(PUB) Investing 2015

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5 Morningstar FundInvestor September 2015
Morningstar Analyst Rating 08-20-15
„
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 16.70 17.55 18.00 15.91 13.36 14.97 12.78 9.18 19.05 18.46 16.19 .
Total Return % -4.84 -1.85 13.64 19.73 -10.09 17.33 40.14 -39.40 12.78 22.67 . .
+/-MSCI WexUS -0.66 2.02 -1.65 2.90 3.62 6.18 -1.31 6.13 -3.87 -3.98 . .
+/-MSCI AC World exUSA Gr ND -2.58 0.80 -1.85 3.06 4.12 2.88 1.47 6.21 -8.25 -0.94 . .
Income Return % 0.00 0.65 0.50 0.64 0.40 0.19 0.91 0.80 0.58 0.39 . .
Capital Return % -4.84 -2.50 13.14 19.09 -10.49 17.14 39.23 -40.20 12.20 22.28 . .
Total Rtn % Rank Cat 96 25 82 30 35 23 29 3 77 62 . .
Income $ 0.00 0.12 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 0.00 0.04 0.00 0.00 2.20 1.69 1.34 0.01 .
Expense Ratio % . 1.17 1.20 1.24 1.25 1.25 1.25 1.23 1.23 1.25 1.25 .
Income Ratio % . 0.72 0.76 0.87 0.79 0.69 1.03 0.81 0.48 0.61 -1.25 .
Turnover Rate %
. 10 20 14 15 33 22 18 19 35 38
.
Net Assets $mil 382 358 421 317 201 137 46 12 17 11 2
.
Performance 08-31-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011
2012
2013
2014
2015
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 -4.07 -1.41 -1.85
5.13 -0.05 . . .
Trailing Total +/- MSCI +/- MSCI %Rank Growth of
Return% WexUSAC 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
-11.87 -1.40 -2.18 95 8,813
-10.31 -1.40 -2.58 98 8,969
-10.77 1.58 -2.11 95 8,923
5.11 -0.14 -1.07 83 11,613
6.27 1.51 0.64 70 13,554
5.52 1.48 0.98 . 17,114
3.34 -0.08 . . 16,369
Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
4.88 77 0.22 27
6.07 57 0.19 15
. . . .
Potential Capital Gain Exposure: 12% of assets
Rating and Risk
Time Load-Adj Morningstar Morningstar Morningstar
Period Return % Rtn vs Cat Risk vs Cat Risk-Adj Rating
1 Yr -10.77
3 Yr 5.11 -Avg +Avg
5 Yr 6.27 -Avg Avg
10 Yr . . . .
Incept 5.10
Other Measures Standard Index Best Fit Index
MSCI WexUSMSCI AC World exUSA Gr ND
Alpha 0.0 -1.3
Beta 0.98 1.07
R-Squared 91 94
Standard Deviation 11.75
Mean 5.11
Sharpe Ratio 0.48
Morningstar’s Take by William Samuel Rocco 08-20-15
Harding Loevner International Equity Fund merits a
Morningstar Analyst Rating of Silver because of its
attractive strategy and other attributes.
Co-lead managers Ferrill Roll and Alexander Walsh
focus on blue-chip growth stocks, vigilantly assess
price and other risks, run a fairly compact portfolio, and
move at a measured pace just like the other Harding
Loevner skippers do. Roll and Walsh also regularly
allow their stock selection to lead to distinctive sector
and country weightings, as their colleagues do. This
strategy provides an appealing combination of upside
potential and downside protection, and it has earned
good long-term risk-adjusted returns at Silver-rated
Harding Loevner Global Equity HLMGX and other
sibling funds.
Roll and Walsh have generally executed the firm’s
discipline well here. This fund has posted mixed results
for the year to date through July 31, 2015, beating the
MSCI ACWI ex USA Index but lagging the average
foreign large-growth fund. Several of the managers’
Japanese and French holdings posted nice gains, but
many of their emerging-markets names suffered
sizable losses. However, Roll and comanager Peter
Baughan’s stock selection has added lots of value in
all sorts of investment climates in the past--including
sell-offs--so this fund has produced superior
risk-adjusted returns over the long term.
Moreover, this fund has a significant personnel
edge over most of its rivals. Roll and Walsh are two of
the longer-serving skippers in the world-stock
Morningstar Category, and they already had lots of
investment experience when they joined Harding
Loevner in the late 1990s. Comanagers Baughan,
Bryan Lloyd, and Andrew West also have solid
resumes. The five managers also have an exceptional
support team, which includes the managers of
Silver-rated Harding Loevner Emerging Markets
HLEMX.
Finally, this fund looks pretty good from a cost
perspective. It’s a terrific option for investors who are
seeking growth-oriented foreign exposure for the long
term.
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:0.72% Dist:0.25%
Expense Projections: 3Yr:$368 5Yr:$638 10Yr:$1409
Income Distribution: Annually
Data through August 31, 2015
Harding Loevner International Eq Inv Ticker Status Yield Total Assets Mstar Category
HLMNX Open 0.7% $5,024 mil Foreign Large Growth
96% 97% 98% 94% 96% 96% 96% 97% 98%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 08-15
Historical Profile
Return
Risk
Rating
Below Avg
Average
Below 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 06-30-15
Share change since 03-15 Total Stocks:56 Sector Country % Assets
Dassault Systemes SA Technology France 4.06
AIA Group Ltd Finan Svs Hong Kong 3.81
Nestle SA ADR Cnsmr Def Switzerland 3.81
WPP PLC Cnsmr Cyc U.K. 3.27
Fanuc Corp Industrl Japan 3.00
Air Liquide SA Basic Mat France 2.91
Allianz SE Finan Svs Germany 2.90
Unicharm Corp Cnsmr Def Japan 2.85
Roche Holding AG Dividen Hlth care Switzerland 2.83
ICICI Bank Ltd ADR Finan Svs India 2.76
L’Oreal SA Cnsmr Def France 2.53
Bayerische Motoren Werke Cnsmr Cyc Germany 2.46
Sysmex Corporation Hlth care Japan 2.39
Novo Nordisk A/S B Hlth care Denmark 2.27
Canadian National Railwa Industrl Canada 2.19
Keyence Corp Technology Japan 2.12
Schneider Electric SE Industrl France 2.08
Baidu Inc ADR Technology China 2.06
Anheuser-Busch Inbev SA Cnsmr Def Belgium 1.95
Schlumberger NV Energy United States 1.92
Current Investment Style
Market Cap %
Giant 63.8
Large 29.7
Mid 6.5
Small 0.0
Micro 0.0
Avg $mil:
41,838
Value Blnd Growth
Large Mid Small
Country Exposure % Stock
Japan 16
France 13
Germany 11
U.K. 10
Switzerland 8
Regional Exposure % Stock
UK/W. Europe 51
Japan 16
Asia X Japan 19
N. America 8
Latn America 1
Other 5
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 30.73 .
BasicMat 6.13 . 6 4
CnsmrCyc 7.57 . 10 8
FinanSvs 15.99 . 19 10
Real Est 1.04 . 2 1
Sensitive 41.46 .
CommSrvs 1.64 . 2 1
Energy 7.47 . 9 6
Industrl 13.02 . 14 11
Technlgy 19.33 . 20 16
Defensive27.83 .
CnsmrDef14.33 . 17 14
Hlthcare 13.50 . 15 10
Utilities 0.00 . 1 1
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 1.7
Stocks 98.3
Bonds 0.0
Other 0.0
Foreign 96.0
Growth Measures % Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.52
7.58
3.65
4.09
10.50
0.75
3.54
5.21
2.11
0.13
Value Measures Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
18.99
2.69
1.98
11.22
2.06
1.24
1.23
1.39
1.45
0.94
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