International Small Companies Portfolio Investor Class HLMSX - Portfolio Characteristics
The Portfolio invests in equity securities of small companies based outside the US, including companies in emerging as well as developed markets. Harding Loevner undertakes fundamental research in an effort to identify companies that are well managed, financially sound, fast growing and strongly competitive, and whose shares are under-priced relative to their intrinsic value. The Portfolio normally holds 50-200 investments across at least 12 countries. To reduce its volatility, the Portfolio is diversified across dimensions of geography, industry, and currency.
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.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.
Monthly Portfolio Performance (%) For Periods Ending January 31, 2012
| Ticker: HLMSX | NAV (1/31/2012): $10.52 | Net Expense Ratio: 1.75%1 | Minimum Investment: $5,000 |
| Gross Expense Ratio: 2.22% | |||
| Annualized Returns | ||||
| 1 Month | 1 Year | 3 Years | Since Inception2 | |
|---|---|---|---|---|
| International Small Companies Portfolio | 8.12 | -7.32 | 28.53 | 1.84 |
| MSCI All Country World ex-US Small Cap Index3,4 | 8.81 | -11.00 | 24.33 | -1.35 |
| Lipper International Small Cap Fund Index4 | 7.27 | -8.68 | 22.16 | -2.47 |
Quarterly Portfolio Performance (%) For Periods Ending December 31, 2011
| NAV (12/31/2011): $9.73 |
| Annualized Returns | ||||
| 3 Months | 1 Year | 3 Years | Since Inception2 | |
|---|---|---|---|---|
| International Small Companies Portfolio | 1.22 | -13.67 | 22.45 | 0.22 |
| MSCI All Country World ex-US Small Cap Index3,4 | 0.40 | -18.50 | 18.46 | -3.11 |
| Lipper International Small Cap Fund Index4 | 2.13 | -15.19 | 15.91 | -3.94 |
1Harding Loevner has contractually agreed to cap the total annual operating expenses at 1.75% (on an annualized basis) through December 31, 2012; 2Inception Date: March 26, 2007; 3Benchmark Index; 4The index is net of foreign withholding taxes on dividends, interest income and capital gains.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Portfolio may be lower or higher than the performance quoted. The Portfolio imposes a 2% redemption fee on shares held 90 days or less. Performance data does not reflect the redemption fee. If reflected, total returns would be reduced.
Investment performance reflects fee waivers and in the absence of these waivers investment performance would be reduced.
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.
Please click here for Index definitions.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.
Portfolio Facts at December 31, 2011
| CUSIP | 412295883 | Net Expense Ratio1 | 1.75% | |
| Inception Date | 03/26/07 | Gross Expense Ratio | 2.22% | |
| Minimum Investment | $5,000 | Turnover (3 Year Average) | 16% | |
| Total Fund Assets | $44.1M | Redemption Fee | 2.00% first 90 days | |
| Sales Charge | None | Dividend Policy | Annual | |
| Total # of Holdings | 77 | NAV | $9.73 |
1Harding Loevner has contractually agreed to cap the total annual operating expenses at 1.75% (on an annualized basis) through December 31, 2012.
While the fund is no-load, management fees and other expenses will apply. Please refer to the prospectus for further details.
Past performance does not guarantee future results.
Ten Largest Holdings at December 31, 2011
| Company | Sector | Country | % |
|---|---|---|---|
| Laurentian Bank | Financials | Canada | 2.0 |
| Cheil Worldwide | Consumer Discretionary | South Korea | 2.0 |
| Bank Bukopin | Financials | Indonesia | 1.9 |
| United Plantations | Consumer Staples | Malaysia | 1.9 |
| KWS Saat | Consumer Staples | Germany | 1.9 |
| Mekonomen | Consumer Discretionary | Sweden | 1.9 |
| Pigeon | Consumer Staples | Japan | 1.8 |
| Coastal Contracts | Industrials | Malaysia | 1.8 |
| Nak Sealing Tech | Industrials | Taiwan | 1.8 |
| Rohto Pharmaceutical | Health Care | Japan | 1.7 |
Ten Largest Holdings: 18.7% |
|||
For a complete list of Holdings, click here.
Portfolio holdings are subject to review and adjustment in accordance with the Portfolio's investment strategy and may vary in the future, and should not be considered recommendations to buy or sell any security. The portfolio is actively managed therefore holdings may not be current.
Sector Weightings (%) at December 31, 2011
| Sector | HLMSX | Benchmark1 |
|---|---|---|
| Cons Discretionary | 7.5 | 16.5 |
| Cons Staples | 17.5 | 6.5 |
| Energy | 0.0 | 6.9 |
| Financials | 10.0 | 18.1 |
| Health Care | 14.9 | 5.1 |
| Industrials | 26.7 | 19.9 |
| Info Technology | 10.3 | 9.3 |
| Materials | 8.1 | 14.1 |
| Telecom Services | 3.0 | 1.0 |
| Utilities | 1.5 | 2.6 |
| Cash | 0.5 | — |
Geographical Weightings (%) at December 31, 2011
| Region | HLMSX | Benchmark1 |
|---|---|---|
| Canada | 2.0 | 11.1 |
| Emerging Markets | 23.3 | 22.0 |
| Europe EMU | 27.4 | 14.6 |
| Europe ex-EMU | 19.2 | 21.0 |
| Frontier Markets | 0.0 | — |
| Japan | 11.0 | 20.1 |
| Middle East | 0.0 | 0.6 |
| Pacific ex-Japan | 16.6 | 10.6 |
| Cash | 0.5 | — |
1MSCI All Country World ex-US Small Cap Index
Portfolio sector/geographical allocations are subject to review and adjustment in accordance with the Portfolio's investment strategy and may vary in the future.
Please click here for Index definitions.