Global Opportunities Fund (HFPAX, HFPCX)

This Fund seeks to achieve long-term capital appreciation primarily through investment in equity securities of US and non-US companies.

• Quarterly Factsheet

 

Why invest in this fund?

• A fundamental approach, leveraging Henderson's extensive investment capabilities
  
• A growth-at-a-reasonable-price philosophy
  
• Bottom-up stock selection, with country and sector allocation decisions driven by the stock selection process
  

Fund facts (as of 6/30/10)

Inception date:	11/30/06
Minimum initial investment:	$500
Benchmark:	MSCI World Index
Median market cap ($billions):	14.5
Total number of holdings:	54
Forward 12-month P/E ratio:	13.2
P/B ratio:	2.1
Beta:	1.0
% of holdings in top 10:	27.7
Class A expense ratio1:	1.95
Morningstar rating (as of 07/31/10)2

¹This ratio is not a guaranteed number and may fluctuate. The class A expense ratio is presented as a percentage of average net assets. The expense ratio is unaudited and is based on annualized fiscal year-to-date results from 8/01/09 to 6/30/10. The ratio may differ from that presented in the Fund’s prospectus that is based on the Fund’s then most recent previous fiscal year.

² Morningstar category: World Stock, Number of funds in category: 593. The overall Morningstar Rating for the Fund is derived from a weighted average of the risk-adjusted performance figure associated with its 3-  year Morningstar Rating metrics.

Portfolio management

Manraj Sekhon, CFA
Head of International Equities

• Read biography

 

Top ten holdings
(as of 7/31/10) %

UBS (Switzerland)	3.6
Apple (US)	3.4
Essar Energy (UK)	2.8
Emerson Electric (US)	2.8
361 Degrees (Hong Kong)	2.7
Cisco (US)	2.6
UPS (US)	2.6
American Tower (US)	2.5
CSX (US)	2.5
PepsiCo (US)	2.4

Country classifications are based on a company's legal domicile rather than the underlying exposure of its business.

• Full holdings list

Performance

Relative performance as of 6/30/10

Inception date 11/30/06.

Lipper Inc. is an independent mutual fund rating service that ranks funds in various categories by making comparative calculations using total returns. Lipper returns do not take into effect sales charges. Rankings shown are for Class A shares only, other share classes may vary. Rankings shown exclude Exchange Traded Funds (ETFs) which are securities that track an index, a commodity, or a basket of assets like an index fund. Unlike mutual funds, ETFs trade like a stock on an exchange, thus experiencing price changes throughout the day. There were 4 ETFs excluded from the Global Multi-Cap Growth Funds category for the 7/31/10 period. If the rankings provided did not exclude ETFs from the respective categories, the rankings for the Henderson Global Opportunities Fund may be lower.

Expense ratios are not guaranteed numbers and may fluctuate. Gross and net expense ratios are presented as a percentage of average net assets. The gross expense ratio is stated in the current prospectus and is based on the Fund's then most recent fiscal year. The net expense ratio is unaudited and is based on annualized fiscal year-to-date results from 8/01/09 to 6/30/10. The ratio may differ from that presented in the Fund's prospectus.

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 original cost. Performance results with sales charges reflect the deduction of the maximum front end sales charge and/or the deduction of the applicable contingent deferred sales charge (CDSC). Class A shares are subject to a maximum front end sales charge of 5.75%. Class C shares may be subject to a CDSC of up to 1% on certain redemptions made within 12 months of purchase. Performance presented at NAV which does not include these sales charges would be lower if these charges were reflected. The Fund’s annual operating expenses will likely vary from year to year. It is important for you to understand that a decline in the Fund’s average net assets during the current fiscal year due to recent market volatility or other factors could cause the Fund’s expense ratios for the Fund’s current fiscal year to be higher than the expense information presented. Returns greater than one year are annualized. Index returns provided by Lipper, Inc. Net Asset Value (NAV) is the value of one share of the Fund excluding any sales charge.

The recent growth rate in the stock market has helped to produce short term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, Fund performance may be subject to substantial short term changes.

Returns included the reinvestment of dividends and capital gains. Performance results reflect expense subsidies and waivers in effect during the periods shown. Absent these waivers, results would have been less favorable for certain periods.

Forward 12-month P/E ratio is calculated using the closing price of portfolio holdings divided by the sum of the 12-month forward earnings per share. P/B ratio is calculated using the closing price of portfolio holdings divided by the most recent fiscal year end book value. Both calculations take into account the respective weightings of portfolio holdings. Beta is a quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in any index.

Fund overview

This Fund seeks to achieve long-term capital appreciation primarily through investment in equity securities of US and non-US companies. The Fund employs a process that combines a bottom-up approach to individual security selection with a strategic asset allocation process. Security selection will be based upon an analysis of a company's valuations relative to earnings forecasts or other valuation criteria, earnings growth prospects of a company, the quality of a company's management and the unique competitive advantages of a company. The Fund is managed by Manraj Sekhon.

Quarterly update

Investor sentiment turned sharply negative during the second quarter as macro-economic data from all regions showed signs of weakness. Moving from West to East, governments wound down stimulus packages (US), announced fiscal austerity measures (Europe), and implemented tightening policies to curb inflation (China), leading to heightened concerns over the sustainability and trajectory of economic growth for the remainder of 2010.

By sector, BP’s woes weighed heavily on the Energy sector and weak Chinese manufacturing data and the prospect of predatory tax hikes had a negative impact on Materials stocks. The Financials sector also came under selling pressure as investors tried to digest the impact of proposed reforms. In contrast, defensive sectors such as Telecoms and Consumer Staples outperformed.

Fund performance

Over the period the Fund (A shares at NAV) outperformed its benchmark, MSCI World Index. Positive relative performance was led by strong stock selection within the Information Technology and Industrials sectors offsetting weakness in Materials and Utilities. The most positive position was in UK-listed Indian energy company Essar Energy, which benefited from the stock’s inclusion into the FTSE 100 Index after a strong initial public offering. This was somewhat offset by a position in US driller Anadarko; the firm’s 25% stake in the thus far unpluggable Macondo oil well, led to sharp decline in its shares. Within IT, Apple continued to perform well on the back of a strong iPad launch and sales of its new iPhone. Within Industrials, positive earnings from UK government outsourcer Serco and US waste disposal company Republic Services were also positive.

Investment activity

We continue to favor Asia Pacific and Emerging Markets – as these regions have been benefiting from rising consumption, strong balance sheets and long-term secular growth – while remaining underweight in the US and Europe due to growth concerns. However, in the latter region we are looking for attractive growth opportunities at the stock level given the region’s underperformance.

Outlook

We remain positive on the corporate sector, buoyed by rising margins, solid balance sheets, and easy monetary policy. However, visibility in economic growth remains difficult due to fiscal retrenchment and continued deleveraging in the West, and with tightening policies in Asia beginning to take effect.

Global Opportunities Fund