Interim Management Statement

Henderson Diversified Income Ltd 28 February 2008 HENDERSON DIVERSIFIED INCOME LIMITED 28 FEBRUARY 2008 HENDERSON DIVERSIFIED INCOME LIMITED Interim Management Statement Review of the period from 1 November 2007 to 31 January 2008 MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD Review: Spreads and yields across all credit markets have increased significantly over the period causing the price of these assets to fall. Secured leveraged loan prices have fallen broadly in-line with unsecured high yield bond prices. This situation is anomalous relative to historical experience and your Board believe the fall in loan prices has been exacerbated by forced selling of loans by certain investors in the market. This has made the loan market value attractive relative to other areas of the credit market. Volatility will persist in the short term not least due to the challenging economic outlook. Ultimately your Board do expect fundamental value to reassert itself over technical pressure. Dividends: a first interim dividend of 1.50p per ordinary Share, in respect of the period ended 31 October 2007, was paid on 31 December 2007 to holders registered on 14 December 2007. A second interim dividend of 1.75p per ordinary Share, in respect of the period ended 31 January 2008, was declared on 28 February 2008 and will be paid on 31 March 2008 to holders registered on 14 March 2008. Premium: the share price premium to net asset value reduced over the period from 5.7% to 2.8%. There are no other material events or transactions to report. PERFORMANCE AND FINANCIAL HIGHLIGHTS Performance to 31 January 2008 1 month 3 months Since launch Net Asset Value Total Return per ordinary share -6.25 -7.83 -7.10 Share price per ordinary share -5.85 -7.48 -9.04 The Fund was Launched in July 2007 Source: Datastream Financial Position at 31 January 2008 at 30 November 2007 Net assets £36m £39m Net asset value 90.0p 96.2p Ordinary share price 92.5p 101.8p Premium +2.8% +5.7% Gearing 20% 0% Yield 7.57% 6.88% Total Expense Ratio 1.47% 1.47% THE PORTFOLIO Top 10 Investments Country % of portfolio % of portfolio at 31 Jan 2008 at 30 Nov 2007 LWB (Secured loan term B& C) Germany 3.9 3.6 Casema (Secured loan term B& C) Netherlands 3.9 3.6 AZ Electronics (Secured loan term B& C) U.S.A. 3.9 - Xsys Flint (Secured loan term B& C) Luxembourg 3.8 3.5 ISS (Secured loan term B) Denmark 3.7 3.5 Itron (Secured loan term B) U.S.A. 3.6 3.5 Nycomed (Secured loan term B& C) Denmark 3.4 3.4 Rurhgas (Secured loan term B& C) Germany 3.1 3.6 La Seda de Barcelona (Secured loan term B) Spain 2.9 2.6 Dometic (Secured loan term B& C) Sweden 2.9 2.6 Sector Breakdown % at 31 January 2008 % at 30 November 2007 Secured Loans 95.0 76.4 High Yield Corporate Bonds 18.3 5.1 Investment Grade Bonds 6.7 18.5 Gearing -20.0 0.0 The objective of Henderson Diversified Income Limited is to provide Shareholders with a high level of income and capital growth over the long term. The Company aims to deliver these objectives for Shareholders by investing selectively across the full spectrum of fixed income asset classes including, but not limited to, secured loans, asset-backed securities, investment grade corporate bonds, high yield corporate bonds, unrated bonds, gilts, preference and selective high yield equity shares, hybrid securities, convertible bonds and floating rate notes. Further information on the Company, including an up to date NAV and share price information, can be found at http://www.itshenderson.com/ For further information, please contact: Jeremy Hamon James de Sausmarez Company Secretary Head of Investment Trusts Telephone: 01534 709108 Henderson Global Investors Telephone: 020 7818 3349 Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: 020 7818 3198 - ENDS - This information is provided by RNS The company news service from the London Stock Exchange

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Henderson Diversified Income Ltd. (HDIV)
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