International Small Companies Portfolio Investor Class HLMSX - Overview
Investment Objective
The International Small Companies Portfolio (the "Portfolio") seeks long-term capital appreciation through investments in equity securities of small companies based outside the United States. Companies considered to be small are those with a market capitalization below US$3 billion.
- Universe of quality companies
- Emphasis on companies in competitive niches
- Risks are managed through careful diversification across geographies, sectors, industries, and currencies
- Low portfolio turnover
- Portfolio diversification – low correlations with large cap stocks
- Capitalize on research information inefficiencies
The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. The portfolio invests in smaller companies which involve additional risks such as limited liquidity and greater volatility. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Portfolio in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.
Diversification does not guarantee a profit or prevent a loss in a declining market.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.