Henderson European Focus Fund - Henderson Global Investors

Henderson European Focus Fund
Monthly Commentary
August 2007 will certainly not be forgotten in a hurry. The month saw significant volatility brought about by
escalating sub-prime woes, intervention by Central Banks, significant deleveraging and mixed macroeconomic data.
Most stock exchanges had erased their year-to-date gains by mid-month, only to bounce back on supportive
comments and liquidity injections from central banks. The surprise 50bp (.5% basis point) cut in the Federal
Reserve’s discount rate was the most significant calming influence on equity markets. Retail sales and business
sentiment surveys in Germany were strong. Conversely inflation in the UK came in lower than expected, led down
by discounting in the retail sector.
In terms of sectors, there was a clear shift into more defensive areas of the market, with Telecoms, Consumer
Staples and Utilities outperforming, while Financials, Energy and Consumer Discretionary struggled.
The Fund underperformed the benchmark over the month. We believe negative contributors were largely a
reflection of the broader market backdrop rather than stock-specific issues. Within the Materials sector, several of
the Fund’s holdings were victims of the reduction in investors’ risk appetite and the general tendency to take profits
in stocks that have had strong recent runs. Examples include Lundin Mining and gold miner, Centamin. Within the
Energy sector, exploration company Urals Energy was down after cutting its production forecasts for 2007.
Positives during the month included Hellenic Telecoms (OTE). The shares were up following strong first-half net
profits from mobile subsidiary, Cosmote, and further speculation of a take-over of the company following the Greek
Government’s divestment of a 10.7% stake. German drugs and chemicals group, Bayer, was also up on rumours
that Swiss group Novartis was poised to make an offer for the company.
During the month we initiated a position in Dutch bank ABN Amro. We felt the shares had been overly sold off
during the month’s volatility. With the share price underpinned by offers from the RBS consortium and Barclays, we
believed the risks were firmly on the upside.
The biggest question remains whether current financial market concerns could spill over into the broader economy.
Although the general economy is perhaps less buoyant than at the beginning of 2007 it still remains strong for the
time being with many companies poised to produce good results. We believe valuations in the market are still
attractive, with some very good yield opportunities, so in our view, there is still upside potential once we have a
more settled environment.
Country Allocation as of 8/31/07
Country Fund % MSCI Europe Index %
UK 24.1 32.7
Netherlands 13.1 5.6
Germany 12.2 12.1
Switzerland 7.8 9.6
Greece 6.9 1.1
Canada 6.1 0.0
France 4.1 14.1
Norway 3.1 1.5
Russia 2.7 0.0
Spain 2.7 5.9
Other 17.2 17.4
Sector Allocation as of 8/31/07
Sector Fund % MSCI Europe Index %
Financials 27.0 28.1
Materials 23.7 8.4
Energy 11.8 9.7
Industrials 11.5 10.0
Consumer Discretionary 6.7 9.9
Information Technology 6.2 3.9
Other 13.1 30.0
The views in this report were those of the Fund manager as of May 31 st
, 2007 and may not reflect the views of
the manager on the date this report is first published or anytime thereafter. These views are intended to assist
shareholders of the Fund in understanding their investments in the Fund and do not constitute investment advice.
Portfolio holdings and allocations may change at any time.
Henderson European Focus Fund
Henderson Global Funds
Monthly Fund Update
August 31, 2007
Monthly Fund Update
February 28, 2006
NASDAQ symbols:
HFEAX, HFEBX, HFECX
Top Ten Holdings
as of 8/31/07
1. Centamin Egypt
%
2.8
2. Kingdom Hotels 2.6
3. Kazakhmys 2.6
4. Arcelor Mittal 2.4
5. Temenos Group 2.4
6. Bayer 2.3
7. Petroplus Holdings 2.1
8. National Bank of
Greece 2.1
9. Wavin 2.0
10. Daimler Chrysler 2.0
Fund Facts
Inception Date: 8/31/01
Min Initial Investment: $500
Benchmark: MSCI Europe Index
About the Advisor
Henderson Global Investors 1
is a
dynamic participant in investment
markets around the world,
providing a wide range of
products and services to
institutions and individuals in
Asia, Europe and North America.
Henderson employs over 900
people located in 12 countries
around the world, and manages
assets of $121.2 billion 2
.

Performance
European Focus
Class A at NAV
European Focus
Class A w/ sales
charge
MSCI Europe
Index
Lipper European
Region Funds
Average
Returns For More greater Information
than 1-year are annualized and all returns include 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. The MSCI Europe Index is a market-capitalization weighted index of
approximately 500 stocks traded in 15 European markets. You cannot invest directly in an
index or average. The FTSE 100 Index is a share index of the 100 most highly capitalized
companies listed on the London Stock Exchange.
1
Henderson Global Investors is the name under which various subsidiaries of Henderson Group plc, a UK limited company, provide investment products and
services.
2 As of December 31, 2006
1 Month YTD 1 Year
* With certain limited exceptions, the Henderson European Focus Fund will be soft closing to new investors after July 31, 2007 as described in the
prospectus.
International investing involves certain risks and increased volatility not associated with investing solely in the U.S.
These risks include currency fluctuations, economic or financial instability, lack of timely or reliable financial
information or unfavorable political or legal developments. In addition, the Fund is non-diversified meaning it may
invest in a limited geographic area or in a smaller number of issuers. As such, investing in the Fund may involve
greater risk and volatility than investing in a more diversified fund. The Fund may also invest in securities issued by
smaller companies, which typically involves greater risk than investing in larger companies.
Not FDIC insured – Not Bank Guaranteed – May lose money.
As of 8/31/07 As of 6/31/07
Since
Inception
1 Year 5 Year
Since
Inception
-2.62 % 8.84 % 28.87% 30.21% 38.55% 31.70% 32.18%
-8.22% 2.59% 21.45% 28.94% 30.59% 30.15% 30.85%
-1.09% 9.34% 22.98% 14.16% 33.08% 19.26% 15.23%
-0.89% 8.36% 22.24% 15.63% 31.66% 19.85% 16.82%
The Lipper European Funds Average is compiled by Lipper, Inc., which is an independent
mutual fund rating service. Lipper returns do not take into effect sales charges.
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. For the most recent month-end
performance, please call 1.866.443.6337 or visit the Fund’s website at
www.hendersonglobalinvestors.com. Performance results with sales charges reflect the
deduction of the maximum front-end sales charge of 5.75%. Performance presented at Net
Asset Value (NAV) which does not include these sales charges would be lower if these
charges were reflected. As stated in the current prospectus, the Fund’s annual operating
expense ratio (gross) is 1.64%. Shares redeemed within 30 days may be subject to a 2.0%
redemption fee.
For More Information
For additional information on any of the
Henderson Global Funds or to obtain a
prospectus, please call 1.866.443.6337
or visit our website at
www.hendersonglobalinvestors.com
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other
information is in the prospectus, a copy of which may be obtained by calling 1.866.443.6337 or visiting the Fund’s website.
Please read the prospectus carefully before investing.
Foreside Fund Services, LLC, distributor. (9/07) HGF 133-07 SKU: EFF-UPDATE-0807