(PUB) Investing 2015

5

Septemb er 2015

Morningstar FundInvestor

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

Morningstar Analyst Rating 08-20-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating Below Avg Average Below Avg

96% 97% 98% 94% 96% 96% 96% 97% 98%

„

Manager Change Partial Manager Change

10.0 12.5 15.0 17.5

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of MSCI WexUS

People Parent Price

6.0

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 08-15

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 ¨

16.19

18.46

19.05

9.18

12.78 40.14 -1.31

14.97

13.36

15.91 19.73

18.00 13.64 -1.65 -1.85

17.55 -1.85 2.02 0.80 0.65 -2.50

16.70 -4.84 -0.66 -2.58 0.00 -4.84

NAV

.

22.67 . . -3.98 . . -0.94 . . 0.39 . . 22.28 . . 62 . .

-39.40 12.78

-10.09 17.33

Total Return % +/-MSCI WexUS

-3.87 -8.25 0.58

6.13 6.21 0.80

6.18 2.88 0.19

3.62 4.12 0.40

2.90 3.06 0.64

1.47 0.91

+/-MSCI AC World exUSA Gr ND

0.50

Income Return % Capital Return %

-40.20 12.20

39.23

-10.49 17.14

19.09

13.14

77

3

29

23

35

30

82

25

96

Total Rtn % Rank Cat

Pillar Spectrum Positive

0.07 0.01 1.25 -1.25

0.06 1.34 1.25 0.61

0.11 1.69 1.23 0.48

0.15 2.20 1.23 0.81

0.08 0.00 1.25 1.03

0.02 0.00 1.25 0.69

0.06 0.04 1.25 0.79

0.09 0.00 1.24 0.87

0.08 0.00 1.20 0.76

0.12 0.00 1.17 0.72

0.00 0.00 . . . 382

Income $

. . . . . .

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

Performance 08-31-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

38

35 11

19 17

18 12

22 46

33

15

14

20

10

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 . . .

2

137

201

317

421

358

Portfolio Analysis 06-30-15 Share change since 03-15 Total Stocks:56 Sector

Rating and Risk Time Load-Adj

Country

% Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Dassault Systemes SA

Technology France Finan Svs Hong Kong

4.06 3.81 3.81 3.27 3.00 2.91 2.90 2.85 2.83 2.76 2.53 2.46 2.39 2.27 2.19 2.12 2.08 2.06 1.95 1.92

1 Yr 3 Yr 5 Yr

-10.77

Trailing

Total +/- MSCI

+/- MSCI

%Rank Growth of

AIA Group Ltd Nestle SA ADR

Return% WexUS AC World exUSA Gr ND

Cat

$10,000

5.11 6.27

-Avg -Avg

+Avg

Cnsmr Def

Switzerland

3 Mo 6 Mo 1 Yr

-11.87 -1.40 -10.31 -1.40 -10.77 1.58 5.11 -0.14 6.27 1.51 5.52 1.48 3.34 -0.08

-2.18 -2.58 -2.11 -1.07 0.64 0.98

95 8,813 98 8,969 95 8,923 83 11,613 70 13,554

Avg

WPP PLC Fanuc Corp

Cnsmr Cyc U.K.

10 Yr Incept

. . . .

Industrl

Japan France

5.10

Air Liquide SA

Basic Mat

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Allianz SE

Finan Svs Germany

Other Measures

Standard Index Best Fit Index MSCI WexUSMSCI AC World exUSA Gr ND

Unicharm Corp

Cnsmr Def

Japan

17,114 16,369

Roche Holding AG Dividen

Hlth care Switzerland

.

Alpha

0.0

-1.3 1.07

ICICI Bank Ltd ADR

Finan Svs India

. .

Beta

0.98

L’Oreal SA

Cnsmr Def

France

R-Squared

91

94

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 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

Bayerische Motoren Werke

Cnsmr Cyc Germany Hlth care Japan Hlth care Denmark

Sysmex Corporation Novo Nordisk A/S B

Standard Deviation

11.75

Mean

5.11 0.48

Canadian National Railwa

Industrl

Canada

Sharpe Ratio

Keyence Corp

Technology Japan

Schneider Electric SE

Industrl

France

Baidu Inc ADR

Technology China

Anheuser-Busch Inbev SA

Cnsmr Def

Belgium

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.

Schlumberger NV

Energy

United States

Current Investment Style

Sector Weightings

% of Stocks

Rel MSCI

3 Year Low

WexUS High

Market Cap % Giant 63.8 Large 29.7 Mid 6.5 Small 0.0 Micro 0.0 Avg $mil: 41,838

Value Blnd Growth

Cyclical 30.73 BasicMat 6.13 CnsmrCyc 7.57 FinanSvs 15.99 Real Est 1.04 Sensitive 41.46 CommSrvs 1.64 Energy 7.47 Industrl 13.02 Technlgy 19.33 Defensive27.83 CnsmrDef14.33 Hlthcare 13.50 Utilities 0.00

. .

h r t y u j i o p a k s d f

Large Mid Small

6 4

. 10 8 . 19 10

2 1

. . . .

2 1 9 6

Growth Measures Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Price/Cash Flow Dividend Yield % Value Measures Price/Earnings Price/Book Price/Sales

Rel Category

9.52 7.58 3.65 4.09 10.50 18.99 2.69 1.98 11.22 2.06

0.75 3.54 5.21 2.11 0.13 1.24 1.23 1.39 1.45 0.94

. 14 11 . 20 16

.

. 17 14 . 15 10

1 1

.

% Rel Category

Regional Exposure UK/W. Europe 51 Japan 16 Asia X Japan 19

% Stock

N. America 8 Latn America 1 Other 5

Address:

Harding, Loevner Funds, Inc. c/o The Northern Trust Company Chicago, IL 60680-4766 877-435-8105 Sales Fees:

Minimum Purchase: Min Auto Inv Plan:

$5000

Add: $0 IRA: $0

$0

Add: .

No-load, , 2.00%R 0.75% mx./0.73% mn. Mgt:0.72% Dist:0.25%

Composition - Net

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

www.hardingloevnerfunds.com

Management Fee:

Country Exposure

% Stock

Cash

1.7

Bonds Other

0.0 0.0

09-30-05

Actual Fees:

Japan France

16 13 11

U.K. 10 Switzerland 8

Harding Loevner LP

Expense Projections: Income Distribution:

3Yr:$368 Annually

5Yr:$638 10Yr:$1409

Stocks

98.3

None

Foreign

96.0

(% of Stock)

Germany

N/A

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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