International Equity First Quarter 2015 Update

The issue of valuation is getting more of our attention, because companies, especially the best-quality businesses, and the fastest-growing ones, have seen their stocks rise faster (in local currency, at least) than their earnings, starting with the US, then in Japan, and now in Europe. Nowhere, of course, has this problem of valuing the rare growth stock in a sluggish growth environment facing aggressive central bank stimulus been more pronounced than in Japan, where those conditions have lasted for two years, so far. Yoko Sakai, our analyst for Japanese companies, found that our valuation model, using a semi-fixed discount rate to value expected future corporate cash flows, produced fair values for her companies that were quickly outstripped by the prices set in the soaring market gripped in the reflation fever of “Abenomics.” To remain invested in Japan, Harding Loevner portfolio managers had to be tolerant of stretched valuations on our internal DCF models, recognizing two important corollary effects of the government’s policies on stocks: first, that most analysts would not be able to forecast accurately the full extent of the operating leverage the yen’s “maxi” devaluation would have on reported earnings, especially of exporters; and second, that alternative investments other than equities for domestic Japanese investors were being rendered unpalatable from the standpoint of preservation of value.

Frontier Emerging Markets First Quarter 2015 Update

Returns in the Frontier Emerging Markets (FEMs) have historically been heavily influenced by the idiosyncratic risks associated with each individual country. A portfolio that is well diversified across the FEM universe should exhibit lower volatility than might be expected if one only considered the volatility of each market in isolation. As we abide by the rules of diversification we have set for ourselves, we rec­ognize the direct impact the Strategy’s risk-control constraints can have on relative performance due to the unusual nature of the MSCI Frontier Emerging Markets Index. Our underweight to the top-performing Philippines was a drag on our returns compared to the benchmark in the first quarter. We will continue to be underweight the Philippines unless its weight in the Index changes, and this positioning could again have a negative impact on relative returns if this market similarly out­performs in the future (and, similarly, could be a positive in the event of a significant correction in the market). But our view is that the Strategy’s long-term, risk-adjusted returns will benefit from maintaining a well-diversified portfolio that consistently adheres to the guidelines we have established.

Welcome & Firm Overview

May 2011

David Loevner, President and CEO of Harding Loevner LP, is featured in this video. Mr. Loevner provides a brief history of the firm as well as a welcome to our corporate website.


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.

International Equity

May 2011

Alec Walsh, Co-Lead Portfolio Manager of the International 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.

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.

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.

 

 

We build diversified portfolios of high-quality, growing companies identified through fundamental research.

Quarterly Webcast Schedule

Strategy

Presenters

Date & Time

Calendar Event

Webcast Link

International Small Companies Equity

Josephine Lewis

Steve Gannon

Monday, April 20

11:00 AM EDT

Add to Calendar

WebEx

 
*Replays will be posted on the Publications page.

 
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Quarterly Webcast Replays

Strategy

Presenters

Date

Presentation Replay

Global Equity

Peter Baughan, CFA

Ryan Bowles, CFA

Tuesday, April 14

Watch the Replay

International Equity

Alec Walsh, CFA

Kristin Burke

Wednesday, April 15

Watch the Replay

International Equity ADR

S. Clarke Moody, CFA

Patrick Broderick

Thursday, April 16

Watch the Replay

Emerging Markets

Rusty Johnson, CFA

Scott Crawshaw

John Parsons

Friday, April 17

Watch the Replay

Frontier Emerging Markets

Pradipta Chakrabortty

Jason Caiola, CFA

Friday, April 17

Watch the Replay

International Small Companies

Josephine Lewis

Steve Gannon

Monday, April 20

Watch the Replay

Global Equity ADR

S. Clarke Moody, CFA

Monday, April 20

Listen to the Replay