Henderson Asia Pacific ex-Japan Enhanced Equity Fund

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					Henderson
Asia Pacific ex-Japan
Enhanced Equity Fund
Authorised Corporate Director’s Short Report
For the six months ended 30 April 2010


Investment objective and policy                               Activity
The fund aims to provide consistent capital growth            During the period the fund returned 19.69%,
relative to the FTSE World Asia Pacific ex Japan              marginally out-performing its FTSE World Asia Pacific
Index (or such other index as may from time to time           ex-Japan benchmark which returned 19.66%.
replace it) through investing primarily in Asia Pacific
ex Japan companies. There are no restrictions on the          Alpha performance remains challenging in the
size of the companies in which the fund may invest.           current environment, with falling volatilities and
                                                              almost daily reversal in single name ideas. This was
The fund aims to provide an annual return above that          most obvious at the end of 2009, when the usual
of the FTSE World Asia Pacific ex Japan Index, whilst         trading slowdown into the Christmas and New Year
controlling risk. The fund will invest primarily in Asia      period only served to exacerbate this. In contrast
Pacific ex Japan companies included within the                January was the best month of performance, as
FTSE World Asia Pacific ex Japan Index. Additionally,         markets experienced their most aggressive fall in
the fund can invest in companies listed on other              the last twelve months – this briefly pushed volatility
exchanges which are associated with FTSE World                higher and allowed some relative performance to be
Asia Pacific ex Japan Index listed shares or other            locked. Unfortunately the latter part of the period
Asia Pacific ex Japan companies.                              saw a return to more benign markets with a slow
                                                              index level appreciation hurting positions that target
The fund will not attempt to replicate identically the        volatility. By investment strategy, the stand out
share composition of the FTSE World Asia Pacific ex           performance was from Event Driven, whilst the
Japan Index, and the Fund Manager will actively               other three strategies were all slightly negative.
review the shares within the portfolio, and effect
adjustments as necessary in order to achieve the              Within Event Driven the performance has been
investment objective.                                         steady over the last five months, although January
                                                              also saw a couple of single events pushing the
The fund may invest the property in transferable              performance higher. Most notably value was created
securities, money market instruments, derivatives             by two separate de-construction stories; firstly the
and forward transactions, deposits and units in               demerger into two separate operating entities of
collective investment schemes.                                Australian company Macquarie Infrastructure Group,
                                                              and secondly the conclusion to the asset sale and
Risk profile
                                                              spin-off saga of Hutchison Telecom. The conclusion:
This fund invests in the equity securities of Asia            to see its last remaining assets acquired by its
Pacific ex Japan Companies and has exposure to                parent, Hutchison Whampoa.
market price, liquidity, foreign exchange and
                                                              Our Relative Value strategy had a small negative
derivative risk which may affect the performance of
                                                              contribution to performance for the period, driven
the fund. There are no restrictions in the size of
                                                              primarily by the cost of carry of the various derivative
companies in which the fund may invest.
                                                              protection trades within the portfolio. These tend to
                                                              be long volatility by nature, and have seen losses




2                                                          Henderson Asia Pacific ex-Japan Enhanced Equity Fund
arising from both the falling levels of volatility, and         offer by BHP for Rio that saw their relative
the cost of lost premiums paid to establish the                 valuations unfairly move to extreme levels.
positions. This drain on performance was partially
offset by positive returns from both convertible and            Given the uncertain economic background we
equity holding company positions. There was no one              remained cautious in our Liquidity strategy, employing
stand-out trades during the period within this book.            an enhanced methodology for picking from the
                                                                universe of possible trades. Unfortunately this has
It is fair to say that the Fundamental strategy                 not yet benefitted performance, reporting a small loss
ultimately did little to either enhance or diminish             for the period, as the success of IPO’s launched in
returns during the period. The strategy has                     Hong Kong in particular remained surprisingly muted.
continued to focus on using sector neutral pairs to
generate excess returns, but with sectors often                 Markets throughout the Asia-Pacific region are
moving en masse in the period, and more traditional             expected to see a pick up in underlying volatility as
fundamentals therefore outweighed by momentum,                  they continue to predict changes in the underlying
individual outperformance at the single stock level             global economic health. Whilst this may lead to the
was difficult to capture. The best performing                   delay in some corporate events, we expect the
position was the Rio Tinto re-rating relative to BHP            increased volatility to more than make up for the
in Australia, which has continued for the majority of           lost opportunities.
the period. This was initiated post the break of the



 Discrete annual performance
                                                  30 Apr 09-      30 Apr 08-     30 Apr 07-      28 Apr 06-    01 Dec 05†-
                                                  30 Apr 10       30 Apr 09      30 Apr 08       30 Apr 07      28 Apr 06
                                                         %               %              %               %              %
 Henderson Asia Pacific ex Japan Enhanced
                                                      51.0            (19.9)         17.7              10.5           7.5
 Equity Fund*
 IMA Asia Pacific ex Japan sector average**            47.9            (20.0)         18.6              11.0         20.0
 FTSE World Asia ex Japan Index***                    50.9            (20.7)         17.0              10.8           8.1

Source: Morningstar, Henderson Global Investors & FTSE
* Fund returns calculated using close of business prices on a gross asset value basis in GBP
** Sector averages based on sector peer returns using mid-day prices, net revenue and in GBP
*** FTSE Custom Developed All World indices are tax adjusted valuations in GBP
† Inception date




 Summary of fund performance
                                                               Net asset value     Net asset value        Net asset value
                                                                     30/04/10            31/10/09              % change
 Share class                                                                 p                   p
 Class Y accumulation                                                 171.04                  143.51               19.18
 Class I accumulation                                                 171.38                  143.79               19.19
 Class Z accumulation                                                 244.16                  204.10               19.63




Henderson Asia Pacific ex-Japan Enhanced Equity Fund                                                                          3
 Funds facts
 Accounting dates                                                                                                     Payment dates
 30 April, 31 October                                                                                         30 June, 31 December
 Total expense ratio                                                                               30/04/10               31/10/09
                                                                                                         %                      %
 Class Y                                                                                               0.81                   0.81
 Class I                                                                                               0.81                   0.81
 Class Z                                                                                               0.06                   0.06
 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.
 Portfolio turnover rate                                                                           30/04/10               31/10/09
                                                                                                         %                      %
                                                                                                     61.00                   44.00
 The portfolio turnover rate (PTR) of a fund is the ratio of the fund’s transactions to its average net assets for twelve months.




 Net revenue distribution
                                                                                                 30/04/10                30/04/09
 Share class                                                                                            p                       p
 Class Y accumulation                                                                                1.32                    1.08
 Class I accumulation                                                                                1.32                    1.08
 Class I accumulation                                                                                2.72                    1.93

Dividend distributions amounted to the above for the period under review. Comparative figures are for the same period last year.




4                                                                Henderson Asia Pacific ex-Japan Enhanced Equity Fund
Performance record
                                                      Net revenue   Highest price   Lowest price
                                                        per share      per share       per share
Calendar Year
                                                                p               p              p
Class Y accumulation
2005†                                                          –         105.00          99.00
2006                                                        1.83         115.80          97.30
2007                                                        2.36         160.20         111.30
2008                                                        2.78         150.90          78.98
2009                                                        2.69         158.00          85.60
2010                                                        1.32*        175.30#        146.00#
Class I accumulation
2006                                                        1.67         116.00          97.40
2007                                                        2.37         160.40         111.40
2008                                                        2.79         151.20          79.14
2009                                                        2.69         158.30          85.80
2010                                                        1.32*        175.60#        146.30#
Class Z accumulation
2006                                                        2.79         161.90         135.60
2007                                                        4.39         225.10         155.50
2008                                                        5.04         212.80         111.60
2009                                                        4.77         225.00         121.30
2010                                                        2.72*        250.10#        208.10#

† From 1 December to 31 December 2005
* to 30 June
# to 30 April




Past performance is not a guide to future performance.


Henderson Asia Pacific ex-Japan Enhanced Equity Fund                                                5
Major holdings                                     Major holdings
as at 30/04/10                           %         as at 31/10/09                           %
BHP Billiton                           4.27        BHP Billiton                           4.70
Samsung Electronics                    4.14        Samsung Electronics                    3.85
Commonwealth Bank of Australia         3.09        Commonwealth Bank of Australia         3.10
Westpac Bank                           2.78        Westpac Bank                           3.03
Australia & New Zealand Bank           2.10        National Australia Bank                2.44
National Australia Bank                2.08        Australia & New Zealand Bank           2.10
Taiwan Semiconductor Manufacturing     1.87        Taiwan Semiconductor Manufacturing     2.06
Hon Hai Precision Industry             1.63        Posco                                  1.62
Posco                                  1.44        Hon Hai Precision Industry             1.48
Woolworths                             1.17        Sun Hung Kai Properties                1.44



Asset allocation                                   Asset allocation
as at 30/04/10                           %         as at 31/10/09                           %
Australia                             34.84        Australia                             37.18
Korea                                 20.58        Korea                                 18.86
Taiwan                                14.42        Taiwan                                14.54
Hong Kong                             12.99        Hong Kong                             14.03
Singapore                              7.23        Singapore                              6.77
Fixed income                           2.77        China                                  2.13
China                                  2.57        Fixed income                           1.90
United Kingdom                         0.64        New Zealand                            0.60
New Zealand                            0.56        United Kingdom                         0.41
Malaysia                               0.36        Cayman Islands                         0.20
Derivatives                           (0.11)       Malaysia                               0.08
Net other assets                       3.15        Derivatives                           (0.25)
Total                                100.00        Net other assets                       3.55
                                                   Total                                100.00




6                                              Henderson Asia Pacific ex-Japan Enhanced Equity Fund
Report and financial statements                          Other information
This document is a short report of the Henderson         The information in this report is designed to enable
Asia Pacific ex-Japan Enhanced Equity Fund for the       you to make an informed judgement on the activities
six months ended 30 April 2010.                          of the fund during the period it covers and the
                                                         results of those activities at the end of the period.
Copies of the annual and half yearly long form report
and financial statements of this fund are available on   Risk warning
our website www.henderson.com or contact investor
services on the telephone number provided.               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.



Issued by:                                               Auditor
Henderson Investment Funds Limited                       PricewaterhouseCoopers LLP
Registered office:                                       141 Bothwell Street
201 Bishopsgate,                                         Glasgow G2 7EQ
London EC2M 3AE
Member of the IMA and authorised and regulated
by the Financial Services Authority.
Registered in England No 2678531


Depositary
The Royal Bank of Scotland plc
Trustee & Depositary Services
The Broadstone
50 South Gyle Crescent
Edinburgh EH12 9UZ




Henderson Asia Pacific ex-Japan Enhanced Equity Fund                                                         7
         Contact us
         Customer Services 0800 832 832                                                              Head Office address:
         www.henderson.com                                                                           201 Bishopsgate, London EC2M 3AE


                                                                                                Changes of address – regulatory requirements
                                                                                                FSA regulation requires us to send this report mailing to the address held on file
                                                                                                on the ex-dividend date of 30 April 2010. If you have confirmed a change of
Mr A Sample                                                                                     address with us since that date we will ensure all future correspondence will be
                                                                                                sent to your new address.
10 Sample Street
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                                                                                                Any questions?
                                                                                                Further information about the activities and performance of the fund for this and
                                                                                                previous periods can be obtained from the Investment Manager. If you have any
                                                                                                questions please call our Client Services Team on 0800 832 832 or email
                                                                                                support@henderson.com.




Important Information
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.

				
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