1. G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Can UK Equity Income funds keep providing good capital and income growth? Wednesday 17 October 2007

2. 1 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Henderson UK Equity Income How does the Henderson UK Equity Income fund address the problem? Approach Investment process Portfolio composition and performance Conclusion Agenda

3. 2 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Reasons why the higher yielding shares have historically performed well The current problem How does the Henderson UK Equity Income fund address the problem?

4. 3 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Market inefficiencies create opportunities with mispriced stocks Value added by looking in under analysed areas of the market to identify the out-of-favour quality companies Look for stocks regardless of size, with an above average yield and growing dividends Approach

5. 4 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Company Visits: Mostly Medium & Small Cap companies visited Large companies come to Henderson after interim and final results Balance Sheet Analysis Competitive Position Management Meetings Research Stock analysis Investment process

6. 5 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Portfolio constructed from across FTSE All Share constituents and AIM Stocks Majority of fund comprises attractive higher yielding stocks Initial stock holdings typically between 0.3-1.2% of portfolio (1% max for recovery) Portfolio construction Investment process

7. 6 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Portfolio composition and performance Large Companies 50% Medium Companies 28% Small Companies 22% The two largest relative sector weightings Industrials General Insurance

8. 7 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Performance Source:Morningstar as at 31 August 2007 UK Equity Income Fund

9. 8 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Performance Source:Morningstar as at 31 August 2007, Funddata.com as at 30 September 2007 1 yr2 yrs5 yrs10 yrs20 yrs Lowland IT NAV (Total Return)21.446.2151.3272.9734.2 Benchmark11.830.687.991.6495.3 Lowland Investment Company plc

10. 9 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Stock example - Senior Senior is benefiting from increased activity in aerospace Automotive orders are picking up for them and this is not being recognized Senior is an emerging growth story and will provide good dividend growth from 2007 onwards Share price growth Share price (p) Source:Datastream as at 31 August 2007

11. 10 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Conclusion Portfolio objectives Provide income in excess of the yield of the FTSE All Share index Grow the distribution at more than the rate of inflation Deliver capital growth Achieve top quartile performance within the UK equity income sector over a 1 and 3 year period Portfolio characteristics Fund size: £407m* Number of holdings: 130 Current income yield: 3.4% is expected to grow c.15% this year Quarterly income distribution Source:Henderson Global Investors as at 31 August 2007 *Note:Based on midday valuations

12. 11 G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Henderson Global Investors 4 Broadgate London EC2M 2DA Tel: 020 7818 1818 Fax: 020 7818 1819 Important information This document is issued by Henderson Global Investors Limited and is solely for the use of professional intermediaries, defined as Market Counterparties or Intermediate Customers in the Glossary of the Financial Services Authority’s Handbook of Rules and Guidance for Authorised Firms made under the Financial Services and Markets Act 2000, and is not for general public distribution. Any other persons who receive this document should not rely on or act upon its contents. This document may not be reproduced in any form without the express permission of Henderson Global Investors and to the extent that it is passed on care must be taken to ensure that this reproduction is in a form which accurately reflects the information presented here. No responsibility or liability is accepted by Henderson Global Investors or by any of its directors for any action taken on the basis of the content of this document. This document has been produced based on Henderson Global Investors' research and analysis and represents our house view. The information is made available to clients only incidentally. Unless otherwise indicated, the source for all data is Henderson Global Investors. Any reference to individual companies is purely for the purpose of illustration and should not be construed as a recommendation to buy or sell or advice in relation to investment, legal or tax matters. This document does not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase any investment, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract for the same. Please remember that past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Tax assumptions may change if the law changes and the value of tax relief will depend upon individual circumstances. Henderson Global Investors is the name under which Henderson Global Investors Limited, Henderson Fund Management plc, Henderson Administration Limited, Henderson Investment Funds Limited, Henderson Investment Management Limited and Henderson Alternative Investment Advisor Limited (each authorised and regulated by the Financial Services Authority and of 4 Broadgate, London EC2M 2DA) provide investment products and services. We may record telephone calls for our mutual protection and to improve customer service.