International Equity ADR Strategy - Portfolio Characteristics
The International Equity ADR Strategy invests in equity securities of companies based in developed markets outside the U.S. as well as established companies in 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 | |
|---|---|---|---|---|---|
| International Equity ADR (gross) | 5.15 | -10.46 | 12.46 | 1.02 | 7.15 |
| International Equity ADR (net) | 4.95 | -11.12 | 11.61 | 0.26 | 6.33 |
| MSCI All Country World ex-US Index1,2 | 3.72 | -13.71 | 10.70 | -2.92 | 6.31 |
| MSCI EAFE Index2 | 3.33 | -12.14 | 7.65 | -4.72 | 4.67 |
1Benchmark Index; 2The indices are net of foreign withholding taxes on dividends, interest income and capital gains.
The International Equity ADR Composite contains fully discretionary US dollar-based international equity ADR (non-US) 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 International Equity ADR Composite has been examined since January 1, 1990. Performance prior to August 31, 2000 is that of the International Equity Composite which is managed similarly and materially represents the strategy of the International 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 International Equity ADR Composite is available by clicking here.
Ten Largest Holdings at December 31, 2011
| Company | Sector | Country | % |
|---|---|---|---|
| Dassault Systemes | Information Technology | France | 4.3 |
| Nestle | Consumer Staples | Switzerland | 4.1 |
| Air Liquide | Materials | France | 3.9 |
| ARM Holdings | Information Technology | United Kingdom | 3.5 |
| Fanuc | Industrials | Japan | 3.1 |
| Li & Fung | Consumer Discretionary | Hong Kong | 3.0 |
| SAP | Information Technology | Germany | 3.0 |
| Fresenius Medical Care | Health Care | Germany | 3.0 |
| Roche Holding | Health Care | Switzerland | 2.7 |
| Unicharm | Consumer Staples | Japan | 2.6 |
Ten Largest Holdings: 33.2% |
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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 International Equity ADR Composite GIPS presentation, which is available by clicking here.
Sector Weightings (%) at December 31, 2011
| Sector | Intl Equity ADR | Benchmark1 |
|---|---|---|
| Cons Discretionary | 10.5 | 9.0 |
| Cons Staples | 15.9 | 10.0 |
| Energy | 10.4 | 11.8 |
| Financials | 10.9 | 22.9 |
| Health Care | 14.0 | 7.2 |
| Industrials | 9.9 | 10.5 |
| Info Technology | 16.2 | 6.4 |
| Materials | 3.9 | 11.7 |
| Telecom Services | 4.2 | 6.4 |
| Utilities | 0.0 | 4.1 |
| Cash | 4.1 | — |
Geographical Weightings (%) at December 31, 2011
| Region | Intl Equity ADR | Benchmark1 |
|---|---|---|
| Canada | 3.8 | 8.4 |
| Emerging Markets | 16.9 | 23.3 |
| Europe EMU | 24.5 | 18.8 |
| Europe ex-EMU | 26.8 | 25.3 |
| Frontier Markets | 0.0 | — |
| Japan | 12.4 | 14.8 |
| Middle East | 0.0 | 0.4 |
| Pacific ex-Japan | 7.0 | 9.0 |
| Other2 | 4.5 | — |
| Cash | 4.1 | — |
1MSCI All Country World ex-US Index; 2Other includes countries outside the benchmark where some holdings are incorporated.
Sector and geographical weights are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS presentation, which is available by clicking here.