& ACCOUNTS ANNUAL REPORT

Transcription

1 ANNUAL REPORT & ACCOUNTS For the year ended 30 June 2015 Henderson Global Technology Fund

2 General Managers Henderson Global Investors (Singapore) Limited Company Registration Number N Registered Address One Marina Boulevard, #28-00, Singapore Operating Address 6 Battery Road, #12-01, Singapore Directors of Henderson Global Investors (Singapore) Limited Alexander Jonathan Henderson John Clive Stewart Robert William Adams Trustee HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay, #13-02, HSBC Building Singapore Auditors PricewaterhouseCoopers LLP 8 Cross Street, #17-00, PWC Building, Singapore

3 (Constituted in the Republic of Singapore pursuant to a Deed of Trust dated 7 October 1997 as amended by a First Supplemental Deed dated 5 August 1998, a Second Supplemental Deed dated 11 December 1998, a Third Supplemental Deed dated 16 October 2000, a Fourth Supplemental Deed dated 17 October 2001, an Amending and Restating Deed dated 25 October 2002, a Second Amending and Restating Deed dated 1 July 2003, a Third Amending and Restating Deed dated 28 October 2003, a Fourth Amending and Restating Deed dated 10 September 2004, a Fifth Amending and Restating Deed dated 7 September 2005, a Sixth Amending and Restating Deed dated 8 September 2006, a Seventh Amending and Restating Deed dated 6 September 2007, an Eighth Amending and Restating Deed dated 27 August 2009, and a Ninth Amending and Restating Deed dated 22 August 2011) page 1 Contents Page Managers Report 2 Performance of the Fund 3 Geographical Division of Investments 4 Top 10 Holdings 5 Other Information 6 Financial Statements For the year ended 30 June 2015 Report of the Trustee 8 Statement by the Manager 9 Independent Auditor's Report 10 Statement of Total Return 11 Statement of Financial Position 12 Statement of Movements of Unitholders' Funds 13 Statement of Portfolio 14 Notes to the Financial Statements 15-24

4 page 2 Managers Report* Annual review to 30 June 2015 Technology stocks outperformed the broader global equities market, driven by the strong performance of Apple during the year. The Henderson Horizon Global Technology Fund returned 5.7% versus a benchmark return of 8.7%. Global markets had a more muted 12 months than previously but still delivered positive returns over the period. In the US, the Federal Reserve reduced its quantitative easing (QE, central bank liquidity measures) programme but kept interest rates at zero. Elsewhere, China and Europe picked up from where the US left off and kept monetary policy loose, embarking on respective QE programmes. Other notable macro events that impacted markets were a continued devaluation of the Japanese yen and the euro and a sharp fall in the oil price. At the sector level, information technology services and components outperformed while hardware and semiconductors detracted from performance. At the stock level, Alps Electric outperformed. The company manufactures camera-module components for the iphone and benefited from strong demand for the iphone 6. NetEase, the Chinese online game developer and publisher, outperformed post strong results and with its new mobile game, Fantasy Westward Journey, now the number one mobile game in China. NXP Semiconductors materially outperformed after announcing the accretive acquisition of Freescale Semiconductor, creating one of the largest global semiconductor companies with a strong position in higher-growth automotive. Avago performed well, as the semiconductor company reported strong results as it continues to benefit from the roll-out of LTE and the accretive acquisition of Broadcom. Netflix was a material outperformer. The company reported a very encouraging quarter of growth in key metrics, with new subscriber additions above expectations both domestically and internationally. We believe the company is very well placed to become the global leader in media streaming, and we are increasingly encouraged by the success of their home-grown content in driving new subscribers. We continue to be positive on Apple and held it close to our 10% limit in the period, but given that it is structurally underweight the benchmark, Apple s continued outperformance hurt the fund s performance. Our rational commodities capitalise theme underperformed, as while capacity additions remain subdued, the collapse in PC demand has led to price erosion. This impacted the performance of Micron and Western Digital. Longer term, we remain confident that as demand normalises, the industry will benefit from more rational behaviour. Elsewhere, SanDisk underperformed as US dollar strength led to the end of demand weakness in emerging markets and Europe. Pandora underperformed as the market proved disappointed with its user growth metrics. Activity included a purchase of Siltronic during its initial public offering (IPO). The wafer manufacturer has a solid franchise and is exposed to improving industry supply and demand. We also initiated a position in VIPShop, the Chinese internet discount retailer, given its large potential market and current low penetration. Elsewhere, we added to a number of existing holdings following recent share price weakness, including Samsung and ated a position in Ciena. Finally, we reduced the fund s exposure to Oracle after a weaker-than-expected quarter and accelerated cloud-transition issues. While further rounds of global QE are occurring, the uncertain economic environment continues to curtail capital spending. In addition, the strengthening US dollar is proving an increasing headwind for US technology companies. While they remain attractive relative to the overall market, these headwinds may mean that in the short term, technology stocks will struggle to outperform. Longer term, however, we believe the technology sector is attractive given its structurally higher earnings growth rate and strong balance sheets. Please note Alison Porter joined Henderson in November 2014 as co-manager of the fund. Alison brings 20 years of experience to the team. Stuart O Gorman and Alison Porter, Fund Managers * Information relates to the Henderson Horizon Fund - Global Technology Fund (Luxembourg fund).

5 Performance of the Fund page 3 3 months 6 months 1 year 3 years (p.a.) 5 years (p.a.) 10 years (p.a.) Since launch (p.a.) Henderson Global Technology Fund -6.6% -3.3% +8.2% +13.7% +11.2% +5.9% +4.5% MSCI All Countries World Information Technology Index -2.6% +3.7% +17.4% +18.7% +14.8% +6.3% +5.1% Performance chart since launch to 30 June 2015 (S$) Price Indexed Henderson Global Technology Fund MSCI AC World Information Technology Index 50 Oct-97 Nov-98 Dec-99 Jan-01 Feb-02 Mar-03 Apr-04 May-05 Jun-06 Jul-07 Aug-08 Sep-09 Oct-10 Nov-11 Dec-12 Jan-14 Feb-15 Jun-15 Source: Henderson Global Investors (Singapore) Limited / Morningstar s Workstation v4.0, gross income reinvested at NAV price, NAV to NAV, in Singapore dollars, performance based on average annual compounded return to 30 June There has been no dividend distribution since the Fund was launched in October G10 \heufcharttemplate.ppt Note: Past performance of the Fund is not necessary indicative of the future or likely performance of the Fund.

6 page 4 Geographical Division of Investments* As at 30 June 2015 Market Value USD % of Net Assets** United States 1,864,995, China 184,678, South Korea 150,311, Taiwan 65,213, United Kingdom 59,306, Netherlands 52,911, Singapore 43,551, Japan 35,256, Switzerland 27,100, Germany 22,355, France 20,491, Israel 19,138, Finland 16,817, Italy Derivatives 6,807, , Investment in securities and derivatives 2,569,063, Other Net Assets*** 73,852, Total Net Assets 2,642,916, * Information relates to the Henderson Horizon Fund - Global Technology Fund (Luxembourg fund). ** Any differences in the percentage of Net Asset figures are the result of roundings. *** Other Net Assets refer to cash. Note: The industry breakdown has not been included due to the specialist nature of the Henderson Horizon Fund - Global Technology Fund as an industry sector fund investing in technology securities.

7 Top 10 Holdings As at 30 June 2015 Market Value SGD % of Total Net Assets page 5 Henderson Horizon Fund - Global Technology Fund 72,988, As at 30 June 2014 Market Value SGD % of Total Net Assets Henderson Horizon Fund - Global Technology Fund 64,675, Henderson Horizon Fund Global Technology Fund Top 10 Holdings As at 30 June 2015 Market Value USD % of Net Assets* 1. Apple 260,089, Microsoft 145,950, Facebook 119,430, Google C 108,197, Visa 99,991, Cisco Systems 97,822, Samsung Electronics 83,549, Mastercard 81,780, Google A 81,630, Tencent Holdings 78,633, As at 30 June 2014 Market Value USD % of Net Assets* 1. Apple 246,727, Microsoft 165,943, Google A 131,490, Google 121,357, Oracle 115,781, Facebook 90,982, Samsung Electronics 85,979, QUALCOMM 82,256, Visa A 81,080, International Business Machines 71,810, * Any differences in the percentage of Net Asset figures are the result of roundings.

8 page 6 Other Information 1. Exposure to derivatives As at 30 June 2015, there are no exposure to derivatives. For exposure to derivatives for the underlying fund Henderson Horizon Fund - Global Technology Fund (the Underlying Fund ), refer to the Reports & Accounts of the Henderson Horizon Fund. 2. Investment in other unit trusts, mutual funds and collective investment schemes The Fund is established as a feeder fund into the Underlying Fund. 3. Borrowings There were no borrowings by the Fund. 4. Turnover ratio of portfolio The turnover ratio of the Fund as at 30 June 2015 was 14.07% and the corresponding period a year ago was 13.85%. Please refer to paragraph 9 of the Notes to the Financial Statements for details. The turnover ratio of the Underlying Fund s portfolio as at 30 June 2015 was 31.00% and the corresponding period a year ago was (38.72%). 5. Expense ratio The expense ratio for the Fund from 1 July 2014 to 30 June 2015 was 1.84% and the corresponding period a year ago was 1.86%. The expense ratio for the Underlying Fund was 1.88% (1.88% before performance fee) and the corresponding period a year ago was 1.90% (1.90% before performance fee). Please refer to paragraph 9 of the Notes to the Financial Statements for details. 6. Subscription and redemption The total subscription for the Fund from 1 July 2014 to 30 June 2015 was SGD 22,355,178 and the total redemption was SGD 23,038, Monetary incentives There were no soft dollar arrangements, rebates, commissions or other monetary incentives received by Henderson Global Investors (Singapore) Limited. 8. Material information There was no material information that would adversely impact the valuation of the Fund or the Underlying Fund. 9. Transactions with related parties Please refer to paragraph 8 of the Notes to the Financial Statements for details on related party transactions.

9 Financial Statements For the year ended 30 June 2015 page 7

10 page 8 REPORT OF THE TRUSTEE For the financial year ended 30 June 2015 The Trustee is under a duty to take into custody and hold the assets of Henderson Global Technology Fund (the Fund ) in trust for the unitholders. In accordance with the Securities and Futures Act (Cap. 289), its subsidiary legislation and the Code on Collective Investment Schemes, the Trustee shall monitor the activities of the Manager for compliance with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed in each annual accounting year and report thereon to unitholders in an annual report. To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the financial year covered by these financial statements, set out on pages 11 to 24, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed. For and on behalf of the Trustee HSBC Institutional Trust Services (Singapore) Limited Authorised signatory 30 September 2015

11 STATEMENT BY THE MANAGER For the financial year ended 30 June 2015 page 9 In the opinion of the directors of Henderson Global Investors (Singapore) Limited, the accompanying financial statements set out on pages 11 to 24, comprising the Statement of Total Return, Statement of Financial Position, Statement of Movements of Unitholders Funds, Statement of Portfolio and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial position of Henderson Global Technology Fund (the Fund ) as at 30 June 2015, and the total return and changes in unitholders fund for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Singapore Chartered Accountants. At the date of this statement, there are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they materialise. For and on behalf of the Manager Henderson Global Investors (Singapore) Limited Alexander Henderson 30 September 2015

12 page 10 INDEPENDENT AUDITOR S REPORT TO THE UNITHOLDERS OF HENDERSON GLOBAL TECHNOLOGY FUND We have audited the accompanying financial statements of Henderson Global Technology Fund (the Fund ), which comprise the Statement of Financial Position and Statement of Portfolio as at 30 June 2015, the Statement of Total Return and Statement of Movements of Unitholders Funds for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 11 to 24. Manager s Responsibility for the Financial Statements The Fund s Manager (the Manager ) is responsible for the preparation and fair presentation of these financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Singapore Chartered Accountants and for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund s preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at 30 June 2015 and the total return for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Singapore Chartered Accountants. PricewaterhouseCoopers LLP Public Accountants and Chartered Accountants Singapore, 30 September 2015

13 STATEMENT OF TOTAL RETURN For the financial year ended 30 June 2015 page 11 Note $ $ Income Interest on deposits with banks 1 3 Sundry income Less: Expenses Audit fee 13,981 13,981 Reimbursement of expenses by the Manager 8(a) (188,718) (172,572) Registrar fee 8(a) 25,008 24,866 Trustee fee 8(a) 35,058 31,594 Valuation fee 8(a) 35,058 31,594 Transaction cost 4,800 4,350 Other expenses 55,830 48,820 (18,983) (17,367) Net income 19,631 17,370 Net gains or losses on value of investments Net gains on investments 8,845,375 12,926,056 Net foreign exchange losses (11,299) (9,969) 8,834,076 12,916,087 Total return for the year before income tax 8,853,707 12,933,457 Less: Income tax Total return for the year after income tax before distribution 8,853,707 12,933,457 The accompanying notes form an integral part of these financial statements.

14 page 12 STATEMENT OF FINANCIAL POSITION As at 30 June 2015 ASSETS Note $ $ Portfolio of investments 72,988,982 64,675,309 Sales awaiting settlement 754, ,623 Receivables 4 455, ,152 Cash and bank balances 8(b) 189, ,087 Total assets 74,388,609 65,572,171 LIABILITIES Payables 5 1,100, ,937 Purchase awaiting settlement 188,510 62,333 Total liabilities 1,289, ,270 EQUITY Net assets attributable to unitholders 73,099,267 64,928,901 The accompanying notes form an integral part of these financial statements.

15 STATEMENT OF MOVEMENTS OF UNITHOLDERS FUNDS For the financial year ended 30 June $ $ page 13 Net assets attributable to unitholders at the beginning of financial year 64,928,901 57,988,740 Operations Change in net assets attributable to unitholders resulting from operations 8,853,707 12,933,457 Unitholders contributions/(withdrawals) Creation of units 22,355,178 19,258,490 Cancellation of units (23,038,519) (25,251,786) Change in net assets attributable to unitholders resulting from net creation and cancellation of units (683,341) (5,993,296) Total increase in net assets attributable to unitholders 8,170,366 6,940,161 Net assets attributable to unitholders at the end of financial year 73,099,267 64,928,901 The accompanying notes form an integral part of these financial statements.

16 page 14 STATEMENT OF PORTFOLIO As at 30 June 2015 Percentage of total net assets attributable to unitholders at Percentage of total net assets attributable to unitholders at Holdings at Fair value at 30 June 30 June 30 June 30 June $ % % Unit trust Henderson Horizon Fund - Global Technology Fund 1,065,797 72,988, Portfolio of investments 72,988, Other net assets 110, Net assets attributable to unitholders 73,099, As the Fund invests wholly into Henderson Horizon Fund - Global Technology Fund which is registered in Luxembourg, it is not meaningful to classify the investments into industry or geographical segments. The accompanying notes form an integral part of these financial statements.

17 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2015 page 15 These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. General Henderson Global Technology Fund ( HGTF ) is a Singapore domiciled feeder fund which feeds into the Henderson Horizon Fund - Global Technology Fund, a sub-fund of the Henderson Horizon Fund. The Henderson Horizon Fund is a Luxembourg-registered umbrella fund. HGTF is constituted by a Trust Deed dated 7 October 1997 between Henderson Global Investors (Singapore) Limited (the Manager ) and HSBC Institutional Trust Services (Singapore) Limited (the Trustee ). The Trust Deed has been amended by Supplemental, Amending and Restating Deeds (collectively referred to as the Deeds ). The Deeds are governed by the laws of the Republic of Singapore. HGTF was first offered for sale on 13 October HGTF is a unit trust included under the Central Provident Fund Investment Scheme. During the financial year, the Manager has at his own discretion, chosen to waive a portion of the management fee and absorb certain expenses of HGTF. 2. Significant accounting policies (a) Basis of preparation The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets held at fair value through profit or loss, and in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts ( RAP 7 ) revised and issued by the Institute of Singapore Chartered Accountants. (b) Recognition of income Interest income on deposits is recognised on a time proportion basis using the effective interest method. (c) Investments Investments are classified as financial assets held at fair value through profit or loss. (i) Initial recognition Purchases of investments are recognised on the trade date. Investments are recorded at fair value on initial recognition. (ii) Subsequent measurement Investments are subsequently carried at fair value. Net change in fair value on investments are included in the Statement of Total Return in the financial year in which they arise. (iii) Derecognition Investments are derecognised on the trade date of disposal. The realised gains and losses on the sale of investment are computed on the basis of the difference between the weighted average cost and selling price gross of transaction costs, and are taken up in the Statement of Total Return.

18 page Significant accounting policies (continued) (d) Basis of valuation of investments The fair value of investments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for investment held by the Fund is the quoted net asset value of the underlying fund as at that date. (e) Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are initially recognised at their fair value and subsequently carried at amortised cost using the effective interest method, less accumulated impairment losses. (f) Payables Trade and other payables are initially recognised at their fair values and subsequently carried at amortised cost using the effective interest method. (g) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (the functional currency ). The financial statements are presented in Singapore dollars, which is the Fund s functional and 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 translation at yearend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Total Return. Translation differences on non-monetary financial assets and liabilities such as equities are recognised in the Statement of Total Return within net gains or losses of investments. (h) Derivative financial instruments Derivatives are recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair values. Fair values are obtained from quoted market prices in active markets, including recent market transactions, and valuation techniques, including discounted cash flow models and options pricing models as appropriate. A derivative is carried as assets when fair value is positive and as liabilities when fair value is negative.

19 3. Income tax The Fund has been granted the status of a Designated Unit Trust (DUT) in Singapore and is included in the Central Provident Fund Investment Scheme. Under the DUT Scheme, subject to certain conditions and reporting obligations being met, certain income of the DUT fund is not taxable in accordance with sections 35(12) and 35(12A) of the Income Tax Act. Such income includes: page 17 (a) gains or profits derived from Singapore or elsewhere from the disposal of securities; (b) interest (other than interest for which tax has been deducted under Section 45 of the Income Tax Act); (c) dividends derived from outside Singapore and received in Singapore; (d) gains or profits derived from foreign exchange transactions, transactions in futures contracts, transactions in interest rate or currency forwards, swaps or option contracts and transaction in forwards, swaps or option contracts relating to securities or financial index; (e) (f) discount, prepayment fee, redemption premium and break cost from qualifying debt securities issued during the prescribed period; and distributions from foreign unit trusts derived from outside Singapore and received in Singapore. 4. Receivables $ $ Amount receivable for creation of units 262, ,136 Other receivables 193,624 86, , , Payables $ $ Amount payable for cancellation of units 1,073, ,939 Amount due to distribution agents 5,035 9,627 Amount due to trustee 7,705 6,628 Other payables 14,215 13,743 1,100, , Units in Issue During the year ended 30 June 2015 and 30 June 2014, the number of units issued, redeemed and outstanding were as follows: Units at beginning of the financial year 32,307,686 35,646,776 Units created 9,988,956 10,361,575 Units cancelled (10,413,906) (13,700,665) Units at ending of the financial year 31,882,736 32,307, $ $ Net assets attributable to unitholders 73,099,267 64,928,901 Net assets value per unit There is no difference between the net assets attributable to unitholders per unit per the financial statements and the net assets attributable to unitholders per unit for issuing/redeeming of units.

20 page Financial risk management The Fund s activities expose it to a variety of financial risk including but not limited to market risk (including currency risk, fair value risk, interest rate risk and price risk), credit risk and liquidity risk. The Fund invests most of its assets into the underlying fund as disclosed in Note 1. The underlying fund is separately managed by its manager and the Manager does not view the risk exposures of the Feeder Fund to be the same as those of the underlying fund in which they hold investments. The overall responsibility for the management of the Fund s financial risks lies with the Manager. The Fund s overall risk management programme seeks to minimise potential adverse effects on the Fund s financial performance. The Fund may use financial options contracts and/or currency forward contracts subject to the terms of the Deeds to moderate certain risk exposures. Specific guidelines on exposures to individual securities and certain industries are in place for the Fund at any time as part of the overall financial risk management to reduce the Fund s risk exposures. The Fund s assets principally consist of financial instruments such as mutual fund and cash. They are held in accordance with the published investment policies of the Fund. The allocation of assets between the various types of investments is determined by the Manager to achieve their investment objectives. The following is a summary of the main risks and risk management policies: (a) Market risk Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates, including observable variables such as interest rates, credit spreads, exchange rates, and others that may be only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes in economic environment, consumption pattern and investor s expectation which may have significant impact on the value of the investments. The Fund s investments are substantially dependent on changes in market prices. The Fund s investments are monitored by the Manager on a regular basis so as to assess changes in fundamentals and valuation. Although the Manager of the underlying fund makes reasonable efforts in the choice of investments, events beyond reasonable control of the Manager of the underlying fund could affect the prices of the underlying investments and hence the asset value of the Fund. The Manager manages the Fund s exposure to market risk through the use of risk management strategies that evaluate the effect of cash instruments and/or derivative contracts. Further guidelines are set to reduce the Fund s risk exposures to market volatility such as diversifying the portfolio of the underlying fund by investing across various geographies. Alternatively, the Fund s market risk may be hedged using derivative strategies.

21 7. Financial risk management (continued) (a) Market risk (continued) page 19 (i) Price risk Price risk is the risk that the fair values of equities or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Manager has developed cash management guidelines with an objective to appropriately manage the liquidity of the Fund as well as to ensure that the investment in the underlying fund is carried out efficiently. The investments held by the Fund in the underlying fund is subject to the fluctuations in the quoted net asset value of the underlying fund. Such risk is primarily managed by the Manager of the underlying fund. The Manager also monitors the performance of the Fund against the benchmark on a regular basis. The Fund s sensitivity to the market is measured using its beta, a ratio that describes how the expected return of a porfolio is correlated to the return of the financial market as a whole. The daily fund price movements are measured against the daily price movement of the benchmark to derive the beta. As at 30 June 2015, the Fund s beta was 0.80 (2014: 1.31) which was calculated based on the monthly returns over the preceding 12 months for the Fund and Benchmark Index for both years. The table below summarises the impact of increases/decreases from the Fund s underlying investments in equities on the Fund s net assets attributable to unitholders at 30 June 2015 and The analysis was based on the assumption that the index components within the benchmark increased/decreased by a reasonable possible shift, with all other variables held constant and that the fair value of Fund s investments moved according to the beta. Benchmark Impact of 10% (2014: 10% ) movement in benchmark on net assets attributable to the unitholders $ $ MSCI All Countries World Information Technology Index 5,839,119 8,472,465 (ii) Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The majority of the Fund s financial assets and liabilities are non-interest bearing and therefore the Fund is not exposed to significant interest rate risk. As a result, no interest rate sensitivity analysis is presented. (iii) Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Fund has monetary financial assets and liabilities denominated in currencies other than the functional currency and the Fund may be affected favourably or unfavourably by exchange rate regulators or changes in the exchange rates between the Singapore Dollar and such other currencies. The Manager of the underlying fund may manage the currency risk by hedging through spot and forward foreign exchange contracts or currency options.

22 page Financial risk management (continued) (a) Market risk (continued) (iii) Currency risk (continued) The tables below summarise the Fund s exposure to currency risks USD SGD Total $ $ $ Assets Portfolio of investments 72,988,982-72,988,982 Sales awaiting settlement 754, ,040 Receivables 193, , ,878 Cash and bank balances , ,709 Total assets 73,936, ,733 74,388,609 Liabilities Payables 615 1,100,217 1,100,832 Purchase awaiting settlement 188, ,510 Total liabilities 189,125 1,100,217 1,289,342 Net financial assets/(liabilities) 73,747,751 (648,484) 73,099,267 Net currency exposure 73,747,751 (648,484) 2014 USD SGD Total $ $ $ Assets Portfolio of investments 64,675,309-64,675,309 Sales awaiting settlement 326, ,623 Receivables 85, , ,152 Cash and bank balances 2, , ,087 Total assets 65,089, ,389 65,572,171 Liabilities Payables , ,937 Purchase awaiting settlement 62,333-62,333 Total liabilities 62, , ,270 Net financial assets/ (liabilities) 65,027,306 (98,405) 64,928,901 Net currency exposure 65,027,306 (98,405) Mutual fund investments are non-monetary financial assets and are exposed to both currency risk and price risk. As these financial assets are non-monetary, no separate sensitivity analysis has been performed to analyse currency risk. The impact of currency risk arising from these financial assets on the Fund s net asset value has been included in the above price risk sensitivity analysis. As of 30 June 2015 and 2014, the Fund does not hold substantial monetary assets/ liabilities which values are sensitive to changes in exchange rate.

23 7. Financial risk management (continued) (b) Liquidity risk page 21 Liquidity risk is the risk that the Fund will encounter difficulty in settling a liability, including a redemption request. The Fund is exposed to daily cash redemption of units in the Fund. It therefore invests the majority of its assets in investments that are traded in an active market and can be readily disposed of. The Manager monitors the Fund s liquidity position regularly and to ensure continuity of funding, dedicated personnel are responsible for ensuring that sufficient cash resources and liquid assets are available to meet liabilities as and when they fall due. The Fund has the ability to borrow in the short term for the purposes of meeting redemptions and short term bridging requirements. The Manager also has the option to limit redemption orders to 10% of the net asset value, with the approval of the Trustee. The tables below analyse the Fund s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant Less than 3 months $ Payables 1,100,832 Purchase awaiting settlement 188, Less than 3 months $ Payables 580,937 Purchase awaiting settlement 62,333

24 page Financial risk management (continued) (c) Credit risk Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part, under a contract. Concentrations of credit risk are minimised primarily by: - ensuring counterparties, together with the respective credit limits, are approved, - ensuring that transactions are undertaken with a large number of counterparties, and - ensuring that the majority of transactions are undertaken on recognised exchanges. As such, the Fund does not have a concentration of credit risk that arises from an exposure to a single counterparty. Furthermore, the Fund does not have a material exposure to group of counterparties which are expected to be affected similarly by changes in economic or other conditions. All transactions in the underlying fund are settled or paid upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation. The Fund s credit risk exposure arises mainly from cash and bank balances and other assets held with counterparties such as brokers and financial institutions. The tables below summarise the credit rating of bank and custodian in which the Fund s assets are held as at 30 June 2015 and Credit rating # Source of credit rating Bank & Custodian The Hongkong and Shanghai Banking Corporation Limited aa3 Moody s 2014 Credit rating # Source of credit rating Bank & Custodian The Hongkong and Shanghai Banking Corporation Limited B Moody s # Group credit rating will be presented for unrated subsidiaries. With effect from 16 March 2015, the Baseline Credit Assessment rating has replaced the Bank Financial Strength rating as published by Moody s. The credit ratings shown as at 30 June 2015 are the Baseline Credit Assessment ratings as published by Moody s; the credit ratings shown as at 30 June 2014 were the Bank Financial Strength ratings as published by Moody s. The custodian of the underlying fund is BNP Paribas Securities Services. As at 30 June 2015, BNP Paribas Securities Services is rated A+ (2014: A+) based on the Long Term Issuer Credit Rating by S&P. (d) Capital management The Fund s capital is represented by the net assets attributable to unitholders. The Fund strives to invest the subscriptions of redeemable participating units in investments that meet the Fund s investment objectives while maintaining sufficient liquidity to meet unitholder s redemptions.

25 7. Financial risk management (continued) (e) Fair value estimation page 23 The fair value of financial instruments is based on quoted market prices as at the reporting date. The quoted market price used for the underlying funds is the quoted net asset value of the underlying fund as determined by the underlying fund s administrator and the quoted market price used for other financial assets is the current bid price; the appropriate quoted market price used for financial liabilities is the current asking price. The Fund classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: 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 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) The following table analyses within the fair value hierarchy the Fund s financial assets measured at fair value at 30 June 2015 and 2014: 2015 Level 1 Level 2 Level 3 Total Assets $ $ $ $ Portfolio of investments Financial assets designated at fair value through profit or loss - Quoted equity securities 72,988, ,988, Level 1 Level 2 Level 3 Total Assets $ $ $ $ Portfolio of investments Financial assets designated at fair value through profit or loss - Quoted equity securities 64,675, ,675,309 Investments in open-ended investment funds whose net asset value is struck daily, price information is published and readily available and units are subscribed and redeemable on demand at the published price, are classified within Level 1. The quoted price for these financial instruments is not adjusted. There are no financial instruments classified within Level 2 and 3. Except for cash and cash balance which are classified as Level 1, the Funds assets and liabilities not measured at fair value at 30 June 2015 and 2014 have been classified as Level 2. The carrying amounts of these assets and liabilities approximate their fair values as at the Statement of Financial Position date.

26 page Related party disclosure (a) The Manager of the Fund is Henderson Global Investors (Singapore) Limited. The Trustee is HSBC Institutional Trust Services (Singapore) Limited, a subsidiary of the HSBC Holdings Plc. The following significant transactions took place during the financial year between the Fund and related parties at terms agreed between the parties and within the provisions of the Deeds: $ $ Registrar fee charged by a related company of the Trustee 25,008 24,866 Trustee fee charged by the Trustee 35,058 31,594 Reimbursement of expenses by the Manager (188,718) (172,572) Valuation fee charged by the Trustee 35,058 31,594 (b) In addition to related party information shown elsewhere in the financial statements, the Fund maintained the following bank balances with the HSBC Holdings Plc $ $ Bank balances 189, , Financial ratios Expense ratio % 1.86% Turnover ratio % 13.85% 1 The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). The calculation of the expense ratio at 2015 was based on total operating expenses of $(26,603) (2014: $(21,717)) divided by the average net asset value of $70,051,484 (2014: $62,689,794) for the year with the sum of weighted average of the underlying Fund s unaudited expense ratio of 1.88% (2014: 1.89%). The total operating expenses do not include (where applicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. The Fund does not pay any performance fee. The average net asset value is based on daily balances. 2 The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment Schemes. The calculation of the portfolio turnover ratio was based on the total value of purchases of the underlying investments of $9,857,760 (2014 purchases: $8,683,901) divided by the weighted average daily net asset value of $70,051,484 (2014: $62,689,794).

27 For further information, please contact your local distributor, or Henderson Global Investors (Singapore) Limited, 6 Battery Road, #12-01, Singapore Tel: (65) Website: Company Registration No N Important Information The prospectus and Product Highlight Sheet of the Henderson Global Technology Fund is available and may be obtained from the manager s office and the participating distributors offices. Investors should read the prospectus and Product Highlights Sheet before deciding whether to invest in the units of the Henderson Global Technology Fund. All applications for units in the Henderson Global Technology Fund must be made on the application forms accompanying the prospectus. The information on the Henderson Global Technology Fund and Henderson Horizon Fund - Global Technology Fund (Luxembourg fund) is strictly for information purposes only and should not be construed as an offer or solicitation to deal in the Funds. Investors should note that the Luxembourg fund may make use of financial derivative instruments for efficient portfolio management and/or hedging purposes. Reference to individual companies is for the purpose of illustration only and should not be construed as a recommendation to buy or sell. An investment in unit trusts, and/or other investment products is subject to investment risks, including the possible loss of the principal amount invested. Past performance and any forecast made are not necessarily indicative of future performance. The value of the units and the income from the Henderson Global Technology Fund may fall as well as rise. Henderson Global Investors (Singapore) Limited s unit trusts and investment products are not obligations of, deposits in, or guaranteed by Henderson Global Investors (Singapore) Limited or any of its affiliates. Investors may wish to seek advice from a financial adviser before making a commitment to invest in units of the Henderson Global Technology Fund. In the event an investor chooses not to seek advice from a financial adviser, the investor should consider whether the Henderson Global Technology Fund is suitable for him. Whilst Henderson Global Investors (Singapore) Limited believes that the information contained in this annual report is correct at the date of print, it is subject to changes by Henderson Horizon Fund (Luxembourg SICAV). Date of publication: September 2015

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