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: December 31
Date of reporting period: June 30, 2009
ITEM 1: REPORT TO SHAREHOLDERS.
Logo Henderson Global Investors Henderson Global Funds
Photo of two globes.
SEMI-ANNUAL REPORT
JUNE 30, 2009
GLOBAL REAL ESTATE EQUITIES FUND
INTERNATIONAL EQUITY FUND
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ..................................................... 2
GLOBAL REALESTATE EQUITIES FUND
Commentary ................................................................. 3
Performance summary ........................................................ 5
INTERNATIONAL EQUITY FUND
Commentary ................................................................. 6
Performance summary ........................................................ 8
PORTFOLIOS OF INVESTMENTS .................................................. 9
STATEMENTS OF ASSETS AND LIABILITIES ....................................... 14
STATEMENTS OF OPERATIONS ................................................... 15
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 16
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY ............................. 17
FINANCIAL HIGHLIGHTS ....................................................... 18
NOTES TO FINANCIAL STATEMENTS .............................................. 20
OTHER INFORMATION .......................................................... 26
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, the Global Real Estate Equities Fund and the
International Equity Fund 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.
The Global Real Estate Equities Fund is concentrated in a single industry
meaning the Fund carries greater risk of adverse developments in that industry
than a fund that invests in a wide variety of industries. Special risks are also
associated with investments in securities of companies engaged in property
markets.
The views in this report were those of the Fund managers as of June 30, 2009,
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 shareholder,
We are pleased to provide the semi-annual report for the Henderson Global Real
Estate Equities Fund and the Henderson International Equity Fund, which covers
the six months ended June 30, 2009.
The second quarter of 2009 saw some welcome stability return to markets,
although they remain significantly below the average levels of 2008. By the end
of the period, economic indicators were showing some signs of improvement across
a broad range of sectors. Consumer confidence has risen from its crisis low, and
there are tentative signs of stabilization in housing markets. Job markets and
business spending have also shown signs of improvement.
We realize that any recovery will face challenges, and that the rate of
improvement may be slow or even flat at times. In fact, growth may struggle to
reach trend rates until mid-2010. However, we believe that the positive
indicators seen year-to-date and other signs of growth likely mean that the
recession has turned a corner. Some investors who share the same perspective
have now turned their concerns from recession to inflation, but we believe weak
economic growth and the resultant excess slack that continues to build is likely
to keep global core inflation low.
From an investment perspective, we believe that mispricing and fear are creating
opportunities for savvy investors in the global marketplace. We believe European
equities are the most attractive they have been in 30 years, offering
historically high income along with relatively low valuations that provide the
potential for capital gains. In Asia, aggressive government policies, loose
monetary conditions and steady improvement in economic activity have all helped
to drive markets higher. China's economy grew by 7.9% in the second quarter as
monetary easing and huge fiscal stimulus begin to take effect. India's growth
story is also encouraging, as it is based on domestic demand rather than being
overly dependent on export markets (Indian tangible exports account for just 15%
of gross domestic product).
While much of the recent news coverage has been dedicated to predicting the
shape of the recovery, with speculation about U's, V's, W's and even WW's, few
agree on the shape of things to come. It is difficult to tell what direction the
recovery will take towards the end of 2009 as the longer-term impact of
government policy measures and fiscal stimulus becomes clearer. Overall, we
believe that investors should try not to focus too much on what a share price
will do in the short term, and instead decide whether it is better to be paid
nothing by the banks to hold cash or accept an element of risk and seek to buy
into companies with decent earnings and attractive dividend yields.
At Henderson, we favor the latter strategy. As always, we remain focused on
holding high-conviction securities through our bottom-up, opportunistic
investment process. During these uncertain times, we aim to take advantage of
investment opportunities created by fear and apprehension in the marketplace,
continuing to seek out differentiated investment ideas that may bring value to
our clients' portfolios. 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
2
HENDERSON GLOBAL FUNDS
COMMENTARY
GLOBAL REAL ESTATE EQUITIES FUND
The first quarter of 2009 began nervously and macro data did little to restore
confidence. The financial sector dominated news flow as RBS declared record
losses and HSBC announced a US $17.6bn rights issue to bolster its balance
sheet.
Attention was firmly focused on balance sheet strength and listed companies
began coming to the market to raise capital, in order to repair balance sheets
or to capitalize on opportunities. This process was generally well received and
built investor confidence. In March, equity markets began to post gains and
spreads on corporate bonds tightened. April saw a continuation of the global
rally, and confidence that government policy, as set out at the G-20 summit, was
starting to take effect, leading investors to revisit risk assets.
In the property sector, equity raisings, which began in Australia and the US,
became a feature in the UK, as companies recapitalized to avoid debt covenant
breaches or position themselves for a recovery. Real estate stocks benefited as
investors sought heavily sold asset classes.
At a regional level Asia was by far the best performer (the following listed in
US Dollar returns), returning 24.7%1. Continental European markets returned
3.8%2, but the inclusion of the UK curtailed performance for Pan Europe to
2.1%3. The US was the most volatile, posting the largest monthly gains over the
period, but also suffering the biggest losses and ended the period with the
weakest return of -10.1%4.
For the period ending June 30, 2009, the Fund's performance was 5.36% against
the FTSEEPRA/NARIET Developed Real Estate Index USD return of 5.88%.
In Asia, stocks rallied in Hong Kong and China as government support measures
were positively received and news of the resilience of residential market
filtered through. Detracting from performance was the absence of some of the
stronger performers in the sector. In addition, overweight positions in poorly
performing US holdings Cogdell Spencer, Hospitality Properties and Alexandria
Real Estate were detrimental.
Adding to relative performance was the Fund's overweight position in both
Henderson Land Development and Sun Hung Kai Properties in Hong Kong. Chinese
residential developer China Overseas Land & Investment also gained considerably
over the period and the Fund's overweight position was beneficial.
In the UK, large-cap stocks lagged behind their mid-cap counterparts. Tactical
underweight positions in British Land and Land Securities proved positive, while
an overweight position in Derwent London also added value.
In the US, our stake in retail specialist Macerich performed well after it
announced substantial debt re-financing at the end of March.
From an asset allocation perspective the Fund was well placed. Our projections
within Asia, the best performing region, proved successful. Our preference of
Hong Kong and China over Australia served us well. Our underweight position in
the UK in the run-up to companies rights issues was also beneficial.
The next twelve months are likely to remain difficult for the real estate sector
as the banks start to work through their loan losses and the recession takes its
toll on rental levels and, ultimately, on rental income. However, we are
increasingly of the view that the worst is past and that we are moving from a
period of extreme financial distress into a manageable recession.
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GLOBAL REAL ESTATE EQUITIES FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
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SUN HUNG KAI
PROPERTIES, LTD. 8.0%
HENDERSON LAND
DEVELOPMENT CO., LTD. 6.4
MITSUI FUDOSAN CO., LTD. 5.6
MITSUBISHI ESTATE CO., LTD. 5.3
WESTFIELD GROUP 4.7
JAPAN REAL ESTATE
INVESTMENT CORP. 4.0
CHINA OVERSEAS
LAND & INVESTMENT, LTD. 3.7
UNIBAIL-RODAMCO 3.4
SIMON PROPERTY GROUP, INC. 2.8
VORNADO REALTY TRUST 2.3
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3
HENDERSON GLOBAL FUNDS
COMMENTARY
Against this background, we are adopting a cautious approach, with the portfolio
weighted towards established investment companies with relatively low geared
balance sheets which are generating sustainable dividend yields. At a regional
level the Fund is likely to remain fairly neutral, preferring not to take large
bets in highly volatile markets where investors sentiment, more than
fundamentals, are driving returns. However, we remain optimistic about the
medium-term growth prospects for Asia, particularly China and Hong Kong,
although currently much of this appears to be reflected in equity market
pricing.
We have supported a number of rights issues in the US, UK and Asia. Initially,
these were aimed exclusively at balance sheet reconstruction. More recently,
companies have been raising money to exploit the opportunities which they think
will emerge as the market bottoms out and we have participated in a number of
such issues from both existing companies and new ventures, beginning to position
the portfolio for future growth.
The recovery, when it comes, is likely to be felt first in the core markets as
investors start to look for yield and there is already evidence that the best
quality assets in some countries are rising in value. Property development will
not be viable for some time and site values are likely to remain depressed.
(1) FTSE Asia Index
(2) FTSE Developed Europe Ex UK Index
(3) FTSE Developed Europe Index
(4) FTSE North America Index
4
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
GLOBAL REAL ESTATE EQUITIES FUND
Pie Chart:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
United States 32.5%
Hong Kong 20.9
Japan 15.1
Australia 8.2
United Kingdom 6.6
France 4.6
Other 12.1
Pie Chart:
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Real Estate Investment Trusts 59.6%
Real Estate Management & Development 39.0
Wireless Telecommunication Services 0.7
Hotels, Restaurant & Leisure 0.5
Industrials Conglomerates 0.2
Line Chart:
INVESTMENT COMPARISON
Value of $10,000
Global Real Estate Equities Fund Class I - $6,218
FTSE EPRA/NAREIT Global Index - $5,915
2/29/08 10000 10000
10250 10038
4/30/08 10860 10665.4
10680 10403
6/30/08 9350 9177.53
9450 9253.71
8/31/08 9200 9062.15
8570 8223.91
10/31/08 6150 5937.66
5230 5076.11
12/31/08 5901.6 5570.01
5166.73 4853.15
2/28/09 4364.02 4055.78
4624.05 4342.93
4/30/09 5539.82 5244.95
6263.39 5914.73
6/30/09 6218.16 5915
TOTAL RETURNS AS OF JUNE 30, 2009
SINCE
NASDAQ THREE SIX ONE INCEPTION
SYMBOL CLASS MONTHS MONTHS YEAR (2/29/08)
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Henderson Global Real Estate Equities Fund HGPIX Class I 34.47% 5.36% -33.50% -29.96%
- ------------------------------------------------------------------------------------------------------------------------
INDEX
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FTSE EPRA/NAREIT Global Index 35.91% 5.88% -35.86% -32.78%
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Performance data quoted represents past performance and is no guarantee of
future results. 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 the original
cost. Shares redeemed within 30 days of purchase may be subject to a 2%
redemption fee. As stated in the current prospectus, the Fund's annual operating
expense ratio (gross) is 24.02%. However, the Fund's adviser has agreed to
voluntarily waive a portion of its fees and or reimburse expenses such that
total operating expenses do not exceed 1.15% which is in effect until July 31,
2020. Had certain expenses not been waived or reimbursed during the period,
total returns would have been lower. For most recent month end performance,
please call 1.800.657.1493.
Returns include reinvestment of dividend and capital gains. Performance results
reflect expense subsidies and waivers in effect during periods shown. Absent
these waivers, results would have been less favorable.
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 FTSE EPRA/NAREIT Global Index is broken down into eight index families and
141 indices in Asia Pacific, Europe and North America. These include 18
real-time indices covering the world's largest investment markets in various
currencies. 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
INTERNATIONAL EQUITY FUND
Global equity markets began 2009 with positive momentum, but the rally was
short-lived as further poor economic news was released. Data from the US on
growth, unemployment and retail sales indicated a deepening recession. The
sell-off that ensued continued until early March and was accompanied by cuts in
bank base rates and the announcement of various quantitative easing initiatives
in the UK, US and Japan. Inflation fell globally, reflecting weak growth and the
collapse in commodity prices and house prices, while trade volumes shrank
rapidly and increases in job losses intensified. In the US, the Obama
administration announced a further $800bn to counteract the crisis and partially
nationalised Citicorp, while in the UK the government announced a (pound)500bn
asset protection scHeme for the banks.
With valuations arguably starting to price in an economic `Armageddon' scenario
by the end of February, some positive announcements from several investment
banks and a growing confidence in government stimulus packages underpinned a
strong rally. Markets hit their low point on March 9, after which sentiment
changed and investors became more positive, reflecting expectations of an
improvement in economic conditions globally. Critically, US and Chinese
purchasing managers' indices stabilised, as well as the German Ifo business
confidence survey and US housing starts. The ensuing market rally continued for
the remainder of the review period, fuelled by positive economic data surprises,
better-than-expected company earnings (albeit bottom-line driven) and extensions
to quantitative easing programmes. As some investors' risk appetite increased,
cyclical stocks outperformed defensive stocks, mid and small caps outperformed
large caps, and Asia- ex-Japan and emerging markets outperformed other regions.
Through this challenging investment environment the fund delivered a return of
15.70% versus its MSCI EAFE benchmark return of 8.42% for the period ending June
30, 2009, assisted by robust stock selection and our risk positioning to be
overweight in more economically-sensitive companies in Asia ex-Japan and
emerging markets and underweight and defensively positioned in Europe and Japan.
This top level exposure had been increased late in 2008 to benefit from Asian
companies that had robust balance sheets, strong underlying earnings and the
potential to grow earnings strongly should the world's economic woes mend faster
than generally expected. It also reflected our view of the structural
divergences between East and West: Eastern economies, excluding Japan, are
benefiting from consumers, corporates and governments with robust balance sheets
and economic policies that are promoting domestic demand. This is in stark
contrast to Western economies saddled with indebted consumers and governments in
weak financial positions, which could be a drag on growth for some considerable
time. During the period under review, our defensive holdings worked well during
the Q1 2009, with the quality economic exposure in Asia also holding up well.
During Q2, however, it was our Asian and emerging markets exposure that added
value to returns.
Disaggregating performance for the period by sector, Financials, Consumer
Staples and Energy added the most to returns, with Information Technology and
Materials the only significant detractors. Within Financials, while we did not
participate in the rally in distressed financials (which benefited from more
supportive central banks post Lehman Brothers' bankruptcy) positions in
well-capitalized Asian property companies added value, with Capitaland, Hang
Lung Properties and SC Global Developments all rising more than 50%. Asian
banking exposure was also positive; DBS Group rallied off its nadir when its
valuation touched levels experienced during the 1998 Asian crisis, and Bank of
China benefited from
- ----------------------------------------------
INTERNATIONAL EQUITY FUND
TOP 10 LONG-TERM HOLDINGS
AS A PERCENTAGE
SECURITY OF NET ASSETS
- ----------------------------------------------
FRESENIUS SE 3.7%
WILMAR INTERNATIONAL, LTD. 3.2
VODAFONE GROUP PLC 3.1
CAPITALAND, LTD. 2.9
TESCO PLC 2.6
DBS GROUP HOLDINGS, LTD. 2.4
HANG LUNG PROPERTIES, LTD. 2.4
UBS AG 2.3
SERCO GROUP PLC 2.3
MAKITA CORP. 2.1
- ----------------------------------------------
6
HENDERSON GLOBAL FUNDS
COMMENTARY
government-sponsored loan growth, which reached 36% year on year in June.
Wilmar, the world's largest palm oil supplier, was the standout performer in the
Consumer Staples sector as the company beat earnings expectations and then
announced an intention to spin off its Chinese upstream business. Positive
returns in AB InBev and Carlsberg also added value. Within the Energy sector,
the recovering oil price and narrowing government bond spread led to strong
performance from Petrobras. Within information technology, holding Nintendo
detracted from returns as US sales of its Wii console declined. While we reduced
the position, we believe new hardware and software sales in the 2nd half of 2009
to support management's view, which caused them to leave guidance unchanged for
the year.
The overall positioning in the portfolio has not changed considerably during the
period. We have recycled some profits in our Asian exposure and added to some
cyclical growth in Europe. We initiated a position in Randstad, a European
temporary employment provider, which has benefited from merger synergies from
its Vedior acquisition and signs of stabilization in the US and French temporary
employment markets. We also reduced our underweight to the Materials sector by
adding a position in Xstrata, which was trading at a discount net asset value,
has a robust balance sheet post rights issue, and has benefited from stable coal
prices and rising copper prices.
Looking forward, we remain positive on the reflationary economic policies in
Asia ex-Japan and emerging markets, and this continues to be reflected in the
Fund. We are more cautious about developed Western markets and remain
defensively positioned there. Weak European industrial production numbers,
coupled with a dip in US consumer confidence and a rise in US mortgage
delinquencies, support this view. We have also been looking closely at our
underweight position in Japan: the market has lagged the rally in the rest of
Asia, is cyclically biased and will benefit from a raft of government stimuli.
During the second quarter, global equity markets rallied very strongly, as
investors traded on the expectations that improving leading indicators would
feed into real growth. However, any setback in macro data could cause risk
assets to falter and government bonds to rally anew.
7
HENDERSON GLOBAL FUNDS
PERFORMANCE SUMMARY
INTERNATIONAL EQUITY FUND
Pie Chart:
PORTFOLIO COMPOSITION BY COUNTRY
(AS A % OF LONG-TERM INVESTMENTS)
Japan 17.4%
United Kingdom 16.5
Singapore 14.4
Switzerland 10.5
Germany 8.8
China 5.1
Other 27.3
PIE CHART:
PORTFOLIO COMPOSITION BY SECTOR
(AS A % OF LONG-TERM INVESTMENTS)
Financials 29.7%
Industrials 15.9
Information Technology 10.5
Consumer Staples 9.9
Consumer Discretionary 9.9
Health Care 9.5
Other 14.6
LINE CHART:
INVESTMENT COMPARISON
Value of $10,000
International Equity Fund Class I - $6,924
MSCI EAFE Index - $6,801
01/31/08 10020 10146
10020 10044.5
04/30/08 10800 10603
11170 10726
06/30/08 10580 9850.77
10020 9535.54
08/31/08 9350 9151.26
7830 7831.65
10/31/08 6020 6252.01
5500 5916.9
12/31/08 5984.58 6273.1
5446.28 5658.33
02/28/09 4918.54 5079.49
5287.96 5404.06
04/30/09 5889.58 6104.43
6913.4 6837.57
06/30/09 6923.95 6800.65
TOTAL RETURNS AS OF JUNE 30, 2009
SINCE
NASDAQ THREE SIX ONE INCEPTION
SYMBOL CLASS MONTHS MONTHS YEAR (1/31/08)
- ------------------------------------------------------------------------------------------------------------------------
Henderson International Equity Fund HIEIX Class I 30.94% 15.70% -34.56% -22.90%
- ------------------------------------------------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 25.85% 8.42% -30.96% -23.82%
- ------------------------------------------------------------------------------------------------------------------------
Performance data quoted represents past performance and is no guarantee of
future results. 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 the original
cost. Shares redeemed within 30 days of purchase may be subject to a 2%
redemption fee. As stated in the current prospectus, the Fund's annual operating
expense ratio (gross) is 6.41%. However, the Fund's adviser has agreed to
voluntarily waive a portion of its fees and or reimburse expenses such that
total operating expenses do not exceed 1.15% which is in effect until July 31,
2020. Had certain expenses not been waived or reimbursed during the period,
total returns would have been lower. For most recent month end performance,
please call 1.800.657.1493.
Returns include reinvestment of dividend and capital gains. Performance results
reflect expense subsidies and waivers in effect during periods shown. Absent
these waivers, results would have been less favorable.
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 is a capitalization-weighted index that monitors the
performance of stocks from Europe, Australasia and The Far East. The Fund is
professionally managed while the Index is unmanaged and not available for
investment. Results in the table and graph do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of Fund
shares.
8
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
GLOBAL REAL ESTATE EQUITIES FUND
JUNE 30, 2009
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
COMMON STOCKS - 39.24%
HONG KONG - 20.68%
10,000 China Overseas Land &
Investment, Ltd. ................................... $ 22,999
7,000 Henderson Land Development
Co., Ltd. .......................................... 39,777
2,000 Hopewell Holdings, Ltd. ............................ 6,216
5,000 Shimao Property Holdings, Ltd. ..................... 9,626
4,000 Sun Hung Kai Properties, Ltd. ...................... 49,943
--------
128,561
--------
JAPAN - 10.90%
2,000 Mitsubishi Estate Co., Ltd. ........................ 33,132
2,000 Mitsui Fudosan Co., Ltd. ........................... 34,650
--------
67,782
--------
SINGAPORE - 2.80%
5,042 Capitaland, Ltd. ................................... 12,805
2,000 Keppel Land, Ltd. .................................. 3,027
1,000 Yanlord Land Group, Ltd. ........................... 1,568
--------
17,400
--------
SWEDEN - 1.39%
450 Castellum AB ....................................... 2,864
400 Kungsleden AB ...................................... 1,846
290 Wihlborgs Fastigheter AB ........................... 3,900
--------
8,610
--------
SWITZERLAND - 0.92%
120 PSP Swiss Property AG * ............................ 5,732
--------
UNITED KINGDOM - 1.38%
450 Development Securities plc ......................... 1,943
276 Development Securities plc * ....................... 63
400 Helical Bar plc .................................... 2,163
1,300 Max Property Group plc * ........................... 2,556
1,200 Safestore Holdings plc ............................. 1,876
--------
8,601
--------
UNITED STATES - 1.17%
180 Crown Castle International Corp.* .................. 4,292
380 Las Vegas Sands Corp.* ............................. 2,987
--------
7,279
--------
TOTAL COMMON STOCK ................................. 243,965
(Cost $226,339) --------
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
REIT AND REIT - LIKE INSTRUMENTS - 59.72%
AUSTRALIA - 8.12%
2,000 CFS Retail Property Trust .......................... $ 2,644
21,857 Dexus Property Group ............................... 13,103
11,025 Goodman Group ...................................... 3,234
15,000 Macquarie Office Trust ............................. 2,519
3,181 Westfield Group .................................... 28,974
--------
50,474
--------
CANADA - 3.48%
460 Calloway Real Estate Investment
Trust .............................................. 5,077
1,060 Chartwell Seniors Housing Real
Estate Investment Trust ............................ 4,939
320 Cominar Real Estate Investment
Trust .............................................. 4,258
650 Extendicare Real Estate Investment
Trust .............................................. 3,493
240 Northern Property Real Estate
Investment Trust ................................... 3,865
--------
21,632
--------
FRANCE - 4.56%
60 ICADE .............................................. 4,927
100 Klepierre .......................................... 2,579
140 Unibail-Rodamco .................................... 20,850
--------
28,356
--------
JAPAN - 4.00%
3 Japan Real Estate Investment Corp. ................. 24,899
--------
NETHERLANDS - 2.12%
164 Corio N.V. ......................................... 7,974
70 Wereldhave N.V. .................................... 5,205
--------
13,179
--------
SINGAPORE - 1.26%
2,000 Ascendas Real Estate Investment
Trust .............................................. 2,189
4,000 CapitaMall Trust ................................... 3,851
3,000 Suntec Real Estate Investment
Trust .............................................. 1,772
--------
7,812
--------
UNITED KINGDOM - 5.16%
500 Big Yellow Group plc * ............................. 2,813
500 Derwent London plc ................................. 7,691
600 Great Portland Estates plc ......................... 2,172
1,900 Hammerson plc ...................................... 9,596
19,000 Segro plc .......................................... 7,580
268 Shaftesbury plc .................................... 1,331
179 Shaftesbury plc * .................................. 889
--------
32,072
--------
See Notes to Financial Statements.
9
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
GLOBAL REAL ESTATE EQUITIES FUND
JUNE 30, 2009 (CONTINUED)
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
UNITED STATES - 31.02%
245 Alexandria Real Estate Equities,
Inc. ............................................... $ 8,769
600 Apartment Investment &
Management Co., Class A ............................ 5,310
173 AvalonBay Communities, Inc. ........................ 9,678
465 BioMed Realty Trust, Inc. .......................... 4,757
610 Brandywine Realty Trust ............................ 4,545
220 BRE Properties, Inc. ............................... 5,227
195 Camden Property Trust .............................. 5,382
1,120 Cogdell Spencer, Inc. .............................. 4,805
190 Digital Realty Trust, Inc. ......................... 6,812
290 Entertainment Properties Trust ..................... 5,974
165 Equity Lifestyle Properties, Inc. .................. 6,135
84 Essex Property Trust, Inc. ......................... 5,227
680 Extra Space Storage Inc. ........................... 5,678
145 Federal Realty Investment Trust .................... 7,470
300 Hospitality Properties Trust ....................... 3,518
555 Inland Real Estate Corp. ........................... 3,885
210 Kilroy Realty Corp. ................................ 4,313
840 Kimco Realty Corp. ................................. 8,442
400 LaSalle Hotel Properties ........................... 4,936
630 Medical Properties Trust, Inc. ..................... 3,824
275 Nationwide Health Properties,
Inc. ............................................... 7,078
315 Omega Healthcare Investors,
Inc. ............................................... 4,889
990 ProLogis ........................................... 7,979
350 Ramco-Gershenson Properties
Trust .............................................. 3,504
342 Simon Property Group, Inc. ......................... 17,589
260 SL Green Realty Corp. .............................. 5,964
367 The Macerich Co. ................................... 6,463
355 Ventas, Inc. ....................................... 10,600
313 Vornado Realty Trust ............................... 14,094
--------
192,847
--------
TOTAL REIT AND
REIT - LIKE INSTRUMENTS ............................ 371,271
(Cost $401,326) --------
TOTAL LONG TERM INVESTMENTS ........................ 615,236
(Cost $627,665) --------
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENT - 5.46%
33,949 Fidelity Institutional Treasury
Portfolio .......................................... $ 33,949
--------
TOTAL SHORT TERM INVESTMENT ........................ 33,949
--------
(Cost $33,949)
TOTAL INVESTMENTS - 104.42%
(Cost $661,614) .................................... 649,185
--------
NET OTHER ASSETS AND
LIABILITIES - (4.42)% .............................. (27,460)
--------
TOTAL NET ASSETS - 100.00%....................................... $621,725
========
* Non income producing security
REIT Real Estate Investment Trust
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------------------------------
Diversified Real Estate Activities.............................. 28.96%
Retail REIT's................................................... 21.02
Office REIT's................................................... 11.65
Specialized REIT's.............................................. 9.50
Diversified REIT's.............................................. 6.90
Residential REIT's.............................................. 6.57
Real Estate Development......................................... 6.34
Industrial REIT's............................................... 3.37
Real Estate Operating Companies................................. 3.34
Wireless Telecommunication Services............................. 0.69
Casinos & Gaming................................................ 0.48
Industrial Conglomerates........................................ 0.14
--------
Long Term Investments........................................... 98.96
Short Term Investment........................................... 5.46
--------
Total Investments............................................... 104.42
Net Other Assets and Liabilities................................ (4.42)
--------
100.00%
========
See Notes to Financial Statements.
10
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
INTERNATIONAL EQUITY FUND
JUNE 30, 2009
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
COMMON STOCKS - 98.13%
AUSTRIA - 2.07%
654 Andritz AG ......................................... $ 27,432
414 Schoeller-Bleckmann Oilfield
Equipment AG ....................................... 15,100
-----------
42,532
-----------
BELGIUM - 3.09%
2,872 Anheuser-Busch InBev N.V. .......................... 39,295
483 EVS Broadcast Equipment, S.A. ...................... 24,345
-----------
63,640
-----------
BRAZIL - 2.97%
3,327 Companhia Brasileira de Meios
de Pagamento * ..................................... 28,609
792 Petroleo Brasileiro S.A., ADR ...................... 32,456
-----------
61,065
-----------
CHINA - 5.17%
19,000 Anta Sports Products, Ltd. ......................... 23,535
54,000 Bank of China, Ltd., Class H ....................... 25,711
1,851 China Medical Technologies,
Inc., ADR .......................................... 36,854
3,000 Ping An Insurance (Group) Co.
of China, Ltd., Class H ............................ 20,303
-----------
106,403
-----------
DENMARK - 0.97%
311 Carlsberg A/S, Class B ............................. 19,949
-----------
FRANCE - 1.14%
797 Veolia Environnement ............................... 23,468
-----------
GERMANY - 6.10%
506 Bauer AG ........................................... 18,058
384 Bilfinger Berger AG ................................ 17,831
431 Fresenius Medical Care AG
& Co. .............................................. 19,282
644 Gerresheimer AG .................................... 14,283
251 Muenchener Rueckversicherungs-
Gesellschaft AG .................................... 33,870
2,293 Wirecard AG ........................................ 22,356
-----------
125,680
-----------
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
HONG KONG - 5.05%
45,000 361 Degrees International, Ltd. * .................. $ 22,587
29,000 China Agri-Industries Holdings,
Ltd. ............................................... 18,073
15,000 Hang Lung Properties, Ltd. ......................... 48,774
24,000 Midland Holdings, Ltd. ............................. 14,555
-----------
103,989
-----------
ITALY - 3.41%
3,100 Autogrill SpA ...................................... 26,115
1,156 Saipem SpA ......................................... 28,120
6,380 UniCredito Italiano SpA * .......................... 16,066
-----------
70,301
-----------
JAPAN - 17.52%
1,300 Aeon Fantasy Co., Ltd. ............................. 11,956
900 Canon, Inc. ........................................ 29,522
100 Cocokara Fine Holdings, Inc. ....................... 1,536
200 Hikari Tsushin, Inc. ............................... 4,516
1,400 Hitachi Systems & Services, Ltd. ................... 19,183
900 HOYA Corp. ......................................... 18,087
200 IT Holdings Corp. .................................. 3,558
2,000 Itoham Foods, Inc. ................................. 7,536
6,000 Juki Corp. ......................................... 8,035
1,800 Makita Corp. ....................................... 43,629
6,400 Mitsubishi UFJ Financial Group,
Inc. ............................................... 39,728
2,000 Mizuho Securities Co., Ltd. ........................ 6,291
100 Nintendo Co., Ltd. ................................. 27,643
200 Sanei-International Co., Ltd. ...................... 1,727
800 Secom Co., Ltd. .................................... 32,553
5 Seven Bank, Ltd. ................................... 13,126
200 SMC Corp. .......................................... 21,571
700 Sumitomo Mitsui Financial
Group, Inc. ........................................ 28,557
3,000 The Bank of Yokohama, Ltd. ......................... 16,100
700 Tokio Marine Holdings, Inc. ........................ 19,401
300 Xebio Co., Ltd. .................................... 6,524
-----------
360,779
-----------
NETHERLANDS - 1.39%
558 Randstad Holding N.V. * ............................ 15,433
224 Smit Internationale N.V. ........................... 13,260
-----------
28,693
-----------
See Notes to Financial Statements.
11
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
INTERNATIONAL EQUITY FUND
JUNE 30, 2009 (CONTINUED)
VALUE
SHARES (NOTE 2)
- --------------------------------------------------------------------------------
SINGAPORE - 14.53%
64,000 Banyan Tree Holdings, Ltd. * ....................... $ 26,070
23,500 Capitaland, Ltd. ................................... 60,194
6,000 DBS Group Holdings, Ltd. ........................... 48,881
35,000 Genting Singapore plc * ............................ 16,432
6,000 Keppel Corp., Ltd. ................................. 28,583
18,000 SC Global Developments, Ltd. * ..................... 14,043
1,000 Singapore Airlines, Ltd. ........................... 9,183
14,000 Tat Hong Holdings, Ltd. ............................ 9,376
19,000 Wilmar International, Ltd. ......................... 65,852
13,000 Yanlord Land Group, Ltd. ........................... 20,554
-----------
299,168
-----------
SPAIN - 4.81%
2,733 Banco Bilbao Vizcaya
Argentaria, S.A. ................................... 34,276
5,802 Iberdrola Renovables S.A. * ........................ 26,494
847 Red Electrica Corp., S.A. .......................... 38,272
-----------
99,042
-----------
SWITZERLAND - 10.57%
2,462 ABB, Ltd. * ........................................ 38,701
801 Credit Suisse Group AG ............................. 36,565
257 Lonza Group AG ..................................... 25,521
315 Roche Holding AG ................................... 42,820
114 Syngenta AG ........................................ 26,466
3,883 UBS AG * ........................................... 47,494
-----------
217,567
-----------
TAIWAN - 2.64%
10,350 HON HAI Precision Industry Co.,
Ltd. ............................................... 32,018
33,000 Yuanta Financial Holding Co.,
Ltd. ............................................... 22,228
-----------
54,246
-----------
UNITED KINGDOM - 16.70%
875 Autonomy Corp., plc * .............................. 20,686
822 Cairn Energy plc * ................................. 31,672
15,826 Eros International plc * ........................... 36,582
3,515 ICAP plc ........................................... 26,081
5,305 Man Group plc ...................................... 24,220
6,825 Serco Group plc .................................... 47,384
2,200 Spectris plc ....................................... 19,961
9,295 Tesco plc .......................................... 54,073
32,720 Vodafone Group plc ................................. 63,090
1,852 Xstrata plc ........................................ 20,027
-----------
343,776
-----------
TOTAL COMMON STOCK ................................. $ 2,020,298
(Cost $2,174,665) -----------
VALUE
SHARES (NOTE 2)
- -------------------------------------------------------------------------------
PREFERRED STOCK - 2.81%
GERMANY - 2.81%
1,070 Fresenius SE ....................................... $ 57,775
-----------
TOTAL PREFERRED STOCK .............................. 57,775
(Cost $85,006) -----------
TOTAL LONG TERM
INVESTMENTS ........................................ 2,078,073
(Cost $2,259,671) -----------
TOTAL INVESTMENTS - 100.94% ..................................... 2,078,073
(Cost $2,259,671) -----------
NET OTHER ASSETS AND
LIABILITIES - (0.94)% .............................. (19,309)
-----------
TOTAL NET ASSETS - 100.00%....................................... $ 2,058,764
===========
* Non income producing security
ADR American Depositary Receipts
See Notes to Financial Statements.
12
HENDERSON GLOBAL FUNDS
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
INTERNATIONAL EQUITY FUND
JUNE 30, 2009 (CONTINUED)
OTHER INFORMATION:
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------------------------------
Diversified Banks............................................... 10.02%
Diversified Real Estate Activities.............................. 5.29
Health Care Equipment........................................... 4.60
Diversified Capital Markets..................................... 4.08
Agricultural Products........................................... 4.08
Industrial Conglomerates........................................ 3.87
Wireless Telecommunication Services............................. 3.06
Brewers......................................................... 2.88
Investment Banking & Brokerage.................................. 2.65
Food Retail..................................................... 2.63
Household Appliances............................................ 2.51
Industrial Machinery............................................ 2.38
Environmental & Facilities Services............................. 2.30
Oil & Gas Equipment & Services.................................. 2.10
Pharmaceuticals................................................. 2.08
Life Sciences Tools & Services.................................. 1.93
Heavy Electrical Equipment...................................... 1.88
Electric Utilities.............................................. 1.86
Movies & Entertainment.......................................... 1.78
Construction & Engineering...................................... 1.74
Real Estate Development......................................... 1.68
Reinsurance..................................................... 1.64
Security & Alarm Services....................................... 1.58
Integrated Oil & Gas............................................ 1.58
Electronic Manufacturing Services............................... 1.56
Oil & Gas Exploration & Production.............................. 1.54
Office Electronics.............................................. 1.43
Home Entertainment Software..................................... 1.34
Independent Power Producers &
Energy Traders.............................................. 1.29
Fertilizers & Agricultural Chemicals............................ 1.29
Restaurants..................................................... 1.27
Hotels, Resorts & Cruise Lines.................................. 1.27
Apparel, Accessories & Luxury Goods............................. 1.23
Communications Equipment........................................ 1.18
Asset Management & Custody Banks................................ 1.18
Multi-Utilities................................................. 1.14
IT Consulting & Other Services.................................. 1.10
Data Processing & Outsourced Services........................... 1.09
Application Software............................................ 1.00
Life & Health Insurance......................................... 0.99
Diversified Metals & Mining..................................... 0.97
Electronic Equipment & Instruments.............................. 0.97
Property & Casualty Insurance................................... 0.94
Health Care Services............................................ 0.94
Electronic Components........................................... 0.88
Casinos & Gaming................................................ 0.80
Regional Banks.................................................. 0.78
Human Resource & Employment Services............................ 0.75
Real Estate Services............................................ 0.71
Marine Ports & Services......................................... 0.64
INDUSTRY CONCENTRATION AS % OF NET
A PERCENTAGE OF NET ASSETS: ASSETS
- --------------------------------------------------------------------------------
Leisure Facilities.............................................. 0.58%
Trading Companies & Distributors................................ 0.45
Airlines........................................................ 0.45
Packaged Foods & Meats.......................................... 0.37
Specialty Stores................................................ 0.32
Computer & Electronics Retail................................... 0.22
Drug Retail..................................................... 0.07
-------
Total Investments............................................... 100.94
Net Other Assets and Liabilities................................ (0.94)
-------
100.00%
=======
See Notes to Financial Statements.
13
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2009
GLOBAL REAL INTERNATIONAL
ESTATE EQUITIES EQUITY
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value
Securities $615,236 $2,078,073
Short Term investments 33,949 --
- ------------------------------------------------------------------------------------------------------------------------
Total investments, at value 649,185 2,078,073
Cash 623 7,371
Foreign cash, at value 1,056 5,018
Dividends and interest receivable 2,072 10,292
Receivable for investment securities sold 9,643 23,764
Receivable from investment adviser 11,801 8,990
Prepaid expenses and other assets 9,136 8,415
- ------------------------------------------------------------------------------------------------------------------------
Total Assets 683,516 2,141,923
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased 23,586 42,979
Accrued expenses and other payables 38,205 40,180
- ------------------------------------------------------------------------------------------------------------------------
Total Liabilities 61,791 83,159
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $621,725 $2,058,764
========================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $1,024,564 $4,059,233
Accumulated undistributed net investment income 11,313 74,549
Accumulated net realized loss on investments and foreign currency transactions (401,726) (1,893,362)
Net unrealized depreciation of investments and foreign currencies (12,426) (181,656)
- ------------------------------------------------------------------------------------------------------------------------
$621,725 $2,058,764
========================================================================================================================
NET ASSETS:
Class I Shares $621,725 $2,058,764
========================================================================================================================
SHARES OUTSTANDING:
Class I Shares (unlimited number of shares authorized) 113,057 313,719
========================================================================================================================
CLASS I SHARES:
Net asset value and redemption price per share $5.50 $6.56
========================================================================================================================
Investments, at cost $661,614 $2,259,671
========================================================================================================================
Foreign cash, at cost $1,059 $5,039
========================================================================================================================
The Funds may impose a redemption fee of 2.00% on shares redeemed within 30 days
of purchase.
See Notes to Financial Statements.
14
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2009
GLOBAL REAL INTERNATIONAL
ESTATE EQUITIES EQUITY
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $16,368 $35,212
Interest 19 52
Foreign taxes withheld (875) (3,120)
- ------------------------------------------------------------------------------------------------------------------------
Total Investment Income 15,512 32,144
- ------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 2,251 7,317
Accounting fees 29,778 20,950
Audit fees 17,195 17,195
Offering expenses 11,451 3,471
Custodian fees 8,751 10,474
Registration and filing fees 6,930 7,307
Printing and postage fees 1,867 5,790
Administrative fees 200 399
Transfer agent fees 37 214
Compliance Officer fees -- 18
Miscellaneous fees 131 329
- ------------------------------------------------------------------------------------------------------------------------
Total Expenses 78,591 73,464
- ------------------------------------------------------------------------------------------------------------------------
Fees waived and expenses reimbursed by investment adviser (75,545) (63,565)
- ------------------------------------------------------------------------------------------------------------------------
Net Expenses 3,046 9,899
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 12,466 22,245
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized loss from:
Investment transactions (112,347) (303,077)
Foreign currency transactions (8,024) (1,307)
Net change in unrealized appreciation/(depreciation) of:
Investments 139,404 561,878
Translation of other assets and liabilities 1 363
- ------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain 19,034 257,857
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
ROM OPERATIONS $31,500 $280,102
========================================================================================================================
See Notes to Financial Statements.
15
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL REAL ESTATE EQUITIES FUND
PERIOD ENDED PERIOD ENDED
JUNE 30, 2009 DECEMBER 31, 2008*
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $12,466 $19,952
Net realized loss on investments and foreign currency transactions (120,371) (277,896)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 139,405 (151,831)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 31,500 (409,775)
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class I Shares -- (65,809)
- ------------------------------------------------------------------------------------------------------------------------
-- (65,809)
- ------------------------------------------------------------------------------------------------------------------------
Net increase in Fund share transactions:
Class I Shares -- 1,065,809
- ------------------------------------------------------------------------------------------------------------------------
-- 1,065,809
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 31,500 590,225
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 590,225 --
- ------------------------------------------------------------------------------------------------------------------------
End of period $621,725 $590,225
========================================================================================================================
Accumulated undistributed net investment income/(loss) $11,313 $(1,153)
========================================================================================================================
* Inception date for the Global Real Estate Equities Fund was February 29, 2008.
INTERNATIONAL EQUITY FUND
PERIOD ENDED PERIOD ENDED
JUNE 30, 2009 DECEMBER 31, 2008**
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $22,245 $41,960
Net realized loss on investments and foreign currency transactions (304,384) (1,528,563)
Net change in unrealized appreciation/(depreciation) of investments
and foreign currency translations 562,241 (743,898)
- ------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 280,102 (2,230,501)
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class I Shares -- (90,861)
- ------------------------------------------------------------------------------------------------------------------------
-- (90,861)
- ------------------------------------------------------------------------------------------------------------------------
Net increase in Fund share transactions:
Class I Shares -- 4,100,024
- ------------------------------------------------------------------------------------------------------------------------
-- 4,100,024
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 280,102 1,778,662
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,778,662 --
- ------------------------------------------------------------------------------------------------------------------------
End of period $2,058,764 $1,778,662
========================================================================================================================
Accumulated undistributed net investment income $74,549 $52,305
========================================================================================================================
** Inception date for the International Equity Fund was January 31, 2008.
16
HENDERSON GLOBAL FUNDS
FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENTS OF CHANGES - CAPITAL STOCK ACTIVITY
GLOBAL REAL ESTATE EQUITIES FUND
PERIOD ENDED PERIOD ENDED
JUNE 30, 2009 DECEMBER 31, 2008*
- -------------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS I SHARES:
Sold $-- $1,000,000
Issued as reinvestment of dividends -- 65,809
- -------------------------------------------------------------------------------------------------------------------------
Net increase $-- $1,065,809
=========================================================================================================================
SHARES
CLASS I SHARES:
Sold -- 100,000
Issued as reinvestment of dividends -- 13,057
- -------------------------------------------------------------------------------------------------------------------------
Net increase -- 113,057
=========================================================================================================================
* Inception date for the Global Real Estate Equities Fund was February 29, 2008.
INTERNATIONAL EQUITY FUND
PERIOD ENDED PERIOD ENDED
JUNE 30, 2009 DECEMBER 31, 2008**
- -------------------------------------------------------------------------------------------------------------------------
AMOUNT
CLASS I SHARES:
Sold $-- $5,108,300
Issued as reinvestment of dividends -- 90,861
Redeemed -- (1,099,137)
- -------------------------------------------------------------------------------------------------------------------------
Net increase $-- $4,100,024
=========================================================================================================================
SHARES
CLASS I SHARES:
Sold -- 488,715
Issued as reinvestment of dividends -- 16,491
Redeemed -- (191,487)
- -------------------------------------------------------------------------------------------------------------------------
Net increase -- 313,719
=========================================================================================================================
** Inception date for the International Equity Fund was January 31, 2008.
See Notes to Financial Statements.
17
HENDERSON GLOBAL FUNDS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
INCOME (LOSS) FROM INVESTMENT OPERATIONS: LESS DISTRIBUTIONS:
------------------------------------------ --------------------------------------------
NET DIVIDENDS DISTRIBUTIONS
NET ASSET REALIZED AND TOTAL FROM FROM NET
VALUE, NET UNREALIZED FROM NET REALIZED
BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT CAPITAL TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
GLOBAL REAL ESTATE
EQUITIES FUND
CLASS I
Period Ended 6/30/2009 $5.22 0.11 (b) 0.17 0.28 0.00 0.00 0.00
Period Ended 12/31/2008 (a) $10.00 0.20 (b) (4.32) (4.12) (0.66) 0.00 (0.66)
INTERNATIONAL EQUITY FUND
CLASS I
Period Ended 6/30/2009 $5.67 0.07 (b) 0.82 0.89 0.00 0.00 0.00
Period Ended 12/31/2008 (a) $10.00 0.11 (b) (4.13) (4.02) (0.31) 0.00 (0.31)
RATIOS TO AVERAGE NET ASSETS:
------------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSET NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
VALUE, END OF EXPENSES TO INCOME/(LOSS) WAIVERS AND/OR PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE EXPENSES TURNOVER
PERIOD RETURN (C) (000) NET ASSETS NET ASSETS REIMBURSED RATE
- ------------------------------------------------------------------------------------------------------------------------------------
GLOBAL REAL ESTATE
EQUITIES FUND
CLASS I
Period Ended
6/30/2009 $5.50 5.36% $622 1.15% 4.71% 29.68% 71%
Period Ended
12/31/2008 (a) $5.22 (40.98)% $590 1.15% 2.75% 24.01% 183%
INTERNATIONAL
EQUITY FUND
CLASS I
Period Ended
6/30/2009 $6.56 15.70% $2,059 1.15% 2.58% 8.53% 42%
Period Ended
12/31/2008 (a) $5.67 (40.15)% $1,779 1.15% 1.36% 6.40% 114%
(a) The Henderson Global Real Estate Equities Fund and Henderson International
Equity Fund commenced operations on February 29, 2008 and January 31, 2008,
respectively.
(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 of less than one year are
not annualized.
See Notes to Financial Statements.
18-19 spread
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1. ORGANIZATION
Henderson Global Funds (the "Trust") was organized on May 11, 2001, as a
Delaware business trust and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment company.
The Trust has an unlimited number of authorized shares that are divided among 11
series. Eight series of the Trust, Henderson European Focus Fund, Henderson
Global Equity Income Fund, Henderson Global Opportunities Fund, Henderson Global
Technology Fund, Henderson Industries of the Future Fund, Henderson
International Opportunities Fund, Henderson Japan-Asia Focus Fund and Henderson
Worldwide Income Fund are not included in this report because their fiscal year
end is July 31. In addition the Henderson Money Market Fund is a separate series
of the Trust and has a fiscal year end of December 31. The Henderson Money
Market Fund is reported in a separate semi annual report. Henderson Global Real
Estate Equities Fund ("Real Estate Equities") and Henderson International Equity
Fund ("International Equity") collectively (the "Funds") are each a separate
series of the Trust. Each Fund is non-diversified and each Fund offers Class I
shares.
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 Real Estate Equities and International Equity.
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. Distributions received from REITS are recorded on the ex-dividend date.
Each REIT reports annually the tax character of its dividends. Dividend income,
capital gain distributions received and unrealized appreciation (depreciation)
reflect amounts of taxable income, capital gain and return of capital report by
REITs, and management's estimates of such amounts for REIT distributions for
which actual information has not been reported. Bond premium is amortized and
discount is accreted over the expected life of each applicable security.
Corporate actions involving foreign securities, including dividends, are
recorded as soon as the information becomes available. Withholding taxes on
foreign dividends are accrued in accordance with the applicable country's tax
rules and rates. Securities gains and losses are determined on the identified
cost basis, which is the same basis used for federal income tax purposes.
FOREIGN CURRENCY TRANSLATION
Investment securities and other assets and liabilities denominated in foreign
currencies are translated into 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
20
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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 Statements of Assets and
Liabilities. These instruments involve market risk, credit risk, or both kinds
of risks, in excess of the amount recognized in the Statements 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
had no outstanding forward foreign currency contracts as of June 30, 2009.
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. The Funds retain all or a portion of
the interest received on investment of the cash collateral or receives a fee
from the borrower. 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 six months ended June
30, 2009, the Funds had no transactions in securities lending.
EXPENSES
Expenses are recorded on an accrual basis. Expenses of the Trust that are
directly attributable to a specific Fund are charged to that Fund. Other
expenses are allocated proportionately among each Fund within the Trust based on
average daily net assets or on another reasonable basis.
DEFERRED OFFERING COSTS
Costs incurred in connection with the offering and initial registration of Real
Estate Equities and International Equity 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. These amounts are reflected as offering expenses in the statement 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 December 31, 2008, Global Real Estate Equities had $109,754
accumulated capital loss carryforward, expiring on December 31, 2016.
International Equity had $335,950 accumulated capital loss carryforward expiring
on December 31, 2016.
21
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
At December 31, 2008, the following funds deferred post-October losses which
will be recognized on the first day of the following year:
Capital loss
deferred
- --------------------------------------------------------------------------------
Real Estate Equities $ 88,108
International Equity 1,158,963
================================================================================
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. Management has
concluded that there are no significant uncertain tax positions that would
require recognition in the financial statements. Since tax authorities can
examine previously filed tax returns, the Funds' tax returns for the period
ended December 31, 2008, are subject to review by the taxing authorities.
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.
The tax character of distributions paid during the period ended December 31,
2008 were as follows:
Period ended Ordinary
December 31, 2008 income
- --------------------------------------------------------------------------------
Real Estate Equities $65,809
International Equity 90,861
================================================================================
As of December 31, 2008, the components of distributable earnings on a tax basis
were as follows:
Undistributed Unrealized
ordinary appreciation
income (depreciation)
- --------------------------------------------------------------------------------
Real Estate Equities $ 7,951 $ (236,808)
- --------------------------------------------------------------------------------
International Equity 54,729 (838,562)
- --------------------------------------------------------------------------------
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 at the following annual rates:
Real Estate Equities First $250 million 0.85%
Next $250 million 0.80%
Next $500 million 0.75%
Over $1 billion 0.65%
- --------------------------------------------------------------------------------
International Equity First $250 million 0.85%
Next $250 million 0.80%
Next $500 million 0.75%
Over $1 billion 0.65%
- --------------------------------------------------------------------------------
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 1.15% of average daily net assets. These
agreements are effective through July 31, 2020.
Henderson Investment Management Limited ("HIML") is the sub-adviser for Real
Estate Equities and International Equity pursuant to a Sub-Advisory Agreement.
HIML is a direct wholly owned subsidiary of Henderson Global Investors
(Holdings) plc.
HIML receives a fee for its services, paid by HGINA from its management fee,
based on each Fund's average daily net assets as set forth below:
Real Estate Equities First $250 million 0.35%
Next $250 million 0.30%
Next $500 million 0.25%
Over $1 billion 0.25%
- --------------------------------------------------------------------------------
International Equity First $250 million 0.35%
Next $250 million 0.30%
Next $500 million 0.25%
Over $1 billion 0.25%
- --------------------------------------------------------------------------------
Transwestern Securities Management, LLC. ("TSM") is the sub-adviser for the U.S.
Portion of Real Estate Equities
22
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
pursuant to a Sub-Advisory Agreement. TSM receives a fee for its services, paid
by HGINA from its management fee.
The Funds bear a portion of the compensation paid to the Compliance Officers who
perform services for the Trust. This compensation is reflected as Compliance
Officer Fees in the Statements of Operations.
At June 30, 2009, HGINA owned the following number of shares in the following
Funds:
% Shares
- --------------------------------------------------------------------------------
Real Estate Equities 100.00 113,057
International Equity 33.64 105,548
================================================================================
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 Compliance Officers, 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 Statements of Operations.
NOTE 5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities, excluding short-term investments
and U.S. government securities, for the Funds during the period ended June 30,
2009, were as follows:
Purchases Sales
- --------------------------------------------------------------------------------
Real Estate Equities $415,171 $377,087
International Equity 840,987 716,916
================================================================================
The U.S. federal income tax basis of the Funds' investments excluding foreign
currency and forward currency contracts at June 30, 2009, and the gross
unrealized appreciation and depreciation, were as follows:
Real Estate International
Equities Equity
- --------------------------------------------------------------------------------
Cost $706,422 $2,327,889
- --------------------------------------------------------------------------------
Gross unrealized appreciation 74,258 148,372
- --------------------------------------------------------------------------------
Gross unrealized depreciation 165,445 398,188
- --------------------------------------------------------------------------------
Net unrealized depreciation (91,187) (249,816)
================================================================================
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 June 30, 2009.
NOTE 6. SIGNIFICANT CONCENTRATIONS
Real Estate Equities and International Equity invest a substantial percentage of
their assets in securities of foreign issuers. 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.
Real Estate Equities invests a substantial percentage of its assets in REITS (or
their equivalents) listed or traded on a regulated market which derive the main
part of their revenue from the ownership, management and/or development of real
estate.
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.
NOTE 7. BORROWING ARRANGEMENTS
The Trust has a $100 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 six months
ended June 30, 2009.
NOTE 8. REDEMPTION FEE
The Funds may impose a redemption fee of 2.00% on shares redeemed within 30 days
of purchase. The fee, which is not a sales charge, is retained by the Funds and
not paid to HGINA or its affiliates. Redemption fees are included in
23
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
Amount Redeemed on the Statements of Changes - Capital Stock Activity. There
were no redemption fees during the period ended June 30, 2009.
NOTE 9. RECENT ACCOUNTING STANDARDS
The Funds adopted Financial Accounting Standards Board ("FASB") Statement of
Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"). In
accordance with FAS 157, fair value is defined as the price that the Fund would
receive upon selling an investment in a timely transaction to an independent
buyer in the principal or most advantageous market of the investment.
In addition, effective June 30, 2009, the Fund adopted FASB Staff position
("FSP") No. 157-4, "Determining Fair Value When the Volume and Level of Activity
for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly" ("FSP No. 157-4"). FSB No. 157-4 provides
additional guidance for estimating fair value in accordance with FAS 157 when
the volume and level of activity for the asset or liability have significantly
decreased.
Various inputs are used in determining the value of the Fund's investments. FAS
157 established a three-tier hierarchy of inputs to establish classification of
fair value measurements for disclosure purposes. These inputs may be observable
or unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed based
on market data obtained from sources independent of the reporting entity.
Unobservable inputs are inputs that reflect the reporting entity's own
assumptions about the assumptions market participants would use in pricing the
asset or liability developed based on the best information available under the
circumstances. The inputs used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. The
three-tier hierarchy of inputs is summarized in the three broad Levels listed
below.
o Level 1 - quoted prices in active markets for identical investments
o Level 2 - other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayment speeds, credit risk, etc.)
o Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
GLOBAL REAL ESTATE EQUITIES FUND
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Description (Level 1) (Level 2) (Level 3) Total
- -----------------------------------------------------------
Common Stocks
Australia $ -- $ 2,519 $ -- $ 2,519
Canada 12,691 -- -- 12,691
Hong Kong -- 128,561 -- 128,561
Japan -- 67,782 -- 67,782
Singapore 12,805 4,595 -- 17,400
Sweden 6,764 1,846 -- 8,610
Switzerland 5,732 -- -- 5,732
United Kingdom -- 8,601 -- 8,601
United States 7,279 -- -- 7,279
- -----------------------------------------------------------
Total Common
Stock 45,271 213,904 -- 259,175
- -----------------------------------------------------------
REIT
Australia -- 47,955 -- 47,955
Canada 8,941 -- -- 8,941
France 2,579 25,777 -- 28,356
Japan -- 24,899 -- 24,899
Netherlands 13,179 -- -- 13,179
Singapore -- 7,812 -- 7,812
United
Kingdom 2,172 29,900 -- 32,072
United
States 192,847 -- -- 192,847
- -----------------------------------------------------------
Total REIT 219,718 136,343 -- 356,061
- -----------------------------------------------------------
Short Term
Investment 33,949 -- -- 33,949
- -----------------------------------------------------------
Total
Investments 298,938 350,247 -- 649,185
- -----------------------------------------------------------
Total $298,938 $350,247 $ -- $649,185
===========================================================
24
HENDERSON GLOBAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
INTERNATIONAL EQUITY FUND
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Description (Level 1) (Level 2) (Level 3) Total
- -------------------------------------------------------------
Common Stocks
Austria $ 42,532 $ -- $ -- $ 42,532
Belgium 63,640 -- -- 63,640
Brazil 61,065 -- -- 61,065
China 36,854 69,549 -- 106,403
Denmark -- 19,949 -- 19,949
France -- 23,468 -- 23,468
Germany 40,414 85,266 -- 125,680
Hong Kong -- 66,847 -- 66,847
Italy 44,186 26,115 -- 70,301
Japan 162,907 197,872 -- 360,779
Netherlands -- 28,693 -- 28,693
Singapore 166,159 133,009 -- 299,168
Spain -- 99,042 -- 99,042
Switzerland 88,552 129,015 -- 217,567
Taiwan 54,246 -- -- 54,246
United
Kingdom 209,637 134,139 -- 343,776
United
States -- 37,142 -- 37,142
- -------------------------------------------------------------
Total Common
Stock 970,192 1,050,106 -- 2,020,298
- -------------------------------------------------------------
Preferred Stock
Germany 57,775 -- -- 57,775
- -------------------------------------------------------------
Total Preferred
Stock 57,775 -- -- 57,775
- -------------------------------------------------------------
Total
Investments 1,027,967 1,050,106 -- 2,078,073
- -------------------------------------------------------------
Total $1,027,967 $ 1,050,106 $ -- $2,078,073
=============================================================
The Fund adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 161, Disclosures about Derivative Instruments and
Hedging Activities ("FAS 161"). FAS 161 requires enhanced disclosures about (a)
how an entity uses derivatives instruments (b) how derivative instruments and
hedging activities are accounted for, and (c) how derivative instruments and
related hedging activities affect the Fund's financial position and financial
performance. This will include qualitative and quantitative disclosures on
derivative positions existing at period end and the affect of using derivatives
during the reporting period. During the period ended June 30, 2009 the Fund did
not invest in derivative instruments or engage in related hedging activities.
NOTE 10. SUBSEQUENT EVENTS
In accordance with the provisions set forth in FASB Statement of Financial
Accounting Standards No. 165 "Subsequent Events", adopted by the Funds as of
June 30, 2009, management has evaluated the possibility of subsequent events
existing in the Funds' financial statements through August 31, 2009. Management
has determined that there are no material events that would require disclosure
in the Funds' financial statements through this date.
25
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 period ending June 30, 2009 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.henderson.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.henderson.com.
APPROVAL OF CONTINUATION INVESTMENT ADVISORY AGREEMENT
The Board of Trustees of Henderson Global Funds oversees the management of the
Funds and, as requited by law, the investment advisory and the sub-advisory
agreements for the Funds.
In connection with their 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 Henderson
Investment Management Limited and Transwestern Securities Management, LLC (the
"Sub-advisers") 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-advisers. 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 with management to consider the agreements, and at that
meeting they also met separately in executive session with their counsel.
At a meeting held on April 8, 2009, based on their evaluation of the information
provided by the Adviser and the sub-advisers and other information, the Trustees
determined that the overall arrangements between the Funds Adviser and the
Sub-advisers were fair and reasonable in light of the nature and quality of the
services provided by the Adviser and the Sub-advisers, 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 investment advisory
agreement and the sub-advisory agreements through August 30, 2009, subject to
earlier termination as provided in each agreement.
In considering 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 agreements are discussed separately below.
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 Subadvisers, taking into account the investment objective
and strategy of each Fund and the knowledge they had gained from their regular
meetings with management on at least a quarterly basis. In addition, the
Trustees reviewed the resources and key personnel of the Adviser and the
Subadvisers, especially the personnel who
26
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
provide investment management services to the Funds. The Trustees also
considered other services provided to the Funds by the Adviser and the
Subadvisers, 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 the Subadvisers were appropriate and consistent
with the terms of the respective advisory agreements, that the quality of those
services had been consistent with or superior to quality norms in the industry
and that the Funds were likely to benefit from the continued provision of those
services. They also concluded that the investment personnel of the Adviser and
the Subadvisers had appropriate education and experience to serve the Funds
effectively and had demonstrated their continuing ability to attract and retain
well-qualified personnel.
PERFORMANCE OF THE FUNDS
The Trustees considered each Fund's investment performance over various time
periods. They reviewed information comparing each Fund's performance with the
performance of the Fund's benchmark and with the performance of comparable funds
and peer groups identified by Lipper Inc. ("Lipper"), an independent provider of
investment company data. They concluded that the performance of each Fund was
acceptable and that each Fund and its shareholders were benefiting from the
current management of the Fund.
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, although the contractual rate of management fees for
some of the Funds before fee waivers were above the median management fee rates
of their respective peer group of funds selected by Lipper, the Funds'
contractual rate of management fees appeared reasonable considering, among other
factors, the quality of services provided by the Adviser and (in the case of the
Sub-advised Funds) the Subadvisers, the investment performance of the Funds and
the expense limitations agreed to by the Adviser. They also noted that the
relatively small asset size of most of the Funds contributed to their relatively
high expense ratios. They considered the fee reductions being proposed by the
Adviser for three of the Funds.
The Trustees considered the methodology used by the Adviser and the Subadvisers
in determining compensation payable to portfolio managers, the very competitive
environment for investment management talent and the competitive market for
mutual funds in different distribution channels.
The Trustees also reviewed the management fees of the Adviser and the
Subadvisers for certain affiliated funds and separate accounts and certain
non-affiliated sub-advised funds (for which the Adviser or the Subadvisers
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
Subadvisers 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 and responsibilities that it does not assume in serving its
other clients.
The Trustees reviewed information on the profitability of (or loss) to the
Adviser and its affiliates and the Subadvisers 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 Subadvisers receive adequate incentives
to manage the Funds effectively. The Trustees
27
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
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
Subadvisers, which they found to be sound.
The Trustees concluded that the management fees and other compensation payable
by each Fund to the Adviser, considering the proposed fee reductions, as well as
the fees paid by the Adviser to the Subadvisers, 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 Subadvisers charge to other clients.
ECONOMIES OF SCALE
The Trustees received and considered information about the potential of the
Adviser to experience economies of scale as the assets of the Funds increase.
They noted that the contractual management fee rates of the Funds were above the
respective mean management fee rates of the Funds' respective peer groups
selected by Lipper; but, by virtue of the expense limitations, the Adviser is
subsidizing most Funds because they have not reached adequate scale. The
Trustees also noted that the advisory agreement included breakpoints in the fee
schedule for each Fund, thereby sharing more economies of scale with each Fund
if the assets of the Fund increase significantly. Based on all of the
information they reviewed, the Trustees concluded that the current fee structure
of each Fund considering the proposed fee reductions 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.
OTHER BENEFITS TO THE ADVISER
The Trustees also considered benefits that accrue to the Adviser and the
Subadvisers from their relationship with the Funds and their use of commissions
paid on portfolio brokerage transactions of the Funds to obtain research
products and services benefiting the Fund and/or other clients. The Trustees
concluded that the use by the Adviser and the Subadvisers 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. Upon a motion duly made and seconded, the following resolutions
were unanimously adopted by all of the members of the Board, and by all of the
Independent Trustees voting separately:
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 December
31, 2008. The amounts shown may differ from those elsewhere in this report due
to differences between tax and financial reporting requirements. In February
2009, shareholders received Form 1099-DIV which included 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.
28
HENDERSON GLOBAL FUNDS
OTHER INFORMATION
(UNAUDITED)
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 June 30, 2009.
ACTUAL EXPENSES
Table 1 provides information about actual account values and actual expenses.
You may use the information in this line, together with the amount invested, to
estimate the expenses that you incurred over the period. Simply divide your
account value at the end of the period by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the result by the number under the
heading entitled "Expenses Paid During Period" to estimate the expenses
attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR
COMPARISON PURPOSES
Table 2 provides information about hypothetical account values and hypothetical
expenses based on the Funds' actual expense ratios and an assumed rate of return
of 5% per year before expenses, which is not the Funds' actual return. Thus you
should not use the hypothetical account values and expenses to estimate your
actual ending account balance or the expense attributable to your investment
during the period. Rather, these figures are provided to enable you to compare
the ongoing costs of investing in the Funds and other funds. To do so, compare
the 5% hypothetical examples with the 5% hypothetical examples that appear in
the shareholder reports of other funds.
Expenses paid during the period include amounts reflected in the Funds'
Statement of Operations net of reimbursements by the investment adviser. The
annualized expense ratios used in the example are as follows:
Class I
- --------------------------------------------------------------------------------
Real Estate Equities 1.15%
- --------------------------------------------------------------------------------
International Equity 1.15%
================================================================================
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 5
and 8. 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
January 1, June 30, During
Actual 2009 2009 the Period*
- --------------------------------------------------------------------------------
Real Estate
Equities
Class I $1,000.00 $1,053.60 $5.86
- --------------------------------------------------------------------------------
International
Equity
Class I 1,000.00 1,157.00 6.15
================================================================================
TABLE 2
- --------------------------------------------------------------------------------
Beginning Ending
Hypothetical Account Account Expenses
(assuming a Value Value Paid
5% return January 1, June 30, During
before expenses) 2009 2009 the Period*
- --------------------------------------------------------------------------------
Real Estate
Equities
Class I $1,000.00 $1,019.30 $5.76
- --------------------------------------------------------------------------------
International
Equity
Class I 1,000.00 1,019.30 5.76
================================================================================
* Expenses are equal to the Funds' Class I shares annualized net expense ratio
multiplied by the average account value over the period multiplied by 181
days in the period, and divided by 365 (to reflect the one-half year
period).
29
HENDERSON GLOBAL FUNDS
TRUSTEES
C. Gary Gerst, Chairman
Roland C. Baker
Faris F. Chesley
Sean Dranfield
OFFICERS
Sean Dranfield, President
Alanna N. Nensel, Vice President
Scott E. Volk, Vice President
Christopher K. Yarbrough, Secretary
Kenneth A. Kalina, Chief Compliance Officer
Troy M. Statczar, Treasurer
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 1.800.657.1493
or visit our website:
www.henderson.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.
32
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.henderson.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 Nensel, Henderson Global Investors (North America) Inc., 737 North
Michigan Avenue, Suite 1700, Chicago, Illinois 60611.
33
Henderson Global Funds
737 N. Michigan Avenue, Suite 1700
Chicago, IL 60611
1.866.4HENDERSON (1.866.443.6337)
www.henderson.com
Foreside Fund Services, LLC, Distributor (August, 2009)
LOGO HENDERSON GLOBAL INVESTORS HENDERSON GLOBAL FUNDS
Picture of two globes.
SEMI-ANNUAL REPORT
JUNE 30, 2009
HENDERSON MONEY MARKET FUND
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS 2
MONEY MARKET FUND
Portfolio overview 3
PORTFOLIO OF INVESTMENTS 4
STATEMENT OF ASSETS AND LIABILITIES 5
STATEMENT OF OPERATIONS 6
STATEMENT OF CHANGES IN NET ASSETS 7
FINANCIAL HIGHLIGHTS 10
NOTES TO FINANCIAL STATEMENTS 12
OTHER INFORMATION 15
MASTER PORTFOLIO FINANCIAL STATEMENTS AND NOTES 19
The Henderson Money Market Fund is a feeder fund that invest substantially all
of its assets in the State Street Money Market Portfolio. The financial
statements of the State Street Money Market Portfolio, including its investment
portfolio, are included elsewhere within this report and should be read in
conjunction with the Henderson Money Market Fund's financial statements.
HENDERSON GLOBAL FUNDS LETTER TO SHAREHOLDERS
Dear shareholder,
We are pleased to provide the semi-annual report for the Henderson Money Market
Fund, which covers the period ended June 30, 2009.
The second quarter of 2009 saw some welcome stability return to markets,
although they remain significantly below the average levels of 2008. By the end
of the period, economic indicators were showing some signs of improvement
across a broad range of sectors. Consumer confidence has risen from its crisis
low, and there are tentative signs of stabilization in housing markets. Job
markets and business spending have also shown signs of improvement.
We realize that any recovery will face challenges, and that the rate of
improvement may be slow or even flat at times. In fact, growth may struggle to
reach trend rates until mid-2010. However, we believe that the positive
indicators seen year-to-date and other signs of growth likely mean that the
recession has turned a corner. Some investors who share the same perspective
have now turned their concerns from recession to inflation, but we believe weak
economic growth and the resultant excess slack that continues to build is
likely to keep global core inflation low.
While much of the recent news coverage has been dedicated to predicting the
shape of the recovery, with speculation about U's, V's, W's and even WW's, few
agree on the shape of things to come. It is difficult to tell what direction
things will take towards the end of 2009 as the longer-term impact of
government policy measures and fiscal stimulus becomes clearer. This short-term
uncertainty can create a great deal of fear and apprehension in the
marketplace. However, at Henderson, we try to focus on the long-term view in
considering our clients' investment goals and objectives, as we continue to
seek out differentiated investment ideas that may bring value to our clients'
portfolios. 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
The views expressed in the President's Letter reflect those of the President as
of the date of the letter and may not reflect the views of the President on the
date this report is first published. These views do not constitute investment
advice.
2
HENDERSON GLOBAL FUNDS PORTFOLIO OVERVIEW
MONEY MARKET FUND OVERVIEW
PORTFOLIO CONSTRUCTION*
Pie Chart:
Yankee certificates of deposit 38.8%
Commercial paper 25.9
Repurchase agreements 18.9
Eurodollar certificates of deposit 10.2
Certificates of deposit 3.6
Other 2.6
MATURITIES LADDER AS OF JUNE 30, 2009
0-3 Days 20.0%
- --------------------------------------------------------------
4-90 Days 53.0%
- --------------------------------------------------------------
90+ Days 27.5%
- --------------------------------------------------------------
Total 100.5%
- --------------------------------------------------------------
Average Maturity 55 Days
- --------------------------------------------------------------
PERFORMANCE SUMMARY
TOTAL RETURNS AS OF JUNE 30, 2009
NASDAQ SINCE
AT NAV SYMBOL CLASS INCEPTION
- ------------------------------------------------------------------------
Henderson Money Market Fund HFAXX Class A 0.06%
- ------------------------------------------------------------------------
Henderson Money Market Fund HFBXX Class B 0.06
- ------------------------------------------------------------------------
Henderson Money Market Fund HFCXX Class C 0.06
- ------------------------------------------------------------------------
Henderson Money Market Fund HGMZX Class Z 0.06
- ------------------------------------------------------------------------
WITH SALES CHARGE
- ------------------------------------------------------------------------
Henderson Money Market Fund Class A 0.06%
- ------------------------------------------------------------------------
Henderson Money Market Fund Class B -4.94
- ------------------------------------------------------------------------
Henderson Money Market Fund Class C -0.94
- ------------------------------------------------------------------------
Henderson Money Market Fund Class Z 0.06
- ------------------------------------------------------------------------
Current 7 day yield Class A 0.06%
- ------------------------------------------------------------------------
*Portfolio construction and maturities ladder represents the composition of the
underlying holdings in the State Street Money Market Portfolio, whose financial
statements are included elsewhere in this report.
Performance data quoted represents past performance which is no guarantee of
future results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Mutual fund performance changes over time and current performance may be
lower or higher than what is stated.
As stated in the current prospectus, the Fund's annual operating expense ratios
(gross) for Class A, B, C, and Z shares are 1.03%, 1.78%, 1.78% and 0.78%
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 0.40% for Class A, B, C and Z shares, which is in effect
until July 31, 2012.Returns shown do not reflect the deduction of taxes that a
shareholder may pay on fund distributions or the redemption of fund shares.
Mutual funds are not obligations of or guaranteed by any bank and are not
federally insured. The performance of the Funds assumes the reinvestment of all
dividends and distributions. The indexes above have been adjusted to reflect
reinvestment of dividends on securities in the indexes. The adviser is waiving a
portion of its advisory fee and other operating expenses. Had the fees not been
waived or reimbursed, returns would have been lower. It is not possible to
invest directly in an Index. Yields are historical, will fluctuate and do not
guarantee future performance. The 7 day current yield refers to the income paid
by the portfolio over a 7 day period expressed as an annual percentage rate of
the Fund's shares outstanding.
For the most recent month-end performance and after-tax returns, visit
www.hendersonglobalinvestors.com or call 1.866.443.6337.
An investment in the Henderson Money Market Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund.
(1) For the period from April 20, 2009 (commencement of operations) to June 30,
2009. Total returns less than 1 year are not annualized.
3
HENDERSON GLOBAL FUNDS PORTFOLIO OF INVESTMENTS
(UNAUDITED)
MONEY MARKET FUND
JUNE 30, 2009
Mutual Funds -- 100.13%
Investment in State Street Money Market Portfolio (1) - 100.13% $59,683,586
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.13%
(Identified cost $59,683,586) 59,683,586
-------------
NET OTHER ASSETS AND LIABILITIES: (0.13)% (76,309)
-------------
TOTAL NET ASSETS: 100.00% $59,607,277
=============
(1) The financial statements of the State Street Money Market Portfolio,
including its investment portfolio, are included elsewhere within this
report and should be read in conjunction with the Henderson Money Market
Fund's financial statements.
Henderson Money Market Fund invests only in State Street Money Market
Portfolio. At June 30, 2009, Henderson Money Market Fund owned 0.62% of the
State Street Money Market Portfolio.
See Notes to Financial Statements.
4
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2009
MONEY MARKET
FUND
===========================================================================
ASSETS:
Investment in State Street Money Market Portfolio, at value $ 59,683,586
Receivable for fund shares sold 2,777
Prepaid expenses and other assets 58,570
- ---------------------------------------------------------------------------
Total Assets 59,744,933
- ---------------------------------------------------------------------------
LIABILITIES:
Payable for fund shares redeemed 33,556
Payable for dividends 429
Payable to investment adviser 70,341
Accrued expenses and other payables 33,330
- ---------------------------------------------------------------------------
Total Liabilities 137,656
- ---------------------------------------------------------------------------
NET ASSETS $ 59,607,277
===========================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 59,607,277
- ---------------------------------------------------------------------------
$ 59,607,277
===========================================================================
NET ASSETS:
Class A Shares $4,016,747
===========================================================================
Class B Shares 987,332
===========================================================================
Class C Shares 4,593,245
===========================================================================
Class Z Shares 50,009,953
===========================================================================
SHARES OUTSTANDING:
Class A Shares (unlimited number of shares authorized) 4,016,747
===========================================================================
Class B Shares (unlimited number of shares authorized) 987,332
===========================================================================
Class C Shares (unlimited number of shares authorized) 4,593,245
===========================================================================
Class Z Shares (unlimited number of shares authorized) 50,009,953
===========================================================================
CLASS A SHARES:
Net asset value and offering price per share $1.00
===========================================================================
CLASS B SHARES:
Net asset value and offering price per share $1.00
===========================================================================
CLASS C SHARES:
Net asset value and offering price per share $1.00
===========================================================================
CLASS Z SHARES:
Net asset value and offering price per share $1.00
===========================================================================
Investments, at cost $ 59,683,586
===========================================================================
See Notes to Financial Statements.
5
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2009
MONEY MARKET
FUND*
===========================================================================
INVESTMENT INCOME:
Interest allocated from State Street Money Market Portfolio $77,026
- ---------------------------------------------------------------------------
Total Investment Income 77,026
- ---------------------------------------------------------------------------
EXPENSES:
Expenses allocated from State Street Money Market Portfolio 13,250
Organizational expenses 31,636
12b-1 distribution and service fees:
Class A Shares 1,876
Class B Shares 1,658
Class C Shares 9,502
Transfer agent fees 18,936
Offering expenses 13,608
Registration and filing fees 11,304
Audit fees 8,280
Printing and postage fees 5,112
Administrative fees 4,800
Accounting fees 2,400
Compliance Officer fees 1,404
Legal fees 864
Trustees' fees and expenses 864
Miscellaneous fees 2,664
- ---------------------------------------------------------------------------
Total Expenses 128,158
- ---------------------------------------------------------------------------
Fees waived and expenses reimbursed by investment adviser (84,069)
- ---------------------------------------------------------------------------
Net Expenses 44,089
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME 32,937
- ---------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $32,937
===========================================================================
* Inception date for the Henderson Money Market Fund was April 20, 2009.
See Notes to Financial Statements.
6
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET FUND
PERIOD ENDED
JUNE 30, 2009*
================================================================================
Net investment income $32,937
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations 32,937
- --------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (2,281)
Class B Shares (502)
Class C Shares (2,906)
Class Z Shares (27,248)
- --------------------------------------------------------------------------------
(32,937)
- --------------------------------------------------------------------------------
Net increase in Fund share transactions:
Class A Shares 4,016,747
Class B Shares 987,332
Class C Shares 4,593,245
Class Z Shares 50,009,953
- --------------------------------------------------------------------------------
59,607,277
- --------------------------------------------------------------------------------
Net increase in net assets 59,607,277
- --------------------------------------------------------------------------------
NET ASSETS:
Beginning of period --
- --------------------------------------------------------------------------------
End of period $59,607,277
================================================================================
* Inception date for the Henderson Money Market Fund was April 20, 2009.
See Notes to Financial Statements.
7
HENDERSON GLOBAL FUNDS FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
MONEY MARKET FUND
PERIOD ENDED
JUNE 30, 2009*
================================================================================
AMOUNT
CLASS A SHARES:
Sold $4,771,746
Issued as reinvestment of dividends 1,603
Redeemed (756,602)
- --------------------------------------------------------------------------------
Net increase $4,016,747
================================================================================
CLASS B SHARES:
Sold $1,179,059
Issued as reinvestment of dividends 431
Redeemed (192,158)
- --------------------------------------------------------------------------------
Net increase $987,332
================================================================================
CLASS C SHARES:
Sold $6,064,969
Issued as reinvestment of dividends 2,665
Redeemed (1,474,389)
- --------------------------------------------------------------------------------
Net increase $4,593,245
================================================================================
CLASS Z SHARES:
Sold $124,895,599
Issued in reinvestment of dividends 27,048
Redeemed (74,912,694)
- --------------------------------------------------------------------------------
Net increase $50,009,953
================================================================================
* Inception date for the Henderson Money Market Fund was April 20, 2009.
See Notes to Financial Statements.
8
HENDERSON GLOBAL FUNDS FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
INCOME FROM INVESTMENT OPERATIONS: LESS DISTRIBUTIONS:
------------------------------------ --------------------------------------
NET DIVIDENDS DISTRIBUTIONS
NET ASSET REALIZED AND TOTAL FROM FROM NET
VALUE, NET UNREALIZED FROM NET REALIZED
BEGINNING INVESTMENT GAIN ON INVESTMENT INVESTMENT CAPITAL TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
- ---------------------------------------- ----------- ------------ ----------- ---------- ------------- -------------
HENDERSON MONEY MARKET FUND
CLASS A
Period Ended 6/30/2009 (a)(b) $1.00 0.00 (c)(d) 0.00 0.00 (d) 0.00 (d) 0.00 0.00 (d)
CLASS B
Period Ended 6/30/2009 (a)(b) $1.00 0.00 (c)(d) 0.00 0.00 (d) 0.00 (d) 0.00 0.00 (d)
CLASS C
Period Ended 6/30/2009 (a)(b) $1.00 0.00 (c)(d) 0.00 0.00 (d) 0.00 (d) 0.00 0.00 (d)
CLASS Z
Period Ended 6/30/2009 (a)(b) $1.00 0.00 (c)(d) 0.00 0.00 (d) 0.00 (d) 0.00 0.00 (d)
(a) The Henderson Money Market Fund commenced operations on April 20, 2009.
(b) The per share amounts and percentages include the Fund's proportionate
share of income, expenses and net realized and unrealized gains or losses
of the State Street Money Market Portfolio.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Amount represents less than $0.01.
(e) 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 of less than one year are
not annualized.
(f) In addition to the fees and expenses which the Fund bears indirectly, the
Fund indirectly bears a pro-rata share of the fees and expenses of the
underlying portfolios in which the Fund invests.
(g) Effective April 20, 2009, Henderson Global Funds has agreed contractually
to waive fees and reimburse expenses to keep the net total operating
expenses of the Henderson Money Market Fund, including its pro-rata
allocation of expenses from the State Street Money Market Portfolio, at
0.40% of average daily net assets through July 31, 2020.
See Notes to Financial Statements.
10
HENDERSON GLOBAL FUNDS FINANCIAL HIGHLIGHTS
(UNAUDITED)
RATIOS TO AVERAGE NET ASSETS:
--------------------------------------------------
ANNUALIZED RATIO OF
ANNUALIZED ANNUALIZED OPERATING EXPENSES
RATIO OF RATIO OF TO AVERAGE NET
NET ASSET NET ASSETS, OPERATING NET INVESTMENT ASSETS WITHOUT
VALUE, END OF EXPENSES TO INCOME WAIVERS AND/OR
END OF TOTAL PERIOD AVERAGE TO AVERAGE EXPENSES
PERIOD RETURN (000) NET ASSETS NET ASSETS REIMBURSED
-----------------------------------------------------------------------------------
HENDERSON MONEY MARKET FUND
CLASS A
Period Ended 6/30/2009 (a)(b) $1.00 0.06% (e) $4,017 0.40% (f)(g) 0.30% 1.29%
CLASS B
Period Ended 6/30/2009 (a)(b) $1.00 0.06% (e) $987 0.40% (f)(g) 0.30% 2.04%
CLASS C
Period Ended 6/30/2009 (a)(b) $1.00 0.06% (e) $4,593 0.40% (f)(g) 0.30% 2.04%
CLASS Z
Period Ended 6/30/2009 (a)(b) $1.00 0.06% (e) $50,010 0.40% (f)(g) 0.30% 1.04%
See Notes to Financial Statements.
11
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1. ORGANIZATION
Henderson Global Funds (the "Trust") was organized on May 11, 2001, as a
Delaware business trust and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment
company. Henderson Money Market Fund (the"Fund") is a separate series of the
Trust. The Fund began operations, including recording income and expenses
("commencement of operations") on April 20, 2009. The Fund is a feeder fund
that invests substantially all of its assets in the State Street Money Market
Portfolio, (the "Master Portfolio"), a series of State Street Master Funds. The
investment objective and policies of the Master Portfolio are substantially
similar to those of the Fund. The value of the Fund's investment in the Master
Portfolio reflects the Fund's proportionate interest of the net assets of the
Master Portfolio (0.62% at June 30, 2009). The performance of the Fund is
directly affected by the performance of the Master Portfolio. The financial
statements of the Master Portfolio are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements. The
investment objective of the Fund is to seek to maximize current income while
providing liquidity, preservation of capital, and a stable $1.00 per share
price. The Fund offers Class A shares, Class B shares, Class C shares and Class
Z shares. Class B shares and Class C shares provide for a contingent deferred
sales charge. 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. Class Z shares are only
available for purchase by other series of the Henderson Global Funds.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
The Fund records its investment in the State Street Money Market Portfolio at
market value. The valuation policies of the State Street Money Market Portfolio
are discussed in Note 2 of the State Street Money Market Portfolio's Notes to
Financial Statements, which are included elsewhere within this report.
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.
In addition to the accounting policies noted above the Fund also has a pro-rata
share in the net investment income and gains or losses of the Master Portfolio.
Net investment income for the Fund consists of the Fund's pro-rata share of the
net investment income of the Master Portfolio less all expenses of the Fund.
Realized gains and losses from security transactions, if any, consist of the
Fund's pro-rata share of the realized gains and losses of the Master
Portfolio.
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.
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 the
Money Market Fund 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.
12
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
FEDERAL INCOME TAXES
The Trust's policy is that the Fund continues 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 Fund
intends 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.
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. Management
has concluded that there are no significant uncertain tax positions at June 30,
2009 that would require recognition in the financial statements. Since tax
authorities can examine previously filed tax returns, the Fund's tax return for
the period ending December 31, 2009, will be subject to review by the taxing
authorities.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions of net investment income are declared daily and distributed
monthly. Net realized capital gains, if any, are distributed at least annually
after the fiscal year in which the capital gains were earned or more frequently
to seek to maintain a net asset value of $1.00 per share, unless offset by any
available capital loss carryforward. Income distributions and capital and
capital gain distributions are determined in accordance with federal income tax
regulations which may differ from GAAP.
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 Fund's 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 no fee is payable to HGINA at any
time the Fund is invested in a master-feeder structure.
Pursuant to a separate contractual Expense Limitation Agreement, HGINA has
agreed to waive or limit its expenses, including its pro-rata allocation of
expense from the Master Portfolio, and, if necessary, to reimburse other
operating expenses of the Fund in order to limit total annual expenses, less
distribution and service fees, to 0.40% of the Fund's average daily net assets.
This agreement is effective through July 31, 2020.
The Fund bears a portion of the compensation paid to the Compliance Officers
who perform services for the Trust. This compensation is reflected as
Compliance Officer Fees in the Statements of Operations.
On June 30, 2009, the Henderson International Opportunities Fund, a separate
series of the Henderson Global Funds, owned 83.8% of the Henderson Money Market
Fund. The Henderson International Opportunities Fund invests a portion of its
un-invested cash in the Henderson Money Market Fund to assist with short-term
cash management.
HGINA is a direct subsidiary of Henderson International Inc. ("HII"). At June
30, 2009, HII owned 24,951 Class A shares of the Henderson Money Market Fund.
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 Compliance Officers, 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
Statements of Operations.
NOTE 5. RECENT ACCOUNTING STANDARDS
The Fund adopted Financial Accounting Standards Board ("FASB") Statement of
Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"). In
accordance with FAS 157, fair value is defined as the price that the Fund would
receive upon selling an investment in a timely transaction to an independent
buyer in the principal or most advantageous market of the investment.
In addition, effective June 30, 2009, the Fund adopted FASB Staff position
("FSP") No. 157-4, "Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly" ("FSP No. 157-4"). FSP No. 157-4
provides additional guidance for estimating fair value in accordance with FAS
157 when the volume and level of activity for the asset or liability have
significantly decreased.
13
HENDERSON GLOBAL FUNDS NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
Various inputs are used in determining the value of the Fund's investments. FAS
157 established a three-tier hierarchy of inputs to establish classification of
fair value measurements for disclosure purposes. These inputs may be observable
or unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed based
on market data obtained from sources independent of the reporting entity.
Unobservable inputs are inputs that reflect the reporting entity's own
assumptions about the assumptions market participants would use in pricing the
asset or liability developed based on the best information available under the
circumstances. The inputs used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. The
three-tier hierarchy of inputs is summarized in the three broad Levels listed
below.
o Level 1 -- quoted prices in active markets for identical investments
o Level 2 -- other significant observable inputs (including quoted
prices for similar investments, interest rates, prepayment
speeds, credit risk, etc. )
o Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of June 30, 2009 in valuing
the Fund's investments carried at value:
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
ASSETS INPUTS INPUTS
DESCRIPTION (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
- ------------------------------------------------------------------
Mutual
Funds $59,683,586 -- -- $59,683,586
- ------------------------------------------------------------------
Total
Mutual
Funds 59,683,586 -- -- 59,683,586
- ------------------------------------------------------------------
Total
Investments 59,683,586 -- -- 59,683,586
- ------------------------------------------------------------------
Total $59,683,586 -- -- $59,683,586
- ------------------------------------------------------------------
The Fund adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 161, Disclosures about Derivative Instruments and
Hedging Activities ("FAS 161"). FAS 161 requires enhanced disclosures about (a)
how an entity uses derivatives instruments (b) how derivative instruments and
hedging activities are accounted for, and (c) how derivative instruments and
related hedging activities affect the Fund's financial position and financial
performance. This includes qualitative and quantitative disclosures on
derivative positions existing at period end and the affect of using derivatives
during the reporting period. During the period ended June 30, 2009 the Fund did
not invest in derivative instruments or engage in related hedging activities.
NOTE 6. SUBSEQUENT EVENTS
In accordance with the provisions set forth in FASB Statement of Financial
Accounting Standards No. 165 "Subsequent Events", adopted by the Funds as of
June 30, 2009, management has evaluated the possibility of subsequent events
existing in the Funds' financial statements through August 31, 2009. Management
has determined that there are no material events that would require disclosure
in the Funds' financial statements through this date.
14
HENDERSON GLOBAL FUNDS OTHER INFORMATION
(UNAUDITED)
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 Fund will file with the Securities
and Exchange Commission the Form N-Q for the quarter ending September 30, 2009
and it will be 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.hendersonglobalinvestors.com.
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
The Board of Trustees of Henderson Global Funds, a majority of whom are not
affiliated with the Adviser ("Independent Trustees"), oversees the management
of the Fund and, as required by law, determines at least annually whether to
continue the investment advisory agreement for the Fund.
In connection with their most recent consideration of the agreement for the
Fund, the Trustees received and reviewed a substantial amount of information
provided by HGINA 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 Fund and the nature and
quality of the advisory and other services provided to the Fund by the Adviser.
The Independent Trustees also received and reviewed a memorandum from their
counsel regarding their responsibilities in considering approval of the
agreement. Throughout their consideration of the agreement the Independent
Trustees were advised by their independent legal counsel. The Independent
Trustees met with management to consider the agreement and also met separately
in executive session with their counsel.
At a meeting held on April 8, 2009, based on their evaluation of the
information provided by the Adviser and other information, the Trustees
determined that the overall agreement between the Fund and the Adviser were
fair and reasonable in light of the nature and quality of the services provided
by the 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, unanimously approved the investment advisory
agreement for the Fund through August 30, 2010, subject to earlier termination
as provided in the agreement.
In considering the agreement, 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 agreement are discussed separately below.
NATURE, EXTENT AND QUALITY OF SERVICES
The Trustees reviewed the nature, extent and quality of the services proposed
to be provided by the Adviser to the New Fund, taking into account the
investment objective and strategy of the New Fund. The Trustees considered that
the Adviser intends to manage the New Fund by investing substantially all of
its investable assets in the Master Portfolio. The Trustees considered the
Adviser's ability and procedures to monitor an investment in the Master
Portfolio. The Trustees also considered other services to be provided to the
Fund by the Adviser, such as monitoring adherence to the New Fund's 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 New Fund and with applicable securities laws and regulations, and the
quality of such services currently provided to other Funds. On the basis of
this evaluation, the Trustees concluded that the nature, extent and quality of
the services proposed to be provided by the Adviser to the New Fund were
expected to be satisfactory.
COSTS OF SERVICES PROVIDED
The Trustees examined information on the proposed fees and expenses of the New
Fund, including fees of the Master Portfolio, in comparison to information for
other comparable funds as provided by Lipper Inc., taking into account
contractual expense reimbursements and fee waivers.
The Trustees considered the financial condition of the Adviser, which they
found to be sound.
The Trustees concluded that the management fees and other compensation payable
by the New Fund to the Adviser and its affiliates would be reasonable in
relation to the nature, extent and quality of the services to be provided. The
Trustees considered that the advisory fee is the same fee rate charged by the
Master Portfolio and that the Adviser does not receive any advisory fees so
long as the New Fund invests substantially all of its assets in the Master
Portfolio. The Trustees also concluded that the estimated overall expense ratio
of the New Fund was reasonable, taking into account the fees charged by the
Master Portfolio and the expense limitations agreed to by the Adviser and the
Distributor.
15
HENDERSON GLOBAL FUNDS OTHER INFORMATION
(UNAUDITED)
ECONOMIES OF SCALE
The Trustees received and considered information about the potential of the
Adviser to experience economies of scale, noting that the New Fund would
benefit from the overall size of the Master Portfolio. They noted that by
virtue of the expense limitations, the Adviser would be subsidizing the New
Fund. Based on all of the information they reviewed, the Trustees concluded
that the proposed advisory fee was reasonable in light of the nature, extent
and quality of services to be provided by the Adviser.
OTHER BENEFITS TO THE ADVISER
The Trustees also considered benefits that accrue to the Adviser and its
affiliates from their relationship with the New Fund. The Board concluded that
the advisory fee was reasonable taking into account any other benefits to be
received by the Adviser from its relationship with the New Fund.
After a discussion, upon a motion duly made and seconded, the following
resolutions were unanimously adopted by all of the members of the Board, and by
all of the Independent Trustees voting separately:
FEDERAL TAX INFORMATION
Certain tax information for the Fund is required to be provided to shareholders
based on the Fund's income and distributions for the taxable year ended
December 31, 2009. The amounts shown may differ from those elsewhere in this
report due to differences between tax and financial reporting requirements. In
February 2010, 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 2009. Shareholders are advised to check with their tax
advisors for information on the treatment of these amounts on their individual
income tax returns.
SHAREHOLDER EXPENSE
As a shareholder of the Fund, 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 Fund 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 period ended June 30, 2009.
ACTUAL EXPENSES
Table 1 provides information about actual account values and actual expenses.
You may use the information in this line, together with the amount invested, to
estimate the expenses that you incurred over the period. Simply divide your
account value at the end of the period by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
under the heading entitled "Expenses Paid During Period" to estimate the
expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR
COMPARISON PURPOSES
Table 2 provides information about hypothetical account values and hypothetical
expenses based on the Fund's 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 Z
- --------------------------------------------------
Money Market 0.40% 0.40% 0.40% 0.40%
- --------------------------------------------------
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
the Fund and share class in the Performance summary of this report on page 3.
Table 2 is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different fund. In addition, if
these transaction costs were included, your costs would have been higher.
16
HENDERSON GLOBAL FUNDS OTHER INFORMATION
(UNAUDITED)
TABLE 1
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES
VALUE VALUE PAID
APRIL 20, JUNE 30, DURING
ACTUAL 2009 2009 THE PERIOD*
- -----------------------------------------------------
Money Market
Class A $1,000.00 $1,000.58 $0.79
Class B 1,000.00 1,000.58 0.79
Class C 1,000.00 1,000.58 0.79
Class Z 1,000.00 1,000.58 0.79
- -----------------------------------------------------
TABLE 2
BEGINNING ENDING
HYPOTHETICAL ACCOUNT ACCOUNT EXPENSES
(ASSUMING A VALUE VALUE PAID
5% RETURN APRIL 20, JUNE 30, DURING
BEFORE EXPENSES) 2009 2009 THE PERIOD*
- -----------------------------------------------------
Money Market
Class A $1,000.00 $1,024.21 $0.80
Class B 1,000.00 1,024.21 0.80
Class C 1,000.00 1,024.21 0.80
Class Z 1,000.00 1,024.21 0.80
- -----------------------------------------------------
* Expenses are equal to the Fund's Class A, Class B, Class C and Class Z
shares annualized net expense ratio multiplied by the average account value
over the period multiplied by 72 days in the period, and divided by 365 (to
reflect the one-half year period).
17
HENDERSON GLOBAL FUNDS
TRUSTEES
C. Gary Gerst, Chairman
Roland C. Baker
Faris F. Chesley
Sean Dranfield
OFFICERS
Sean Dranfield, President
Alanna N. Nensel, Vice President
Scott E. Volk, Vice President
Christopher K. Yarbrough, Secretary
Kenneth A. Kalina, Chief Compliance Officer
Troy M. Statczar, Treasurer
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 1.800.657.1493
or visit our website:
www.hendersonglobalinvestors.com
The views expressed in this report and information about the Fund's 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 Fund's 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.
18
STATE STREET MONEY MARKET PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2009
(UNAUDITED)
STATE STREET MONEY MARKET PORTFOLIO
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the State Street Money Market Portfolio (the "Portfolio"),
you incur ongoing costs, which include costs for portfolio management and
administrative services, among others. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Portfolio and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the
period shown and held for the entire period from January 1, 2009 to June 30,
2009.
The table below illustrates your Portfolio's costs in two ways:
o BASED ON ACTUAL FUND RETURN. This section helps you to estimate the
actual expenses that you paid over the period. The "Ending Account
Value" shown is derived from the Portfolio's actual return, and the
third column shows the dollar amount that would have been paid by an
investor who started with $1,000 in the Portfolio. You may use the
information here, together with the amount you invested, to estimate
the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number given for the Portfolio under the heading
"Expenses Paid During Period. "
o BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your Portfolio's costs with those of other mutual funds. It
assumes that the Portfolio had a yearly return of 5% before expenses,
but that the expense ratio is unchanged. In this case- because the
return used is not the Portfolio's actual return- the results do not
apply to your investment. The example is useful in making comparisons
because the Securities and Exchange Commission requires all mutual
funds to calculate expenses based on a 5% return. You can assess your
Portfolio's costs by comparing this hypothetical example with the
hypothetical examples that appear in shareholder reports of other
funds.
Six Months Ended June 30, 2009
- ---------------------------------------- --------------- ------------- -------------
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING
JANUARY 1, 2009 JUNE 30, 2009 PERIOD *
- ---------------------------------------- --------------- ------------- -------------
BASED ON ACTUAL PORTFOLIO RETURN $1,000.00 $1,003.80 $0.55
- ---------------------------------------- --------------- ------------- -------------
BASED ON HYPOTHETICAL (5% RETURN BEFORE
EXPENSES) $1,000.00 $1,024.25 $0.55
- ---------------------------------------- --------------- ------------- -------------
* The calculations are based on expenses incurred in the most recent six
month period of the Portfolio. The annualized average weighted expense
ratio as of June 30, 2009 was 0.11%. The dollar amounts shown as "Expenses
Paid" are equal to the annualized average weighted expense ratio multiplied
by the average account value over the period, multiplied by the number of
days in the most recent six month period, then divided by the number of
days in the most recent 12 month period.
20
STATE STREET MONEY MARKET PORTFOLIO
PORTFOLIO STATISTICS (UNAUDITED)
PORTFOLIO COMPOSITION* JUNE 30, 2009
- ---------------------------------------------------------------------------------------------------------- -----------------
Yankee Certificates of Deposit 38.8%
- ---------------------------------------------------------------------------------------------------------- -----------------
Commercial Paper 25.9
- ---------------------------------------------------------------------------------------------------------- -----------------
Repurchase Agreements 18.9
- ---------------------------------------------------------------------------------------------------------- -----------------
Eurodollar Certificates of Deposit 10.2
- ---------------------------------------------------------------------------------------------------------- -----------------
Certificates of Deposit 3.6
- ---------------------------------------------------------------------------------------------------------- -----------------
Bank Notes 1.1
- ---------------------------------------------------------------------------------------------------------- -----------------
U.S. Government Agency Obligations 1.1
- ---------------------------------------------------------------------------------------------------------- -----------------
Medium Term Notes 0.9
- ---------------------------------------------------------------------------------------------------------- -----------------
Liabilities in Excess of Assets (0.5)
- ---------------------------------------------------------------------------------------------------------- -----------------
TOTAL 100.0%
- ---------------------------------------------------------------------------------------------------------- -----------------
MATURITY LADDER* JUNE 30, 2009
- ---------------------------------------------------------------------------------------------------------- -----------------
0-3 Days 20.0%
- ---------------------------------------------------------------------------------------------------------- -----------------
4-90 Days 53.0
- ---------------------------------------------------------------------------------------------------------- -----------------
90+ Days 27.5
- ---------------------------------------------------------------------------------------------------------- -----------------
TOTAL 100.5%
- ---------------------------------------------------------------------------------------------------------- -----------------
Average days to maturity 55
- ---------------------------------------------------------------------------------------------------------- -----------------
* As a percentage of net assets as of the date indicated. The Portfolio's
composition will vary over time.
See Notes to Financial Statements.
21
STATE STREET MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2009 (Unaudited)
Name of Issuer Interest Maturity Principal Amortized
and Title of Issue Rate Date Amount Cost
- ---------------------------------------------------- -------- -------------- ------------ --------------
COMMERCIAL PAPER -- 25.9%
ASSET BACKED COMMERCIAL PAPER CREDIT ARBITRAGE -- 3.4%
Aspen Funding Corp.(a) 0.380% 09/22/2009 $ 75,000,000 $ 74,934,292
Solitaire Funding LLC(a) 0.500% 07/20/2009 100,000,000 99,973,611
Solitaire Funding LLC(a) 0.550% 09/14/2009 150,000,000 149,828,125
--------------
324,736,028
--------------
ASSET BACKED COMMERCIAL PAPER RECEIVABLES AND
SECURITIES -- 5.2%
Alpine Securitization Corp.(a) 0.370% 09/08/2009 150,000,000 149,893,625
Gemini Securitization Corp. LLC(a) 0.600% 07/06/2009 100,000,000 99,991,667
Gemini Securitization Corp. LLC(a) 0.370% 09/22/2009 50,000,000 49,957,347
Gemini Securitization Corp. LLC(a) 0.370% 09/23/2009 100,000,000 99,913,667
Nieuw Amsterdam Receivables Corp.(a) 0.440% 09/23/2009 100,000,000 99,897,333
--------------
499,653,639
--------------
BANK DOMESTIC -- 2.1%
JPMorgan Chase Funding, Inc.(a) 0.320% 09/01/2009 200,000,000 199,889,778
--------------
BANK FOREIGN -- 11.6%
Banco Bilbao Vizcaya Argentaria/London(a) 0.630% 12/16/2009 150,000,000 149,559,000
Banco Bilbao Vizcaya Argentaria/London(a) 1.005% 11/16/2009 50,000,000 49,808,333
CBA Delaware Finance, Inc. 0.500% 12/14/2009 70,000,000 69,838,611
DnB NOR Bank ASA(a) 0.640% 12/03/2009 200,000,000 199,448,889
Societe Generale North America, Inc. 0.800% 07/08/2009 200,000,000 199,968,889
Societe Generale North America, Inc. 0.840% 11/06/2009 50,000,000 49,850,666
Westpac Banking Corp.(a) 0.530% 07/10/2009 150,000,000 149,980,125
Westpac Banking Corp.(a) 0.540% 07/10/2009 200,000,000 199,973,000
Westpac Banking Corp.(a) 0.650% 11/13/2009 45,000,000 44,890,313
--------------
1,113,317,826
--------------
FINANCE NON-CAPTIVE DIVERSIFIED -- 3.6%
General Electric Capital Corp. 0.320% 07/22/2009 100,000,000 99,981,333
General Electric Co. 0.350% 09/22/2009 120,000,000 119,903,167
General Electric Co. 0.350% 09/24/2009 120,000,000 119,900,833
--------------
339,785,333
--------------
TOTAL COMMERCIAL PAPER 2,477,382,604
--------------
CERTIFICATES OF DEPOSIT -- 3.6%
Bank Domestic -- 3.6%
Bank of America NA/Charlotte NC(b) 0.850% 07/10/2009 70,000,000 70,000,000
Bank of America NA/Charlotte NC(b) 0.530% 10/09/2009 150,000,000 150,000,000
Bank of America NA/Charlotte NC(b) 0.660% 12/01/2009 125,000,000 125,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT 345,000,000
--------------
See Notes to Financial Statements.
22
STATE STREET MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (continued)
June 30, 2009 (Unaudited)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AMORTIZED
AND TITLE OF ISSUE RATE DATE AMOUNT COST
- ---------------------------------------------------- -------- -------------- ------------ --------------
EURO CERTIFICATES OF DEPOSIT -- 10.2%
BANK FOREIGN -- 10.2%
Credit Agricole SA 0.900% 07/01/2009 $ 100,000,000 $ 100,000,000
ING Bank NV 1.110% 07/14/2009 175,000,000 175,000,000
ING Bank NV 0.730% 11/09/2009 150,000,000 150,000,000
ING Bank NV 0.830% 11/24/2009 150,000,000 150,000,000
National Australia Bank Ltd. 0.903% 11/09/2009 200,000,000 200,001,811
National Australia Bank Ltd. 0.510% 12/29/2009 200,000,000 200,005,015
--------------
TOTAL EURO CERTIFICATES OF DEPOSIT 975,006,826
--------------
YANKEE CERTIFICATES OF DEPOSIT -- 38.8%
BANK FOREIGN -- 38.8%
Banco Bilbao Vizcaya Argentaria 0.875% 07/09/2009 200,000,000 200,000,222
Bank of Nova Scotia/Houston 0.590% 07/06/2009 400,000,000 400,000,000
Bank of Nova Scotia/Houston 0.520% 12/23/2009 75,000,000 75,000,000
Barclays Bank PLC NY 1.150% 07/08/2009 200,000,000 200,000,000
Barclays Bank PLC NY 1.620% 07/13/2009 50,000,000 50,000,000
Barclays Bank PLC NY 1.305% 08/24/2009 75,000,000 75,000,000
BNP Paribas NY 0.900% 07/14/2009 100,000,000 100,000,000
BNP Paribas NY 0.870% 11/02/2009 150,000,000 150,000,000
Calyon NY 0.920% 07/09/2009 100,000,000 100,000,000
Calyon NY 0.650% 11/19/2009 225,000,000 225,000,000
Deutsche Bank AG NY 0.620% 07/20/2009 100,000,000 100,000,000
Lloyds TSB Bank PLC NY 0.840% 08/13/2009 100,000,000 100,000,000
Lloyds TSB Bank PLC NY 0.835% 10/05/2009 300,000,000 300,000,000
Lloyds TSB Bank PLC NY 0.920% 11/30/2009 100,000,000 100,000,000
Rabobank Nederland NV/NY 0.700% 07/07/2009 150,000,000 150,000,000
Rabobank Nederland NV/NY 0.700% 11/12/2009 75,000,000 75,000,000
Royal Bank of Scotland/NY 1.220% 07/23/2009 200,000,000 200,000,000
Royal Bank of Scotland/NY 1.040% 08/04/2009 200,000,000 200,000,000
Royal Bank of Scotland/NY 0.850% 10/23/2009 75,000,000 75,000,000
Societe Generale NY 0.940% 08/20/2009 200,000,000 200,000,000
Svenska Handelsbanken/NY 0.700% 07/09/2009 100,000,000 100,000,000
Svenska Handelsbanken/NY 0.600% 09/15/2009 100,000,000 100,000,000
Svenska Handelsbanken/NY 0.420% 11/02/2009 50,000,000 50,000,000
Toronto-Dominion Bank/NY 0.500% 12/18/2009 45,000,000 45,000,000
Toronto-Dominion Bank/NY 0.500% 07/14/2009 200,000,000 200,000,000
Toronto-Dominion Bank/NY 0.500% 07/15/2009 150,000,000 150,000,000
--------------
TOTAL YANKEE CERTIFICATES OF DEPOSIT 3,720,000,222
--------------
See Notes to Financial Statements.
23
STATE STREET MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (continued)
June 30, 2009 (Unaudited)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AMORTIZED
AND TITLE OF ISSUE RATE DATE AMOUNT COST
- ------------------------------------------------------------ -------- ---------- ------------ --------------
BANK NOTES -- 1.1%
Bank Domestic -- 1.1%
Bank of America NA/Charlotte NC(b) 0.861% 08/25/2009 $100,000,000 $ 100,000,000
--------------
TOTAL BANK NOTES 100,000,000
--------------
MEDIUM TERM NOTES -- 0.9%
Consumer Non-Cyclical -- 0.9%
Procter & Gamble Co.(b) 0.663% 09/09/2009 69,000,000 69,002,870
Procter & Gamble International Funding SCA(b) 0.996% 08/07/2009 20,000,000 20,000,000
--------------
TOTAL MEDIUM TERM NOTES 89,002,870
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.1%
Sovereign -- 1.1%
Federal National Mortgage Association(b) 1.029% 07/13/2009 100,000,000 100,000,000
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 100,000,000
--------------
REPURCHASE AGREEMENTS -- 18.9%
Agreement with Bank of America and The Bank of New
York, dated 06/30/09 (collateralized by a Federal National
Mortgage Association, 5.500% -- 6.000% due
02/01/23 -- 06/01/39 valued at $319,427,281); proceeds
$313,164,696 0.080% 07/01/2009 313,164,000 313,164,000
Agreement with Barclays Capital, Inc. and The Bank of
New York, dated 06/30/09 (collateralized by Government
National Mortgage Association, 4.500% -- 6.000% due
11/20/37 -- 04/15/39 valued at $306,000,001); proceeds
$300,000,667 0.080% 07/01/2009 300,000,000 300,000,000
Agreement with Citigroup and The Bank of New York,
dated 06/30/09 (collateralized by a U.S. Treasury Notes,
3.125% -- 5.000% due 08/15/11 -- 04/30/13 and U.S.
Treasury Bonds, 6.750% due 08/15/26 valued at
$306,000,057); proceeds $300,000,083 0.010% 07/01/2009 300,000,000 300,000,000
Agreement with Deutsche Bank and The Bank of New
York, dated 06/30/09 (collateralized by a Federal Home
Loan Mortgage Corporation, 0.694% -- 6.500% due
01/15/31 -- 03/15/37 and Federal National Mortgage
Association, 0.000% -- 135.375% due 03/25/18 -- 07/25/39
valued at $306,000,000); proceeds $300,000,750 0.090% 07/01/2009 300,000,000 300,000,000
Agreement with Goldman Sachs and The Bank of New
York, dated 06/30/09 (collateralized by Federal Home Loan
Mortgage Corporation, 4.000% due 06/01/24 and Federal
National Mortgage Association, 4.500% -- 6.500% due
12/01/31 -- 12/01/37 valued at $306,000,001); proceeds
$300,000,417 0.050% 07/01/2009 300,000,000 300,000,000
See Notes to Financial Statements.
24
STATE STREET MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (continued)
June 30, 2009 (Unaudited)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AMORTIZED
AND TITLE OF ISSUE RATE DATE AMOUNT COST
- --------------------------------------------------------- -------- ---------- ------------ ---------------
REPURCHASE AGREEMENTS (continued)
Agreement with UBS Warburg and J P Morgan Chase &
Co., dated 06/30/09 (collateralized by Federal National
Mortgage Association, 3.500% -- 7.000% due
12/01/11 -- 09/01/47 valued at $306,002,180); proceeds
$300,000,833 0.100% 07/01/2009 $300,000,000 $ 300,000,000
--------------
TOTAL REPURCHASE AGREEMENTS 1,813,164,000
--------------
TOTAL INVESTMENTS(c) T -- 100.5% 9,619,556,522
Liabilities in Excess of Assets -- (0.5)% (43,601,700)
--------------
NET ASSETS -- 100.0% $9,575,954,822
==============
- ----------------
(a) Security subject to restrictions on resale under federal securities laws,
which may only be resold upon registration under the Securities Act of
1933, as amended ("1933 Act") or in transactions exempt from registration,
including sales to qualified institutional buyers pursuant to Rule 144A of
the 1933 Act. The Portfolio does not have the right to demand that this
security be registered.
(b) Variable Rate Security -- Interest rate is in effect as of June 30, 2009.
(c) Unless otherwise indicated, the values of the securities of the Portfolio
are determined based on Level 2 inputs established by FAS 157 (Note 2).
T See Note 2 of the Notes to Financial Statements.
See Notes to Financial Statements.
25
State Street Money Market Portfolio
Statement of Assets and Liabilities
June 30, 2009 (Unaudited)
- -------------------------------------------------------------------------------- ----------------
ASSETS
Investments in unaffiliated issuers, at amortized cost (Note 2) $ 7,806,392,522
Repurchase Agreements, at amortized cost (Note 2) 1,813,164,000
----------------
Total investments 9,619,556,522
Cash 985
Interest receivable 7,355,662
Prepaid expense 28,917
----------------
Total assets 9,626,942,086
LIABILITIES
Investment securities purchased 50,000,000
Management fee (Note 3) 795,187
Administration and custody fees (Note 3) 161,193
Professional fees 22,956
Trustee's fees (Note 4) 348
Accrued expenses and other liabilities 7,580
----------------
Total liabilities 50,987,264
----------------
NET ASSETS $ 9,575,954,822
================
See Notes to Financial Statements.
26
STATE STREET MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2009 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 35,993,168
---------------
EXPENSES
Management fees (Note 3) 4,218,030
Administration and custody fees (Note 3) 856,091
Professional fees 22,972
Trustee's fees (Note 4) 25,101
Printing fees 1,539
Other expenses 26,058
---------------
Total Expenses 5,149,791
Less: Fee waivers/reimbursements by Investment Adviser (Note 3) (589,262)
---------------
Total Net Expenses 4,560,529
---------------
NET INVESTMENT INCOME $ 31,432,639
================
REALIZED GAIN
Net realized gain on investments $ 34,655
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 31,467,294
===============
See Notes to Financial Statements.
27
State Street Money Market Portfolio
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
June 30, 2009 December 31,
(Unaudited) 2008
-------------------- ----------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment income $ 31,432,639 $ 226,704,311
Net realized gain on investments 34,655 126,859
---------------- ------------------
Net increase in net assets from operations 31,467,294 226,831,170
CAPITAL TRANSACTIONS
Proceeds from contributions 10,790,013,674 23,607,267,075
Fair value of withdrawals (9,851,431,285) (22,146,456,134)
---------------- ------------------
Net increase in net assets from capital transactions 938,582,389 1,460,810,941
---------------- ------------------
NET INCREASE IN NET ASSETS 970,049,683 1,687,642,111
NET ASSETS
Beginning of period 8,605,905,139 6,918,263,028
---------------- ------------------
End of period $ 9,575,954,822 $ 8,605,905,139
================ ==================
See Notes to Financial Statements.
28
STATE STREET MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------- ------------ -------------------------------- ------------ --------------
RATIOS TO AVERAGE
NET ASSETS
--------------------------------------------- NET ASSETS
GROSS NET NET END OF
TOTAL OPERATING OPERATING INVESTMENT PERIOD
PERIOD ENDED DECEMBER 31, RETURN (a) EXPENSES EXPENSES INCOME (000S OMITTED)
------------ ------------- ------------------ ------------ --------------
2009* 0.38% 0.12% ** 0.11% ** 0.75% ** $9,575,955
2008 2.75% 0.12% 0.10% 2.79% $8,605,905
2007 5.30% 0.12% 0.10% 5.14% $6,918,263
2006 5.09% 0.13% 0.10% 5.08% $6,197,117
2005 3.31% 0.14% 0.10% 3.33% $1,639,871
2004(b) 0.68% 0.18% ** 0.10% ** 1.71% ** $ 381,716
(a) Results represent past performance and are not indicative of future
results. Total return for periods of less than one year are not annualized.
(b) The Portfolio commenced operations on August 12, 2004.
* For the six months ended June 30, 2009 (Unaudited).
** Annualized.
See Notes to Financial Statements.
29
STATE STREET MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)
1. ORGANIZATION
The State Street Master Funds (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company, and was organized as a business trust under the laws of The
Commonwealth of Massachusetts on July 27, 1999. The Trust comprises eleven
investment portfolios: the State Street Equity 500 Index Portfolio, the State
Street Equity 400 Index Portfolio, the State Street Equity 2000 Index
Portfolio, the State Street Aggregate Bond Index Portfolio, the State Street
Money Market Portfolio, the State Street Tax Free Money Market Portfolio, the
State Street Limited Duration Bond Portfolio, the State Street Short-Term Tax
Exempt Bond Portfolio, the State Street U.S. Government Money Market Portfolio,
the State Street Treasury Money Market Portfolio and the State Street Treasury
Plus Money Market Portfolio. At June 30, 2009, only the State Street Equity 500
Index Portfolio, the State Street Money Market Portfolio, the State Street Tax
Free Money Market Portfolio, the State Street Short-Term Tax Free Bond
Portfolio, the State Street U.S. Government Money Market Portfolio, the State
Street Treasury Money Market Portfolio and the State Street Treasury Plus Money
Market Portfolio were in operation. Information presented in these financial
statements pertains only to the State Street Money Market Portfolio (the
"Portfolio"). The Portfolio commenced operations on August 12, 2004. The
Portfolio is authorized to issue an unlimited number of non-transferable
beneficial interests.
The Portfolio's investment objective is to seek to maximize current income, to
the extent consistent with the preservation of capital and liquidity by
investing in dollar denominated securities.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies consistently
followed by the Portfolio in the preparation of its financial statements.
SECURITY VALUATION -- As permitted under Rule 2a-7 of the 1940 Act and certain
conditions therein, securities of the Portfolio are valued initially at cost
and thereafter assume a constant amortization to maturity of any discount or
premium.
The Portfolio adopted Financial Accounting Standards Board ("FASB") Statement
of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"),
effective for financial statements issued for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years. In accordance
with FAS 157, fair value is defined as the price that the portfolio would
receive upon selling an investment in a timely transaction to an independent
buyer in the principal or most advantageous market of the investment. Various
inputs are used in determining the value of the Portfolio's investments. FAS
157 established a three tier hierarchy of inputs to establish a classification
of fair value measurements and disclosure. The three tier hierarchy of inputs
is summarized below:
o Level 1 -- quoted prices in active markets for identical securities
o Level 2 -- other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc. )
o Level 3 -- significant unobservable inputs (including the Portfolio's
own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
30
STATE STREET MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2009 (UNAUDITED)
The following is a summary of the inputs used, as of June 30, 2009, in valuing
the Portfolios' assets carried at fair value:
State Street Money Market Portfolio:
- --------------------------------------------------------------------
INVESTMENTS IN
SECURITIES
---------------------
STATE STREET MONEY
VALUATION INPUTS MARKET PORTFOLIO
- --------------------------------------------------------------------
Level 1 -- Quoted Prices $ --
- --------------------------------------------------------------------
Level 2 -- Other Significant Observable Inputs 9,619,556,522
- --------------------------------------------------------------------
Level 3 -- Significant Unobservable Inputs --
- --------------------------------------------------------------------
Total $ 9,619,556,522
- --------------------------------------------------------------------
In April 2009, the FASB issued FASB Staff Position No. 157-4, "Determining Fair
Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly"
("FSP 157-4"). FSP 157-4 provides additional guidance for estimating fair value
in accordance with FAS 157 when the volume and level of activity for the asset
or liability have significantly decreased as well as guidance on identifying
circumstances that indicate a transaction is not orderly. The type of inputs
used to value each security is identified in the Portfolio of Investments,
which also includes a breakdown of the Portfolio's investments by category.
On March 19, 2008, FASB released Statement of Financial Accounting Standards
No. 161, "Disclosures about Derivative Instruments and Hedging Activities"
("FAS 161"). FAS 161 requires qualitative disclosures about objectives and
strategies for using derivatives, quantitative disclosures about fair value
amounts of gains and losses on derivative instruments, and disclosures about
credit-risk related contingent features in derivative agreements. The
application of FAS 161 is required for fiscal years beginning after November
15, 2008 and interim periods within those fiscal years. Management has
evaluated the implication of FAS 161 and there is no impact on the Portfolio's
Financial Statements.
In September 2008, FASB issued a FASB Staff Position No. 133-1 and FIN 45-4
"Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of
FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the
Effective Date of FASB Statement No. 161" ("FSP 133"). FSP 133 requires
enhanced transparency of the effect of credit derivatives and guarantees on an
issuer's financial position, financial performance and cash flows. FSP 133 is
effective for fiscal years ending after November 15, 2007. FSP 133 applies to
certain credit derivatives, hybrid instruments that have embedded credit
derivatives (for example, credit-linked notes), and certain guarantees and it
requires additional disclosures regarding credit derivatives with sold
protection. Management has evaluated the implication of FSP 133 and there is no
impact to the Portfolio.
SECURITIES TRANSACTIONS, INVESTMENT INCOME AND EXPENSES -- Securities
transactions are recorded on a trade date basis for financial statement
purposes. Interest income is recorded daily on the accrual basis and includes
amortization of premium and accretion of discount on investments. Realized
gains and losses from securities transactions are recorded on the basis of
identified cost. Expenses are accrued daily.
31
STATE STREET MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2009 (UNAUDITED)
All of the net investment income and realized gains and losses from the
security transactions of the Portfolio are allocated pro rata among the
partners in the Portfolio based on each partner's daily ownership percentage.
FEDERAL INCOME TAXES -- The Portfolio is not required to pay federal income
taxes on its net investment income and net capital gains because it is treated
as a partnership for federal income tax purposes. All interest, gains and
losses of the Portfolio are deemed to have been "passed through" to the
Portfolio's partners in proportion to their holdings in the Portfolio,
regardless of whether such items have been distributed by the Portfolio. Each
partner is responsible for tax liability based on its distributive share;
therefore, no provision has been made for federal income taxes.
The Portfolio has reviewed the tax positions for open years as of December 31,
2008, and determined it did not have a liability for any unrecognized tax
expenses. The Portfolio recognizes interest and penalties, if any, related to
tax liabilities as income tax expense in the Statement of Operations. As of
June 30, 2009, tax years 2005 through 2008 remain subject to examination by the
Portfolio's major tax jurisdictions, which include the United States of America
and the Commonwealth of Massachusetts.
At June 30, 2009, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes.
REPURCHASE AGREEMENTS -- A repurchase agreement customarily obligates the
seller at the time it sells securities to a Portfolio to repurchase the
securities at a mutually agreed upon price and time which, in the case of the
Portfolio's transactions, is generally within seven days. The total amount
received by a Portfolio on repurchase is calculated to exceed the price paid by
the Portfolio, reflecting an agreed-upon market rate of interest for the period
of time to the settlement date, and is not necessarily related to the interest
rate on the underlying securities. The underlying securities are ordinarily
United States Government securities, but may consist of other securities in
which a Portfolio is permitted to invest. Repurchase agreements are fully
collateralized at all times. The use of repurchase agreements involves certain
risks. For example, if the seller of securities under a repurchase agreement
defaults on its obligation to repurchase the underlying securities (as a result
of its bankruptcy or otherwise) the Portfolio will seek to dispose of such
securities; this action could involve costs or delays. In addition, the
proceeds of any such disposition may be less than the amount the Portfolio is
owed under the repurchase agreement. A Portfolio may enter into repurchase
agreements maturing within seven days with domestic dealers, banks and other
financial institutions deemed to be creditworthy by SSgA Funds Management, Inc.
("SSgA FM" or the "Adviser"), a subsidiary of State Street Corporation and an
affiliate of State Street Bank and Trust Company ("State Street").
EXPENSE ALLOCATION -- Certain expenses are applicable to multiple Portfolios.
Expenses directly attributable to a Portfolio are charged to that Portfolio.
Expenses of the Trust that are not directly attributed to a Portfolio are
allocated among the Portfolios, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Portfolios can
otherwise be made fairly.
USE OF ESTIMATES -- The Portfolio's financial statements are prepared in
accordance with U.S. generally accepted accounting principles, which require
the use of management estimates. Actual results could differ from those
estimates.
32
STATE STREET MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2009 (UNAUDITED)
3. RELATED PARTY FEES
The Portfolio has entered into investment advisory agreements with the Adviser.
The Adviser directs the investments of the Portfolio in accordance with its
investment objectives, policies, and limitations. In compensation for the
Adviser's services as investment adviser, the Portfolio pays the Adviser an
annual fee of 0.10% of the Portfolio's average daily net assets. The Adviser
contractually agreed to cap the total operating expenses of the Portfolio at
0.10% of the Portfolio's average daily net assets through April 30, 2009. For
the period ended June 30, 2009, SSgA FM reimbursed the Portfolio $589,262 under
this agreement.
State Street is the administrator, custodian and transfer agent for the
Portfolio. In compensation for State Street's services as administrator,
custodian and transfer agent beginning February 1, 2007, the Trust pays State
Street an annual fee, which is accrued daily at and payable monthly at the
applicable fee rate described below, of the following annual percentages of the
Trust's average aggregate daily net assets during the month as follows:
ANNUAL PERCENTAGE OF
ASSET LEVELS AVERAGE AGGREGATE DAILY NET ASSETS
- --------------------------------- ----------------------------------
First $400 Million 0.03%
Thereafter 0.02
Minimum annual fee for the trust: $150,000
Effective August 1, 2009, the annual fees paid by the Trust to State Street for
its services as administrator, custodian, and transfer agent for the Portfolios
were revised as follows:
ANNUAL PERCENTAGE OF
ASSET LEVELS AVERAGE AGGREGATE DAILY NET ASSETS
- --------------------------------- ----------------------------------
First $400 million 0.03%
Next $15 billion 0.02%
Thereafter 0.01%
Minimum annual fee for the trust: $150,000
4. TRUSTEES' FEES
The Trust pays each trustee who is not an officer or employee of SSgA FM or
State Street $2,500 for each meeting of the Board of Trustees and an additional
$500 for each telephonic meeting attended. The Trust also pays each trustee an
annual retainer of $30,000. Each trustee is reimbursed for out-of-pocket and
travel expenses.
5. INDEMNIFICATIONS
The Trust's organizational documents provide that its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, both in some of its principal service
contracts and in the normal course of its business, the Trust enters into
contracts that provide indemnifications to other parties for certain types of
losses or liabilities. The Trust's maximum exposure under these arrangements in
unknown as this could involve future claims against the Trust. Management does
not expect any significant claims.
33
STATE STREET MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2009 (UNAUDITED)
6. SUBSEQUENT EVENTS
In accordance with the provisions set forth in FASB Statement of Financial
Accounting Standards No. 165 "Subsequent Events," adopted by the Portfolio as
of June 30, 2009, management has evaluated the possibility of subsequent events
existing in the Portfolio's financial statements through August 20, 2009.
Management has determined that there are no material events that would require
disclosure in the Portfolio's financial statements through this date.
34
STATE STREET MONEY MARKET PORTFOLIO
GENERAL INFORMATION (UNAUDITED)
JUNE 30, 2009
PROXY VOTING POLICIES AND PROCEDURES AND RECORD
The Trust has adopted proxy voting procedures relating to portfolio securities
held by the Portfolios. A description of the policies and procedures is
available (i) without charge, upon request, by calling (877) 521-4083 or (ii)
on the website of the Securities Exchange Commission (the "SEC") at
www.sec.gov. Information on how the Portfolios voted proxies relating to
portfolio securities during the most recent 12-month period ending June 30 is
available by August 31 (i) without charge, upon request, by calling (877)
521-4083 or (ii) on the SEC's website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Trust files its complete schedule of portfolio holdings with the SEC for
the first and third quarters of its fiscal year (as of March and September of
each year) on Form N-Q. The Trust's Forms N-Q are available on the SEC's
website at www.sec.gov. The Trust's Forms N-Q may be reviewed and copied at the
SEC's Public Reference Room in Washington, D.C. and information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330. The most recent Form N-Q is available without charge, upon
request, by calling (877) 521-4083.
35
STATE STREET MASTER FUNDS
TRUSTEES
Michael F. Holland
William L. Boyan
Rina K. Spence
Douglas T. Williams
James E. Ross
INVESTMENT ADVISER
SSgA Funds Management, Inc.
State Street Financial Center
One Lincoln Street
Boston, MA 02111
CUSTODIAN
State Street Bank and Trust Company
State Street Financial Center
One Lincoln Street
Boston, MA 02111
ADMINISTRATOR
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, MO 64105
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
LEGAL COUNSEL
Ropes & Gray LLP
One International Place
Boston, MA 02110
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of shares of beneficial interest.
STATE STREET MASTER FUNDS
State Street Bank and Trust Company
P.O. Box 5049
Boston, MA 02206
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.henderson.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 Nensel, 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 (August, 2009)
ITEM 2. CODE OF ETHICS.
Not required.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Schedule of Investments is included as a part of the report to shareholders
filed under Item 1 of this Form N-CSR.
(b) Not applicable.
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 4, 2009
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 4, 2009
By: /s/ Troy Statczar
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Troy Statczar
Treasurer (principal financial officer) of Henderson Global Funds
Date: September 4, 2009