1.75) 7.01 234
CLASS B
Year Ended 7/31/2008 2.32% (1.52)% 2.32% 196%
Year Ended 7/31/2007 2.62 (1.89) 2.62 129
Year Ended 7/31/2006 2.74 (2.20) 3.25 159
Year Ended 7/31/2005 2.75 (1.92) 7.33 164
Year Ended 7/31/2004 2.75 (2.45) 7.76 234
CLASS C
Year Ended 7/31/2008 2.32% (1.52)% 2.32% 196%
Year Ended 7/31/2007 2.62 (1.89) 2.62 129
Year Ended 7/31/2006 2.74 (2.15) 3.25 159
Year Ended 7/31/2005 2.75 (1.96) 7.33 164
Year Ended 7/31/2004 2.75 (2.47) 7.76 234
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(*) Amount represents less than $0.01.
See Notes to Financial Statements.
62-63 spreaed
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) (b) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2008 $26.91 0.19 (2.63) (2.44) 0.00 (2.36) (2.36)
Year Ended 7/31/2007 21.52 0.02 6.43 6.45 (0.04) (1.02) (1.06)
Year Ended 7/31/2006 17.77 0.14 4.36 4.50 0.00 (0.75) (0.75)
Year Ended 7/31/2005 14.94 0.00(*) 3.08 3.08 0.00 (0.25) (0.25)
Year Ended 7/31/2004 11.99 (0.10) 3.22 3.12 0.00 (0.17) (0.17)
CLASS B
Year Ended 7/31/2008 $25.85 (0.02) (2.47) (2.49) 0.00 (2.36) (2.36)
Year Ended 7/31/2007 20.82 (0.17) 6.22 6.05 0.00 (1.02) (1.02)
Year Ended 7/31/2006 17.35 (0.03) 4.25 4.22 0.00 (0.75) (0.75)
Year Ended 7/31/2005 14.70 (0.14) 3.04 2.90 0.00 (0.25) (0.25)
Year Ended 7/31/2004 11.88 (0.22) 3.21 2.99 0.00 (0.17) (0.17)
CLASS C
Year Ended 7/31/2008 $25.83 (0.01) (2.47) (2.48) 0.00 (2.36) (2.36)
Year Ended 7/31/2007 20.81 (0.16) 6.20 6.04 0.00 (1.02) (1.02)
Year Ended 7/31/2006 17.33 (0.01) 4.24 4.23 0.00 (0.75) (0.75)
Year Ended 7/31/2005 14.68 (0.13) 3.03 2.90 0.00 (0.25) (0.25)
Year Ended 7/31/2004 11.88 (0.22) 3.19 2.97 0.00 (0.17) (0.17)
CLASS R
Year Ended 7/31/2008 $26.78 0.15 (2.63) (2.48) 0.00 (2.36) (2.36)
Year Ended 7/31/2007 21.46 0.01 6.38 6.39 (0.05) (1.02) (1.07)
Period Ended 7/31/2006 (a) 19.07 0.09 3.50 3.14 0.00 (0.75) (0.75)
JAPAN-ASIA FOCUS
CLASS A
Year Ended 7/31/2008 $10.13 0.01 (2.02) (2.01) 0.00 (0.40) (0.40)
Year Ended 7/31/2007 9.65 (0.05) 0.53 0.48 0.00 0.00 0.00
Period Ended 7/31/2006 (a) 10.00 (0.03) (0.32) (0.35) 0.00 0.00 0.00
CLASS C
Year Ended 7/31/2008 $10.03 (0.06) (2.00) (2.06) 0.00 (0.40) (0.40)
Year Ended 7/31/2007 9.62 (0.12) 0.53 0.41 0.00 0.00 0.00
Period Ended 7/31/2006 (a) 10.00 (0.07) (0.31) (0.38) 0.00 0.00 0.00
NET ASSET
PAYMENT VALUE,
REDEMPTION BY END OF TOTAL
FEES AFFILIATES THE PERIOD RETURN (c)
- --------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2008 0.00(*) 0.00 $22.11 (10.54)%
Year Ended 7/31/2007 0.00 0.00 26.91 30.69
Year Ended 7/31/2006 0.00 0.00 21.52 25.98
Year Ended 7/31/2005 0.00 0.00 17.77 20.77
Year Ended 7/31/2004 0.00 0.00 14.94 26.15
CLASS B
Year Ended 7/31/2008 0.00(*) 0.00 $21.00 (11.20)%
Year Ended 7/31/2007 0.00 0.00 25.85 29.75
Year Ended 7/31/2006 0.00 0.00 20.82 24.97
Year Ended 7/31/2005 0.00 0.00 17.35 19.87
Year Ended 7/31/2004 0.00 0.00 14.70 25.29
CLASS C
Year Ended 7/31/2008 0.00(*) 0.00 $20.99 (11.17)%
Year Ended 7/31/2007 0.00 0.00 25.83 29.72
Year Ended 7/31/2006 0.00 0.00 20.81 25.06
Year Ended 7/31/2005 0.00 0.00 17.33 19.90
Year Ended 7/31/2004 0.00 0.00 14.68 25.12
CLASS R
Year Ended 7/31/2008 0.00(*) 0.00 $21.94 (10.75)%
Year Ended 7/31/2007 0.00 0.00 26.78 30.52
Period Ended 7/31/2006 (a) 0.00 0.00 21.46 17.07
JAPAN-ASIA FOCUS
CLASS A
Year Ended 7/31/2008 0.00(*) 0.03 $7.75 (20.25)%(d)
Year Ended 7/31/2007 0.00 0.00 10.13 4.97
Period Ended 7/31/2006 (a) 0.00 0.00 9.65 (3.50)
CLASS C
Year Ended 7/31/2008 0.00(*) 0.03 $7.60 (20.97)%(d)
Year Ended 7/31/2007 0.00 0.00 10.03 4.26
Period Ended 7/31/2006 (a) 0.00 0.00 9.62 (3.80)
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
END OF EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
PERIOD AVERAGE TO AVERAGE EXPENSES TURNOVER
(000) NET ASSETS NET ASSETS REIMBURSED RATE
- -------------------------------------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES
CLASS A
Year Ended 7/31/2008 $2,811,488 1.45% 0.75% 1.45% 83%
Year Ended 7/31/2007 2,166,598 1.56 0.07 1.56 79
Year Ended 7/31/2006 1,007,241 1.66 0.68 1.66 100
Year Ended 7/31/2005 332,370 2.00 (0.01) 1.84 79
Year Ended 7/31/2004 104,255 2.00 (0.68) 2.21 132
CLASS B
Year Ended 7/31/2008 $126,231 2.20% (0.08)% 2.20% 83%
Year Ended 7/31/2007 130,558 2.31 (0.71) 2.31 79
Year Ended 7/31/2006 77,695 2.41 (0.16) 2.41 100
Year Ended 7/31/2005 37,291 2.75 (0.84) 2.59 79
Year Ended 7/31/2004 16,559 2.75 (1.52) 2.96 132
CLASS C
Year Ended 7/31/2008 $1,155,137 2.20% (0.06)% 2.20% 83%
Year Ended 7/31/2007 1,073,481 2.31 (0.67) 2.31 79
Year Ended 7/31/2006 497,402 2.41 (0.05) 2.41 100
Year Ended 7/31/2005 161,712 2.75 (0.80) 2.59 79
Year Ended 7/31/2004 63,396 2.75 (1.46) 2.96 132
CLASS R
Year Ended 7/31/2008 $2,053 1.70% 0.61% 1.70% 83%
Year Ended 7/31/2007 903 1.81 0.04 1.81 79
Period Ended 7/31/2006 (a) 131 1.91 0.54 1.91 100
JAPAN-ASIA FOCUS
CLASS A
Year Ended 7/31/2008 $32,021 1.75% 0.12% 1.75% 68%
Year Ended 7/31/2007 61,316 1.84 (0.47) 1.83 61
Period Ended 7/31/2006 (a) 39,381 2.00 (0.63) 2.40 29
CLASS C
Year Ended 7/31/2008 $19,920 2.50% (0.71)% 2.50% 68%
Year Ended 7/31/2007 36,496 2.59 (1.23) 2.58 61
Period Ended 7/31/2006 (a) 18,508 2.75 (1.37) 3.15 29
(a) The International Opportunities Fund Class R commenced operations on
September 30, 2005. The Japan-Asia Focus Fund commenced operations on
January 31, 2006.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(d) Total returns include the $0.03 impact from the payment by affiliates.
Absent this payment, results would have been lower
(*) Amount represents less than $0.01.
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) (b) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
US FOCUS
CLASS A
Year Ended 7/31/2008 $11.99 (0.03) (0.61) (0.64) 0.00 (1.74) (1.74)
Year Ended 7/31/2007 10.35 (0.05) 2.32 2.27 0.00 (0.63) (0.63)
Year Ended 7/31/2006 10.93 (0.13) (0.38) (0.51) 0.00 (0.07) (0.07)
Year Ended 7/31/2005 9.69 (0.12) 1.41 1.29 (0.05) 0.00 (0.05)
Period Ended 7/31/2004 (a) 10.00 (0.04) (0.27) (0.31) 0.00 0.00 0.00
CLASS B
Year Ended 7/31/2008 $11.72 (0.10) (0.60) (0.70) 0.00 (1.74) (1.74)
Year Ended 7/31/2007 10.20 (0.13) 2.28 2.15 0.00 (0.63) (0.63)
Year Ended 7/31/2006 10.85 (0.21) (0.37) (0.58) 0.00 (0.07) (0.07)
Year Ended 7/31/2005 9.67 (0.19) 1.39 1.20 (0.02) 0.00 (0.02)
Period Ended 7/31/2004 (a) 10.00 (0.05) (0.28) (0.33) 0.00 0.00 0.00
CLASS C
Year Ended 7/31/2008 $11.72 (0.10) (0.60) (0.70) 0.00 (1.74) (1.74)
Year Ended 7/31/2007 10.20 (0.14) 2.29 2.15 0.00 (0.63) (0.63)
Year Ended 7/31/2006 10.85 (0.21) (0.37) (0.58) 0.00 (0.07) (0.07)
Year Ended 7/31/2005 9.67 (0.20) 1.40 1.20 (0.02) 0.00 (0.02)
Period Ended 7/31/2004 (a) 10.00 (0.05) (0.28) (0.33) 0.00 0.00 0.00
WORLDWIDE INCOME
CLASS A
Year Ended 7/31/2008 $10.87 0.71 (1.37) (0.66) (0.76) 0.00 (0.76)
Year Ended 7/31/2007 10.78 0.66 0.08 0.74 (0.65) 0.00 (0.65)
Year Ended 7/31/2006 11.03 0.71 (0.22) 0.49 (0.74) 0.00 (0.74)
Year Ended 7/31/2005 10.73 0.66 0.40 1.06 (0.72) (0.04) (0.76)
Period Ended 7/31/2004 (a) 10.00 0.54 0.73 1.27 (0.54) 0.00 (0.54)
CLASS B
Year Ended 7/31/2008 $10.84 0.64 (1.36) (0.72) (0.68) 0.00 (0.68)
Year Ended 7/31/2007 10.76 0.57 0.07 0.64 (0.56) 0.00 (0.56)
Year Ended 7/31/2006 11.00 0.62 (0.20) 0.42 (0.66) 0.00 (0.66)
Year Ended 7/31/2005 10.72 0.58 0.38 0.96 (0.64) (0.04) (0.68)
Period Ended 7/31/2004 (a) 10.00 0.47 0.73 1.20 (0.48) 0.00 (0.48)
CLASS C
Year Ended 7/31/2008 $10.86 0.64 (1.37) (0.73) (0.68) 0.00 (0.68)
Year Ended 7/31/2007 10.78 0.57 0.07 0.64 (0.56) 0.00 (0.56)
Year Ended 7/31/2006 11.02 0.63 (0.21) 0.42 (0.66) 0.00 (0.66)
Year Ended 7/31/2005 10.73 0.58 0.39 0.97 (0.64) (0.04) (0.68)
Period Ended 7/31/2004 (a) 10.00 0.46 0.75 1.21 (0.48) 0.00 (0.48)
NET ASSET NET ASSETS,
VALUE, END OF
REDEMPTION END OF TOTAL PERIOD
FEES THE PERIOD RETURN (c) (000)
- -------------------------------------------------------------------------------------
US FOCUS
CLASS A
Year Ended 7/31/2008 0.00(*) $9.61 (7.20)% $6,227
Year Ended 7/31/2007 0.00 11.99 22.55 9,328
Year Ended 7/31/2006 0.00 10.35 (4.69) 10,991
Year Ended 7/31/2005 0.00 10.93 13.34 14,752
Period Ended 7/31/2004 (a) 0.00 9.69 (3.10) 1,467
CLASS B
Year Ended 7/31/2008 0.00(*) $9.28 (7.95)% $662
Year Ended 7/31/2007 0.00 11.72 21.67 998
Year Ended 7/31/2006 0.00 10.20 (5.38) 1,292
Year Ended 7/31/2005 0.00 10.85 12.46 3,002
Period Ended 7/31/2004 (a) 0.00 9.67 (3.30) 1,483
CLASS C
Year Ended 7/31/2008 0.00(*) $9.28 (7.95)% $2,328
Year Ended 7/31/2007 0.00 11.72 21.67 2,789
Year Ended 7/31/2006 0.00 10.20 (5.38) 3,065
Year Ended 7/31/2005 0.00 10.85 12.46 3,849
Period Ended 7/31/2004 (a) 0.00 9.67 (3.30) 356
WORLDWIDE INCOME
CLASS A
Year Ended 7/31/2008 0.00(*) $9.45 (6.47)% $64,687
Year Ended 7/31/2007 0.00 10.87 6.71 39,470
Year Ended 7/31/2006 0.00 10.78 4.70 17,927
Year Ended 7/31/2005 0.00 11.03 10.07 16,375
Period Ended 7/31/2004 (a) 0.00 10.73 12.81 7,628
CLASS B
Year Ended 7/31/2008 0.00(*) $9.44 (7.00)% $5,789
Year Ended 7/31/2007 0.00 10.84 5.93 5,003
Year Ended 7/31/2006 0.00 10.76 3.93 5,210
Year Ended 7/31/2005 0.00 11.00 9.07 4,751
Period Ended 7/31/2004 (a) 0.00 10.72 12.08 3,344
CLASS C
Year Ended 7/31/2008 0.00(*) $9.45 (7.09)% $62,906
Year Ended 7/31/2007 0.00 10.86 5.92 29,752
Year Ended 7/31/2006 0.00 10.78 3.92 13,150
Year Ended 7/31/2005 0.00 11.02 9.16 13,580
Period Ended 7/31/2004 (a) 0.00 10.73 12.18 8,047
RATIOS TO AVERAGE NET ASSETS:
------------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
OPERATING NET INVESTMENT ASSETS WITHOUT
EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
AVERAGE TO AVERAGE EXPENSES TURNOVER
NET ASSETS NET ASSETS REIMBURSED RATE
- ------------------------------------------------------------------------------------------------
US FOCUS
CLASS A
Year Ended 7/31/2008 1.40% (0.24)% 2.67% 95%
Year Ended 7/31/2007 1.95 (0.45) 2.95 167
Year Ended 7/31/2006 2.00 (1.18) 2.45 98
Year Ended 7/31/2005 2.00 (1.19) 3.37 80
Period Ended 7/31/2004 (a) 2.00 (1.41) 22.58 11
CLASS B
Year Ended 7/31/2008 2.15% (0.99)% 3.42% 95%
Year Ended 7/31/2007 2.70 (1.23) 3.70 167
Year Ended 7/31/2006 2.75 (1.92) 3.20 98
Year Ended 7/31/2005 2.75 (1.84) 4.12 80
Period Ended 7/31/2004 (a) 2.75 (2.21) 23.32 11
CLASS C
Year Ended 7/31/2008 2.15% (0.98)% 3.42% 95%
Year Ended 7/31/2007 2.70 (1.21) 3.70 167
Year Ended 7/31/2006 2.75 (1.93) 3.20 98
Year Ended 7/31/2005 2.75 (1.95) 4.12 80
Period Ended 7/31/2004 (a) 2.75 (2.21) 23.32 11
WORLDWIDE INCOME
CLASS A
Year Ended 7/31/2008 1.30% 6.87% 1.45% 41%
Year Ended 7/31/2007 1.30 5.89 1.77 73
Year Ended 7/31/2006 1.30 6.61 1.93 161
Year Ended 7/31/2005 1.30 5.98 2.08 137
Period Ended 7/31/2004 (a) 1.30 5.89 3.49 327
CLASS B
Year Ended 7/31/2008 2.05% 6.13% 2.20% 41%
Year Ended 7/31/2007 2.05 5.17 2.52 73
Year Ended 7/31/2006 2.05 5.77 2.68 161
Year Ended 7/31/2005 2.05 5.23 2.83 137
Period Ended 7/31/2004 (a) 2.05 5.29 4.24 327
CLASS C
Year Ended 7/31/2008 2.05% 6.17% 2.20% 41%
Year Ended 7/31/2007 2.05 5.11 2.52 73
Year Ended 7/31/2006 2.05 5.78 2.68 161
Year Ended 7/31/2005 2.05 5.23 2.83 137
Period Ended 7/31/2004 (a) 2.05 5.26 4.24 327
(a) The US Focus Fund commenced operations on April 30, 2004. The Worldwide
Income Fund commenced operations on September 30, 2003.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(*) Amount represents less than $0.01.
See Notes to Financial Statements.
66-67 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
ten series. Two series of the Trust, Henderson Global Real Estate Equities Fund
and Henderson International Equity Fund, are not included in this report because
their fiscal year end is December 31. 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") and Henderson Worldwide Income
Fund ("Worldwide Income") collectively (the "Funds") are each a separate series
of the Trust. Each Fund except Global Equity Income, Global Opportunities and
Japan-Asia Focus is 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.
FUTURES CONTRACTS
The Funds may invest in futures contracts for the purpose of hedging their
existing portfolio securities or securities it intends to purchase against
fluctuations in fair value caused by changes in prevailing market interest
rates. To the extent a Fund enters into futures contracts, the segregated assets
maintained to cover such Fund's obligations with respect to the contracts will
consist of other liquid assets from its
68
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
portfolio in an amount equal to the difference between the contract price and
the aggregate value of the initial and variation margin payments made by the
Fund. Payments, known as "variation margin," are made or received by the Fund
each day, depending on the daily fluctuations in the fair value of the
underlying security. The Fund recognizes a gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may not
achieve the anticipated benefits of the futures contracts and may realize a
loss. The use of futures transactions involves the risk of imperfect correlation
in movements in the price of futures contracts, interest rates, and the
underlying hedged assets.
FOREIGN CURRENCY TRANSLATION
Investment securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the date of valuation.
Purchases and sales of investment securities and income and expense items
denominated in foreign currencies are translated into U.S. dollar amounts on the
respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments 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 U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
fair values of assets and liabilities, other than investments in securities at
fiscal period end, resulting from changes in exchange rates.
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-U.S. dollar
denominated investment securities. When entering into forward foreign currency
contracts, a Fund agrees to receive or deliver a fixed quantity of foreign
currency for an agreed-upon price on an agreed future date. Realized gains or
losses on forwards 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 or depreciation is included in the Statement of Assets and
Liabilities. These instruments involve market risk, credit risk, or both kinds
of risks, in excess of the amount recognized in the Statement of Operations.
These risks arise from the possible inability of counterparties to meet the
terms of their contracts and from unfavorable currency fluctuations.
The Funds held the following open forward foreign currency contracts at July 31,
2008:
Local Unrealized
Value amount Current appreciation
date (000's) value (depreciation)
- --------------------------------------------------------
European Focus
- --------------------------------------------------------
British
Pound
Short 10/10/08 37,752 $74,429,338 $205,416
- --------------------------------------------------------
Euro
Short 10/24/08 63,052 97,908,700 2,028,248
========================================================
Global Equity Income
- --------------------------------------------------------
British
Pound
Short 10/10/08 45,588 $89,879,589 $(580,735)
========================================================
Global Opportunities
- --------------------------------------------------------
British
Pound
Short 10/10/08 352 $694,674 $1,917
- --------------------------------------------------------
Euro
Short 10/24/08 600 931,699 19,301
========================================================
69
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
International Opportunities
- --------------------------------------------------------
British
Pound
Short 10/10/08 45,302 $89,315,206 $246,499
- --------------------------------------------------------
Euro
Short 10/24/08 81,967 127,281,310 2,636,723
- --------------------------------------------------------
Euro
Short 10/24/08 63,052 97,908,700 2,028,249
========================================================
Worldwide Income
- --------------------------------------------------------
British
Pound
Short 08/27/08 7,605 $ 15,043,218 $ 112,731
- --------------------------------------------------------
Euro
Short 08/27/08 32,991 51,388,174 440,248
========================================================
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 cash collateral. Income earned from securities lending
is reflected as Net securities lending income on the Statement of Operations.
The Fund may call such loans in order to sell the securities involved. During
the year ended July 31, 2008, International Opportunities transacted in
securities lending.
RESTRICTED SECURITIES
A restricted security is a security which has been purchased through a private
offering and cannot be resold to the general public without prior registration
under the Securities Act of 1933 (the "1933 Act") or pursuant to the resale
limitations provided by Rule 144 under the 1933 Act, or an exemption from the
registration requirements of the 1933 Act. Certain restricted securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers, and may be deemed liquid by the investment adviser based
on procedures established by the Board of Trustees. Therefore, not all
restricted securities are considered illiquid. At July 31, 2008, Global
Opportunities and US Focus held restricted securities that were illiquid.
Acquisition % Net
Fund Security Date Cost Value Assets
- -----------------------------------------------------------
Global Jazz Air May 22, $811 $543 0.00%
Opportunities Income 2007
Fund
- -----------------------------------------------------------
US Focus Jazz Air May 22, 9,963 6,669 0.07
Income 2007
Fund
===========================================================
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 and Global Opportunities 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 file tax returns with the U.S. Internal Revenue Service and various
states. Generally, the tax authorities can examine all tax returns filed for the
last three years.
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, 2008, Global Equity had $506,123 accumulated capital loss
carryforward, expiring on July 31, 2016. Japan-Asia Focus had $949,426
accumulated capital loss carryforward, expiring on July 31, 2016. Worldwide
Income had $1,028,576 accumulated capital loss carryforward, of which, for tax
purposes $341,836 expires July 31, 2014, $207,447 expires July 31, 2015 and
$479,293 expires July 31, 2016.
70
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
At July 31, 2008, 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
- --------------------------------------------------------
Global Equity Income -- $22,920,771
Global Opportunities -- 1,411,385
Global Technology $117,497 35,369,524
International Opportunities -- 56,011,086
Japan-Asia Focus 136,632 5,817,118
Worldwide Income -- 6,915,512
========================================================
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. Effective January 31, 2008 the
Funds adopted FIN 48 and concluded there was no impact to the Funds' net assets
or results of operations as of and during the period ended July 31, 2008.
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, 2008, the Funds reclassified the following amounts
between paid-in capital, undistributed net investment income (loss) and
accumulated net realized gain (loss):
Accumulated
undistributed
net Accumulated
Paid-in investment net realized
capital income/(loss) gain/(loss)
- ------------------------------------------------------------
European Focus $(467,387) $14,864,711 $(14,397,324)
- ------------------------------------------------------------
Global
Equity Income (17,732) (1,096,620) 1,114,352
- ------------------------------------------------------------
Global
Opportunities (16,545) 15,226 1,319
- ------------------------------------------------------------
Global
Technology (9,047) 2,054,746 (2,045,699)
- ------------------------------------------------------------
International
Opportunities (121,675) (7,510,315) 7,631,990
- ------------------------------------------------------------
Japan-Asia
Focus (8,003) 63,505 (55,502)
- ------------------------------------------------------------
US Focus 3,225 58,198 (61,423)
- ------------------------------------------------------------
Worldwide
Income (3,097) 537,143 (534,046)
============================================================
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 during the year ended July 31, 2007 and
July 31, 2008 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 --
=========================================================
71
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
Year ended Ordinary Long-term Tax return
July 31, 2008 income capital gains of capital
- ---------------------------------------------------------------
European
Focus $92,199,201 $62,200,501 --
Global Equity
Income 24,187,756 -- --
Global
Opportunities 131,992 -- --
Global
Technology 875,260 2,017,033 $1,374,433
International
Opportunities 272,640,686 78,060,069 --
Japan-Asia
Focus 1,865,937 1,538,574 --
US Focus 555,866 1,211,152 --
Worldwide
Income 8,999,619 -- --
===============================================================
As of July 31, 2008, 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 $12,220,537 $39,575,891 $(86,710,441)
- -----------------------------------------------------------
Global
Equity Income 1,595,298 -- (54,423,102)
- -----------------------------------------------------------
Global
Opportunities 86,909 -- (1,572,099)
- -----------------------------------------------------------
Global
Technology -- -- (2,297,397)
- -----------------------------------------------------------
International
Opportunities 20,769,876 21,779 (84,364,964)
- -----------------------------------------------------------
Japan-Asia Focus -- -- (13,500,007)
- -----------------------------------------------------------
US Focus -- 147,706 417,457
- -----------------------------------------------------------
Worldwide
Income 521,967 -- (14,991,237)
===========================================================
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 Income 1 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 HGINA based on the Fund's average daily managed assets, HGINA'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
72
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
assets for European Focus, Global Technology, International Opportunities and
Japan-Asia Focus, to 1.15% of average daily net assets for Global Equity and US
Focus, to 1.70% of average daily net assets for Global Opportunities and to
1.05% of average daily net assets for Worldwide Income. These agreements are
effective through July 31, 2020. 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 & 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 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, 2008 for Global Equity Income and Global Opportunities was $130,357 and
$202,648, respectively.
During the year ended July 31, 2008, HGINA reimbursed European Focus $373,077
for interest expense paid to the United States Treasury for ordinary income not
distributed in prior years which was the result of additional passive foreign
investment company ("PFIC') holdings identified in the portfolio. This amount is
reflected in the Statement of Operations - Fees waived and expenses reimbursed
by investment adviser.
During the year ended July 31, 2008, HGINA reimbursed Japan-Asia Focus $217,824
for a trading error. This amount is reflected in the Statement of Operations and
Financial Highlights as payments by affiliates.
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 HGINA a fee for those services.
Effective October 1, 2006, the Funds began reimbursing HGINA 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, 2008, HGINA owned the following number of shares in the following
Funds:
Shares
- --------------------------------------------------------
Global Equity Income Class A 25,328
Global Equity Income Class C 2,788
Global Technology Class A 14,398
========================================================
HGINA is a direct subsidiary of Henderson International Inc. ("HII"). At July
31, 2008, HII owned the following number of shares in the following Funds:
Shares
- --------------------------------------------------------
European Focus Class A 657
Global Equity Income Class A 793
Global Opportunities Class A 60,472
Global Opportunities Class C 5,023
Global Technology Class A 732
International Opportunities Class A 864
International Opportunities Class R 1,494
US Focus Class A 12,480
Worldwide Income Class A 3,530
========================================================
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
73
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
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, 2008, were as follows:
Purchases Sales
- --------------------------------------------------------
European Focus $893,091,596 $999,615,008
Global Equity Income 705,036,534 442,285,762
Global Opportunities 34,113,509 20,298,324
Global Technology 529,697,403 386,451,029
International
Opportunities 4,254,716,446 3,123,062,556
Japan-Asia Focus 49,991,916 73,392,484
US Focus 10,738,115 13,754,698
Worldwide Income 138,685,923 48,660,897
========================================================
The U.S. federal income tax basis of the Funds' investments excluding foreign
currency and forward currency contracts at July 31, 2008, and the gross
unrealized appreciation and depreciation, were as follows:
European Global Equity
Focus Income
- --------------------------------------------------------
Cost $1,108,878,917 $402,456,930
- --------------------------------------------------------
Gross unrealized
appreciation 122,884,660 3,917,243
- --------------------------------------------------------
Gross unrealized
depreciation 209,596,652 58,326,700
- --------------------------------------------------------
Net unrealized
depreciation (86,711,992) (54,409,457)
========================================================
Global Global
Opportunities Technology
- --------------------------------------------------------
Cost $19,158,584 $191,705,742
- --------------------------------------------------------
Gross unrealized
appreciation 464,969 10,997,516
- --------------------------------------------------------
Gross unrealized
depreciation 2,037,069 13,288,807
- --------------------------------------------------------
Net unrealized
depreciation (1,572,100) (2,291,291)
========================================================
International Japan-Asia
Opportunities Focus
- --------------------------------------------------------
Cost $4,190,999,576 $65,789,647
- --------------------------------------------------------
Gross unrealized
appreciation 342,210,514 895,435
- --------------------------------------------------------
Gross unrealized
depreciation 426,555,936 14,395,422
- --------------------------------------------------------
Net unrealized
depreciation (84,345,422) (13,499,987)
========================================================
Worldwide
US Focus Income
- --------------------------------------------------------
Cost $8,799,436 $145,007,243
- --------------------------------------------------------
Gross unrealized
appreciation 1,039,297 1,337,467
- --------------------------------------------------------
Gross unrealized
depreciation 621,840 16,327,328
- --------------------------------------------------------
Net unrealized
appreciation/(depreciation) 417,457 (14,989,861)
========================================================
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, 2008.
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.
74
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
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 U.S. 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
The Trust has a $175 million credit facility that was entered into to facilitate
portfolio liquidity. 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, 2008.
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, 2008 were as follows:
Redemption fees
- --------------------------------------------------------
European Focus $24,818
Global Equity Income 15,912
Global Opportunities 690
Global Technology 26,447
International Opportunities 100,033
Japan-Asia Focus 1,709
US Focus --
Worldwide Income 18,668
========================================================
NOTE 10. RECENT ACCOUNTING STANDARDS
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement 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 disclosures 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,
2008, 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.
In March 2008, the FASB issued Statement of Financial Accounting Standards No.
161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS")
No. 161. FAS No. 161 is effective for fiscal years and interim periods beginning
after November 15, 2008. FAS No. 161 requires enhanced disclosures about Funds'
derivative and hedging activities. Management is currently evaluating the impact
the adoption of FAS No. 161 will have on the Funds' financial statement
disclosures.
75
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 and Henderson Worldwide Income
Fund (collectively, the "Funds"), comprising the Henderson Global Funds, as of
July 31, 2008, 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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. 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, 2008, 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,
2008, 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 22, 2008
76
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, 2008 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.
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, 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 6, 2008, based on their evaluation of the information
provided by the Adviser and the Sub-adviser and other information, the Trustees
determined that the overall arrangements between each Fund and the Adviser were
fair and reasonable in light of the nature and quality of the services provided
by the Adviser and (in the case of Funds other than US Focus and Worldwide
Income (the "Sub-advised Funds")) 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 for each fund and the sub-advisory agreement for
each Sub-advised Fund through August 30, 2009, 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.
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 and their ongoing review
of information related to the Funds. 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
77
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
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. The Trustees concluded that the performance of the
three Funds that have been operating for five years has been very good over
various time periods as compared to the performance of their respective
universes of peer funds; three of the remaining Funds have performed near or
above the median performance of their respective universes for the past year;
and the Adviser and Sub-Adviser have taken appropriate steps to address the
underperformance of the other two Funds.
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 most of the
Funds before fee waivers, and the total expense ratio of all but one of the
Funds, were above the median 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
relatively high expense ratios.
The Trustees considered the methodology used by the Adviser and the Sub-adviser
in determining compensation payable to portfolio managers, the 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 (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
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, 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 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
78
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
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 other 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 Funds 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,
2008. The amounts shown may differ from those elsewhere in this report due to
differences between tax and financial reporting requirements. In January 2009,
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 2008. 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, 2008 as
follow:
FOREIGN FOREIGN
TAXES PAID SOURCE INCOME
- --------------------------------------------------------
European Focus $1,850,530 $30,283,117
- --------------------------------------------------------
Global Equity Income 1,182,906 32,513,218
- --------------------------------------------------------
International
Opportunities 7,798,096 85,868,780
========================================================
Under Section 854 (b)(2) of the Internal Revenue Code, the Funds designated
qualified dividends for the fiscal year ended July 31, 2008 as follows:
- --------------------------------------------------------
European Focus $25,394,305
- --------------------------------------------------------
Global Equity Income 26,732,624
- --------------------------------------------------------
Global Opportunities 356,679
- --------------------------------------------------------
Global Technology 1,091,553
- --------------------------------------------------------
International Opportunities 72,080,286
- --------------------------------------------------------
Japan-Asia Focus 1,309,456
- --------------------------------------------------------
US Focus 120,101
- --------------------------------------------------------
Worldwide Income 1,166,834
========================================================
The Funds designated long-term capital gains for the fiscal year ended July 31,
2008 as follows:
- --------------------------------------------------------
European Focus $62,200,501
- --------------------------------------------------------
Global Technology 2,017,033
- --------------------------------------------------------
International Opportunities 78,060,069
- --------------------------------------------------------
Japan-Asia Focus 1,538,574
- --------------------------------------------------------
US Focus 1,211,152
========================================================
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 entire six-month period ended July 31, 2008.
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.
75
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
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 reimbursements 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 1.48% 2.23% 2.23% 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 1.57 2.32 2.32 N/A
- ----------------------------------------------------------
International
Opportunities 1.44 2.19 2.19 1.69%
- ----------------------------------------------------------
Japan-Asia Focus 1.79 N/A 2.55 N/A
- ----------------------------------------------------------
US Focus 1.40 2.15 2.15 N/A
- ----------------------------------------------------------
Worldwide Income 1.30 2.05 2.05 N/A
==========================================================
80
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
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.
TABLE 1
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES
VALUE VALUE PAID
FEBRUARY 1, JULY 31, DURING
ACTUAL 2008 2008 THE PERIOD*
- -----------------------------------------------------------
European Focus
Class A $1,000.00 $927.00 $7.09
Class B 1,000.00 923.52 10.67
Class C 1,000.00 923.52 10.67
- -----------------------------------------------------------
Global Equity Income
Class A 1,000.00 915.97 6.67
Class C 1,000.00 912.32 10.22
- -----------------------------------------------------------
Global Opportunities
Class A 1,000.00 923.36 9.33
Class C 1,000.00 919.64 12.89
- -----------------------------------------------------------
Global Technology
Class A 1,000.00 927.19 7.52
Class B 1,000.00 923.83 11.10
Class C 1,000.00 924.32 11.10
- -----------------------------------------------------------
International Opportunities
Class A 1,000.00 953.43 6.99
Class B 1,000.00 950.23 10.62
Class C 1,000.00 950.20 10.62
Class R 1,000.00 952.67 8.20
- -----------------------------------------------------------
Japan-Asia Focus
Class A 1,000.00 945.12 8.66
Class C 1,000.00 941.76 12.31
- -----------------------------------------------------------
US Focus
Class A 1,000.00 997.92 6.95
Class B 1,000.00 993.58 10.66
Class C 1,000.00 993.58 10.66
- -----------------------------------------------------------
Worldwide Income
Class A 1,000.00 945.35 6.29
Class B 1,000.00 942.67 9.90
Class C 1,000.00 941.75 9.90
===========================================================
TABLE 2
- -----------------------------------------------------------
BEGINNING ENDING
HYPOTHETICAL ACCOUNT ACCOUNT EXPENSES
(ASSUMING A VALUE VALUE PAID
5% RETURN FEBRUARY 1, JULY 31, DURING
BEFORE EXPENSES) 2008 2008 THE PERIOD*
- -----------------------------------------------------------
European Focus
Class A $1,000.00 $1,017.64 $7.42
Class B 1,000.00 1,013.91 11.17
Class C 1,000.00 1,013.91 11.17
- -----------------------------------------------------------
Global Equity Income
Class A 1,000.00 1,018.04 7.02
Class C 1,000.00 1,014.31 10.77
- -----------------------------------------------------------
Global Opportunities
Class A 1,000.00 1,015.30 9.77
Class C 1,000.00 1,011.57 13.50
- -----------------------------------------------------------
Global Technology
Class A 1,000.00 1,017.19 7.87
Class B 1,000.00 1,013.46 11.61
Class C 1,000.00 1,013.46 11.61
- -----------------------------------------------------------
International Opportunities
Class A 1,000.00 1,017.84 7.22
Class B 1,000.00 1,014.11 10.97
Class C 1,000.00 1,014.11 10.97
Class R 1,000.00 1,016.60 8.47
- -----------------------------------------------------------
Japan-Asia Focus
Class A 1,000.00 1,016.10 8.97
Class C 1,000.00 1,012.32 12.76
- -----------------------------------------------------------
US Focus
Class A 1,000.00 1,018.04 7.02
Class B 1,000.00 1,014.31 10.77
Class C 1,000.00 1,014.31 10.77
- -----------------------------------------------------------
Worldwide Income
Class A 1,000.00 1,018.54 6.52
Class B 1,000.00 1,014.81 10.27
Class C 1,000.00 1,014.81 10.27
===========================================================
* 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 182 days in the period and divided by 366 (to
reflect the one-half year period).
81
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
POSITION(S) TERM OF OTHER
NAME, ADDRESS AND WITH OFFICE AND PRINCIPAL OCCUPATIONS DIRECTORSHIPS
AGE(1) THE TRUST(2) TIME SERVED(3) DURING PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
C . Gary Gerst, 69 Chairman Since 2001 President, KCI Inc. (private s-corporation None
and Trustee investing in non-public investments.)
Roland C. Baker, 69 Trustee Since 2001 Consultant to financial services industry. Director, Quanta
Capital Holdings, Inc.
(provider of property and
casualty reinsurance);
Director, North American
Company for Life and Health
Insurance (a provider of
life insurance, health
insurance and annuities);
Trustee, Scottish Widows
Investment Partnership
Trust; Trustee, Allstate
Financial Investment Trust.
Faris F. Chesley, 69 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
Wurtzebach(4), 59 Investors (North America) Inc. ("HGINA").
Sean M. Dranfield4, 42 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, 48 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, 33 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, 37 Vice President Since 2001 Director, Retail Finance and Operations, N/A
and Treasurer HGINA.
82
HENDERSON GLOBAL FUNDS
TRUSTEES AND OFFICERS
(UNAUDITED)
POSITION(S) TERM OF OTHER
NAME, ADDRESS AND WITH OFFICE AND PRINCIPAL OCCUPATIONS DIRECTORSHIPS
AGE(1) THE TRUST(2) TIME SERVED(3) 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, 33 Bell, Boyd & Lloyd LLC, 2000-2004.
Richard J. Mitchell, 45 Assistant Since 2007 Assistant Treasurer, HGINA, since 2007; N/A
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, 2008.
2. Currently, all Trustees oversee all ten 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).
83
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 and 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.
84
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, 2008)
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 - $208,500 and $180,100 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 - $93,824 and $77,900 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.
$6,300 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) $93,824 and $77,900 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. $417,416 and $533,569 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 and its affiliates
that provide ongoing services to the registrant.
(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 did not relate directly to the operations and financial
reporting of the registrant and 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 29, 2008
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
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Sean Dranfield
President (principal executive officer) of Henderson Global Funds
Date: September 29, 2008
By: /s/ Scott E. Volk
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Scott E. Volk
Treasurer (principal financial officer) of Henderson Global Funds
Date: September 29, 2008