International Small Companies Strategy - Portfolio Characteristics
The International Small Companies Strategy invests in equity securities of small companies based outside the US, including companies in emerging as well as developed markets. The portfolio may hold from 50 to 200 investments (the normal range is 60 to 80) across at least 12 countries. To reduce its volatility, the portfolio is diversified across dimensions of geography, industry and currency.
Composite Performance (%) For Periods Ending December 31, 2011
| Annualized Returns | ||||||
| 3 Months | 1 Year | 3 Years | 5 Years | Since Inception1 | ||
|---|---|---|---|---|---|---|
| International Small Companies (gross) | 0.63 | -11.61 | 25.10 | 4.10 | 4.10 | |
| International Small Companies (net) | 0.35 | -12.52 | 23.67 | 2.93 | 2.93 | |
| MSCI All Country World ex-US Small Cap Index2 | 0.45 | -18.21 | 18.86 | -1.38 | -1.38 | |
1Inception Date: December 31, 2006; 2Benchmark Index.
The International Small Companies Composite contains fully discretionary US dollar-based international small companies accounts. 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 Small Companies Composite has been examined since January 1, 2007. 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 Small Companies Composite is available by clicking here.
Ten Largest Holdings at December 31, 2011
| Company | Sector | Country | % |
|---|---|---|---|
| Cheil Worldwide | Consumer Discretionary | South Korea | 2.0 |
| United Plantations | Consumer Staples | Malaysia | 1.9 |
| Bank Bukopin | Financials | Indonesia | 1.9 |
| Laurentian Bank | Financials | Canada | 1.9 |
| KWS Saat | Consumer Staples | Germany | 1.9 |
| Rohto Pharmaceutical | Health Care | Japan | 1.8 |
| Pigeon | Consumer Staples | Japan | 1.8 |
| Mekonomen | Consumer Discretionary | Sweden | 1.8 |
| Coastal Contracts | Industrials | Malaysia | 1.7 |
| PayPoint | Industrials | United Kingdom | 1.7 |
Ten Largest Holdings: 18.4% |
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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 Small Companies Composite GIPS presentation, which is available by clicking here.
Sector Weightings (%) at December 31, 2011
| Sector | Intl Small Co's. | Benchmark1 |
|---|---|---|
| Cons Discretionary | 7.5 | 16.5 |
| Cons Staples | 17.5 | 6.5 |
| Energy | 0.0 | 6.9 |
| Financials | 10.0 | 18.1 |
| Health Care | 14.8 | 5.1 |
| Industrials | 26.7 | 19.9 |
| Info Technology | 10.5 | 9.3 |
| Materials | 8.1 | 14.1 |
| Telecom Services | 2.9 | 1.0 |
| Utilities | 1.5 | 2.6 |
| Cash | 0.5 | — |
Geographical Weightings (%) at December 31, 2011
| Region | Intl Small Co's. | Benchmark1 |
|---|---|---|
| Canada | 1.9 | 11.1 |
| Emerging Markets | 23.1 | 22.0 |
| Europe EMU | 27.1 | 14.6 |
| Europe ex-EMU | 20.1 | 21.0 |
| Frontier Markets | 0.0 | — |
| Japan | 10.9 | 20.1 |
| Middle East | 0.0 | 0.6 |
| Pacific ex-Japan | 16.4 | 10.6 |
| Cash | 0.5 | — |
1MSCI All Country World ex-US Small Cap Index.
Sector and geographical weights are shown as supplemental information only and complement the fully compliant International Small Companies Composite GIPS presentation, which is available by clicking here.