(PUB) Morningstar FundInvestor

23

Morningstar FundInvestor

July 2 013

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

Morningstar Analyst Rating 03-13-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg Average Above Avg

95% 97% 96% 96% 98% 98% 96% 95% 92%

„

Manager Change Partial Manager Change

17.0 24.0 33.8 46.4

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Neutral

Investment Values of Fund Investment Values of MSCI EAFE

People Parent Price

10.0

¶

NAV Total Return % +/-MSCI EAFE +/-MSCI Emg Mkt Income Return % Capital Return % Total Rtn % Rank Cat Performance Quartile (within Category) History

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 06-13

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 ¨

12.76 -6.52 9.42 -0.35 0.00 -6.52

19.91 56.34 17.75

25.20 28.85

34.79 38.62 25.08

44.76 28.73 2.39 -3.41 0.07 28.66

57.46

26.38

42.99 63.46 31.68

51.80

42.37

48.47 22.73

45.53 -6.07 3.50 0.00 -6.07

-52.33 35.94

-17.52 20.98

8.60 3.30 0.12

24.77 -3.48

-8.95

13.23

-5.38 0.90 0.67

-10.17 5.41

0.52 0.30

4.62 0.34

-15.05 1.00

2.10 0.47

4.51 0.84

0.26

1.79

0.48

56.04

28.73

38.28

-54.12 35.68

62.98

-18.19 20.51

21.89

54

36

14

16

77

55

34

85

28

26

16

30

Pillar Spectrum Positive

0.00 0.00 1.75 0.19

0.04 0.00 1.75 0.76

0.02 0.42 1.75 0.51

0.09 0.06 1.68 0.87

0.02 0.00 1.63 0.61

0.12 3.28 1.60 0.36

1.03 0.00 1.61 2.10

0.13 0.00 1.64 0.56

0.20 0.00 1.58 0.60

0.35 0.00 1.50 0.63

0.36 3.15 1.49 0.80

0.00 0.00

Income $

§ Negative

¶ Neutral

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

. . .

Performance 06-30-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

43 10

58 33

40

36

59

29

46

48

25

33

36

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 . . .

137

975

1,646

2,375

963

1,672

2,172

1,492

1,731

1,805

Portfolio Analysis 03-31-13 Share change since 12-12 Total Stocks:71 Sector

Rating and Risk Time Load-Adj

Country

% Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Samsung Electronics Co L Taiwan Semiconductor Man Grupo Financiero Banorte Siam Commercial Bank Pub Companhia de Bebidas das Copa Holdings SA Class A Arcelik A.S.

Technology Korea Technology Taiwan Technology Turkey Finan Svs Mexico Finan Svs Thailand

3.93 2.74 2.52 2.13 2.10 2.08 2.06 2.04 2.03 2.02 2.01 1.89 1.88 1.84 1.77 1.75 1.71 1.69 1.68 1.67

1 Yr 3 Yr 5 Yr

6.75 6.41 -0.06 14.36 13.34

Trailing

Total +/- MSCI

+/- MSCI

%Rank Growth of

Return% EAFE Emg Mkt

Cat

$10,000

+Avg

-Avg -Avg Avg

3 Mo 6 Mo 1 Yr

-5.46 -4.48 -6.07 -10.17 6.75 -11.87 6.41 -3.63 -0.06 0.57 14.36 6.69

2.62 3.50 3.88 3.03 0.37 0.70

21 9,454 30 9,393 27 10,675 19 12,049 35 9,970

Avg

10 Yr Incept

+Avg

Cnsmr Def

Brazil

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

Industrl

United States

Other Measures

Standard Index

Best Fit Index MSCI Emg Mkt

AIA Group Ltd. Vale SA ADR

Finan Svs Hong Kong

MSCI EAFE

19 38,260 . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Basic Mat

Brazil

Alpha

-2.4 0.93

3.1

Sberbank Of Russia ADR

Finan Svs Russia

Beta

0.91

SABMiller PLC OAO Lukoil ADR

Cnsmr Def

U.K.

R-Squared

77

95

Energy

Russia Mexico

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

5.84 -0.66 13.85

16 34 14

0.53 0.60 0.45

65 56

Fomento Economico Mexica Hikma Pharmaceuticals PL

Cnsmr Def

Standard Deviation

19.42

Hlth care U.K. Finan Svs Brazil Technology China Finan Svs Nigeria

Mean

6.41 0.41

Bank Bradesco ADR Tencent Holdings Ltd. Zenith Bank PLC

8

Sharpe Ratio

Potential Capital Gain Exposure: 24% of assets

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

Hsbc Bk

U.K.

.

China Merchants Holdings

Industrl

Hong Kong

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.

Baidu, Inc. ADR

Technology China

Current Investment Style

Sector Weightings

% of Stocks

Rel MSCI

3 Year Low

EAFE High

Market Cap % Giant 50.3 Large 31.1 Mid 16.6 Small 2.0 Micro 0.0 Avg $mil: 20,940

Value Blnd Growth

Cyclical 44.03 BasicMat 10.01 CnsmrCyc 5.11 FinanSvs 28.91 Real Est 0.00 Sensitive 41.01 CommSrvs 1.71 Energy 8.63 Technlgy 22.19 Defensive14.95 CnsmrDef11.04 Hlthcare 3.91 Utilities 0.00 Industrl 8.48

.

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

Large Mid Small

. 11 8

8 4

.

. 29 20 . . .

.

. 10 2 . 12 9

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

13.49 -28.22 12.54 9.96 15.43 13.14 2.14 0.52 5.58 2.11

1.03 NMF 1.70 0.87 1.54 1.11 1.22 0.49 1.02 0.74

8 6

.

. 22 16

.

. 16 11

5 3

.

. . .

% Rel Category

Regional Exposure UK/W. Europe 6 Japan 0 Asia X Japan 48

% Stock

N. America 2 Latn America 25 Other 19

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 1.15% mx./1.13% mn. Mgt:1.14% Dist: .

Composition - Net

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

www.hardingloevnerfunds.com

Management Fee:

Country Exposure

% Stock

Cash

3.2

Bonds Other

1.7 3.1

11-09-98

Actual Fees:

Brazil China

11 10

Mexico 8 South Korea 8

Harding Loevner LP

Expense Projections: Income Distribution:

3Yr:$465 Annually

5Yr:$803 10Yr:$1757

Stocks

92.0

None

Foreign

97.8

(% of Stock)

Taiwan

9

Fidelity Retail-NTF, Schwab OneSource

Mutual Funds ß ®

© 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 To order reprints, call 312-696-6100. mfb.morningstar.com.

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