Institutional Emerging Markets Portfolio HLMEX - Portfolio Characteristics
The Portfolio invests primarily in equity securities of companies that are based in emerging markets. It may also invest in short-term or other debt securities, including debt securities rated below investment grade. Emerging markets offer investment opportunities that arise from long-term trends in demographics, deregulation, offshore outsourcing and improving corporate governance in developing countries. 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 50-80 investments across at least 15 countries. To reduce its volatility, the Portfolio is diversified across dimensions of geography, industry, currency and market capitalization.
The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique 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. 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 August 31, 2010
| Ticker: HLMEX | NAV (8/31/2010): $14.80 | Net Expense Ratio: 1.30%1 | Minimum Investment: $500,000 |
| Gross Expense Ratio: 1.55% | |||
| Annualized Returns | ||||
| 1 Month | 1 Year | 3 Years | Since Inception2 | |
|---|---|---|---|---|
| Emerging Markets Portfolio | -1.99 | 20.06 | -2.37 | 10.43 |
| MSCI Emerging Markets Index3,4 | -1.94 | 18.01 | -1.52 | 12.07 |
| Lipper Emerging Markets Fund Index4 | -1.95 | 18.48 | -2.96 | 10.42 |
Quarterly Portfolio Performance (%) For Periods Ending June 30, 2010
| NAV (6/30/2010): $13.69 |
| Annualized Returns | ||||
| 3 Months | 1 Year | 3 Years | Since Inception2 | |
|---|---|---|---|---|
| Emerging Markets Portfolio | -7.94 | 22.29 | -3.96 | 9.00 |
| MSCI Emerging Markets Index3,4 | -8.39 | 23.12 | -2.50 | 11.09 |
| Lipper Emerging Markets Fund Index4 | -8.75 | 23.82 | -4.74 | 9.19 |
1Harding Loevner has voluntarily agreed to cap the total annual fund operating expenses at 1.30% (on an annualized basis) of the average daily net assets of the Portfolio for an indefinite period.; 2Inception Date: October 17, 2005; 3Benchmark Index; 4The indices are 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 and differences in accounting methods. It also invests in emerging markets, which involve unique 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. 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 MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consists of 22 emerging market countries. Net dividends reinvested. You cannot invest directly in this Index.
The Lipper Emerging Markets Fund Index, an unmanaged index published by Lipper Analytical Services, Inc., includes 30 funds that are generally similar to the Fund, although some funds in the index may have somewhat different investment policies or objectives. You cannot invest directly in this Index.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.
Portfolio Facts at June 30, 2010
| CUSIP | 412295701 | Net Expense Ratio1 | 1.30% | |
| Inception Date | 10/17/05 | Gross Expense Ratio | 1.55% | |
| Minimum Investment | $500,000 | Turnover (3 Year Average) | 50% | |
| Total Fund Assets | $237.4M | Redemption Fee | 2.00% first 90 days | |
| Sales Charge | None | Dividend Policy | Annual | |
| Total # of Holdings | 77 | NAV | $13.69 |
1Harding Loevner has voluntarily agreed to cap the total annual fund operating expenses at 1.30% (on an annualized basis) of the average daily net assets of the Portfolio for an indefinite period.
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.
The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique 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. 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.
Ten Largest Holdings at June 30, 2010
| Company | Sector | Country | % |
|---|---|---|---|
| Samsung Electronics | Information Technology | South Korea | 3.6 |
| Hengan International | Consumer Staples | China | 3.3 |
| Petrobras | Energy | Brazil | 3.2 |
| America Movil | Telecom Services | Mexico | 3.0 |
| Vale | Materials | Brazil | 2.8 |
| Delta Electronics | Information Technology | Taiwan | 2.2 |
| HDFC Bank | Financials | India | 2.1 |
| Lukoil | Energy | Russia | 2.0 |
| Wal-Mart de Mexico | Consumer Staples | Mexico | 1.9 |
| Taiwan Semiconductor | Information Technology | Taiwan | 1.9 |
Ten Largest Holdings: 26.0% |
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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.
The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique 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. 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.
Sector Weightings (%) at June 30, 2010
| Sector | HLMEX | Benchmark1 |
|---|---|---|
| Cons Discretionary | 11.0 | 6.5 |
| Cons Staples | 16.0 | 6.8 |
| Energy | 9.7 | 14.2 |
| Financials | 22.2 | 25.3 |
| Health Care | 3.4 | 0.8 |
| Industrials | 6.0 | 6.8 |
| Info Technology | 14.5 | 13.2 |
| Materials | 7.3 | 14.2 |
| Telecom Services | 6.4 | 8.4 |
| Utilities | 1.0 | 3.8 |
| Cash | 2.5 | — |
Geographical Weightings (%) at June 30, 2010
| Region | HLMEX | Benchmark1 |
|---|---|---|
| Brazil | 15.0 | 15.4 |
| China/Hong Kong | 12.8 | 19.1 |
| India | 9.5 | 8.4 |
| Indonesia | 1.5 | 2.4 |
| Malaysia | 1.3 | 2.9 |
| Mexico | 7.2 | 4.4 |
| Russia | 7.1 | 6.3 |
| South Africa | 6.2 | 7.2 |
| South Korea | 7.6 | 13.6 |
| Taiwan | 9.8 | 10.9 |
| Other2 | 19.5 | 9.4 |
| Cash | 2.5 | — |
1MSCI Emerging Markets Index; 2Other includes countries outside the benchmark where some holdings are incorporated.
Portfolio sector/geographical allocations are subject to review and adjustment in accordance with the Portfolio's investment strategy and may vary in the future.
The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique 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. 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 MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consists of 22 emerging market countries. Net dividends reinvested. You cannot invest directly in this Index.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.