Henderson UK Opportunities Fund
Henderson UK Opportunities Fund Authorised Corporate Director’s Short Report For the year ended 30 June 2009 Investment Objective and Policy To aim to provide capital growth by investing primarily in companies domiciled and/or listed in the United Kingdom either directly or indirectly via derivatives. The Fund is not restricted in the size of companies in which it can invest. The Fund may invest in other transferable securities, money market instruments, other derivatives and forward transactions for investment purposes, deposits, cash and near cash and units in collective investment schemes.
Risk Profile This Fund invests in equity securities of UK Companies and has exposure to market risk which may affect the performance of the Fund.
Manager’s Comments The Fund lost 30.2% during the period while the FTSE All Share Index was down 20.5% over the same period. The Fund underperformed markedly during the first six months of the period, returning –47.1% against an index return of –29.9%, and then outperformed significantly during the second six months of the period, returning 31.9% against an index return of 0.8%. Stephen Peak took over management of the Fund in February. The best contributors were resource-related longs. For example, Tullow Oil rebounded strongly from very oversold levels as some risk appetite returned to the market and as the oil price firmed. Sylvania Resources was also a strong performer due to improving sentiment on global commodity demand and bid speculation. Barclays was another strong contributor. We closed our short halfway through the period and initiated a long position as we felt that the valuation had reached attractive levels and that the bank’s medium-term outlook was improving. The rapid return of risk appetite spurred on the performance of this stock. On the short side, our positions in BT Group and Weir Group contributed strongly. BT Group continued to suffer from trouble with its Global Services division and Weir Group lost significant ground as expectations were cut sharply in the face of a weakening macroeconomic outlook.
The worst contributors were long positions in financial or resourcerelated stocks. For example, Cattles was a poor performer as its business model proved unable to operate effectively in the extreme conditions brought on by the credit crunch. We sold our position entirely as we felt that the company would continue to struggle. Our short position in SABMiller also contributed negatively as investors looked past the challenging environment faced by the company in the short term and looked favourably upon the company’s growth prospects in the long term. The rapid sell off in oil during the first half of the period resulted in the poor performance of our energy and commodity related stocks, but also presented us with an opportunity to buy larger stakes in increasingly undervalued companies. For example, we added to our positions in Afren, BowLeven, Dana Petroleum and Tullow Oil. For similar reasons, commodities also lost substantial ground and we increased our holdings in a number of high quality names at undemanding prices. For example, we bought more Aquarius Platinum, Kalahari Minerals and Sylvania Resources. Pleasingly, a number of these energy- and commodity-related companies that we added to at attractive valuations rebounded strongly and were among the strongest contributors to the fund. During the latter stages of the period, we began to initiate in some more defensive names that had not participated in the rally that began in mid-March and that were looking relatively undervalued. This included Imperial Tobacco, a good quality cash-generative company with defensive geographic exposures and a manageable amount of debt. We closed our long-standing short position in Diageo during the period. We felt that the worst of the destocking was over for the spirits companies and that they were beginning to look oversold. This view was proved right as the stock rebounded strongly in the months following the closing of this position.
Henderson UK Opportunities Fund
Fund Facts Accounting and Distribution Payment Dates Accounting Dates 30 June 31 December
Payment Dates 31 August N/A
Portfolio Turnover Rate††
††
Total Expense Ratio†
2009 % 169.00
2008 % 116.00
Share Class
2009 % 2.28 1.79 1.29
Class 'X' Class 'A' Class 'I' †
2008 % 2.22 1.72 1.22
The total expense ratio (TER) of a fund is the ratio of the fund’s total operating costs to its average net assets for twelve months.
The portfolio turnover rate (PTR) of a fund is the ratio of the fund’s transactions to its average net assets for twelve months.
Performance record 1 Jul 0830 Jun 09 % -30.2 -21.1 -20.5
Henderson UK Opportunities Fund Sector Average* FTSE All Share Index
1 Jul 0730 Jun 08 % -14.2 -14.8 -13.0
1 Jul 0630 Jun 07 % 29.0 17.9 18.4
1 Jul 0530 Jun 06 % 19.8 19.1 19.7
1 Jul 0430 Jun 05 % 12.5 16.2 18.8
Source: Morningstar - mid to mid excluding initial charges with net income reinvested for a basic rate taxpayer. * Average Morningstar UK All Companies unit trust.
Summary of Fund Performance
Share Class Class 'X' Class 'A' Class 'I'
Share Type Accumulation Accumulation Accumulation
Net asset value as at 30/06/09 (pence per share) 85.03 88.76 92.70
Net asset value as at 30/06/08 (pence per share) 123.88 128.68 133.72
Net asset value % change -30.94 -30.60 -30.25
Net Income Distribution Interest distributions, net of 20% income tax, amounted to the following for the year under review. The comparative data is for the same period last year. Share Class Class 'X' Class 'A' Class 'I'
Income (pence per share) -
2009 Accumulation (pence per share) 0.32 0.77
Income (pence per share) -
2008 Accumulation (pence per share) 1.51 2.07 3.24
Henderson UK Opportunities Fund
Fund structure % Asset Allocation 2009
2008
Basic Industries 1.0 Canada 0.9 General Industrials 1.3 Kazakhstan 0.2 Switzerland 1.7 Derivatives -2.2 Australia 3.3
Cyclical Consumer Goods 0.2 General Industrials 1.9 Net Other Assets 1.2 Basic Industries 3.1 Canada 6.5
Financials 13.8
Financials 15.0
Net Other Assets 41.0
Resources 41.2
Resources 17.7
Consumer Services 30.9
Consumer Services 21.3
Share price range Calendar Year
Net income Highest price Lowest price (pence per share) (pence per share) (pence per share)
2004 Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
91.82 93.72 95.70
77.94 79.40 80.91
0.43 0.95 1.53
114.10 117.10 120.10
86.83 88.79 90.84
Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
0.52 1.47
152.60 157.60 162.90
122.00 126.30 130.90
1.51 2.07 3.24
138.50 143.80 149.30
60.23 62.70 65.29
-* 0.32* 0.77*
86.80+ 90.58+ 94.57+
61.92+ 64.50+ 67.23+
2008
2006 Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
Net income Highest price Lowest price (pence per share) (pence per share) (pence per share)
2007 0.30 0.67 1.56
2005 Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
Calendar Year
Class 'X' (acc) Class 'A' (acc) Class 'I' (acc) 2009
0.57 1.20
140.80 145.10 149.70
104.40 107.40 110.40
Class 'X' (acc) Class 'A' (acc) Class 'I' (acc) * to 28 August + to 30 June
Major Holdings
Tullow Oil Dana Petroleum Aggreko Sylvania Resources Kalahari Minerals Cairn Energy Shaftesbury GlobeOp Financial Services Prodesse Investment Signet
% of net assets as at 30/06/09 5.8 5.0 3.9 3.3 3.1 3.1 2.6 2.6 2.6 2.6
Dana Petroleum Oilexco Xstrata Regal Petroleum Cairn Energy Aquarius Platinum Tullow Oil Kazakhmys Aggreko Lonmin
% of net assets as at 30/06/08 5.7 5.6 4.5 4.2 4.1 3.8 3.6 3.4 3.1 3.0
Henderson UK Opportunities Fund
Report and Accounts This document is a short report of the Henderson UK Opportunities Fund for the year ended 30 June 2009. Copies of the annual and half yearly Long Form Report and Accounts of this Fund are available free of charge on our website www.henderson.com or contact investor services on the telephone number provided. Other Information The information in this report is designed to enable you to make an informed judgement on the activities of the Fund during the year it covers and the results of those activities at the end of the year.
Issued by: Henderson Investment Funds Limited Registered Office: 201 Bishopsgate, London EC2M 3AE Member of IMA and authorised and regulated by the Financial Services Authority Registered in England No 2678531 Telephone: Switchboard 020 7818 1818 Dealing 08459 46 46 46 Investor Services 0800 832 832 IFA Services 0800 88 11 44 Auditor:
PricewaterhouseCoopers LLP 141 Bothwell Street Glasgow G2 7EQ
Depositary:
Royal Bank of Scotland The Broadstone 50 South Gyle Crescent Edinburgh EH12 9UZ
Please remember that past performance is not a guide to future performance. The value of an investment and the income from it can 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 is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management plc (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757) and Henderson Equity Partners Limited (reg. no. 2606646) (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE and authorised and regulated by the Financial Services Authority) provide investment products and services. Telephone calls may be recorded and monitored. Unless otherwise stated, all data is sourced by Henderson Global Investors. HGI33794/2009
Risk Profile This Fund invests in equity securities of UK Companies and has exposure to market risk which may affect the performance of the Fund.
Manager’s Comments The Fund lost 30.2% during the period while the FTSE All Share Index was down 20.5% over the same period. The Fund underperformed markedly during the first six months of the period, returning –47.1% against an index return of –29.9%, and then outperformed significantly during the second six months of the period, returning 31.9% against an index return of 0.8%. Stephen Peak took over management of the Fund in February. The best contributors were resource-related longs. For example, Tullow Oil rebounded strongly from very oversold levels as some risk appetite returned to the market and as the oil price firmed. Sylvania Resources was also a strong performer due to improving sentiment on global commodity demand and bid speculation. Barclays was another strong contributor. We closed our short halfway through the period and initiated a long position as we felt that the valuation had reached attractive levels and that the bank’s medium-term outlook was improving. The rapid return of risk appetite spurred on the performance of this stock. On the short side, our positions in BT Group and Weir Group contributed strongly. BT Group continued to suffer from trouble with its Global Services division and Weir Group lost significant ground as expectations were cut sharply in the face of a weakening macroeconomic outlook.
The worst contributors were long positions in financial or resourcerelated stocks. For example, Cattles was a poor performer as its business model proved unable to operate effectively in the extreme conditions brought on by the credit crunch. We sold our position entirely as we felt that the company would continue to struggle. Our short position in SABMiller also contributed negatively as investors looked past the challenging environment faced by the company in the short term and looked favourably upon the company’s growth prospects in the long term. The rapid sell off in oil during the first half of the period resulted in the poor performance of our energy and commodity related stocks, but also presented us with an opportunity to buy larger stakes in increasingly undervalued companies. For example, we added to our positions in Afren, BowLeven, Dana Petroleum and Tullow Oil. For similar reasons, commodities also lost substantial ground and we increased our holdings in a number of high quality names at undemanding prices. For example, we bought more Aquarius Platinum, Kalahari Minerals and Sylvania Resources. Pleasingly, a number of these energy- and commodity-related companies that we added to at attractive valuations rebounded strongly and were among the strongest contributors to the fund. During the latter stages of the period, we began to initiate in some more defensive names that had not participated in the rally that began in mid-March and that were looking relatively undervalued. This included Imperial Tobacco, a good quality cash-generative company with defensive geographic exposures and a manageable amount of debt. We closed our long-standing short position in Diageo during the period. We felt that the worst of the destocking was over for the spirits companies and that they were beginning to look oversold. This view was proved right as the stock rebounded strongly in the months following the closing of this position.
Henderson UK Opportunities Fund
Fund Facts Accounting and Distribution Payment Dates Accounting Dates 30 June 31 December
Payment Dates 31 August N/A
Portfolio Turnover Rate††
††
Total Expense Ratio†
2009 % 169.00
2008 % 116.00
Share Class
2009 % 2.28 1.79 1.29
Class 'X' Class 'A' Class 'I' †
2008 % 2.22 1.72 1.22
The total expense ratio (TER) of a fund is the ratio of the fund’s total operating costs to its average net assets for twelve months.
The portfolio turnover rate (PTR) of a fund is the ratio of the fund’s transactions to its average net assets for twelve months.
Performance record 1 Jul 0830 Jun 09 % -30.2 -21.1 -20.5
Henderson UK Opportunities Fund Sector Average* FTSE All Share Index
1 Jul 0730 Jun 08 % -14.2 -14.8 -13.0
1 Jul 0630 Jun 07 % 29.0 17.9 18.4
1 Jul 0530 Jun 06 % 19.8 19.1 19.7
1 Jul 0430 Jun 05 % 12.5 16.2 18.8
Source: Morningstar - mid to mid excluding initial charges with net income reinvested for a basic rate taxpayer. * Average Morningstar UK All Companies unit trust.
Summary of Fund Performance
Share Class Class 'X' Class 'A' Class 'I'
Share Type Accumulation Accumulation Accumulation
Net asset value as at 30/06/09 (pence per share) 85.03 88.76 92.70
Net asset value as at 30/06/08 (pence per share) 123.88 128.68 133.72
Net asset value % change -30.94 -30.60 -30.25
Net Income Distribution Interest distributions, net of 20% income tax, amounted to the following for the year under review. The comparative data is for the same period last year. Share Class Class 'X' Class 'A' Class 'I'
Income (pence per share) -
2009 Accumulation (pence per share) 0.32 0.77
Income (pence per share) -
2008 Accumulation (pence per share) 1.51 2.07 3.24
Henderson UK Opportunities Fund
Fund structure % Asset Allocation 2009
2008
Basic Industries 1.0 Canada 0.9 General Industrials 1.3 Kazakhstan 0.2 Switzerland 1.7 Derivatives -2.2 Australia 3.3
Cyclical Consumer Goods 0.2 General Industrials 1.9 Net Other Assets 1.2 Basic Industries 3.1 Canada 6.5
Financials 13.8
Financials 15.0
Net Other Assets 41.0
Resources 41.2
Resources 17.7
Consumer Services 30.9
Consumer Services 21.3
Share price range Calendar Year
Net income Highest price Lowest price (pence per share) (pence per share) (pence per share)
2004 Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
91.82 93.72 95.70
77.94 79.40 80.91
0.43 0.95 1.53
114.10 117.10 120.10
86.83 88.79 90.84
Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
0.52 1.47
152.60 157.60 162.90
122.00 126.30 130.90
1.51 2.07 3.24
138.50 143.80 149.30
60.23 62.70 65.29
-* 0.32* 0.77*
86.80+ 90.58+ 94.57+
61.92+ 64.50+ 67.23+
2008
2006 Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
Net income Highest price Lowest price (pence per share) (pence per share) (pence per share)
2007 0.30 0.67 1.56
2005 Class 'X' (acc) Class 'A' (acc) Class 'I' (acc)
Calendar Year
Class 'X' (acc) Class 'A' (acc) Class 'I' (acc) 2009
0.57 1.20
140.80 145.10 149.70
104.40 107.40 110.40
Class 'X' (acc) Class 'A' (acc) Class 'I' (acc) * to 28 August + to 30 June
Major Holdings
Tullow Oil Dana Petroleum Aggreko Sylvania Resources Kalahari Minerals Cairn Energy Shaftesbury GlobeOp Financial Services Prodesse Investment Signet
% of net assets as at 30/06/09 5.8 5.0 3.9 3.3 3.1 3.1 2.6 2.6 2.6 2.6
Dana Petroleum Oilexco Xstrata Regal Petroleum Cairn Energy Aquarius Platinum Tullow Oil Kazakhmys Aggreko Lonmin
% of net assets as at 30/06/08 5.7 5.6 4.5 4.2 4.1 3.8 3.6 3.4 3.1 3.0
Henderson UK Opportunities Fund
Report and Accounts This document is a short report of the Henderson UK Opportunities Fund for the year ended 30 June 2009. Copies of the annual and half yearly Long Form Report and Accounts of this Fund are available free of charge on our website www.henderson.com or contact investor services on the telephone number provided. Other Information The information in this report is designed to enable you to make an informed judgement on the activities of the Fund during the year it covers and the results of those activities at the end of the year.
Issued by: Henderson Investment Funds Limited Registered Office: 201 Bishopsgate, London EC2M 3AE Member of IMA and authorised and regulated by the Financial Services Authority Registered in England No 2678531 Telephone: Switchboard 020 7818 1818 Dealing 08459 46 46 46 Investor Services 0800 832 832 IFA Services 0800 88 11 44 Auditor:
PricewaterhouseCoopers LLP 141 Bothwell Street Glasgow G2 7EQ
Depositary:
Royal Bank of Scotland The Broadstone 50 South Gyle Crescent Edinburgh EH12 9UZ
Please remember that past performance is not a guide to future performance. The value of an investment and the income from it can 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 is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management plc (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757) and Henderson Equity Partners Limited (reg. no. 2606646) (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE and authorised and regulated by the Financial Services Authority) provide investment products and services. Telephone calls may be recorded and monitored. Unless otherwise stated, all data is sourced by Henderson Global Investors. HGI33794/2009
