Overview

Investment Objective
The Emerging Markets Portfolio (the "Portfolio") seeks long-term capital appreciation through investments in equity securities of companies based in emerging markets.

Principal Investment Strategy
The Portfolio invests primarily in equity securities of companies that are based in emerging markets. It may also invest in short-term or other debt securities, including debt securities rated below investment grade. Emerging markets offer investment opportunities that arise from long-term trends in demographics, deregulation, offshore outsourcing and improving corporate governance in developing countries. Harding Loevner undertakes fundamental research in an effort to identify companies that are well-managed, financially sound, fast growing and strongly competitive, and whose shares are under-priced relative to their intrinsic value. The Portfolio normally holds 50-80 investments across at least 15 countries. To reduce its volatility, the Portfolio is diversified across dimensions of geography, industry, currency and market capitalization.

The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Emerging market securities involve unique risks, such as exposure to economies less diverse and mature than that of the U.S. or more established foreign markets.