6
Morningstar Analyst Rating
07-24-14
„
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
18.48
18.00
15.91
13.36
14.97
12.78
9.18
19.05
18.46
16.19
. .
Total Return %
2.67
13.64
19.73
-10.09
17.33
40.14
-39.40
12.78
22.67
. . .
+/-MSCI WexUS
-1.84
-1.65
2.90
3.62
6.18
-1.31
6.13
-3.87
-3.98
. . .
+/-MSCI AC World exUSA Gr ND
-0.56
-1.85
3.06
4.12
2.88
1.47
6.21
-8.25
-0.94
. . .
Income Return %
0.00
0.50
0.64
0.40
0.19
0.91
0.80
0.58
0.39
. . .
Capital Return %
2.67
13.14
19.09
-10.49
17.14
39.23
-40.20
12.20
22.28
. . .
Total Rtn % Rank Cat
25
82
30
35
23
29
3
77
62
. . .
Income $
0.00
0.08
0.09
0.06
0.02
0.08
0.15
0.11
0.06
0.07
. .
Capital Gains $
0.00
0.00
0.00
0.04
0.00
0.00
2.20
1.69
1.34
0.01
. .
Expense Ratio %
.
1.20
1.24
1.25
1.25
1.25
1.23
1.23
1.25
1.25
. .
Income Ratio %
.
0.76
0.87
0.79
0.69
1.03
0.81
0.48
0.61
-1.25
. .
Turnover Rate %
.
20
14
15
33
22
18
19
35
38
. .
Net Assets $mil
440
421
317
201
137
46
12
17
11
2
. .
Performance
07-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
3.68 -8.98 16.25 6.95 17.33
3.61 1.93 -19.67 5.98 -10.09
11.53 -5.84
7.06 6.50 19.73
2.01 -2.65
9.49 4.51 13.64
-0.89 4.71
. . .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS
AC World exUSA Gr ND
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
2.21 -0.42
0.02
21 10,221
10.39 0.90
1.98
5 11,039
13.26 -2.22
-0.14
25 11,326
6.40 0.54
1.23
52 12,046
10.94 2.10
1.83
34 16,805
9.27 1.31
1.35
.
24,267
5.39 0.31
. .
21,978
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
6.19
42
0.20
25
10.75
25
0.17
19
. . . .
Potential Capital Gain Exposure: 20% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
13.26
3 Yr
6.40
Avg
Avg
5 Yr
10.94
+Avg
-Avg
10 Yr
. . . .
Incept
6.89
Other Measures
Standard Index
Best Fit Index
MSCI WexUS
MSCI WexUS
Alpha
0.9
0.9
Beta
0.92
0.92
R-Squared
94
94
Standard Deviation
15.73
Mean
6.40
Sharpe Ratio
0.47
Morningstar’s Take
by William Samuel Rocco 07-24-14
Harding Loevner International Equity has more than its
share of strengths.
This foreign large-growth fund has an impressive
pedigree. Harding Loevner is a well-established and
investor-friendly money manager that specializes in
international-equity strategies and has enjoyed
considerable success across its small lineup of mutual
funds. Harding Loevner’s world-stock and diversified
emerging-markets funds have both earned Morningstar
Analyst Ratings of Silver, while the firm’s relatively
young foreign small/mid-cap and frontier
emerging-markets funds, which are not currently
covered by Morningstar analysts, have both posted
strong results thus far.
Meanwhile, the fund is run by a trio of seasoned
portfolio managers who have excellent credentials for
the task at hand. Indeed, co-lead manager Ferrill Roll,
co-lead manager Alexander Walsh, and comanager
Peter Baughan joined Harding Loevner in the
mid-1990s and began their investment careers in the
late 1970s and early 1980s, and they’ve delivered good
long-term risk-adjusted results at the firm’s
world-stock offering (where Roll and Baughan serve as
the co-lead managers). The managers have a strong
support team, too.
As would be expected, the managers rely on the
same quality-oriented and risk-conscious growth
strategy here as they have used productively at their
world-stock offering (and as their Harding Loevner
colleagues have employed effectively at the firm’s
foreign small/mid-cap, diversified emerging-markets,
and frontier emerging-markets funds). While the
managers have posted only so-so results with the
strategy here thus far in 2014--the fund leads its
average peer but lags the MSCI ACWI ex USA Index
for the year to date--they have earned good results
here with the family discipline in a variety of past
market climates. The fund, therefore, boasts superior
long-term returns.
The fund, which also has an attractive cost
structure going for it, is one of the more attractive
foreign large-growth offerings overall.
Address:
Harding, Loevner Funds, Inc. c/o The Northern Trust Company
Chicago, IL 60680-4766
877-435-8105
Web Address:
Inception:
09-30-05
Advisor:
Harding Loevner LP
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$5000
Add: $0 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load, , 2.00%R
Management Fee:
0.75% mx./0.73% mn.
Actual Fees:
Mgt:0.74% Dist:0.25%
Expense Projections:
3Yr:$381
5Yr:$660 10Yr:$1455
Income Distribution:
Annually
Data through July 31, 2014
Harding Loevner International Eq Inv
Ticker
Status Yield Total Assets
Mstar Category
HLMNX Open
0.4% $4,270 mil
Foreign Large Growth
98% 96% 97% 98% 94% 96% 96% 96% 96%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 07-14
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
6.0
12.5
15.0
17.5
Portfolio Analysis
06-30-14
Share change since 03-14 Total Stocks:55 Sector
Country
% Assets
Nestle SA ADR
Cnsmr Def
Switzerland
3.93
Dassault Systemes SA
Technology France
3.36
WPP PLC
Cnsmr Cyc U.K.
3.14
Roche Holding AG
Hlth care Switzerland
3.06
Air Liquide SA
Basic Mat
France
3.00
Itau Unibanco Holding SA
Finan Svs Brazil
2.79
Allianz SE
Finan Svs Germany
2.79
Schlumberger NV
Energy
United States
2.71
ICICI Bank Ltd ADR
Finan Svs India
2.66
AIA Group Ltd.
Finan Svs Hong Kong
2.61
Schneider Electric SE
Industrl
France
2.53
Bayerische Motoren Werke
Cnsmr Cyc Germany
2.49
Fanuc Corp
Industrl
Japan
2.37
L’Oreal SA
Cnsmr Def
France
2.37
SAP SE ADR
Technology Germany
2.35
Imperial Oil Ltd
Energy
Canada
2.34
Anheuser-Busch Inbev SA
Cnsmr Def
Belgium
2.30
Unicharm Corp
Cnsmr Def
Japan
2.16
Canadian National Railwa
Industrl
Canada
2.13
Novo Nordisk A/S
Hlth care Denmark
1.96
Current Investment Style
Market Cap %
Giant
63.5
Large
30.8
Mid
5.8
Small
0.0
Micro
0.0
Avg $mil:
43,012
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
Japan
14
France
13
Germany
11
Switzerland 10
U.K.
9
Regional Exposure
% Stock
UK/W. Europe 51
Japan
14
Asia X Japan 17
N. America 9
Latn America 3
Other
6
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 33.54
.
BasicMat 5.01
.
6 1
CnsmrCyc10.27
.
10 7
FinanSvs 17.04
.
18 10
Real Est 1.22
.
2 1
Sensitive 38.15
.
CommSrvs 1.87
.
4 1
Energy 8.08
.
10 7
Industrl 12.45
.
20 11
Technlgy 15.75
.
20 16
Defensive28.31
.
CnsmrDef15.21
.
17 14
Hlthcare 12.05
.
15 10
Utilities 1.05
.
1 1
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
2.3
Stocks
96.2
Bonds
0.0
Other
1.5
Foreign
95.3
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.69
-17.72
4.98
8.99
7.93
0.76
NMF
7.11
4.63
0.10
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
17.14
2.45
1.66
7.10
1.65
1.12
1.12
1.17
0.92
0.75
©
2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
Mutual Funds
ß
®
EQ
∞
∞
∞
∞
∞
∞
