(PUB) Investing 2016

103 / 708

5 Morningstar FundInvestor March 2016
Data through February 29, 2016 FINRA members: For internal or institutional use only.
Harding Loevner Emerging Markets Advisor Ticker
HLEMX
Yield
0.6%
Total Assets
$2,068 mil
Mstar Category
DiversifiedEmergingMkts
Benchmark 1: MSCI EM NR USD
Benchmark 2: MSCI ACWI Ex USA NR USD
Morningstar Analyst Rating 02-29-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ¶ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.5
15.0
17.5
20.0
7.5
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
7 4 7 4 7 7 4 4 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
) ( * ) * * & & * * * Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 02-16 History
44.76 57.46 26.38 42.99 51.80 42.37 48.47 48.77 45.62 39.22 37.17 NAV
28.73 35.94 -52.33 63.46 20.98 -17.52 22.73 4.18 -1.66 -13.55 -5.23 Total Return %
-3.42 -3.48 1.01 -15.05 2.10 0.91 4.51 6.78 0.53 1.37 1.41 +/- Bmark 1
2.07 19.29 -6.80 22.01 9.83 -3.81 5.90 -11.11 2.21 -7.89 2.64 +/- Bmark 2
0.07 0.26 1.79 0.48 0.47 0.67 0.84 0.83 0.79 0.48 0.00 Income Return %
28.66 35.68 -54.11 62.98 20.51 -18.18 21.89 3.35 -2.45 -14.02 -5.23 Capital Return %
77 55 34 85 28 26 16 19 37 43 28 Total Rtn % Rank Cat
0.02 0.12 1.03 0.13 0.20 0.35 0.36 0.40 0.39 0.22 0.00 Income $
0.00 3.28 0.00 0.00 0.00 0.00 3.15 1.29 1.93 0.00 0.00 Capital Gains $
1.63 1.60 1.61 1.64 1.58 1.50 1.49 1.47 1.45 1.45 . Expense Ratio %
0.61 0.36 2.10 0.56 0.60 0.63 0.80 0.83 0.98 0.57 . Income Ratio %
59 29 46 48 25 33 36 26 28 30 . Turnover Rate %
1,646 2,375 963 1,672 2,172 1,492 1,731 2,123 2,353 2,204 2,068 Net Assets $mil
Performance 02-29-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 -1.70 0.02 -21.21 6.47 -17.52
2012 15.88 -6.80 6.86 6.34 22.73
2013 -0.64 -5.46 6.02 4.61 4.18
2014 0.72 6.64 -4.75 -3.87 -1.66
2015 1.42 0.28 -15.56 0.66 -13.55
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -8.97 -0.25 0.64 50 9,103
6 Mo -7.30 1.55 1.99 36 9,270
1 Yr -20.22 3.19 -2.85 34 7,978
3 Yr Avg -5.59 3.31 -3.39 20 8,415
5 Yr Avg -2.03 3.38 -0.73 14 9,027
10 Yr Avg 2.51 0.68 1.08 30 12,812
15 Yr Avg 8.77 1.07 -1.42 22 35,305
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) -6.39 19 0.85 72
5 Yr (estimated) -2.81 14 0.80 77
10 Yr (estimated) 1.83 24 0.66 18
Potential Capital Gain Exposure: -6% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -20.22
3 Yr -5.59 +Avg Avg QQQQ
5 Yr -2.03 +Avg -Avg QQQQ
10 Yr 2.51 +Avg -Avg QQQQ
Incept 10.45
Other Measures Standard Index Best Fit Index
Alpha -3.4 1.8
Beta 0.99 0.93
R-Squared 83 92
Standard Deviation 13.86
Mean -5.59
Sharpe Ratio -0.35
Portfolio Analysis 12-31-15
Total Stocks: 77
Share change since 09-30-15 Sector Country % Assets
YTaiwan Semiconductor Manu Technology Taiwan 4.07
TSamsung Electronics Co Lt Technology South Korea 3.80
YAIA Group Ltd Finan Svcs Hong Kong 3.11
YTencent Holdings Ltd Technology China 2.97
YCtrip.com International L Cnsmr Cyc China 2.32
YChina Mobile Ltd ADR Comm Svcs China 2.17
YNaspers Ltd Class N Technology South Africa 2.13
YGrupo Financiero Banorte Finan Svcs Mexico 2.04
YBank Rakyat Indonesia (Pe Finan Svcs Indonesia 1.81
YSberbank of Russia PJSC A Finan Svcs Russia 1.81
TBaidu Inc ADR Technology China 1.79
YAxis Bank Ltd Finan Svcs India 1.78
TGrupo Televisa SAB ADR Cnsmr Cyc Mexico 1.77
YDabur India Ltd Cnsmr Def India 1.75
YHousing Development Finan Finan Svcs India 1.75
TSands China Ltd Cnsmr Cyc Macao 1.72
YHon Hai Precision Ind Co Technology Taiwan 1.66
YBharti Airtel Ltd Comm Svcs India 1.64
TDiscovery Ltd Finan Svcs South Africa 1.63
TAspen Pharmacare Holdings Hlth Care South Africa 1.61
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 52.4
Large 30.6
Mid 13.5
Small 3.5
Micro 0.0
Avg $mil:
17,300
Value Measures Rel Category
Price/Earnings 13.29 1.07
Price/Book 1.82 1.06
Price/Sales 1.56 1.20
Price/Cash Flow 6.34 1.09
Dividend Yield % 2.93 0.90
Growth Measures % Rel Category
Long-Term Erngs 9.63 0.78
Book Value -6.69 -13.56
Sales 5.03 -2.20
Cash Flow -3.75 0.70
Historical Erngs 5.94 -1.12
Composition - Net
Cash 2.3 Bonds 0.0
Stocks 97.7 Other 0.0
Foreign (% of Stock) 98.6
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 43.99 0.99
r BasicMat 3.14 0.41
t CnsmrCyc 12.26 1.25
y FinanSvcs 28.59 1.20
u Real Est 0.00 0.00
j Sensitive 40.20 0.97
i CommSrvs 4.20 0.59
o Energy 4.62 0.67
p Industrl 6.77 1.24
a Technlgy 24.61 1.12
k Defensive 15.80 1.11
s CnsmrDef 8.96 1.11
d Hlthcare 5.78 2.05
f Utilities 1.06 0.32
Regional Exposure % Stock
UK/W. Europe 5 N. America 1
Japan 0 Latn America 16
Asia X Japan 56 Other 21
Country Exposure % Stock
China 19
India 10
Taiwan 10
South Africa 8
Mexico 7
Morningstar's Take by William Samuel Rocco 02-29-16
Harding Loevner Emerging Markets Fund can’t escape
when stocks sink in the developing world, of course, but
it generally outperforms in regional downturns. It also has
a strong overall record and other advantages. The fund
merits a Morningstar Analyst Rating of Silver.
This fund has held up relatively well as most
emerging-markets stocks have cratered during the past
year.Someofco-leadmanagersRustyJohnsonandCraig
Shaw’s pharmaceutical, beverage, and frontier-markets
picks have bucked the trends and posted nice gains. The
managers’ quality bias and price consciousness have
helped as well. The fund declined 20.4% during the 12
months through Feb. 26, whereas its average peer
dropped 21.8% and the MSCI Emerging Markets Index
fell 23.7%.
Thanks to the managers’ stock selection, as well as
the conservative components of their strategy, this fund
also posted relatively modest losses in the 2014, 2011,
and early 2000s sell-offs. And its five-, 10-, and 15-year
Morningstar Risk Scores, which focus on downside
volatility, are significantly better than those of its typical
rival and the benchmark.
Although the tamer aspects of the managers’
strategy have held back returns in more-exuberant rallies
—such as one that occurred during the last 9.5 months
of 2009—this fund has usually fared well in more
moderate upswings and in sideways markets. It has
comfortably outgained both its average peer and the
benchmark in the medium and long term.
This fund has much more than superior risk-adjusted
returns going for it. Johnson and Shaw have superior
credentials as well as strong support. Plus, the quality-
growth strategy that they are using here has also earned
good results at siblings Harding Loevner Global Equity
HLMGX, Harding Loevner International Equity HLMIX, and
Harding Loevner Frontier Emerging Markets HLFMX.
Thus, investors seeking an emerging-markets fund for the
long run have ample reason to look here.
Address: Harding, Loevner Funds, Inc. c/o The Northern
Trust Company
Minimum Purchase: $5000 Add: — IRA: —
Chicago, IL 60680-4766 Min Auto Inv Plan: — Add: —
877-435-8105 Sales Fees: No-load, 2.00%R
Web Address: Management Fee: 1.15% mx./1.09% mn.
Inception: 11-09-98 Actual Fees: Mgt:1.13% Dist:—
Advisor: Harding Loevner LP Expense Projections: 3Yr:$459 5Yr:$792 10Yr:$1735
Subadvisor: None Income Distribution: Annually
©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, email ß® Mutual Funds A