Overview

Investment Objective
The Frontier Emerging Markets Portfolio seeks long-term capital appreciation through investments in equity securities of companies based in frontier emerging markets.

Portfolio Investment Strategy
The Portfolio invests in equity securities of companies based in frontier markets that are not part of the standard emerging market indices as well as in smaller traditionally-recognized emerging markets. Harding Loevner uses a combination of country-level analysis and fundamental company research to identify high-quality companies that have significant growth opportunities, capable managements, financial strength, and durable competitive advantages. To reduce its volatility, the Portfolio is diversified across dimensions of geography, industry, currency and market capitalization. The Portfolio normally holds 50 to 200 investments across at least 12 countries.

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.