Frontier Emerging Markets Portfolio Institutional Class HLFMX - Portfolio Characteristics
The Portfolio invests primarily in equity securities of companies that are based in frontier emerging markets, including the smaller traditionally-recognized emerging markets. Harding Loevner undertakes 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.
Foreign investments involve additional risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. Emerging markets countries involve greater risks, such as immature economic structures, national policies restricting investments by foreigners, and different legal systems. Such risks may be magnified with respect to securities of issuers in frontier emerging markets. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated and non-rated securities presents a greater risk of loss of principal and interest than higher-rated securities. Mutual fund investing involves risk. Principal loss is possible.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.
Monthly Portfolio Performance (%) For Periods Ending January 31, 2012
| Ticker: HLFMX | NAV (1/31/2012): $6.42 | Gross Expense Ratio: 1.87% | Minimum Investment: $100,000 |
| Annualized Returns | ||||
| 1 Month | 1 Year | 3 Years | Since Inception1 | |
|---|---|---|---|---|
| Frontier Emerging Markets Portfolio | 4.22 | -16.63 | 17.31 | -10.76 |
| MSCI Frontier Emerging Markets Index2,3 | 5.77 | -8.99 | 18.56 | -11.49 |
Quarterly Portfolio Performance (%) For Periods Ending December 31, 2011
| NAV (12/31/2011): $6.16 |
| Annualized Returns | ||||
| 3 Months | 1 Year | 3 Years | Since Inception1 | |
|---|---|---|---|---|
| Frontier Emerging Markets Portfolio | -0.93 | -21.03 | 11.07 | -12.02 |
| MSCI Frontier Emerging Markets Index2,3 | 0.34 | -17.54 | 10.04 | -13.11 |
1Inception Date: May 27, 2008; 2Benchmark Index; 3The 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. Performance data shown does not reflect the 2.00% redemption fee imposed on shares held less 90 days or less. If it did, total returns would be reduced.
Investment performance reflects fee waivers and in the absence of these waivers investment performance would be reduced.
Short-term performance, in particular, is not a good indication of the fund's future performance and an investment should not be made solely on returns.
Foreign investments involve additional risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. Emerging markets countries involve greater risks, such as immature economic structures, national policies restricting investments by foreigners, and different legal systems. Such risks may be magnified with respect to securities of issuers in frontier emerging markets. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated and non-rated securities presents a greater risk of loss of principal and interest than higher-rated securities. Mutual fund investing involves risk. Principal loss is possible.
Please click here for Index definitions.
The Harding Loevner Funds are distributed by Quasar Distributors, LLC.
Portfolio Facts at December 31, 2011
| CUSIP | 412295867 | Gross Expense Ratio | 1.87% | |
| Inception Date | 5/27/2008 | Turnover (2 Year Average) | 21% | |
| Minimum Investment | $100,000 | Redemption Fee | 2.00% first 90 days | |
| Total Fund Assets | $95.6M | Dividend Policy | Annual | |
| Sales Charge | None | NAV | $6.16 | |
| Total # of Holdings | 78 |
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 | % |
|---|---|---|---|
| National Bank of Kuwait | Financials | Kuwait | 3.6 |
| Bancolombia | Financials | Colombia | 3.4 |
| Credicorp | Financials | Peru | 3.3 |
| Jarir Marketing | Industrials | Saudi Arabia | 3.1 |
| Qatar National Bank | Financials | Qatar | 3.0 |
| Qatar Electricity & Water | Utilities | Qatar | 2.8 |
| Industries Qatar | Industrials | Qatar | 2.6 |
| Kuwait Investment Project | Financials | Kuwait | 2.5 |
| Managem | Materials | Morocco | 2.5 |
| Home Product Center | Consumer Discretionary | Thailand | 2.3 |
Ten Largest Holdings: 29.1% |
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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 | HLFMX | Benchmark1 |
|---|---|---|
| Cons Discretionary | 6.0 | 0.6 |
| Cons Staples | 11.2 | 6.0 |
| Energy | 6.6 | 9.9 |
| Financials | 34.1 | 45.0 |
| Health Care | 3.8 | 1.3 |
| Industrials | 16.1 | 8.7 |
| Info Technology | 0.6 | 0.0 |
| Materials | 10.2 | 11.1 |
| Telecom Services | 5.8 | 13.5 |
| Utilities | 4.4 | 3.9 |
| Cash | 1.2 | — |
Geographical Weightings (%) at December 31, 2011
| Region | HLFMX | Benchmark1 |
|---|---|---|
| Africa | 19.2 | 14.3 |
| Asia |
8.0 |
18.3 |
| Europe | 9.6 | 5.3 |
| Gulf States | 19.2 | 29.6 |
| Latin America | 21.1 | 31.0 |
| Middle East | 2.5 | 1.5 |
| Developed Mkts2 | 4.2 | — |
| Other Emg Mkts3 | 7.6 | — |
| Other Frnt Mkts2 | 7.4 | — |
| Cash | 1.2 | — |
1MSCI Frontier Emerging Markets Index; 2Includes countries outside the benchmark where holdings with a portion of operations and/or sales focused in emerging and/or frontier markets are based; 3Includes countries outside the benchmark that constitute less than 5% of the MSCI Emerging Markets 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.