Harding Loevner International Small Companies Portfolio Institutional Class (HLMRX)

Overview

The fund is an investment vehicle that primarily focuses on small companies located outside the United States. It targets entities across emerging, frontier, and developed markets, striving to diversify its investment portfolio by encompassing a broad geographical spectrum. The fund commits at least 80% of its net assets, along with any borrowings for investment purposes, towards acquiring a mix of common stocks, preferred stocks, rights, and warrants. These financial instruments are specifically chosen from small companies positioned outside the U.S., making the fund an attractive option for investors looking to expand their global exposure. Moreover, the fund ensures its investment portfolio is spread across a minimum of 15 countries, further emphasizing its commitment to diversification and global reach.

Products and Services

The fund offers an array of investment products and services, designed to cater to the needs of investors seeking international exposure, particularly in small companies. Each product or service is meticulously crafted, aligning with the fund's strategic objective of achieving diversification and potential growth outside the U.S. market:

• Common Stocks of Small Companies: These are equity investments in small companies based outside the U.S. They form the core of the fund's investment portfolio, enabling investors to participate in the growth potential of these entities.
• Preferred Stocks, Rights, and Warrants: In addition to common stocks, the fund invests in preferred stocks, rights, and warrants issued by small companies outside the U.S., providing a broader spectrum of equity investment opportunities with varying levels of risk and return.
• Convertible Securities: This includes investments in securities that can be converted into common or preferred stocks, such as Depositary Receipts. Convertible securities offer flexibility and potential upside in stock performance while mitigating some risks.
• Investment Companies: The fund also allocates a portion of its assets to investment companies that share a similar investment thesis. This enables the fund to tap into specialized markets or sectors through entities that have a deep understanding of specific niches.