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Performance

Emerging Markets Composite Performance As of September 30, 2008

 
  Annualized Returns for Trailing Periods (%)
 
Last Quarter
One Year
Three Years1
Five Years1		 Since
Inception1, 2
Volatility3
Emerging Markets (gross) (26.71) (29.65) 8.91 21.48 18.31 23.51
Emerging Markets (net) (26.89) (30.32) 7.88 20.24 17.46 23.38
MSCI Emerging Markets4 (26.86) (33.01) 8.69 19.05 12.95 22.15
1Annualized Returns; 2 Inception Date: 11/30/98 3 Annual Standard Deviation (%) 4 Benchmark Index. Past performance is not indicative of future results.

 
HL EM (Gross)
HL EM (Net)
MSCI EM1		 Internal
Dispersion2		 Number of
Accounts		 Composite
Assets ($M)		 Firm Assets
($M)
2008 (YTD)3 (33.66%) (34.13%) (35.37%) N.A.4 6 2,324 4,693
2007 38.81% 37.55% 39.78% N.M.5 5 3,443 6,356
2006 30.96% 29.72% 32.59% N.M. 5 2,233 4,720
2005 41.48% 39.96% 34.54% N.M. 2 1,003 2,562
2004 31.30% 29.74% 25.95% N.M. 1 137 1,524
2003 55.91% 54.33% 56.28% N.M. 1 33 1,357
2002 (4.33%) (4.74%) (6.00%) N.M. 2 17 1,082
2001 1.78% 1.30% (2.37%) N.M. 2 10 1,154
2000 (13.87%) (14.12%) (30.61%) N.M. 2 9 1,392
1999 80.06% 80.04% 66.41% N.M. 1 2 1,423
19986 (0.95%) (0.95%) (1.45%) N.A. 1 1 1,372
1Benchmark Index; 2Asset-weighted standard deviation (gross of fees); 3The 2008 YTD Composite performance shown is preliminary; 4N.A. - Internal dispersion less than a 12-month period; 5N.M. – Information is not statistically meaningful due to an insufficient number of portfolios in the Composite for the entire year; 61998 represents the partial year, December 1, 1998 to December 31, 1998.
 

Emerging Markets Composite contains fully discretionary US dollar-based emerging markets accounts investing in non-US equity and equity equivalent securities and cash reserves of companies domiciled predominantly in emerging markets countries, and for comparison purposes is measured against the MSCI Emerging Markets Index (gross of foreign withholding taxes). Returns include the effect of foreign currency exchange rates. The exchange rate source of the benchmark is Reuters. The exchange rate source of the Composite is Bloomberg. Additional information regarding the benchmark, including the percentage of the composite invested in countries or regions not included in the benchmark, is available upon request.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consisted of 25 emerging market countries. You cannot invest directly in this Index.

Harding Loevner LLC has prepared and presented this report in compliance with the Global Investment Performance Standards  (GIPS®).  Harding Loevner is GIPS compliant and is verified by Ashland Partners & Company, LLP. Harding Loevner has received a firm-wide GIPS verification beginning November 1, 1989. The most recent verification was for the Quarter ending June 30, 2008.

Harding Loevner LLC is an independent registered investment advisor. The firm maintains a complete list and description of composites, which is available upon request.

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance is presented gross of foreign withholding taxes on dividends, interest income and capital gains. Past performance is not indicative of future results. Additional information regarding the policies for calculating and reporting returns is available upon request.

The US Dollar is the currency used to express performance. Returns are presented both gross and net of management fees and include the reinvestment of all income. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. The standard fee schedule generally applied to Emerging Markets Equity accounts is 1.25% annually of the market value of up to $25 million; 0.95% of amounts from $25 million to $100 million, negotiable for amounts over $100 million. Actual investment advisory fees incurred by clients may vary.

The Emerging Markets Composite was created on November 30, 1998.