Global Equity Second Quarter 2014 Update

The one fillip to the excitement-deprivation caused by the low volatility has been the resurgence of merger activity, especially in the IT and the Health Care sectors. While newly emergent technologies have always drawn a high degree of M&A activity, the buoyant market for initial public offerings and the rapid changes in the social media and data center management have led to feverish activity in that sector. Whether in IT or Health Care, what is clear is that the market may, at last, be interested again in companies that invest for growth, either by investing in research or in organic expansion, or by acquiring related businesses. The singular feature of much of the M&A activity announced this year is that the share price of the predator/acquirer has reacted well—often rising—to the news of the potential transaction. The market is starved for growth, and is giving somewhat more benefit of the doubt to managements who will take steps to deliver it. This attitude is a sea change from the past couple of years, when investors’ focus was on dividend yield (as it continued so, with Utilities, this quarter) or on the return of capital through share buybacks.

Emerging Markets Second Quarter 2014 Update

After many years of voting for promises, Indian voters now seem to be demanding a real change with the landslide victory in May of Narendra Modi, a noted reformer and politician credited with getting things done. India hasn’t been getting it done. Inflation has more than doubled over the last 10 years, with demand fueled by social grants and supply stymied by corruption and political gridlock. As a result, productivity has fallen and the currency weakened. We believe that the most important achievement of the Modi government would be to remove supply-side constraints by reducing red tape and corruption. We see great potential arising from increased political accountability: deliver, or out. If this becomes the new norm, especially at state and local levels, then India may be on the doorstep of much-needed change and progress on key issues such as infrastructure build-out and energy reform.

Performance for periods ending June 30, 2014

total returns % returns % *
  quarter 1 year 3 years 5 years 10 years since inception Total Expense Ratio
Global Equity
Class A - US Dollar INCEPTION: 06/21/07 5.31 22.47 9.79 14.24 N.A. 5.20 0.84
Class A - Euro INCEPTION: 06/21/07 6.01 16.44 11.85 14.76 N.A. 4.98 0.84
Class A - GBP Sterling INCEPTION: 03/05/08 2.67 8.83 7.48 13.40 N.A. 9.07 0.84
Class A - Singapore Dollar INCEPTION: 08/05/08 4.44 20.56 10.37 10.94 N.A. 6.03 0.84
Class A - Australian Dollar INCEPTION: 10/04/12 3.62 18.84 N.A. N.A. N.A. 20.12 0.84
International Equity
Class A - US Dollar INCEPTION: 12/02/13 4.74 18.68 N.A. N.A. N.A. 13.54 0.90
Class A - GBP Sterling INCEPTION: 06/07/13 2.06 5.38 N.A. N.A. N.A. 3.77 0.90
Class I - US Dollar INCEPTION: 04/03/13 4.71 18.79 N.A. N.A. N.A. 12.47 0.75
Emerging Markets
Class A - US Dollar INCEPTION: 09/25/12 6.47 18.50 N.A. N.A. N.A. 10.11 1.20
Class I - Canadian Dollar INCEPTION: 11/14/13 2.85 N.A. N.A. N.A. N.A. 12.00 0.90
Frontier Markets
Class A - US Dollar INCEPTION: 09/25/12 10.41 26.03 N.A. N.A. N.A. 25.69 1.75
Class A - Euro INCEPTION: 03/12/14 11.08 N.A. N.A. N.A. N.A. 11.30 1.75
total returns % returns % *
  quarter 1 year 3 years 5 years 10 years since inception Total Expense Ratio
International Equity
Class B - US Dollar INCEPTION: 09/27/13 4.69 N.A. N.A. N.A. N.A. 7.20 1.15
Emerging Markets
Class B - US Dollar INCEPTION: 10/25/13 6.41 N.A. N.A. N.A. N.A. 6.30 1.50

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Fund returns are net of fees.

*Returns since inception are total returns for currency classes less than one year old; returns greater than one year are average annualized returns.

Performance data quoted represents past performance; past performance does not guarantee future results.

The information contained herein concerns a sub-fund (the “Fund”) of Harding Loevner Funds plc (the “Company”), an umbrella-type open-ended investment company authorized in Ireland as an undertaking for collective investment in transferable securities (a “UCITS”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, as amended.  Harding Loevner LP is the investment manager of the Company.  

The investments of the Fund in securities are subject to normal market fluctuations and other risks inherent in investing in securities. The value of investments and the income from them, and therefore the value of and income from Shares relating to each Fund can go down as well as up and an investor may not get back the amount he invests. Changes in exchange rates between currencies or the conversion from one currency to another may also cause the value of the investments to diminish or increase. An investment in a Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors.  For further discussion of risk factors, refer to the Risk Factors section of the Company’s prospectus and the applicable Fund’s Supplement to the Prospectus.

There can be no assurance that the Fund’s investment objective will be achieved and investment results may vary substantially over time. This document is for information purposes only and does not constitute an offer or invitation to purchase shares in the Fund and has not been prepared in connection with any such offer or invitation. 

Investment Philosophy and Process

May 2011

Simon Hallett, Chief Investment Officer, discusses Harding Loevner's investment philosophy and process.


The videos provide general background about Harding Loevner's investment philosophy and process. For more detailed information regarding particular investment strategies, please see our Publications page.

Any discussion of specific securities is not a recommendation to buy or sell. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of holdings for the past year, please contact Harding Loevner.

The portfolios invest in foreign securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. They also invest in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the US or other more established foreign markets. The portfolios may invest in smaller companies which involve additional risks such as limited liquidity and greater volatility. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities.

Past performance does not guarantee future results. Investing involves risk. There is no guarantee that any investment strategy will meet its objective.

Global Equity

May 2011

Peter Baughan, Co-Lead Portfolio Manager of the Global Equity Strategy, is featured in this video.


The videos provide general background about Harding Loevner's investment philosophy and process. For more detailed information regarding particular investment strategies, please see our Publications page.

Any discussion of specific securities is not a recommendation to buy or sell. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of holdings for the past year, please contact Harding Loevner.

The portfolios invest in foreign securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. They also invest in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the US or other more established foreign markets. The portfolios may invest in smaller companies which involve additional risks such as limited liquidity and greater volatility. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities.

Past performance does not guarantee future results. Investing involves risk. There is no guarantee that any investment strategy will meet its objective.

Emerging Markets

May 2011

Rusty Johnson, Co-Lead Portfolio Manager of the Emerging Markets Strategy, is featured in this video.


The videos provide general background about Harding Loevner's investment philosophy and process. For more detailed information regarding particular investment strategies, please see our Publications page.

Any discussion of specific securities is not a recommendation to buy or sell. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of holdings for the past year, please contact Harding Loevner.

The portfolios invest in foreign securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. They also invest in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the US or other more established foreign markets. The portfolios may invest in smaller companies which involve additional risks such as limited liquidity and greater volatility. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities.

Past performance does not guarantee future results. Investing involves risk. There is no guarantee that any investment strategy will meet its objective.


Pricing as of 09/15/14

Global Equity Class A - USD
NAV 1.418
Daily Change -0.421 %
YTD Return 4.882%
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International Equity Class A - USD
NAV 1.053
Daily Change -0.095 %
YTD Return 3.134%
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Emerging Markets Class A - USD
NAV 1.175
Daily Change -0.339 %
YTD Return 6.721%
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Frontier Markets Class A - USD
NAV 1.489
Daily Change 0.269 %
YTD Return 12.718%
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International Equity Class B - USD
NAV 1.063
Daily Change -0.094 %
YTD Return 3.004%
Emerging Markets Class B - USD
NAV 1.053
Daily Change -0.284 %
YTD Return 6.579%