henderson horizon asian dividend income fund presentation...

$: Henderson Horizon Asian Dividend Income Fund Presentation ...internetfileserver.phillip.com.sg/Poems/UnitTrust/FundView/0802-hgasiandiv.pdf8 G:\CS\UK\2008\!P\Gen08\Henderson Horizon$
For professional intermediaries use only

Henderson Horizon Fund - Asian Dividend Income Fund

February 2008

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ObjectiveSeek above benchmark dividend yield from a portfolio of Asian stocks with a focus on value and long term capital appreciationTargeting a dividend yield of at least 4% but expecting to deliver higher

BenchmarkMSCI All Countries Asia Pacific Ex Japan

StructureUCITS 3 enabledTracking error 4-10%All capitalisationsPredominantly equityAll Asian markets including the Indian sub-continent, Australasia and potentially Japan

Fund profile

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Rationale for fund Dividends have historically been proven to be a major part of the total return on equities

With interest rates and bond yields at low levels equities offer similar yield with the opportunity for capital growth

Deteriorating pension deficits will favour high yielding equities

Higher dividend style can offer investors reduced volatility

We believe the fund will deliver consistent long term out-performance


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Investment philosophyBottom up

Focus on value and income

Look for sustainable and growing cash flows

Portfolio will include stocks with dividend growth potential

The use of alternative instruments will enhance yield without increasing volatility

Actively managed to maximize dividend receipt

High conviction – focused portfolio


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Who is this Fund for?Investors who want a high dividend

Investors who want quarterly distributions

Investors who want exposure to Asian growth but are worried about risk

Investors looking for medium to long term capital appreciation

Investors focused on total return


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QuantStock

Screens

IndustryResearch

CompanyVisits

MacroThemes

FundamentalCashflow

BasedAnalysis

Henderson Horizon Asian Dividend Income Fund

Earnings/DividendQuality/Sustainability

ManagementBusiness Model

Valuation Support

Henderson Horizon Asian Dividend Income Fund

60% Core20% Value20% Special Situations40-60 StocksFocus on total return

Idea Generation

Research Buy/Sell Discipline

Portfolio Construction

Henderson Horizon Fund - Asian Dividend Income FundProcess

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High Conviction

40 – 60 Stocks

Bottom Up Driven

Henderson Horizon Fund - Asian Dividend Income FundPortfolio construction

Core 60% High sustainable yieldAttractive valuations

Value 30% CheapCatalyst for change

SpecialSituations 10% Trading ideas

Market inefficiencies

Income

IncomeCapital

Capital

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Portfolio

Overwriting Put protection

Enhanced YieldCapital Preservation

Equitylending

High Total Return

Structuredproducts

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OverwritingSelling covered call options will enhance incomeA proprietary screen will identify the stocks where volatility is at historic highsOptions will only be written when stocks are close to or above target prices

Structured ProductsThe manager will purchase synthetic products in favourable jurisdictions to reduce the burden of withholding tax The manager will use an active equity lending strategy to maximise revenueOut-performance products to be used to enhance income

Efficient Portfolio ManagementDerivatives will be used primarily for capital preservation but maybe used to capture market appreciation

Henderson Horizon Fund - Asian Dividend Income FundYield enhancement

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Henderson Horizon Fund - Asian Dividend Income FundYield enhancement

Source:Merrill Lynch, Henderson Global Investors, 23 January 2008

Implied Volatility DataSedol Name CCY BB Ticker 3M ATM Bid 1Y Average Percentile 14D RSI Action?

B0T9JZ5 CBA AUD CBA AU 32.0% 16.8% 100.0% 32.36776703 SANTOS AUD NPV AUD STO AU 37.5% 30.5% 98.0% 34.5

B1FW0K7 TELSTRA AUD TLS AU 24.0% 20.0% 98.0% 48.96715740 QBE INSURANCE GROUP LIMITED AUD QBE AU 34.0% 24.0% 100.0% 42.76981239 WOOLWORTHS LIMITED AUD WOW AU 36.0% 19.4% 100.0% 32.46536112 BANK OF CHINA (HK) HKD 2388 HK 49.0% 26.9% 100.0% 43.46226576 PETROCHINA CO LTD-H HKD 857 HK 48.8% 33.5% 88.2% 36.66408374 HANG SENG BANK LTD HKD 11 HK 44.5% 21.1% 100.0% 41.56495730 KEPCO KRW 015760 KS 27.8% 23.9% 82.3% 40.72811697 KOOKMIN BANK KRW 060000 KS 34.5% 28.2% 98.0% 43.96693233 POSCO KRW 005490 KS 39.0% 33.8% 72.5% 32.76175203 DBS SGD DBS SP 29.3% 22.9% 90.1% 41.4B012899 SINGAPORE PRESS HOLDINGS LTD SGD SPH SP 16.5% 15.9% 76.4% 43.9B02PY22 SINGAPORE TELECOMMUNICATIONS SGD ST SP 26.0% 24.1% 64.7% 43.8

Realized Volatility DataSedol Name CCY BB Ticker 3M Realized Vol 1Y Average Percentile 14D RSI Action?

6467074 FAIRFAX (JOHN) AUD NPV AUD FXJ AU 23.1% 21.4% 71.7% 21.26543628 MACQUARIE AIRPORTS AUD MAP AU 36.0% 25.9% 100.0% 36.16456942 MACQUARIE INFRASTRUCTURE GRP AUD MIG AU 39.3% 28.4% 83.2% 42.0B0T9JZ5 SPARK INFRASTRUCTURE GROUP AUD SKI AU 21.6% 19.1% 77.2% 44.66200882 TRANSURBAN GROUP AUD TCL AU 23.9% 21.1% 71.3% 48.4

B14WZ47 CHAMPION REIT HKD 2778 HK 42.6% 26.5% 100.0% 44.56030506 HANG LUNG PROPERTIES LTD HKD 101 HK 55.3% 42.1% 90.8% 42.26420538 HENDERSON LAND DEVELOPMENT HKD 12 HK 56.9% 33.7% 100.0% 42.76491998 KOWLOON DEVELOPMENT CO LTD HKD 34 HK 66.6% 43.4% 100.0% 46.86568353 NWS HOLDINGS LTD HKD 659 HK 70.9% 58.3% 73.7% 46.2

B1VMDH9 REGAL REIT HKD 1881 HK 38.3% N/A N/A 52.4 OVERWRITE6881674 TELEVISION BROADCASTS LTD HKD 511 HK 36.9% 33.4% 78.8% 30.5

B00GWP6 AMVIG HOLDINGS LTD HKD 2300 HK 35.7% 44.0% 25.8% 35.06246604 DAELIM INDUSTRIAL CO LTD-PFD KRW 000215 KS 55.9% 41.2% 100.0% 28.16495042 KOREA EXCHANGE BANK KRW 004940 KS 25.9% 30.3% 19.5% 39.96175076 KOREA TOBACCO & GINSENG KRW 033780 KS 30.2% 24.4% 82.4% 39.72495648 SK TELECOM ADR KRW 017670 KS 45.3% 25.3% 99.6% 31.06497219 KOREA DEVELOPMENT CORP KRW 004200 KS 46.2% 45.9% 69.3% 22.36505316 KOREA TELECOM KRW 030200 KS 41.3% 25.7% 100.0% 37.2

B10S8B7 MACQUARIE KOREA INFRA FUND KRW 088980 KS 24.0% 17.3% 84.8% 36.86182827 CEMENT INDUSTRIES OF MAL MYR CIM MK 29.8% 53.8% 7.1% 23.96075745 COMMERCE ASSET HLDGS MYR BCHB MK 34.7% 33.9% 50.5% 41.86502458 IOI PROPERTIES BERHAD MYR IOIP MK 37.6% 37.0% 68.9% 50.56556325 MAYBANK MYR MAY MK 25.3% 21.2% 92.0% 44.96868774 SP SETIA BHD MYR SPSB MK 30.6% 38.9% 3.5% 45.86904612 TENAGA NASIONAL BHD MYR TNB MK 23.1% 23.5% 43.4% 29.86685661 PHILIPPINE LONG DISTANCE TEL PHP TEL PM 26.4% 29.7% 39.8% 32.16043214 SINGAPORE TECH ENGINEERING SGD STE SP 27.1% 27.2% 68.1% 37.66190950 CHINA STEEL TWD10 TWD 2002 TT 33.4% 25.9% 73.3% 46.36260734 DELTA ELECTRONIC TWD10 TWD 2308 TT 56.4% 35.6% 100.0% 34.86421854 FAR EASTONE TELECOMMUNICATIONS T TWD 4904 TT 31.9% 20.8% 100.0% 47.76203687 FARGLORY LAND DEVELOPMENT CO TWD 5522 TT 55.5% 39.6% 100.0% 60.9 OVERWRITE6107574 FORMOSA INTERNATIONAL HOTELS TWD 2707 TT 44.0% 36.8% 90.8% 51.3 OVERWRITE6510536 HIGH TECH COMPUTER TWD 2498 TT 59.1% 43.2% 100.0% 48.86810731 SINCERE NAVIGATION TWD 2605 TT 56.2% 38.5% 79.6% 53.8 OVERWRITE6290496 TAIWAN CELLULAR TWD 3045 TT 34.5% 28.4% 75.2% 58.7 OVERWRITE

Percentile Tolerance LevelMinimum RSI Level

75%50

10

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Petrochina - sold 1m 105 calls on 17th Oct at a vol of 68% for a 6% premium raising $202,000.

U-Ming Marine – sold 1m 105 calls on 17th Oct at a vol of 70% for a 6% premium raising $83,000.

Yield enhancement

Source:Bloomberg, Merrill Lynch

Source:Bloomberg, Merrill Lynch


Option premium increases distributable income

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Jan-

07

Feb-

07

Mar

-07

Apr

-07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Sep-

07

Oct

-07

Nov

-07

Dec

-07

PETROCHINA CO LTD-H Current 3Mth Implied Vol Bid: 48.8%PETROCHINA CO LTD-H 3Mth Implied Vol History

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Jan-

07

Feb-

07

Mar

-07

Apr

-07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Sep-

07

Oct

-07

Nov

-07

Dec

-07

U-MING MARINE TRANSPORT CORP Current 3Mth RealizedVol: 59.4%U-MING MARINE TRANSPORT CORP 3Mth Realized Vol

Petrochina 25/1/08

J F M A M J J A S O N D J8

10

12

14

16

18

20

22

PETROCHINA 'H'

Source: DATASTREAM

U-MING MARINE 25/1/08

J F M A M J J A S O N D J40

50

60

70

80

90

100

110

120

U-MING MARINE TRAN.

Source: DATASTREAM

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10 year comparative performance, index rebased to 100

Source: Datastream

0

20

40

60

80

100

120

140

160

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

US Fed Fund FuturesHFE * relative performance


*HFE refers to Henderson Far East Income Limited, a closed end investment company, relative to the FTSE All World Asia Pacific Ex Japan in £. 10 years to 7 February 2008.Note: Henderson Far East Income Limited (“HFE”) is not authorised for sale in Singapore. Past relative performance of HFE is for illustration purpose only and should not be construed as an indication of the future performance of the Henderson Horizon Fund - Asian Dividend Income Fund.

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100

110

120

130

140

150

160

170

180

Oct

-06

Nov

-06

Dec

-06

Jan-

07

Feb-

07M

ar-0

7

Apr

-07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Sep

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Henderson Horizon Asian Dividend Income Fund MSCI AC Asia PacxJapan

Source: Henderson Global InvestorsPeriod: 27 October 2006 – 31 January 2008

Figures rebased to 100

Performance as at 31 January 2008 in US$

39.8%

-12.1%

-7.4%

Fund

5.2%-12.6%1 Month

6.3%33.5%Since Inception

8.6%-20.7%3 Month

Excess ReturnBenchmark

Source: Henderson Global Investors, as at 31 January 2008Period: Inception October 2006

Asian Dividend Income Fund Performance

13.1

Fund

19.319.1AnnualisedVolatility

MorningstarSector

AverageBenchmark

Source: Morningstar as at 31 December 2007Period: 1 year to 31 December 2007

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0

5

10

15

20

25

30

Con

sum

erD

iscr

etio

nary

Con

sum

er

Sta

ples

Ene

rgy

Fina

ncia

ls

Indu

stria

ls

Info

rmat

ion

Tech

nolo

gy

Mat

eria

ls

Tele

com

mun

icat

ion

Ser

vice

s Util

ities

%

Sector Weight Country Weight

0

5

10

15

20

25

30

Aus

tralia

Chi

na

Hon

g K

ong

Kor

ea

Mal

aysi

a

Phi

lippi

nes

Sin

gapo

re

Taiw

an

Thai

land

%

Source:Henderson Global Investors, 31 January 2008

Portfolio breakdown

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28.6823.78LT Debt/Capital18.5022.72Net Margin21.6524.93Operating Margin22.4321.28ROE10.5010.65ROA17.3610.57Est 3-5 Yr EPS Growth30.1124.70Hist 3Yr EPS Growth22.3218.25Hist 3Yr Sales Growth1.692.96Weighted Harmonic Average

Price/Sales2.562.38Weighted Harmonic Average

Price/Book9.6911.02Weighted Harmonic Average

Price/Cash Flow13.1513.21Weighted Harmonic Average

P/E using FY2 Est14.3914.13Weighted Harmonic Average

P/E using FY1 Est14.1411.16Weighted Harmonic Average

Price/Earnings2.854.53Dividend Yield

15,869.667827.8Weighted Median3,738.75,837.6Median

41,852.619,844.0Weighted AverageMarket Capitalization

MSCI All Country Asia Pacific Ex-Japan IndexFund

Henderson Horizon Fund - Asian Dividend Income FundFund characteristics

Source:Factset, USD, as at 31 January 2008

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Why Asia?

Source:Datastream

Asia’s Current Account and FX Reserves

Continued Rise of Current Account Surplus and FX Reserves

-10000

0

10000

20000

30000

40000

50000

60000

70000

80000

Q1 1997

Q1 1998

Q1 1999

Q1 2000

Q1 2001

Q1 2002

Q1 2003

Q1 2004

Q1 2005

Q1 2006

USD

Mn,

Qua

rter

ly

0

500

1000

1500

2000

2500

USD

Bn,

Qua

rter

ly

Asia ex-Japan Current Account BalanceAsia ex Japan FX Reserves (RHS)

Asia Domestic Demand

-6

-3

0

3

6

9

12

15

Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

Indonesia: GreenPhilippines: Grey

HK: BlueSG: Black

YoY Domestic demand excl inventories

Strong trade performance – huge current account surpluses and FX reserves

Consumption fuelled by pent up demand, low interest rates and inflation

Currencies undervalued


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Consumer goods exports to the US US vs. Asian growth

Why Asia?

Source:Merrill Lynch


Asian economic growth is decoupling from the rest of the worldA more diverse export base insulates from a US slowdownEmerging markets will help offset a developed market slowdown

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Why Asia?

Source:Merrill Lynch


Plenty of scope to pump prime domestically to offset an export slowdownThere has been no credit cycle in Asia…yetAsset prices in some markets remain below 1997 levels

Housing prices globally

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Asian markets are slightly above their 10 year average in PE termsThe re – rating is justified owing to the higher ROELook cheap when measured against cash flow

Valuations

Source:Datastream, 31 December 1997 to 31 December 2007

MSCI Asia Pacific ex-Japan

510152025

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

P/E (12m Fwd) ROE

Dividend YieldPrice/Cash Flow

0%5%

10%15%20%25%

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

012345

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

579

11131517

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07


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-7%

-5%-3%

-1%1%

3%5%

7%

90 92 94 96 98 00 02 04 06

Asia ex Japan Free cash flow/Sales

06E 5.3%

Free Cash Flow Remains King in Asia ex As Long As Capex Remains Under Control, The Region Should Enjoy Free Cash Flow

Free Cash Flow Has Gone Towards Debt Repayment –Net Debt-to-Equity Has Been Declining

Returning Cash To Shareholders –Specials And Buybacks Are On The Increase

Asia ex Japan Capex-to-Sales Ratio

0%2%4%6%8%

10%12%14%16%18%

1990 1992 1994 1996 1998 2000 2002 2004 2006E

0%10%20%30%40%50%60%70%80%90%

1990 1992 1994 1996 1998 2000 2002 2004 2006E

Asia ex-Japan Net Debt-to-Equity Ratio

* Free cash flow = Net income + depreciation – capex. Asia includes China, HK, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and ThailandSpecial dividend announcements based on stocks covered by Citigroup Investment ResearchSource: Worldscope, MSCI, I/B/E/S, Citigroup Investment Research estimates

0

10

20

30

40

50

2000 2001 2002 2003 2004 2005 2006

Special cashShare buyback

Number of special dividend announcements

Henderson Horizon Fund - Asian Dividend Income FundAsia’s sustainable dividends

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Asia generates higher free cash flow than any other region

Payout ratios are low

Dividend per share growth is less volatile than earnings growth

Why Income in Asia?

Source: MSCI, CIR, 31 December 2007 Source: IBES Aggregates, CIR, 31 December 2007

Asia ex Japan earnings and dividend growth Asia ex Japan free cash flow yield

01234567

Japan Europe US Asia ex Jp

FCF Yield

0102030405060

2002 2003 2004 2005 2006 2007

EPS gthDPS Gth

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Demographics – Asia has an ageing population

Financial products are developing rapidly

Excess savings need to be used more efficiently

0100200300400

Chi

na

Hon

gK

ong

Indi

a

Indo

nesi

a

Kor

ea

Mal

aysi

a

Phi

lippi

nes

Sin

gapo

re

Taiw

an

Thai

land

% of GDP

Why Income in Asia?

Source:Credit Lyonnais Securities, September 2005

Household savings in cash and deposits as a % of GDP

01 0 02 0 03 0 04 0 05 0 06 0 07 0 08 0 0

8 8 9 0 9 2 9 4 9 6 9 8 0 0 0 2 0 4

T o ta l R e tu rn

C a p ita l R e tu rn

Australian stock market returns

Source:JP Morgan Securities


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As growth uncertainty rises cash flow and income outperform

Why Income in Asia?

Source: Citi Investment Research, 31 December 2007

During recession

12-m prior to recession


-9.3%-0.5%6.4%10.7%34.9%The 2001 recession

-2.4%-3.7%-6.1%0.8%18.9%The 1998 recession

-15.0%9.9%21.4%25.9%17.6%The 2001 recession

-13.3%-0.2%-4.6%-6.0%-0.6%The 1998 recession

-8.1%9.9%15.5%16.1%7.0%The 2001 recession

-4.9%2.7%-2.7%-1.2%3.2%The 1998 recession

Q5Q4Q3Q2Q1

Relative returns of 5 quintiles based on cash flow yield

During recession



-5.2%-3.5%5.7%16.5%24.8%The 2001 recession

-2.5%-7.8%-1.6%4.8%15.5%The 1998 recession

-11.0%-7.4%15.3%31.2%32.2%The 2001 recession

-8.6%-18.3%-8.0%1.3%17.4%The 1998 recession

-1.5%-2.6%9.7%17.4%15.7%The 2001 recession

-0.6%-6.0%-0.8%0.2%10.1%The 1998 recession

Q5Q4Q3Q2Q1

Relative returns of 5 quintiles based on dividend yield

Note: Q1 (Quintile 1) are stocks with lowest P/CF and Q5 (Quintile 5) highest P/CF quintile

Note: Q1 (Quintile 1) are stocks with highest D/P and Q5 (Quintile 5) lowest D/P quintile


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-0 .5 0 %

0 .0 0 %

0 .5 0 %

1 .0 0 %

1 .5 0 %

2 .0 0 %

2 .5 0 %

V a lu a tio n s E rn g s C e rt &Q u a l

E a rn in g s G rth P ro fita b ility P ric eM o m e n tu m

H ig h V o l L o w V o l

Factor Returns in Different Volatility Regimes

Why Income in Asia?

Valuation factors work most of the time but are even more effective during periods of high volatility

Source: Datastream, Factset, IBES, Worldscope, Citi Investment Research estimates, 31 December 2007


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Source:Worldscope, FactSet, Citigroup Investment Research, 31 December 2007

4.74.1USA

5.74.1Europe

3.52.1Japan

Free Cash Flow Yield (%)

5.55.3Asia ex Japan

2007E2006E

5 0

6 0

7 0

8 0

9 0

1 0 0

1 1 0

1 2 0

1 3 0

1 4 0

1 5 0

0 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7

H i g h F C F / S a l e s B a s k e tL o w F C F / S a l e s B a s k e t

A s i a e x J a p a n F C F / S a l e s E x c e s s M e d i a n T o t a l R e t u r n I n d e x

4 . 9 % p . a .

- 7 . 4 % p . a .

Asia ex has the highest FCF yield on a compounded basis in 2006 and 2007

High FCF Outperforming Low FCF Baskets

Companies generating high free cash flow outperformHenderson Horizon Fund - Asian Dividend Income Fund

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15.9

2.99Dividend Yield (%)0.11Annual Dividend

59062.55Market Cap. ( S$ millions)15919.83# Shares (millions)

-2.88% Chg 1 mth3.71Price

Market Data27.27Historic (5yr)11.21FY1 - FY2-0.43FY0 - FY1

Growth Rates (%)12.7PE FY314.4PE FY2

PE FY1Actual Earnings

Reference Data

Source:Thomson Datastream, 10 January 2008

Stock exampleSingapore Telecom Operates and provides telecommunications system and services. The company provides postal services, directory advertising and publishing. Singapore Telecommunications sells and maintains telecommunications equipment and provides mobile phone and paging service, computer network, and internet and information technology services

Mean Earnings Forecasts & Price

Asia’s leading telecoms group with operations in more than 20 countriesStrong cash flow from mature operations in Singapore and AustraliaGrowth from subsidiaries in India, Indonesia, Thailand and the PhilippinesPioneering investments in Bangladesh and PakistanCheap valuations, strong cash flow and attractive dividend yield

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Stock example

3.47Dividend Yield (%)20.77Annual Dividend

343307.13Market Cap. (TW $ millions)573.13# Shares (millions)19.56% Chg 1 mth

599.00PriceMarket Data

89.02Historic (5yr)6.04FY1 - FY26.78FY0 - FY1

Growth Rates (%)10.3PE FY311.9PE FY212.6PE FY1

Price EarningsReference Data

Source:Thomson Datastream, 10 January 2008

High Tech Computer Manufactures and markets Microsoft Windows powered pocket PCs (Personal Computers)

Mean Earnings Forecasts & Price

80% market share of Microsoft based convergence devicesStrong product pipelinePioneer in touch screen technologyLead manufacturer of the Google phoneCompelling valuations backed by net cash

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Positive on the medium to long term outlook for Asian markets

Cautious on the outlook for the first half of 2008

Don’t expect Asian equities to be immune in the short term

Expect yield stocks to be in favour as interest rates peak

Demographic trends will favour income shares

Focus on companies with exposure to domestic trends

Avoid stocks with cyclical exposure

Market Outlook


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Asian yields are high relative to their own history and the rest of the World

The yield is sustainable owing to improvements in corporate governance, greater capital discipline and balance sheet strength

Structural changes involving the funding of pension deficits and the re-allocation of household wealth to higher yielding asset classes will be beneficial

These changes favour equities over bonds

Investing for income provides exposure to Asia’s growth trends

Investing for income provides superior returns over the medium to long term with lower volatility

Henderson Horizon Fund - Asian Dividend Income FundSummary

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Appendix

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Michael Kerley Fund Manager, Henderson Horizon Fund - Asian Dividend Income Fund

Henderson Global Investors 2007Manager, Henderson Far East Income

Henderson Global Investors 2004Fund Manager, Pacific Equities

ISIS Asset Management 2003 Director, Pacific Basin Equities

Invesco Asset Management 1997 Fund Manager, Emerging Market Equities

Invesco Asset Management 1994 Fund Manager, Global Equities

Invesco Asset Management 1993 Trainee Fund Manager, Asian Equities

Invesco Asset Management 1985Joined back office

Investment Management CertificateLondon Business School

Mike Kerley

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Pan-Asian Equities Team

Note: As at December 2007* Based in Singapore** Based in Tokyo

Head of Pan-Asian EquitiesWilliam Garnett

Head of Asia ex Japan John Crawford

Mike Kerley

Andrew Beal

Horizon Asian Dividend Income FundHenderson Far East Income Investment Trust

Global Opportunities Fund - Asia

Jeremy Hall*

Michael Wood-Martin

Andrew Millward

Masako Sasahara**

Yun-Young Lee**

Pan-Asian Research Team

Global Economics& Strategy

Sectors & ThemesTeam

Henderson Japan Capital GrowthHorizon Japanese Equity

Henderson Japan Focus FundHybrid Funds

Henderson Japan Absolute Return FundHenderson Japan Select Fund

Henderson Asia Pacific Absolute Return

Henderson Japan Absolute Return FundHenderson Japan Select Fund

QuantsEnhanced Index*Indy Nanayakkara

Theng HeeLai Chi Man

Property*Chris ReillyFrankie Lee

Lok SoMichael Wong

Horizon Japanese Smaller Cos

Henderson TR Pacific Investment Trust

Henderson Pacific Capital GrowthHorizon Pacific Equity

Asia-ex JapanResearch

Andrew Mattock*

TechnologyAnalyst*

A N Other

AnalystCaroline Maurer

TechnologyAnalyst*

Kong Hean Lee

Henderson Asia Pacific Absolute ReturnInternational Opportunities Fund – Asia

Japan Asia Focus FundMackenzie Select Managers Fund

Financial AnalystVincent Martinez

AnalystSandeep Mehta

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Henderson Global Investors (Singapore) Limited6 Battery Road, #12-01, Singapore 049909

Tel: (65) 6836 3900 Fax: (65) 6221 0039Company Registration No. 199700782N

Important InformationThis document is issued by Henderson Global Investors (Singapore) Limited and is solely for the use of professional intermediaries and not for general public distribution. Any other persons who receive this document should not rely on or act upon its contents.

This document has been produced based on Henderson Global Investors' research and analysis and represents our house view. It may not be reproduced in any form without the express permission of Henderson Global Investors and to the extent that it is passed on care must be taken to ensure that this reproduction is in a form which accurately reflects the information presented here. The contents in this document are for information, illustration or discussion purposes only and should not be construed as a recommendation to buy or sell any investment product and do not purport to represent or warrant the outcome of any investment strategy, program or product. The contents of this document are without consideration to the specific investment objective, financial situation and particular needs of any specific person. Reference to individual companies or any securities or funds is purely for the purpose of illustration only and should not be construed as a recommendation to buy or sell or advice in relation to investment, legal or tax matters. Whilst Henderson Global Investors believe that the information is correct at the date of production, no warranty or representation is given to this effect and no responsibility can be accepted by Henderson Global Investors (Singapore) Limited or by any of its directors to anyone for any action taken on the basis of the information. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness. Unless otherwise stated, the source is from Henderson Global Investors.

Past performance of any fund, a security, an investment or manager and any forecast made are not necessarily indicative of the future performance of the fund, the security, investment or manager. The value of the units and the income from the funds may fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Henderson Global Investors (Singapore) Limited’s collective investment schemes/funds and investment products are not obligations of, deposits in, or guaranteed by Henderson Global Investors (Singapore) Limited or any of its affiliates or distributors. An investment in collective schemes/funds, and/or other investment products are subject to investment risks, including the possible loss of the principal amount invested. All funds mentioned in this document are not registered in the United States of America under the Investment Company Act of 1940 and will not be made available to any U.S. Person.

This document is not an advertisement and does not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase any investment, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, anycontract for the same. Please note that the Henderson Horizon Fund – Asian Dividend Income Fund intends to use or invest in financial derivative instruments other than for the purpose of hedging and/or efficient portfolio management, and may make use of advanced techniques utilising derivative instruments and strategies as a means of achieving its investment objectives and policies. These advanced techniques are further described under its investment objective and policy in paragraph 5.1 of the Prospectus as well as under the “General Policies Applicable to All Funds Making Use of Derivatives” Section of the Luxembourg Prospectus.

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