Global Equity ADR Strategy - Portfolio Characteristics
The Global Equity ADR Strategy invests in equity securities of companies based in the U.S. and other developed markets, as well as emerging markets. The portfolio normally holds 35-75 investments across 15-25 countries. To reduce its volatility, the portfolio is diversified across dimensions of geography, industry, currency and market capitalization.
Composite Performance (%) For Periods Ending December 31, 2011
| Annualized Returns | |||||
| 3 Months | 1 Year | 3 Years | 5 Years | 10 Years | |
|---|---|---|---|---|---|
| Global Equity ADR (gross) | 6.79 | -8.73 | 12.33 | 0.65 | 5.10 |
| Global Equity ADR (net) | 6.59 | -9.45 | 11.43 | -0.17 | 4.23 |
| MSCI All Country World Index1,2 | 7.18 | -7.35 | 12.01 | -1.94 | 4.24 |
| MSCI World Index2 | 7.59 | -5.54 | 11.13 | -2.37 | 3.62 |
1Benchmark Index; 2The indices are net of foreign withholding taxes on dividends, interest income and capital gains.
The Global Equity ADR Composite contains fully discretionary US dollar-based global equity ADR accounts. Harding Loevner LP is investment adviser registered with the Securities and Exchange Commission. Harding Loevner is an affiliate of Affiliated Managers Group, Inc. (NYSE: AMG), an investment holding company with stakes in a diverse group of boutique firms. Harding Loevner claims compliance with the Global Investment Performance Standards (GIPS®). Harding Loevner has been independently verified by Ashland Partners & Company, LLP for the period November 1, 1989 through June 30, 2011. Verification assesses whether (1) the firm has complied with all composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policy and procedures are designed to calculate and present performance in compliance with GIPS standards. The Global Equity ADR Composite has been examined since December 1, 1989. Performance prior to October 31, 2001 is that of the Global Equity Composite which is managed similarly and materially represents the strategy of the Global Equity ADR. Performance data quoted represents past performance; past performance does not guarantee future results. The US dollar is the currency used to express performance. Complete information on the construction and historical record of the Global Equity ADR Composite is available by clicking here.
Ten Largest Holdings at December 31, 2011
| Company | Sector | Country | % |
|---|---|---|---|
| Li & Fung | Consumer Discretionary | Hong Kong | 3.4 |
| Unicharm | Consumer Staples | Japan | 3.2 |
| Apple | Information Technology | United States | 3.1 |
| Wells Fargo | Financials | United States | 3.1 |
| Nestle | Consumer Staples | Switzerland | 3.1 |
| Information Technology | United States | 3.1 | |
| Emerson Electric | Industrials | United States | 2.9 |
| Fanuc | Industrials | Japan | 2.7 |
| eBay | Information Technology | United States | 2.7 |
| Coach | Consumer Discretionary | United States | 2.5 |
Ten Largest Holdings: 29.8% |
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For a complete list of Holdings, click here.
The portfolio is actively managed therefore holdings shown may not be current. They should not be considered recommendations to buy or sell any security.
The largest holdings, sector and country are shown as supplemental information only and complement the fully compliant Global Equity ADR Composite GIPS presentation, which is available by clicking here.
Sector Weightings (%) at December 31, 2011
| Sector | Global Equity ADR | Benchmark1 |
|---|---|---|
| Cons Discretionary | 15.1 | 10.0 |
| Cons Staples | 14.8 | 10.7 |
| Energy | 6.1 | 12.1 |
| Financials | 12.7 | 18.5 |
| Health Care | 7.4 | 9.3 |
| Industrials | 8.3 | 10.4 |
| Info Technology | 23.2 | 12.2 |
| Materials | 7.4 | 8.0 |
| Telecom Services | 1.8 | 4.9 |
| Utilities | 0.0 | 3.9 |
| Cash | 3.2 | — |
Geographical Weightings (%) at December 31, 2011
| Region | Global Equity ADR | Benchmark1 |
|---|---|---|
| Canada | 0.0 | 4.5 |
| Emerging Markets | 11.1 | 12.6 |
| Europe EMU | 7.7 | 10.2 |
| Europe ex-EMU | 9.7 | 13.6 |
| Frontier Markets | 0.0 | — |
| Japan | 5.9 | 8.0 |
| Middle East | 0.0 | 0.2 |
| Pacific ex-Japan | 8.0 | 4.9 |
| United States | 54.4 | 46.0 |
| Cash | 3.2 | — |
1MSCI All Country World Index.
Sector and geographical weights are shown as supplemental information only and complement the fully compliant Global Equity ADR Composite GIPS presentation, which is available by clicking here.