Harding Loevner International Developed Markets Equity Portfolio Institutional Class (HLIDX)

Overview

The Portfolio represents an investment structure designed to provide investors with exposure to developed markets outside the United States. By allocating at least 80% of its net assets, along with any borrowings for investment purposes, into a diverse array of equity-related securities, this Portfolio aims to tap into the growth potential of international companies. These investments include common and preferred stocks, rights, warrants, and securities convertible into such stocks. In addition, the Portfolio incorporates Depositary Receipts and invests in other investment companies that mirror its investment strategy, thereby broadening its reach into developed international markets. This approach allows the Portfolio to offer its investors a broad exposure to a myriad of industries and companies outside the U.S., that are perceived to be in developed market economies.

Products and Services

• Common Stocks

  These are shares of ownership in public companies based in developed markets outside the United States. Investing in common stocks allows the Portfolio's investors to participate directly in the success of these companies through potential price appreciation and dividends.

• Preferred Stocks

  Preferred stocks offer a hybrid form of investment, combining features of both debt and equity. These stocks typically provide higher fixed dividends than common stocks and have priority over common stocks in the event of a bankruptcy. However, they might offer limited capital appreciation potential compared to common stocks.

• Rights and Warrants

  Rights are short-term privileges that allow shareholders to buy more shares at a predetermined price, usually at a discount. Warrants are longer-term options to buy securities at a specified price. Both can be ways to increase investment exposure to certain companies within the developed markets outside the U.S.

• Convertible Securities

  These are bonds or preferred shares that can be converted into a predetermined number of common stocks or equity shares, typically at the discretion of the investor. Convertible securities blend the investment characteristics of bonds and stocks, offering potential for income, along with the possibility of capital appreciation.

• Depositary Receipts

  Depositary Receipts (including American Depositary Receipts and Global Depositary Receipts) represent ownership of a foreign company's shares. They allow the Portfolio to invest in foreign companies' stocks through U.S. securities markets, providing an effective way to gain exposure to non-U.S. markets while mitigating some of the complexities of direct foreign equity investments.

• Investment Companies

  These are funds or trusts that invest in the types of securities the Portfolio would normally invest in itself. By investing in other investment companies, the Portfolio can achieve additional diversification and access to markets or sectors that may be difficult to enter directly. This strategy enhances the Portfolio’s reach and potential for returns.