23
Morningstar FundInvestor
July 2
013
Morningstar Analyst Rating
03-13-13
„
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Positive
Positive
Positive
Neutral
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
45.53
48.47
42.37
51.80
42.99
26.38
57.46
44.76
34.79
25.20
19.91
12.76
Total Return %
-6.07
22.73
-17.52
20.98
63.46
-52.33
35.94
28.73
38.62
28.85
56.34
-6.52
+/-MSCI EAFE
-10.17
5.41
-5.38
13.23
31.68
-8.95
24.77
2.39
25.08
8.60
17.75
9.42
+/-MSCI Emg Mkt
3.50
4.51
0.90
2.10
-15.05
1.00
-3.48
-3.41
4.62
3.30
0.52
-0.35
Income Return %
0.00
0.84
0.67
0.47
0.48
1.79
0.26
0.07
0.34
0.12
0.30
0.00
Capital Return %
-6.07
21.89
-18.19
20.51
62.98
-54.12
35.68
28.66
38.28
28.73
56.04
-6.52
Total Rtn % Rank Cat
30
16
26
28
85
34
55
77
16
14
36
54
Income $
0.00
0.36
0.35
0.20
0.13
1.03
0.12
0.02
0.09
0.02
0.04
0.00
Capital Gains $
0.00
3.15
0.00
0.00
0.00
0.00
3.28
0.00
0.06
0.42
0.00
0.00
Expense Ratio %
.
1.49
1.50
1.58
1.64
1.61
1.60
1.63
1.68
1.75
1.75
1.75
Income Ratio %
.
0.80
0.63
0.60
0.56
2.10
0.36
0.61
0.87
0.51
0.76
0.19
Turnover Rate %
.
36
33
25
48
46
29
59
36
40
58
43
Net Assets $mil
1,805
1,731
1,492
2,172
1,672
963
2,375
1,646
975
137
33
10
Performance
06-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-3.87 32.85 20.07 6.60 63.46
3.63 -7.86 19.93 5.65 20.98
-1.70 0.02 -21.21 6.47 -17.52
15.88 -6.80
6.86 6.34 22.73
-0.64 -5.46
. . .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% EAFE Emg Mkt
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
-5.46 -4.48
2.62
21 9,454
-6.07 -10.17
3.50
30 9,393
6.75 -11.87
3.88
27 10,675
6.41 -3.63
3.03
19 12,049
-0.06 0.57
0.37
35 9,970
14.36 6.69
0.70
19 38,260
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
5.84
16
0.53
65
-0.66
34
0.60
56
13.85
14
0.45
8
Potential Capital Gain Exposure: 24% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
6.75
3 Yr
6.41
+Avg
-Avg
5 Yr
-0.06
Avg
-Avg
10 Yr
14.36
+Avg
Avg
Incept
13.34
Other Measures
Standard Index
Best Fit Index
MSCI EAFE
MSCI Emg Mkt
Alpha
-2.4
3.1
Beta
0.93
0.91
R-Squared
77
95
Standard Deviation
19.42
Mean
6.41
Sharpe Ratio
0.41
Morningstar’s Take
by William Samuel Rocco 03-13-13
Harding Loevner Emerging Markets continues to be one
of the more attractive options in its category.
This fund’s management team remains strong after
a minor change. Simon Hallett gave up his position on
the team last month, after 14 years, but he focused on
portfolio oversight in recent years, and he will continue
to perform that function as the firm’s CIO. Meanwhile,
co-lead manager Rusty Johnson, who has been at the
helm since this fund opened in 1998 and is one of the
most seasoned skippers in the category, remains on
board. Craig Shaw, who has more than two decades of
relevant experience, continues to serve as Johnson’s
co-lead manager. And comanager Richard Schmidt,
who has been in the foreign investment field for 25
years, remains in place.
Johnson, Shaw, and Schmidt are continuing to
employ the same sound growth strategy that they
always have here. That strategy, which has a nice mix
of tame and bold traits, has worked quite well at other
Harding Loevner offerings. The managers insist on
high-quality growers and pay attention to price and
other perils, which tempers volatility. And they
continue to consider smaller-market and lesser-known
names that meet their standards and to build
distinctive country and sector stakes, which causes
this fund to stand out from its peers and enhances its
upside potential.
Performance has been pretty impressive overall
here. While it has been constrained by its moderate
attributes in some frothy rallies--as its bottom-quartile
finish in 2009 attests--it has fared well in all sorts of
other conditions. It held up better than 79% of its
peers in 2011’s sell-off because of its quality bias and
the team’s stock selection. And it finished in its
group’s top quintile in the 2012 rally, thanks to the
strength of the team’s financial, technology, and other
picks. Thus, this fund has posted superior three-year,
five-year, 10-year, and since-inception returns. It also
has been less volatile than most of its peers.
This fund continues to be worth a long look from
investors who are seeking an emerging-markets
vehicle for the long haul.
Address:
Harding, Loevner Funds, Inc. c/o The Northern Trust Company
Chicago, IL 60680-4766
877-435-8105
Web Address:
Inception:
11-09-98
Advisor:
Harding Loevner LP
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$5000
Add: $0 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load, 2.00%R
Management Fee:
1.15% mx./1.13% mn.
Actual Fees:
Mgt:1.14% Dist:
.
Expense Projections:
3Yr:$465
5Yr:$803 10Yr:$1757
Income Distribution:
Annually
Data through June 30, 2013
Harding Loevner Emerging Markets Advisor
Ticker
Status Yield Total Assets
Mstar Category
HLEMX Open
0.7% $1,805 mil
Diversified Emerging Mkts
95% 97% 96% 96% 98% 98% 96% 95% 92%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 06-13
Historical Profile
Return
Risk
Rating
Above Avg
Average
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI EAFE
Performance Quartile
(within Category)
History
10.0
17.0
24.0
33.8
46.4
Portfolio Analysis
03-31-13
Share change since 12-12 Total Stocks:71 Sector
Country
% Assets
Samsung Electronics Co L
Technology Korea
3.93
Taiwan Semiconductor Man
Technology Taiwan
2.74
Arcelik A.S.
Technology Turkey
2.52
Grupo Financiero Banorte
Finan Svs Mexico
2.13
Siam Commercial Bank Pub
Finan Svs Thailand
2.10
Companhia de Bebidas das
Cnsmr Def
Brazil
2.08
Copa Holdings SA Class A
Industrl
United States
2.06
AIA Group Ltd.
Finan Svs Hong Kong
2.04
Vale SA ADR
Basic Mat
Brazil
2.03
Sberbank Of Russia ADR
Finan Svs Russia
2.02
SABMiller PLC
Cnsmr Def
U.K.
2.01
OAO Lukoil ADR
Energy
Russia
1.89
Fomento Economico Mexica
Cnsmr Def
Mexico
1.88
Hikma Pharmaceuticals PL
Hlth care U.K.
1.84
Bank Bradesco ADR
Finan Svs Brazil
1.77
Tencent Holdings Ltd.
Technology China
1.75
Zenith Bank PLC
Finan Svs Nigeria
1.71
Hsbc Bk
.
U.K.
1.69
China Merchants Holdings
Industrl
Hong Kong
1.68
Baidu, Inc. ADR
Technology China
1.67
Current Investment Style
Market Cap %
Giant
50.3
Large
31.1
Mid
16.6
Small
2.0
Micro
0.0
Avg $mil:
20,940
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
Brazil
11
China
10
Taiwan
9
Mexico
8
South Korea 8
Regional Exposure
% Stock
UK/W. Europe 6
Japan
0
Asia X Japan 48
N. America 2
Latn America 25
Other
19
Sector
Weightings
% of
Stocks
Rel MSCI
EAFE High
3 Year
Low
Cyclical 44.03
.
BasicMat 10.01
.
11 8
CnsmrCyc 5.11
.
8 4
FinanSvs 28.91
.
29 20
Real Est 0.00
. . .
Sensitive 41.01
.
CommSrvs 1.71
.
10 2
Energy 8.63
.
12 9
Industrl
8.48
.
8 6
Technlgy 22.19
.
22 16
Defensive14.95
.
CnsmrDef11.04
.
16 11
Hlthcare 3.91
.
5 3
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
3.2
Stocks
92.0
Bonds
1.7
Other
3.1
Foreign
97.8
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
13.49
-28.22
12.54
9.96
15.43
1.03
NMF
1.70
0.87
1.54
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.14
2.14
0.52
5.58
2.11
1.11
1.22
0.49
1.02
0.74
©
2013Morningstar, Inc.All rights reserved. The information herein isnot represented orwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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mfb.morningstar.com.
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