Henderson Global Equity Fund ARSN Financial report For the period ended 30 June 2014

Transcription

1 ARSN Financial report For the period ended

2 ARSN Financial report For the period ended Contents Directors' report Auditor's independence declaration Statement of comprehensive income Balance sheet Statement of changes in equity Statement of cash flows Directors' declaration Independent audit report to the unitholders of Henderson Global Equity Fund Page This financial report covers Henderson Global Equity Fund (ARSN ) as an individual entity. The Responsible Entity of Henderson Global Equity Fund is Henderson Global Investors (Australia) Funds Management Limited (ABN ) The Responsible Entity's registered office is: Suite 4702, Level 47, I Macquarie Place, Sydney NSW I -

3 Directors' report Directors' report The directors of Henderson Global Investors (Australia) Funds Management Limited, the Responsible Entity of Henderson Global Equity Fund (the "Fund"), present their report together with the financial report of the Fund, for the period from 29 November 2013 to. Principal activities The Fund invests in listed equity securities in accordance with the provisions of the Fund's Constitution. The Fund did not have any employees during the period. There were no significant changes in the nature of the Fund's activities during the period. The various service providers for the Fund are detailed below: Service Responsible Entity InvestrnentManager Custodian and Administrator Statutory Auditor Provider Henderson Global Investors (Australia) Funds Management Limited Henderson Global Investors Limited BNP Pari bas Security Services PricewaterhouseCoopers Directors The following persons held office as directors of Henderson Global Investors (Australia) Funds Management Limited during the period or since the end of the period and up to the date of this report: RW Adams MJ Gaden SS Rahmani Appointed 7 June 2013 Appointed 7 June 2013 Appointed 7 June 2013 Review and results of operations The performance of the Fund, as represented by the results of its operations, was as follows: 29 November 2013 to Operating profit/(ioss) before finance costs attributable to unitholders (51,362) Distributions () Distributions (cents per unit) Significant changes in the state of affairs In the opinion of the directors, there were no significant changes in the state of the affairs of the Fund that occurred during the period under review. Matters subsequent to the end of the financial period No matter or circumstance has arisen since that has significantly affected, or may significantly affect: (i) the operations of the Fund in future financial years, or (ii) the results of those operations in future financial years, or (iii) the state ofthe affairs ofthe Fund in future financial years. - 2-

4 Directors' report (continued) Directors' report (continued) Likely developments and expected results of operations The Fund will continue to be managed in accordance with the investment objectives and guidelines as set out in the governing documents of the Fund and in accordance with the provisions of the Fund's Constitution. The results of the Fund's operations will be affected by a number of factors, including the performance of investment markets in which the Fund invests. Investment performance is not guaranteed and future returns may differ from past returns. As investment conditions change over time, past returns should not be used to predict future returns. Further information on likely developments in the operations ofthe Fund and the expected results ofthose operations have not been included in this report because the Responsible Entity believes it would be likely to result in unreasonable prejudice to the Fund. Indemnification and insurance of officers and auditors No insurance premiums are paid for out of the assets of the Fund in regards to insurance cover provided to either the officers of Henderson Global Investors (Australia) Funds Management Limited or the auditors of the Fund. So long as the officers of Henderson Global Investors (Australia) Funds Management Limited act in accordance with the Fund's Constitution and the Law, the officers remain fully indemnified out of the assets of the Fund against losses incurred while acting on behalf of the Fund. The auditors of the Fund are in no way indemnified out ofthe assets ofthe Fund. Fees paid to and interests held in the Fund by the Responsible Entity or its associates Fees paid to the Responsible Entity and its associates out of Fund property during the period are disclosed in Note 12 to the financial statements. No fees were paid out of Fund property to the directors of Henderson Global Investors (Australia) Funds Management Limited during the period. The number of interests in the Fund held by Henderson Global Investors (Australia) Funds Management Limited or its associates as at the end ofthe financial period are disclosed in Note 12 to the financial statements. Interests in the Fund The movement in units on issue in the Fund during the period is disclosed in Note 7 to the financial statements. The value of the Fund's assets and liabilities is disclosed on the balance sheet and derived using the basis set out in Note 2 to the financial statements. Environmental regulation The operations of the Fund are not subject to any particular or significant environmental regulations under a Commonwealth, State or Territory law. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C ofthe Corporations Act 2001 is set out on page 4. This report is made in accordance with a resolution of the directors of Henderson Global Investors (Australia) Funds Management Limited. Director On behalf of all the directors of Henderson Global Investors (Australia) Funds Management Limited 17 September

5 pwc Auditor's Independence Declaration As lead auditor for the audit of Henderson Global Equity Fund for the period ended 30 June 2014, I declare that to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) no contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Henderson Global Equity Fund during the period. Darren Ross Partner PricewaterhouseCoopers Sydney 17 September 2014 PricewaterhouseCoopers, ABN Darling Park Tower 2,201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: , F: , Liability limited by a scheme approved under Professional Standards Legislation.

6 Statement of comprehensive income For the period ended Notes 29 November 2013 to Investment income Interest income Dividend income Trust distribution income Net foreign exchange gain/(ioss) Net gains/(iosses) on financial instruments held at fair value through profit or loss Other investment income Total net investment income/(ioss) 6 4,094 48,311 1,171 (879) (53,883) 647 (539) Expenses Management fees Withholding tax Other operating expenses Total operating expenses 12 41,077 6,118 3,628 50,823 Operating protit/(ioss) (51,362) Finance costs attributable to unitholders (lncrease)/decrease in net assets attributable to unitholders Profit/(Ioss) for the period Other comprehensive income TOTAL COMPREHENSIVE INCOME 7 51,362 The above statement of comprehensive income should be read in conjunction with the accompanying notes

7 Balance sheet As at Notes As at Assets Cash and cash equivalents Due from brokers - receivable for securities sold Receivables Financial assets held at fair value through profit or loss Total assets , ,013 7,440 4,875,085 5,170,258 Liabilities Due to brokers - payable for securities purchased Payables Total liabilities (excluding net assets attributable to unitholders) 11 40,281 6,339 46,620 Net assets attributable to unitholders - liability 7 5,123,638 The above balance sheet should be read in corijunction with the accompanying notes

8 Statement of changes in equity For the period ended 29 November 2013 to Total equity at the beginning of the period Profit/(Ioss) for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Total equity at the end of the period Under Australian Accounting Standards, 'Net assets attributable to unitholders' is classified as a liability rather than equity. As a result, there was no equity at the start or end of the period. The above statement of changes in equity should be read in conjunction with the accompanying notes

9 Statement of cash flows For the period ended Notes 29 November 2013 to Cash flows from operating activities Proceeds from sale of financial instruments held at fair value through profit or loss Purchase of financial instruments held at fair value through profit or loss Dividends received Trust distributions received Interest received GST received/(paid) Other income received Management fees paid Withholding tax paid Payment of other operating expenses Net cash inflow/(outflow) from operating activities 13 2,389,354 (7,405,054) 42,779 1,171 3,776 (1,590) 647 (34,738) (6,118) (3,628) (5,013,401) Cash flows from financing activities Proceeds from applications by unitholders Net cash inflow/(outflow) from financing activities 5,175,000 5,175,000 Net increase/(decrease) in cash and cash equivalents Effect of foreign currency exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the period 8 161,599 (879} 160,720 The above statement of cash flows should be read in conjunction with the accompanying notes

10 Contents of the notes to the financial statements General information Summary of significant accounting policies Financial risk management Fair value measurement Auditor's remuneration Net gains/(losses) on financial instruments held at fair value through profit or loss Net assets attributable to unitholders Cash and cash equivalents Financial assets held at fair value through profit or loss Receivables Payables Related party transactions Reconciliation ofprofitl(loss) to net cash inflow/(outflow) from operating activities Events occurring after the balance date Contingent assets and liabilities or commitments Page

11 (continued) 1 General information This financial report covers Henderson Global Equity Fund (the "Fund") as an individual entity. The Fund was constituted on 15 November The Responsible Entity of the Fund is Henderson Global Investors (Australia) Funds Management Limited (ABN ) (the "Responsible Entity"). The Responsible Entity's registered office is Suite 4702, Level 47, I Macquarie Place, Sydney NSW The Fund seeks to achieve a total return after fees that exceeds the total return ofthe MSCI All Countries World ex Australia Index (net dividends reinvested) in AUD over rolling five year periods. The financial statements were authorised for issue by the directors on 17 September The directors of the Responsible Entity have the power to amend and reissue the financial report. 2 Summary of significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied, unless otherwise stated in the following text. (a) Basis of preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 200/ in Australia. The Fund is a for-profit unit trust for the purpose of preparing the financial report. The financial report is prepared on the basis of fair value measurement of assets and Iiabil ities except where otherwise stated. The balance sheet is presented on a liquidity basis. Assets and liabilities are presented in decreasing order of liquidity and are not distinguished between current and non-current. All balances are expected to be recovered or settled within twelve months, except for financial assets at fair value through profit or loss and net assets attributable to unitholders. The amount expected to be recovered or settled within 12 months after the end of each reporting period in relation to these balances cannot be reliably determined. Compliance with International Financial Reporting Standards (IFRS) The financial report of the Fund also complies with International Financial Reporting Standards as issued by the International Accounting Standards Board. New and amended standards adopted by the Fund AASB 13 Fair Value Measurement aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across Australian Accounting Standards. The standard does not extend the use of fair value accounting but provides guidance on how it should be applied where its use is already required or permitted by other Australian Accounting Standards. The adoption of the standard doesn't have any impact on the Fund's financial position or performance, however, will result in additional disclosure in the notes to the financial statements. AASB Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities requires additional disclosures to enable users of financial statements to evaluate the effect or the potential effects of netting arrangements, including rights of set-off associated with an entity's recognised financial assets and recognised financial liabilities, on the entity's financial position. The adoption of the standard doesn't have any impact on the Fund's financial position or performance, however, may result in additional disclosure in the notes to the financial statements in future periods. AASB 12 - Disclosure of Interests in Other Entities requires entities to disclose significant judgements and assumptions made in determining whether the entity controls, jointly controls, significantly influences or has some other interests in other entities. Entities are also required to provide more disclosures around certain 'structured entities'. The adoption ofthe standard does not have material impact on the Fund. Amendments made to AASB Related Party Disclosures by AASB which confirm that the Fund must disclose the fees paid for management personnel services received from a third party such as a Responsible Entity, but not the compensation paid by the Responsible Entity to its employees or directors. The amendments did not have any impact on the Fund's financial statements as the Fund already discloses all fees paid to the Responsible Entity

12 (continued) 2 Summary of significant accounting policies (continued) (b) (i) Financial instruments Classification The Fund's investments are categorised as at fair value through profit or loss. They comprise: Financial instruments designated at fair value through profit or loss upon initial recognition (ii) These include financial assets that are not held for trading purposes and which may be sold. These are investments in listed equity securities. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the Fund's documented investment strategy. The Fund's policy is for the Responsible Entity to evaluate the information about these financial assets on a fair value basis with other related financial information. Recognition/derecognition The Fund recognises financial assets and financial liabilities on the date it becomes party to the contractual agreement (trade date) and recognises changes in fair value of financial assets or financial liabilities from this date. Investments are derecognised when the right to receive cashflows from the investments have expired or the Fund has transferred substantially all risks and rewards of ownership. (iii) Measurement Financial assets and liabilities held at lair value through profit or loss At initial recognition, the Fund measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of comprehensive income. Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value of the 'financial assets or financial liabilities at fair value through profit or loss' category are presented in the statement of comprehensive income within net gains / (losses) on financial instruments held at fair value through profit or loss in the period in which they arise. The fair value of financial assets and liabilities traded in active markets is subsequently based on their quoted market prices at the end of the reporting period without any deduction for estimated future selling costs. The quoted market price used for financial assets held by the Fund is the current bid price and the quoted market price for financial liabilities is the current asking price. The fair value of financial assets and liabilities that are not traded in an active market are determined using valuation techniques. The Fund uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date. Valuation techniques used include the use of comparable recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs. Further details on how the fair values of financial instruments are determined are disclosed in Note 3. (c) Net assets attributable to unitholders Units are redeemable at the unitholders' option, however applications and redemptions may be suspended by the Responsible Entity if it is in the best interests of the unitholders. The units are classified as financial liabilities as the Fund is required to distribute its distributable income. The units can be put back to the Fund at any time for cash equal to a proportionate share of the Fund's net asset value. The fair value of redeemable units is measured at the redemption amount that is payable (based on the redemption unit price) at the balance sheet date if unitholders exercised their right to put the units back to the Fund. Changes in the value of this financial liability are recognised in the statement of comprehensive income as they arise. (d) Cash and cash equivalents For the statement of cash flows presentation purposes, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Payments and receipts relating to the purchase and sale of investment securities are classified as cash flows from operating activities, as movements in the fair value of these securities represent the Fund's main income generating activity

13 (continued) 2 Summary of significant accounting policies (continued) (e) Investment income Interest Income Interest income on cash and cash equivalents is recognised in the statement of comprehensive income on an accruals basis. Dividend Income Dividend income is recognised on the ex-dividend date with any related foreign withholding tax recorded as an expense. The Fund currently incurs withholding tax imposed by certain countries on investment income. Such income is recorded gross of withholding tax in the statement of comprehensive income. Trust distributions are recognised on an entitlements basis. (I) Expenses All expenses are recognised in the statement of comprehensive income on an accruals basis. (g) Income tax Under current legislation, the Fund is not subject to income tax as unitholders are presently entitled to the income ofthe Fund. The benefit of any imputation credits and foreign tax paid are passed on to unitholders. (h) Distributions In accordance with the Fund's Constitution, the Fund distributes income adjusted for amounts determined by the Responsible Entity to unitholders by cash or reinvestment. The distributions would be recognised in the statement of comprehensive income as finance costs attributable to unitholders. (i) Increase/decrease in net assets attributable to unitholders Non-distributable income is included in net assets attributable to unitholders and may consist of unrealised changes in the net fair value of financial instruments held at fair value through profit or loss, accrued income not yet assessable, expenses provided or accrued for which are not yet deductible, net capital losses and tax free or tax deferred income. Net capital gains on the realisation of any financial instruments (including any adjustments for tax deferred income previously taken directly to net assets attributable to unitholders) and accrued income not yet assessable will be included in the determination of distributable income in the same period in which it becomes assessable for tax. Movements in net assets attributable to unitholders are recognised in the statement of comprehensive income as finance costs. (j) Foreign currency translation i) Functional and presentation currency Items included in the Fund's financial statements are measured using the currency of the primary economic environment in which it operates (the "functional currency"). This is the Australian dollar, which reflects the currency of the economy in which the Fund competes for capital and is regulated. The Australian dollar is also the Fund's presentation currency. ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translations at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. The Fund does not isolate that portion of gains or losses on securities which is due to changes in foreign exchange rates from that which is due to changes in the market price of securities. Such fluctuations are included with the net gains or losses on financial instruments at fair value through profit or loss. (k) Due from/to brokers Amounts due from/to brokers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet delivered by the end of the period. Trades are recorded on trade date, and normally settled within three business days. A provision for impairment of amounts due from brokers is established when there is objective evidence that the Fund will not be able to collect all amounts due from the relevant broker. Indicators that the amount due from brokers is impaired include significant financial difficulties of the broker, probability that the broker will enter bankruptcy or financial reorganisation and default in payments

14 (continued) 2 Summary of significant accounting policies (continued) (I) Receivables Receivables include amounts where settlement has not yet occurred and are measured at their nominal amounts. Amounts are generally received within 30 days of being recorded as receivables. Given the short-term nature of most receivables, the recoverable amount approximates fair value. (m) Payables Payables are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Fund, and are measured at their nominal amounts. Amounts are generally paid within 30 days of being recorded as payables. Given the short-term nature of most payables, the payable amount approximates fair value. (n) Applications and redemptions Applications received for units in the Fund are recorded net of any entry fees payable prior to the issue of units in the Fund. Redemptions from the Fund are recorded gross of any exit fees payable after the cancellation of units redeemed. Unit prices are determined by reference to the net assets per the Fund's Constitution divided by the number of units on issue at or immediately prior to the close of each business day. (0) Goods and services tax (GST) The Fund qualifies for Reduced Input Tax Credits (RITC) at a rate of at least 55%, hence investment management fees and other expenses have been recognised in the statement of comprehensive income net of the amount of GST recoverable from the Australian Taxation Office (ATO). Accounts payable are inclusive of GST. The net amount ofgst recoverable from the ATO is included in receivables in the balance sheet. Cash flows relating to GST are included in the statement of cash flows on a gross basis. (p) Use of estimates The Fund makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. For the majority ofthe Fund's financial instruments, quoted market prices are readily available. Areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affect the reported fair value of financial instruments. For certain other financial instruments, including amounts due fromlto brokers and payables, the carrying amounts approximate fair value due to the short-term nature of these financial instruments. (q) Accounting period The Fund registered and commenced operations on 29 November The information provided relates to the period 29 November 2013 to. (r) New accounting standards and interpretations Certain new accounting standards and interpretations have been published that are not mandatory for the reporting period and have not been early adopted by the Fund. The directors' assessment of the impact of these standards (to the extent relevant to the Fund) and interpretations is set out below: AASB 9 Financial Instruments, AASB Amendments to Australian Accounting Standards arising from AASB 9, AASB Amendment to Australia Accounting Standards arising from AASB 9 (December 2010) and AASB Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 and Transition Disclosures (effective from 1 January 2018) AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2018 but is available for early adoption. The directors do not expect this to have a significant impact on the recognition and measurement ofthe Fund's financial instruments as they are carried at fair value through profit or loss. There are no other standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions

15 (continued) 3 Financial risk management In pursuing its investment objective the Fund holds a number of financial instruments. The main risks arising from financial instruments are market, credit and liquidity risks. The Fund's overall risk management programme focuses on ensuring compliance with the Fund's Product Disclosure Statement. It also seeks to maximise the returns derived for the level of risk to which the Fund is exposed and seeks to minimise potential adverse effects on the Fund's financial performance. (a) Market risk Market risk is the risk that the value of the Fund's investments or the benefits arising thereon will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk, and other price risk. (i) Price risk The Fund is exposed to equity securities price risk. This arises from investments held by the Fund for which prices in the future are uncertain. All securities investments present a risk of loss of capital due to price fluctuation. The Responsible Entity mitigates price risk through a careful selection of securities and other financial instruments within parametres specified within the Fund's Investment Guidelines. Compliance with the Fund's Product Disclosure Statement and Investment Guidelines are monitored daily, with any breaches recorded on a breach register and reported to the Compliance Committee on a quarterly basis. The table in note 3(b) summarises the impact of an increase/decrease of the Fund's benchmark index on the Fund's net assets attributable to unitholders. The analysis is based on the assumptions that the index increased/decreased by 15% with all other variables held constant and that the fair value of the Fund's portfolio of equity securities moved according to the historical correlation with the index. (ii) Foreign exchange risk The Fund holds financial instruments denominated in currencies other than the Australian dollar. Foreign exchange risk arises as the value of instruments denominated in other currencies will fluctuate due to changes in foreign exchange rates. The table below summarises the Fund's assets and liabilities that are denominated in the four most significant currencies, US Dollars, Euro, Japanese Yen and British Pounds. US Dollars Euro Japanese Yen British Pounds Other Currencies A A A A A Cash and cash equivalents 1,406 2,508 Due from brokers - receivable for securities sold 127,013 Receivables 1,965 2, Financial assets held at fair value through profit or loss 2,725, , , , ,692 Due to brokers - payable for securities purchased (40,281} 2.855, , , , ,411 The table in note 3(b) summarises the sensitivities of the Fund's monetary assets and liabilities to foreign exchange risk. The analysis is based on the assumption that the Australian dollar strengthens /weakens by 5% against each ofthe other currencies to which the Fund is exposed. (iii) Interest rate risk Interest rate risk is the risk that the value of investments and revenue may fluctuate as a result or interest rate changes. The impact of interest rate risk on net assets attributable to unitholders and operating profit is considered immaterial to the Fund

16 (continued) 3 Financial risk management (continued) (b) Market risk - summarised sensitivity analysis The following table summarises the sensitivity of the Fund's operating profit and net assets attributable to unitholders to price risk and foreign exchange risk. The reasonably possible movements in the risk variables have been determined based on the Investment Manager's best estimates, having regard to a number of factors, including historical levels of changes in foreign exchange rates and the relevant benchmark, historical correlation of the Fund's investments with the relevant benchmark and market volatility. However, actual movements in the risk variables may be greater or less than anticipated due to a number of factors, including unusually large market shocks resulting from changes in the performance and/or correlation between the performances of the economies, markets and securities in which the Fund invests. As a result, historic variations in risk variables are not a definitive indicator of future variations in the risk variables. Impact on operating protitlnet assets attributable to unitholders -15% Price risk +15% Foreign exchange risk -5% +5% (731,263) 731, (36) (c) Credit risk The Fund is exposed to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when they fall due. The Fund is exposed to counterparty credit risk on cash and cash equivalents, amounts due from brokers and other receivables. None of these assets are impaired nor past due but not impaired. Credit risk is managed by ensuring that: Counterparties with respective credit limits are approved by Henderson as the responsible entity; and Transactions are undertaken with a number of counterparties. As at, the Fund has no significant direct concentrations of credit risk of counterparties. (d) Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities. Cash flow risk is the risk that future cash flows associated with financial instruments will fluctuate in amount or timing. These risks are controlled through the Fund's investment in financial instruments, which under normal market conditions are readily convertible to cash. In addition, the Fund maintains sufficient cash and cash equivalents to meet normal operating requirements. Financial liabilities ofthe Fund comprise trade and other payables and net assets attributable to unitholders. Trade and other payables have no contractual maturities but are typically settled within 30 days of the obligation arising. Net assets attributable to unitholders are entirely payable on demand and the Responsible Entity ensures sufficient cash is held to meet redemption volumes. The table below details the Fund's financial liabilities into the relevant maturity groupings based on the remaining period at balance date to the contractual maturity date. At Due to brokers - payable for securities purchased Payables Net assets attributable to unitholders Less than 1 month 40,281 6,339 5,123,638 5,170, months 6-12 months Over 12 months

17 (continued) 3 Financial risk management (continued) (e) Fair value hierarchy (i) Classification of jinancial assets and jinancialliabilities The Fund classifies fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making the measurements. The fair value hierarchy has the following levels: Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3) The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes "observable" requires judgement by the Responsible Entity. The Responsible Entity considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and not provided by independent sources that are actively involved in the relevant market. The table below sets out the Fund's financial assets and liabilities measured at fair value according to the fair value hierarchy. Financial assets Financial assets designated at fair value through profit or loss: Listed equity securities Total Levell 4,875,085 4,875,085 Level 2 Level 3 Total 4,875,085 4,875,085 Investments whose values are based on quoted market prices in active markets, and therefore classified within level I, include active listed equities. Inputs other than quoted prices included within level I that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). (a) Transfers between levels There were no transfers between levels in the fair value hierarchy during the period

18 (continued) 4 Fair value measurement The carrying amounts of the Fund's assets and liabilities at the end of each reporting period approximate their fair values. Financial assets and liabilities held at fair value through profit or loss are measured initially at fair value excluding any transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs on financial assets and financial liabilities at fair value through profit or loss are expensed immediately. Subsequent to initial recognition, all instruments held at fair value through profit or loss are measured at fair value with changes in fair value recognised in the Statement of comprehensive income. Fair value in an active market The fair value of financial assets and liabilities traded in active markets is based on their quoted market prices at the Balance sheet date without any deduction for estimated future selling costs. The Fund values its investments in accordance with the accounting policies set out in note 2 to the financial statements. For the majority of its investments, the Fund rei ies on information provided by independent pricing services for the valuation of its investments. The quoted market price used for financial assets held by the Fund is the current bid price; the appropriate quoted market price for financial liabilities is the current asking price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. Fair value in an inactive or un quoted market The fair value of financial assets and liabilities that are not exchange traded is estimated at the amount that the Fund would receive or pay to terminate the contract at the balance sheet date taking into account current market conditions (volatility and appropriate yield curve) and the current creditworthiness ofthe counterparties. 5 Auditor's remuneration During the period, fees were paid or payable for services provided by the auditor of the Fund. Services included the audit of the financial statements 6,000 and other services 7,000. Other services includes the audit of the compliance plan and tax compliance services of the Fund. All audit fees were borne by the responsible entity of the Fund, Henderson Global Investors (Australia) Funds Management Limited for the period ended. 6 Net gains/(iosses) on financial instruments held at fair value through profit or loss Net gains/(iosses) recognised in relation to financial assets and financial liabilities held at fair value through profit or loss: Financial instruments Net realised gain/(ioss) on financial instruments designated as at fair value through profit or loss Net unrealised gain/(ioss) on financial instruments designated as at fair value through profit or loss 29 November 2013 to (127,103) 73,220 Total net gains/(iosses) on financial instruments held at fair value through profit or loss (53,883) - 17-

19 (continued) 7 Net assets attributable to unitholders Movements in the number of units and net assets attributable to unitholders during the period were as follows: 29 November 2013 to No. Opening balance Applications Increase/( decrease) in net assets attributable to unitholders Closing balance 5,175,528 5,175,528 5,175,000 (51,362) 5,123,638 As stipulated in the Fund's Constitution, each unit represents a right to an individual share in the Fund and does not extend to a right to the underlying assets in the Fund. There are no separate classes of units and each unit has the same rights attaching to it as all other units of the Fund. Capital risk management The Fund considers its net assets attributable to unitholders as capital, notwithstanding 'net assets attributable to unitholders' is classified as a financial liability. Net assets attributable to unitholders can change significantly on a daily basis as the Fund is subject to daily applications and redemptions at the discretion of unit holders. Applications and redemptions are reviewed relative to the liquidity of the Fund's underlying assets on a daily basis by the Investment Manager. Under the terms of the Fund's Constitution, the Responsible Entity has the discretion to reject an application for units and to defer or adjust a redemption of units if the exercise of such discretion is in the best interests of unitholders. 8 Cash and cash equivalents As at Cash at bank 160, ,720 9 Financial assets held at fair value through profit or loss As at Fair value Designated at fair value through profit or loss Listed equity securities Total designated at fair value through profit or loss Total financial assets held at fair value through profit or loss 4,875,085 4,875,085 4,875,085 An overview ofthe risk exposures relating to financial assets held at fair value through profit or loss is included in Note

20 (continued) 10 Receivables Dividends receivable Interest receivable RITe receivable As at 5, ,590 7, Payables Management fees payable 12 Related party transactions As at 30 June ,339 6,339 Responsible Entity The Responsible Entity of Henderson Global Equity Fund is Henderson Global Investors (Australia) Funds Management Limited (ABN ). Transactions with entities related to Henderson Global Investors (Australia) Funds Management Limited are disclosed below. Investment Manager The Fund implements its investment strategy by investing in listed equities across a number of share markets - Henderson Global Investors (Australia) Funds Management Limited, the Responsible Entity of the Fund, has appointed Henderson Global Investors Limited as the investment manager. Key management personnel Directors Key management personnel includes persons who were directors of Henderson Global Investors (Australia) Funds Management Limited at any time during the financial period or since the end ofthe period end and up to the date ofthis report: RW Adams MJ Gaden SS Rahmani Appointed 7 June 2013 Appointed 7 June 2013 Appointed 7 June 2013 Key management personnel compensation Key management personnel are paid by Henderson Global Investors (Australia) Limited. Payments made from the Fund to the Responsible Entity do not include any amounts directly attributable to the compensation of key management personnel. Key management personnel loan disclosures The Fund has not made, guaranteed or secured, directly or indirectly, any loans to the key management personnel or their personally related entities at any time during the reporting period. Other transactions within the Fund Apart from those details disclosed in this note, no key management personnel have entered into a material contract with the Fund during the financial period and there were no material contracts involving key management personnel's interests existing at period end

21 (continued) 12 Related party transactions (continued) Responsible Entity's fees and other transactions Under the terms of the Fund's Constitution and the current Product Disclosure Statement for the Fund, the Responsible Entity is entitled to receive fees monthly. The management fee for the Fund is 1.35% per annum of the Net Asset Value of the Fund (including GST net of reduced input tax credits). It is calculated and accrued daily and payable monthly in arrears by the Fund. Transactions with related parties have taken place at arms length and in the ordinary course of business. The transactions during the period and amounts at period end between the Fund and the Responsible Entity were as follows: Management fees for the period 29 November 2013 to 41,077 Investments The Fund did not hold any investments in Henderson Global Investors (Australia) Funds Management Limited or its related parties during the period. Related party schemes' unitholdings Parties related to the Fund, including the Responsible Entity, its associates and other schemes managed by Responsible Entity, held the following units in the Fund at the end ofthe period: Number of units Number of units Distributions paid 2014 Number of units Interest held acquired disposed of or payable held % during period during period during period HOI (Investments) Limited 5,000, ,000,000 Individuals related to the Responsible Entity 151, , Reconciliation of profit/(ioss) to net cash inflow/(outflow) from operating activities 29 November 2013 to Profitl(loss) for the period Increase/(Decrease) in net assets attributable to unitholders Proceeds from sale of financial instruments held at fair value through profit or loss Purchase of financial instruments held at fair value through profit or loss Net (gains)/iosses on financial instruments held at fair value through profit or loss Net foreign exchange (gain)/loss Net change in receivables Net change in payables Net cash inflow/(outflow) from operating activities (51,362) 2,389,354 (7,405,054) 53, (7,440) 6,339 (5,013,401) 14 Events occurring after the balance date No significant events have occurred since the balance date which would impact on the financial position of the Fund disclosed in the balance sheet as at or on the results and cash flows of the Fund for the period ended on that date. 15 Contingent assets and liabilities or commitments There are no outstanding contingent assets or liabilities or commitments as at

22 Directors' declaration Directors' declaration In the opinion of the directors ofthe Responsible Entity: (a) (b) (c) The financial statements and notes set out on pages 5-20 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (ii) giving a true and fair view of the Fund's financial position as at and of its performance for the financial period ended on that date. there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due and payable. Note 2(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board. rhis eclaration is made in accordance with a resolution ofthe directors. Director On behalf of all the directors of Henderson Global Investors (Australia) Funds Management Limited I 7 September

23 pwc Independent auditor's report to the unitholders of Henderson Global Equity Fund Report on thefinancial report We have audited the accompanying financial report of Henderson Global Equity Fund (the "Fund"), which comprises the balance sheet as at, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the period 29 November 2013 to, a summary of significant accounting policies, other explanatory notes and the directors' declaration. Directors' responsibility for the financial report The directors of Henderson Global Investors (Australia) Funds Management Limited (the "Responsible Entity") are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 2 (a), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor's responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act PricewaterhouseCoopers, ABN Darling Park Tower 2,201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: , F: , Liability limited by a scheme approved under Professional Standards Legislation.