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HENDERSON TO OUTSOURCE SERVICING FOR $2 BILLION OF ITS HEDGE FUND ASSETS TO JPMORGAN HEDGE FUND SERVICES

-Agreement comes after JPMorgan Hedge Fund Services acquired Paloma Partners’ middle and back office-

London, 30 May 2006 -- Henderson Global Investors, the global asset manager with £67.7 billion ($126.3 billion) of assets under management, has entered into an agreement with JPMorgan Hedge Fund Services (“JPMorgan HFS”) to outsource the middle and back office services for its hedge funds.

Under the agreement, JPMorgan HFS will take over Henderson’s hedge fund middle and back office and its employees which service 14 hedge funds representing approximately $2 billion of assets. Henderson has signed a multi-year contract for JPMorgan HFS to provide daily operational services and fund administration for their hedge funds.

The agreement comes two months after JPMorgan HFS acquired the middle and back office operations of Paloma Partners Management Company (Paloma Partners) in Greenwich, CT, and is an expansion of JPMorgan HFS’s global business. Henderson’s hedge funds will be serviced by JPMorgan HFS’s new London office.

Shirley Garrood, Chief Operating Officer at Henderson said, “We believe the outsourced administration market is now mature enough for us to make a step change in the way we administer these highly complex products. Our aim was to find a sustainable solution for a fast growing part of our business which allows us to build and launch new funds quickly into the market. Underpinning this is a requirement for a fully connected middle and back office daily solution, supported by strong investor servicing capabilities. The above factors, in particular, played to JPMorgan’s strengths.”

Bhagesh Malde, Global Business Head of JPMorgan HFS, said, “This agreement with Henderson, one of the most respected and well-known international asset managers, validates the strength and global reach of our newly expanded Hedge Fund Services business. The agreement will allow Henderson to focus on what asset managers do best – make investment decisions.”