Introducing Henderson Asian Dividend Income Fund

Henderson Global Investors (Singapore) Limited ("Henderson") has registered the Henderson Horizon Fund - Asian Dividend Income Fund (the "Fund") as a recognised fund in Singapore, tapping on growing demand for income-bearing equities.

With bond yields in Asia having fallen significantly over the past six years and the potential for more Asian companies growing their earnings and passing on profits by way of dividends, Henderson believes the Fund will be attractive as part of investors' balanced portfolio over the medium to long term.

The investment objective of the Fund is to seek an above benchmark yield from a portfolio of Asian stocks with a focus on value and long term capital appreciation. The Fund targets dividend yield of around 4-5% per annum.

As at 28 February 2007, the Fund has delivered a positive return of 17.4% versus its benchmark return of 13.1% since its launch in October 2006. (Source: Henderson Global Investors Limited, calculated as at 28 February 2007, in USD terms, on a NAV to NAV basis, with gross income reinvested, rebased at 100.)

For investors who want exposure to Asian growth

In terms of experience, Henderson has been managing income funds in Asia since 1989. The Fund also aims to enhance dividend without increasing the volatility of the portfolio through the use of alternative derivative instruments such as overwriting, equity lending and structured products. We believe such yield enhancement strategies will potentially provide superior total returns with lower volatility over the medium to long term," says Mr Henderson.

Positive on Asia

London-based Mr Mike Kerley, fund manager, explains, "Falling bond yields have prompted a search for yield in other areas. At the same time, improving profits and stable capital expenditure have led to rising net cash flows, thus Asian markets can now offer an income premium over those of Europe and the United States. In Asia, dividend yields are higher than the Western world with a positive trend. We believe that they are sustainable owing to improvements in corporate governance, greater capital discipline and balance sheet strength."

Global ageing process

The Fund's portfolio consists of long-only positions in quality companies with sustainable earnings and dividend streams. Selection is based on bottom-up techniques, meaning there are no country or sector biases. While the Fund's investment universe consists of around 3,000 stocks, only companies that offer above-benchmark dividends as well as dividends that will grow with earnings, or growth companies that are expected to distribute profits in the future will be considered.

Around 10% of the Fund's assets is invested in Singapore, with stock examples such as DBS Bank, Singapore Press Holdings, Singapore Telecom and UOB.

Fund Characteristics

• Concentrated portfolio of 40-60 holdings with a focus on value and long-term capital growth
• At least two-thirds of the fund's total assets will be invested in Asian equity securities and equity instruments, which offer prospects for above average dividends.
• Available in Distribution (A1) Class and Accumulation (A2) Class
• Offers quarterly distribution of dividends to investors (to be paid on 20 January, 20 April, 20 July and 20 October) for A1 Class
• Benchmarked against the MSCI All Countries Asia Pacific ex-Japan index
• Minimum initial investment is US$2,500 and US$500 for subsequent investments