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Previous: HARDING LOEVNER FUNDS INC, NSAR-A, 1998-06-26 |
Next: HARDING LOEVNER FUNDS INC, NSAR-A/A, 1998-06-26 |
HARDING, LOEVNER FUNDS, INC.
Semi-Annual Report
April 30, 1998
(unaudited)
Portfolios managed by
Harding, Loevner Management, L.P.
International Equity Portfolio
Global Equity Portfolio
Multi-Asset Global Portfolio
600 Fifth Avenue
26th Floor
New York, NY 10020
Harding, Loevner Funds, Inc.
===============================================================================
President's Letter
===============================================================================
June 15, 1998
Dear Shareholder:
Enclosed is the Semi-Annual Report to Shareholders for the semi-annual period
ended April 30,1998 as required by federal securities law.
Our regular quarterly review report discussing in detail the quarter ended June
30,1998 will be sent to you in early July.
Sincerely,
David R. Loevner
President
Harding, Loevner Funds, Inc.
===============================================================================
Table of Contents
===============================================================================
Statements of Net Assets
International Equity
Portfolio............................................................1
Global Equity
Portfolio........................................................... 4
Multi-Asset Global
Portfolio........................................................... 7
Statements of Operations...................................................10
Statements of Changes in Net Assets........................................11
Financial
Highlights.................................................................13
Notes to Financial
Statements.................................................................15
Harding, Loevner Funds, Inc.
=============================================================================
International Equity Portfolio - Statement of Net Assets
April 30, 1998 (unaudited)
=============================================================================
<TABLE>
<S> <C> <C>
Shares Value (1)
----------------------- ---------------------
Long Term Investments - 95.5%
Common Stocks - 95.5%
Argentina - 0.8%
Quilmes Industrial SA (Foods/Beverages) 397,600 $ 3,459,120
------------------------
Australia -0.1%
Rio Tinto Ltd. (Mining)
21,400 296,983
----------------------
Bermuda -1.6%
PartnerRe Ltd. (Insurance)
129,500 6,483,094
---------------------
Canada - 2.2%
Imperial Oil Ltd. (Oil/Gas)
166,000 9,181,875
--------------------
France - 6.6%
Dassault Systemes SA (Computers)
94,000 3,690,260
Financiere et Industrielle Gaz et Eaux (Diversified Holdings)
18,900 9,494,802
Michelin (CGDE) - Class B (Manufacturing)
218,748 13,787,510
---------------------
---------------------
26,972,572
---------------------
Germany 10.6%
Allianz AG (Insurance)
17,500 5,386,717
Bayer AG (Chemicals)
308,000 13,705,682
Daimler-Benz AG (Automotive)
82,600 8,221,770
Deutsche Bank AG (Financial)
209,000 16,094,853
---------------------
---------------------
43,409,022
---------------------
Hong Kong - 6.4%
Hutchison Whampoa Ltd. (Diversified Holdings) 2,013,000 12,447,581
Johnson Electric Holdings Ltd. (Electrical Equipment) 1,769,824 5,997,428
Li & Fung Ltd. (Distribution/Wholesale)
2,600,000 4,363,373
Swire Pacific Ltd. - Class A (Diversified Holdings)
715,000 3,572,094
-----------------------
-----------------------
26,380,476
---------------------
Italy - 1.3%
Luxottica Group SpA - ADR (Optical Supplies)
320,000 5,340,000
--------------------
Japan - 10.3%
Atlantis Japan Growth Fund (Investment Company)*
698,000 2,746,630
Canon, Inc. (Office Equipment)
448,000 10,626,250
Hirose Electric (Electrical Equipment)
139,600 7,077,326
Kurita Water Industries (Manufacturing)
397,000 4,383,366
Mitsubishi Corp. (Distribution/Wholesale)
805,000 6,100,333
Denso Corp. (Electrical Equipment)
461,000 7,947,674
Tokio Marine & Fire Insurance Co. (Insurance)
335,000 3,655,654
-----------------------
-----------------------
42,537,233
-----------------------
Malaysia - 0.6%
Sime Darby Berhad (Financial)
2,579,000 2,290,902
--------------------
</TABLE>
Harding, Loevner Funds, Inc.
===============================================================================
International Equity Portfolio - Statement of Net Assets (continued)
April 30, 1998 (unaudited)
===============================================================================
<TABLE>
<S> <C> <C>
Shares Value (1)
----------------------- ---------------------
Mexico - 2.0%
Kimberly-Clark de Mexico SA de CV (Manufacturing) 1,719,000 $ 8,338,660
---------------------
Netherlands - 11.1%
IHC Caland NV (Transportation) 135,900 7,914,937
ING Groep NV (Financial) 197,200 12,823,078
Royal Dutch Petroleum Co. - NY Shares (Oil/Gas) 295,000 16,685,938
Wolters Kluwer NV (Publishing) 64,100 8,383,919
------------------------
------------------------
45,807,872
------------------------
Singapore - 2.1%
Acer Computer International Ltd. (Computers) 610,000 359,900
Courts Ltd. (Retail) 907,500 352,455
Development Bank of Singapore (Financial) 1,019,700 6,761,509
Development Bank of Singapore - Class F (Financial) 185,400 1,205,949
------------------------
------------------------
8,679,813
------------------------
South Africa - 2.0%
LibLife Strategic Investments Ltd. (Diversified Holdings) 2,024,800 8,319,723
------------------------
Spain - 2.8%
Banco Intercontinental Espanol (Financial) 173,000 11,703,777
------------------------
Sweden - 4.3%
Investor AB - Class B (Holding Company) 313,400 17,715,834
------------------------
Switzerland - 15.2%
Abb Ag Namen (Engineering) 54,500 17,881,676
Nestle SA - ADR (Foods/Beverages) 199,900 19,391,040
Novartis AG (Pharmaceuticals) 6,485 10,657,781
Schweizerische Bankverein - Class R (Financial) 11,600 4,034,446
SGS Societe Generale de Surveillance Holding SA - Class R (Commercial Services) 30,050 10,591,722
--------------------
--------------------
62,556,665
-------------------
Thailand - 2.0%
Bangkok Bank Co. Ltd. (Financial) 1,680,000 4,221,762
The Siam Cement Co., Ltd. (Manufacturing/Distribution) 272,500 3,854,533
-------------------
-------------------
8,076,295
-------------------
United Kingdom - 13.5%
Glaxo Wellcome plc - ADR (Pharmaceuticals) 184,000 10,407,500
Pearson plc (Multimedia) 520,000 8,160,225
Railtrack Group plc (Transportation/Rail) 628,000 11,528,191
Rentokil Initial plc (Commercial Services) 2,266,000 14,784,970
Rio Tinto plc (Mining) 727,000 10,459,931
--------------------
55,340,817
--------------------
Total Common Stocks - (Cost - $347,776,291) 392,890,733
--------------------
Rights & Warrants - 0.0%
Atlantis Japan Growth Fund Rights expiring 4/30/10 (Japan)* 53,000 17,755
Acer Computer Int'l Ltd. Rights expiring 7/31/01 (Singapore)* 112,000 8,488
---------------------
Total (Cost - $43,680) 26,243
</TABLE>
Harding Loevner Funds, Inc.
===============================================================================
International Equity Portfolio - Statement of Net Assets (continued)
April 30, 1998 (unaudited)
===============================================================================
<TABLE>
<S> <C> <C>
Face Amount Value (1)
----------------------- --------------------
Total Long-Term Investments - (Cost - $347,819,971) $392,916,976
--------------------
Cash Equivalents - 3.8%
Investors Bank & Trust Company Repurchase Agreement, 5.06% due 5/1/98 in the
amount of $15,460,631; Issued 4/30/98 (collateralized by $8,545,000 par of
Federal Home Loan Bank, 6.3% due 12/30/02 with a market value of $8,708,381
and $7,551,954 par of Federal National Mortgage Association REMIC
93-156B,6.50%
due 4/25/18 with a market value of $7,523,001) (Cost - $15,458,458) $ 15,458,458 15,458,458
------------------------
Total Investments - 99.5% (Cost - $363,278,429)
408,375,434
------------------------
Other Assets Net of Liabilities - 0.7%
Foreign Cash (Cost - $79,832)
79,428
Other assets
3,107,080
Payable to Investment Adviser
(7,925)
Other liabilities
(348,841)
--------------------
2,829,742
--------------------
Net Assets - 100%
Applicable to 31,737,997 outstanding $.001 par value shares
(authorized 500,000,000 shares) $411,205,176
====================
Net Asset Value, Offering and Redemption Price Per Share $12.96
====================
Components of Net Assets as of April 30, 1998 were as follows:
Capital Stock at par value ($.001) 31,738
Capital Stock in excess if par value 366,934,625
Undistributed investment income, net 24,985
Accumulated net realized loss on investments and foreign currency-related
transactions (869,570)
Net unrealized appreciation in investments and on assets and liabilities
denominated
in foreign currencies
45,083,398
-------------------
===================
$411,205,176
===================
</TABLE>
* non-income producing security
ADR American Depositary Receipt
(1) See Note 2 to Financial Statements
See Notes to Financial Statements
Harding, Loevner Funds, Inc.
===============================================================================
Global Equity Portfolio - Statement of Net Assets
April 30, 1998 (unaudited)
===============================================================================
<TABLE>
<S> <C> <C>
Shares Value (1)
------------------------- --------------------
Long Term Investments - 98.2%
Common Stocks - 94.4%
Argentina - 0.7%
Quilmes Industrial SA (Foods/Beverages) $50,000 435,000
------------------------
Bermuda - 1.5%
PartnerRe Ltd. (Insurance) 20,000 1,001,250
------------------------
Canada - 1.8%
Royal Bank of Canada (Financial) 20,000 1,196,503
------------------------
France - 2.7%
Financiere et Industrielle Gaz et Eaux (Diversified Holdings) 3,500 1,758,297
------------------------
Germany - 4.3%
Bayer AG (Chemicals) 20,000 889,979
Deutsche Bank AG (Financial) 25,000 1,925,222
------------------------
------------------------
2,815,201
------------------------
Hong Kong - 6.1%
Hutchison Whampoa Ltd. (Diversified Holdings) 300,000 1,855,079
Johnson Electric Holdings Ltd. (Electrical Equipment) 300,000 1,016,614
Swire Pacific Ltd. - Class A (Diversified Holdings) 220,000 1,099,105
------------------------
3,970,799
------------------------
Ireland - 0.8%
CBT Group plc - ADR (Computers)* 10,000 508,750
------------------------
Japan - 4.8%
Atlantis Japan Growth Fund (Investment Company)* 100,000 393,500
Canon, Inc. (Office Equipment) 40,000 948,772
Hirose Electric (Electrical Equipment) 10,000 506,973
Mitsubishi Corp. (Distribution/Wholesale) 175,000 1,326,159
------------------------
------------------------
3,175,404
------------------------
Malaysia - 0.4%
Sime Darby Berhad (Financial) 262,000 232,732
------------------------
Mexico - 1.1%
Kimberly-Clark de Mexico SA de CV (Manufacturing) 150,000 727,632
------------------------
Netherlands - 5.5%
Royal Dutch Petroleum Co. - NY Shares (Oil/Gas) 45,000 2,545,313
Wolters Kluwer NV (Publishing) 8,000 1,046,354
------------------------
------------------------
3,591,667
------------------------
South Africa - 1.2%
LibLife Strategic Investments Ltd. (Diversified Holdings) 196,957 809,279
------------------------
Sweden - 3.0%
Investor AB - Class B (Holding Company) 35,000 1,978,475
</TABLE>
Harding, Loevner Funds, Inc.
===============================================================================
Global Equity Portfolio - Statement of Net Assets (continued)
April 30, 1998 (unaudited)
===============================================================================
<TABLE>
<S> <C> <C>
Shares Value (1)
------------------------- ---------------------
Switzerland - 8.7%
Abb Ag Namen (Engineering) 5,000 $ 1,640,521
Nestle SA - ADR (Foods/Beverages) 20,000 1,940,074
Schweizerische Bankverein - Class R (Financial) 2,000 695,594
SGS Societe Generale de Surveillance Holding SA - Class R (Commercial Services) 4,000 1,409,880
------------------------
------------------------
5,686,069
------------------------
Thailand - 2.0%
Bangkok Bank Co. Ltd. (Financial) 290,000 728,757
The Siam Cement Co., Ltd. (Manufacturing/Distribution) 40,000 565,803
------------------------
------------------------
1,294,560
------------------------
United Kingdom - 8.6%
Pearson plc (Multimedia) 75,000 1,176,956
Railtrack Group plc (Transportation/Rail) 60,000 1,101,420
Rentokil Initial plc (Commercial Services) 250,000 1,631,175
Rio Tinto plc (Mining) 120,000 1,726,535
------------------------
------------------------
5,636,086
------------------------
United States - 41.2%
Airgas, Inc. (Manufacturing/Distribution)* 50,000 775,000
Allied Capital Corp. (Investment Company) 98,080 2,550,080
AlliedSignal, Inc. (Aerospace/Defense) 35,000 1,533,438
Aspen Technologies, Inc. (Computers)* 15,000 733,125
Baxter International, Inc. (Medical Products) 30,000 1,663,125
Boeing Co. (Aerospace/Defense) 20,000 1,001,250
Colgate-Palmolive Co. (Consumer Products) 20,000 1,793,750
Deere & Co. (Manufacturing) 20,000 1,168,750
Dover Corp. (Manufacturing) 50,000 1,975,000
Exxon Corp. (Oil/Gas) 25,000 1,823,438
Federal National Mortgage Association (Financial) 45,000 2,694,375
Monsanto Co. (Agriculture)* 12,000 634,500
Pfizer, Inc. (Pharmaceuticals) 12,000 1,365,750
Schlumberger, Ltd. (Oil/Gas) 25,000 2,071,875
Thermo Electron Corp. (Manufacturing)* 45,000 1,791,562
Wellman, Inc. (Manufacturing) 25,000 565,624
Wisconsin Central Transportation Corp. (Transportation/Rail)* 45,000 1,102,500
Wrigley (WM) Jr. Co. (Foods/Confectionery) 20,000 1,780,000
------------------------
------------------------
27,023,142
------------------------
Total Common Stocks - (Cost - $42,368,719) 61,840,846
------------------------
Rights & Warrants - 0.0%
Atlantis Japan Growth Fund expiring 4/30/10 (Japan)* 16,000 5,360
Scania AB expiring 6/4/99 (Sweden)* 30,000 23,478
------------------------
------------------------
Total (Cost - $179,125)
28,838
------------------------
Fixed Income - 3.8% Face Amount
-------------------------
United States - 3.8%
J.P. Morgan & Co. (FRN), 2.772% due 2/15/12 $ 1,000,000 927,809
U.S. Treasury Note, 7.000% due 7/15/06 1,000,000 1,079,687
U.S. Treasury Note, 6.125% due 8/15/07 500,000 513,750
------------------------
Total Fixed Income - (Cost - $2,615,403)
2,521,246
------------------------
Face Amount Value (1)
------------------------- ----------------
Total Long-Term Investments - (Cost - $45,163,247) $ 64,390,930
========================
Cash Equivalents - 1.2%
Investors Bank & Trust Company Repurchase Agreement, 5.06% due 5/1/98 in the
amount of $760,260; Issued 4/30/98 (collateralized by $777,156 par of
Government National Mortgage Association #DO88717, 7.00% due 10/20/25
due 4/25/18 with a market value of $798,177) (Cost - $760,154) $ 760,154 760,154
------------------------
Total Investments - 99.4% (Cost - $45,923,401) 65,151,084
------------------------
Other Assets Net of Liabilities - 0.6%
Other assets 591,635
Payable to Investment Adviser (1,671)
Other liabilities (202,198)
------------------------
------------------------
387,766
------------------------
Net Assets - 100%
Applicable to 3,492,968 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 65,538,850
========================
Net Asset Value, Offering and Redemption Price Per Share
$ 18.76
========================
Components of Net Assets as of April 30, 1998 were as follows:
Capital Stock at par value ($.001) 3,493
Capital Stock in excess if par value 44,184,877
Accumulated distribution in excess of investment income, net (81,989)
Accumulated net realized gain on investments and foreign currency-related
transactions 2,203,852
Net unrealized appreciation in investments and on assets and liabilities
denominated
in foreign currencies 19,228,617
------------------------
========================
$ 65,538,850
========================
</TABLE>
non-income producing security
* non-income producing security
(1) See Note 2 to Financial Statements
ADR American Depositary Receipt
FRN Floating Rate Note
Harding, Loevner Funds, Inc.
=============================================================================
Multi-Asset Global Portfolio - Statement of Net Assets
April 30, 1998 (unaudited)
=============================================================================
<TABLE>
<S> <C> <C>
Shares Value
-------------- ------------------------
Long Term Investments - 95.1%
Common Stocks- 63.1%
Canada - 1.0%
Royal Bank of Canada (Financial) $ 1,100 65,808
------------------------
France - 3.9%
Financiere et Industrielle Gaz et Eaux (Diversified Holdings)
274 137,650
Michelin (CGDE) - Class B (Manufacturing)
1,800 113,452
------------------------
251,102
------------------------
Germany - 4.7%
Bayer AG (Chemicals)
2,500 111,247
Deutsche Bank AG (Financial)
2,500 192,523
------------------------
303,770
------------------------
Hong Kong - 4.1%
Dairy Farm International Holdings Ltd. (Retail/Manufacturing/Wholesale)
80,000 102,400
Hutchison Whampoa Ltd. (Diversified Holdings)
17,000 105,121
Swire Pacific Ltd. - Class A (Diversified Holdings)
12,000 59,951
------------------------
267,472
------------------------
Japan - 2.9%
Atlantis Japan Growth Fund (Investment Company)*
7,000 27,545
Canon, Inc. (Office Equipment)
3,000 71,158
Mitsubishi Corp. (Distribution/Wholesale)
12,000 90,937
------------------------
189,640
------------------------
Malaysia - 0.2%
Sime Darby Berhad (Financial)
15,000 13,324
------------------------
Netherlands - 3.7%
Royal Dutch Petroleum Co. - NY Shares (Oil/Gas)
3,200 181,000
Wolters Kluwer NV (Publishing)
450 58,857
------------------------
------------------------
239,857
------------------------
Singapore - 1.3%
Development Bank of Singapore (Financial)
11,000 72,940
Development Bank of Singapore - Class F (Financial)
2,000 13,009
------------------------
------------------------
85,949
------------------------
Sweden - 3.1%
Investor AB - Class B (Holding Company)
3,500 197,848
------------------------
Switzerland - 8.2%
Abb Ag Namen (Engineering)
500 164,052
Nestle SA - ADR (Foods/Beverages)
2,000 194,007
Schweizerische Bankverein - Class R (Financial)
200 69,559
SGS Societe Generale de Surveillance Holding SA - Class R (Commercial Services)
300 105,742
------------------------
------------------------
533,360
------------------------
</TABLE>
Harding, Loevner Funds, Inc.
===============================================================================
Multi-Asset Global Portfolio - Statement of Net Assets (continued)
April 30, 1998 (unaudited)
===============================================================================
<TABLE>
<S> <C> <C>
Shares Value (1)
------------- --------------------
Thailand - 0.5%
The Siam Cement Co., Ltd. (Manufacturing/Distribution) 2,400 $ 33,948
--------------------
United Kingdom - 2.7%
Rentokil Initial plc (Commercial Services) 11,000 71,771
Rio Tinto plc (Mining)
7,000 100,714
------------------------
------------------------
172,485
------------------------
United States - 26.8%
Allied Capital Corp. (Aerospace/Defense) 5,900 153,400
Boeing Co. (Aerospace/Defense) 2,200 110,138
Colgate-Palmolive Co. (Consumer Products) 2,400 215,250
Deere & Co. (Manufacturing) 1,700 99,344
Dover Corp. (Manufacturing) 3,000 118,500
Exxon Corp. (Oil/Gas) 2,900 211,519
Federal National Mortgage Association (Financial) 2,900 173,638
International Business Machines Corp. (Computers) 600 69,525
Johnson & Johnson (Medical Products) 1,800 128,475
Royce OTC Micro-Cap Trust, Inc. (Investment Company) 10,900 121,262
Schlumberger, Ltd. (Oil/Gas) 1,200 99,450
Thermo Electron Corp. (Manufacturing)* 3,000 119,437
Wisconsin Central Transportation Corp. (Transportation/Rail)* 1,600 39,200
Wrigley (WM) Jr. Co. (Foods/Confectionery) 900 80,100
------------------------
------------------------
1,739,238
------------------------
Total Common Stocks - (Cost - $3,298,168) 4,093,801
------------------------
Rights & Warrants - 0.0%
Atlantis Japan Growth Fund expiring 4/30/10 (Japan)* 400 134
Scania AB expiring 6/4/99 (Sweden)* 2,000 1,565
------------------------
------------------------
Total - (Cost - $2,711) 1,699
------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
Fixed Income - 32.0% Face Amount
----------------------
United Kingdom - 3.0%
UK Treasury Consols, 4.000% due 12/29/49 $ 50,000 54,758
United Kingdom Treasury, 7.000% due 6/7/02 GBP 80,000 138,149
------------------------
------------------------
192,907
------------------------
United States - 29.0%
Capital Cities/ABC, Inc., 8.750% due 8/15/21 $ 25,000 30,906
Comcast Corp., 10.625% due 7/15/12 100,000 125,000
GNMA, 8.000% due 8/15/07 13,666 14,174
GNMA, 7.000% due 6/15/09 108,375 110,882
GNMA, 8.500% due 5/15/18 16,381 17,267
GNMA, 9.500% due 9/20/20 9,830 10,545
GNMA, 7.500% due 6/15/27 142,472 146,301
GNMA, 7.000% due 4/15/28 150,000 151,782
GPA Delaware, Inc., 8.750% due 12/15/98 50,000 50,625
Rockefeller Center Property CVT, 0.000% due 12/31/00 250,000 185,000
U.S. Treasury Inflation Index Note, 3.375% due 1/15/07 150,000 148,432
U.S. Treasury Inflation Index Note 3.625% due 4/15/28 150,000 149,013
U.S. Treasury Note, 6.375% due 5/15/99 150,000 151,125
U.S. Treasury Note, 8.750% due 8/15/00 175,000 186,648
U.S. Treasury Note, 7.875% due 8/15/01 25,000 26,633
</TABLE>
<TABLE>
<S> <C> <C>
Face Amount Value (1)
---------------------- ---------------------
United States (continued)
U.S. Treasury Note, 7.000% due 7/15/06 $ 250,000 $ 269,922
U.S. West Cap Funding, Inc., 6.950% due 1/15/37 100,000 105,152
------------------------
------------------------
1,879,408
------------------------
Total Fixed Income - (Cost - $2,030,062) 2,072,315
------------------------
Total Long-Term Investments - (Cost - $5,330,941) 6,167,815
------------------------
Cash Equivalents - 4.3%
Investors Bank & Trust Company Repurchase Agreement, 5.06% due 5/1/98 in the
amount of $279,516; Issued 4/30/98 (collateralized by $280,356 par of
Federal Home Loan Mortgage Corp. ARM #845202, 7.77% due 10/01/22
with a market value of $293,501) (Cost - $279,477) 279,477 279,477
------------------------
Total Investments - 99.4% (Cost - $5,610,418) 6,447,292
------------------------
Other Assets Net of Liabilities - 0.6%
Foreign Cash (Cost - $1,044) 1,041
Other assets 68,560
Payable to Investment Adviser (4,776)
Other liabilities (26,345)
------------------------
------------------------
38,479
------------------------
Net Assets - 100%
Applicable to 541,198 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 6,485,771
========================
Net Asset Value, Offering and Redemption Price Per Share $11.98
========================
Components of Net Assets as of April 30, 1998 were as follows:
Capital Stock at par value ($.001) 541
Capital Stock in excess if par value 5,639,777
Accumulated net realized gain on investments and foreign currency-related
transactions 8,637
Net unrealized appreciation in investments and on assets and liabilities
denominated in foreign currencies 836,816
------------------------
========================
$ 6,485,771
========================
</TABLE>
* non-income producing security
(1) See Note 2 to Financial Statements
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
CVT Convertible Bond
GBP Great Britain Pound
GNMA Government National Mortgage Association
See Notes to Financial Statements
Harding, Loevner Funds, Inc.
==============================================================================
Statements of Operations
For the Six Months Ended April 30, 1998 (unaudited)
==============================================================================
<TABLE>
<S> <C> <C> <C>
International Equity Global Equity Multi-Asset Global
Portfolio Portfolio Portfolio
----------------------- ---------------------- -----------------
Investment Income
Interest $ 389,933 $ 126,557 $68,541
Dividends (net of withholding taxes of
$266,089, $22,148 and $2,451, respectively) 2,179,540 438,357 35,888
----------------------- ------------------ ------------------
Total investment income 2,569,472 564,914 104,429
----------------------- ------------------ ------------------
Expenses
Investment advisory fees 1,446,683 318,111 28,435
Administration fees 289,337 47,717 4,265
Custodian fees 164,695 24,007 5,567
Shareholder recordkeeping fees 23,445 9,400 1,786
Legal fees 15,000 1,111 445
Audit fees 10,250 10,250 10,250
Directors' fees and expenses 22,985 3,662 353
Insurance expense 9,235 1,511 133
State registration filing fees 18,715 4,779 4,736
SEC filing fees 3,874 3,116 284
Organizational costs 7,282 6,388 1,578
Other fees and expenses 16,182 4,238 919
----------------------- ------------------ ------------------
Total operating expenses 2,027,683 434,290 58,751
Waiver of investment advisory fee (98,823) (36,664) (23,207)
----------------------- ------------------ ------------------
Total expenses 1,928,860 397,626 35,544
----------------------- ------------------ ------------------
Investment income, net
640,613 167,288 68,885
----------------------- ------------------ ------------------
Realized and unrealized gain (loss) on investments
and foreign currency-related transactions
- ---------------------------------------------------
Net realized gain (loss) from investments (647,572) 2,236,057 (33,018)
Net realized gain (loss) from foreign currency-
related transactions (222,062) (32,189) 873
Net unrealized appreciation on investments 42,494,830 5,355,772 563,932
Net unrealized appreciation on translation of
assets and liabilities denominated in
foreign currencies 7,156 7,694 671
---------------------------- - ----------------- -----------------
Realized and unrealized gain on investments
and foreign currency-related transactions 41,632,352 7,567,334 532,458
---------------------------- ---------------- ------------------
Net increase in net assets
resulting from operations $ 42,272,965 $ 7,734,622 $ 601,343
============================ ======================== =================
</TABLE>
See Notes to Financial Statements
Harding, Loevner Funds, Inc.
===============================================================================
Statements of Changes in Net Assets
===============================================================================
<TABLE>
<S> <C> <C> <C>
International Equity Portfolio
---------------------------------------------------------------------
For the Six Months
Ended For the Ten Months For the Year
April 30, 1998 Ended Ended
(unaudited) October 31, 1997 October 31, 1996
---------------------- ----------------------- --------------------
Increase (Decrease) in Net Assets from Operations
Investment income, net $ 640,613 $ 3,800,579 $1,541,518
Net realized gain (loss) from investments and foreign
currency-related transactions (869,634) 1,673,631 2,679,097
Net unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities denominated in foreign currencies 42,501,986 (6,115,473) 4,804,186
------------------ ------------------- ---------------------------
Net increase (decrease) in net assets resulting
from operations 42,272,965 (641,263) 9,024,801
------------------ ------------------- ---------------------------
Distributions to Shareholders from:
Investment income, net 3,375,872 59,386 1,541,518
Excess of investment income, net
- - 649,872
Net realized gain from investments and foreign
currency-related transactions 2,200,300 - 2,144,787
------------------ ------------------- ---------------------------
Total distributions 5,576,172 59,386 4,336,177
------------------ ------------------- ---------------------------
Capital Share Transactions, Net (12,795,884) 146,647,680 168,942,060
------------------ ------------------- ---------------------------
Net increase in net assets 23,900,909 145,947,031 173,630,684
Net Assets
Beginning of period 387,304,267 241,357,236 67,726,552
------------------ ------------------- ---------------------------
End of period $ 411,205,176 $ 387,304,267 $ 241,357,236
================== =================== ===========================
Undistributed (Distributions in excess of)
Investment Income, Net $ 24,985 $ 2,760,244 $ (460,403)
================== =================== ===========================
</TABLE>
* Commencement of operations
See Notes to Financial Statements
Harding, Loevner Funds, Inc.
===============================================================================
Statements of Changes in Net Assets (continued)
===============================================================================
<TABLE>
<S> <C> <C> <C>
Global Equity Global Equity Multi-Asset Global Multi-Asset Global
Portfolio Portfolio Portfolio Portfolio
For the Six Months For the
Period From For the Six Months
For the Period From Ended April
30, 1998 December 1, 1996*
Ended April 30, 1998 November
1, 1996*
(unaudited) to October 31, 1997 (unaudited) to October 31, 1997
------------------- ------------------ ------------------------- -----------------
Increase (Decrease) in Net Assets from Operations
Investment income, net $ 167,288 $ 671,290 $ 68,885 $ 112,943
Net realized gain (loss) from investments and
foreign currency-related transactions 2,203,868 6,441,028 (32,145) 89,059
Net unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities denominated in foreign currencies 5,363,466 (2,623,299) 564,603 272,213
--------------- ------------------- ---------------- --------------------------
Net increase in net assets resulting
from operations 7,734,622 4,489,019 601,343 474,215
--------------- ------------------- ---------------- --------------------------
Distributions to Shareholders from:
Investment income, net 738,561 49,310 164,390 12,110
Excess of investment income, net 81,989 - - -
Net realized gain from investments and foreign
currency-related transactions 6,491,751 - 53,605 -
--------------- ------------------- ---------------- --------------------------
Total distributions 7,312,301 49,310 217,995 12,110
--------------- ------------------- ---------------- --------------------------
Capital Share Transactions, Net 234,395 60,442,425 927,193 4,713,125
--------------- ------------------- ---------------- --------------------------
Net increase in net assets 656,716 64,882,134 1,310,541 5,175,230
Net Assets
Beginning of period 64,882,134 - 5,175,230 -
--------------- ------------------- ---------------- --------------------------
End of period 65,538,850 $ 64,882,134 $ 6,485,771 $ 5,175,230
=============== =================== ================ ==========================
Undistributed (Distributions in excess of)
Investment Income, Net $ (81,989) $ 571,273 $ - $ 95,505
=============== =================== ================ ==========================
</TABLE>
* Commencement of operations
Harding, Loevner Funds, Inc.
===============================================================================
Financial Highlights
===============================================================================
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
International Equity Portfolio
-------------------------------------------------------------------------------
For the Six
Months Ended For the Year For the Ten For the Year For the Period
Apr. 30, 1998 Ended Months Ended Oct. Ended Ended
(unaudited) Oct. 31, 1997 31, 1996 Dec. 31, 1995 Dec. 31, 1994*
------------------ --------------- ----------------- ----------------------------
Per Share Data
Net asset value, beginning of period $11.79 $11.61 $10.77 $ 9.71 $ 10.00
Increase (Decrease) in Net Assets from
Operations
Investment income, net 0.08 0.13 0.08 0.10 0.04
Net realized and unrealized gain (loss) on
investments and foreign
currency-related transactions 1.27 0.05(d) 0.97 1.06 (0.29)
-------------- -------------- ---------------- ------------------------------
Net increase (decrease) from investment
operations 1.35 0.18 1.05 1.16 (0.25)
-------------- -------------- ---------------- ------------------------------
Distributions to Shareholders from:
Investment income, net 0.11 0.00(c) 0.08 0.10 0.03
Excess of investment income, net
- - 0.03 - -
Net realized gain from investments and
foreign currency-related transactions
0.07 - 0.10 - -
Excess of net realized gain on investments
and foreign currency-related
transactions
- - - - 0.01
-------------- -------------- ---------------- ------------------------------
Total distributions
0.18 - 0.21 0.10 0.04
-------------- -------------- ---------------- ------------------------------
Net asset value, end of period $12.96 $11.79 $11.61 $10.77 $9.71
============== ============== ================ ==============================
Total Return 13.35%(b) 1.57% 9.81%(b) 11.99% (2.47%)(b)
Ratios/Supplemental Data
Net assets, end of period (000's) $411,205 $387,304 $241,357 $67,727 $8,904
Ratio of net operating expenses to
average net assets 1.00%(a) 1.00% 1.00%(a) 0.99% 0.95%(a)
Ratio of investment income, net to
average net assets 0.33%(a) 1.29% 1.29%(a) 1.30% 1.13%(a)
Decrease reflected in above expense ratios
due to waiver of investment advisory
and administration fees, and reimbursement
of other expenses 0.05%(a) 0.14% 0.14%(a) 0.54% 1.33%(a)
Portfolio turnover 11%(b) 31% 17%(b) 28% 27%(b)
Average commission rate paid** $0.02 $0.04 $0.02 N/A N/A
</TABLE>
(a) Annualized
(b) Not Annualized
(c) Rounds to less than $0.01
(d) Includes the effect of net realized gains prior to a significant increase
in shares outstanding.
* Commencement of Operations was May 11, 1994
** For fiscal years beginning November 1, 1995, the Portfolio is required to
disclose its average commission rate per share for purchases and sales of
investment securities.
See Notes to Financial Statements
Harding, Loevner Funds, Inc.
===============================================================================
Financial Highlights (continued)
===============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Global Equity Portfolio Multi-Asset Global Portfolio
-------------------------------------------- ---------------------------------
For the Six For the Six
Months Ended For the Period From Months Ended For the Period
Apr. 30, 1998 Dec. 1, 1996* to Apr. 30, 1998 From Nov. 1, 1996**
(unaudited) Oct. 31, 1997 (unaudited) To Oct. 31, 1997
----------------- ------------------- ------------------- -------------------------
Per Share Data
Net asset value, beginning of period $18.70 $17.58 (a) $11.26 $10.00
Increase in Net Assets from Operations
Investment income, net 0.25 0.19 0.55 0.25
Net realized and unrealized gain on investments
and foreign currency-related transactions 2.00 0.94 0.63 1.04
------------- ------------------ --------------- --------------
Net increase from investment operations 2.25 1.13 1.18 1.29
------------- ------------------ --------------- --------------
Distributions to Shareholders from:
Investment income, net 0.25 0.01 0.46 0.03
Net realized gain from investments and
foreign currency-related transactions 1.94 - - -
------------- ------------------ --------------- --------------
Total distributions 2.19 0.01 0.46 1.26
------------- ------------------ --------------- --------------
Net asset value, end of period $18.76 $ 18.70 $ 11.98 $11.26
============= ================== =============== ==============
Total Return 13.24% (b) 6.45% (b) 10.80% (b) 12.92%
Ratios/Supplemental Data
Net assets, end of period (000's) $65,539 $64,882 $6,486 $5,175
Ratio of net operating expenses to
average net assets 1.25% (c) 1.25% (c) 1.25% (c) 1.25%
Ratio of investment income, net to
average net assets 0.53% (c) 1.05% (c) 2.42% (c) 2.50%
Decrease reflected in above expense ratios
due to waiver of investment advisory
and reimbursement of other expenses 0.11% (c) 0.12% (c) 0.82% (c) 0.92%
Portfolio turnover 15% (b) 39% (b) 9% (b) 36%
Average commission rate paid*** $0.04 $0.04 $0.03 $0.04
</TABLE>
(a) The beginning net asset value of the Portfolio was equal to the total Net
Asset Value, as converted, of the outstanding Partnership Units of Harding,
Loevner Management, L.P.'s - Global Equity Limited Partnership ("GELP") as
of November 30, 1996 (See Note 8 to Financial Statements).
(b) Not Annualized
(c) Annualized
* Commencement of Operations was December 1, 1996 following a tax free merger
with GELP which was formed on September 27, 1991.
** Commencement of Operations
*** Represents average commission rate paid per share for purchases and sales
of investment securities
Harding, Loevner Funds, Inc.
===============================================================================
Notes to Financial Statements
April 30, 1998 (unaudited)
===============================================================================
1. Organization
Harding, Loevner Funds, Inc. (the "Fund") was organized as a Maryland
corporation on July 31, 1996 and is registered under the Investment Company Act
of 1940, as amended, as an open-end diversified management investment company.
The Fund currently has four Portfolios, three of which were active as of April
30, 1998. The three active Portfolios are: International Equity Portfolio
("International Equity"); Global Equity Portfolio ("Global Equity"); and
Multi-Asset Global Portfolio ("Multi-Asset Global"). The investment objective of
each portfolio is as follows: International Equity - to seek long-term capital
appreciation through investments in equity securities of companies based outside
the United States; Global Equity to seek long-term capital appreciation through
investments in equity securities of companies based both in and outside the
United States and; Multi-Asset Global - to seek long-term capital appreciation
and a growing stream of income through investments in equity and debt securities
of companies based both in and outside the United States and debt securities of
the United States and foreign governments and their agencies and
instrumentalities.
International Equity, previously the HLM International Equity Portfolio of the
AMT Capital Fund, Inc. (the "AMT Capital Portfolio"), commenced investment
operations on May 11, 1994. Effective as of the close of business on October 31,
1996, the AMT Capital Portfolio merged into International Equity pursuant to
shareholder approval of the tax-free reorganization. Global Equity commenced
operations on December 1, 1996 following the acquisition of net assets of
Harding, Loevner Management, L.P.'s - Global Equity L. P. ("GELP"), a limited
partnership, in a tax free reorganization. Multi-Asset Global commenced
operations on November 1, 1996. The Fund is managed by Harding, Loevner
Management, L.P. (the "Investment Adviser").
2. Summary of Significant Accounting Policies
Securities
All securities transactions are recorded on a trade date basis. Interest income
and expenses are recorded on an accrual basis. Dividend income is recorded on
the ex-dividend date. The Fund amortizes discount or accretes premium on a daily
basis to interest income. The Fund uses the specific identification method for
determining gain or loss on sales of securities.
Income Tax
It is the policy of each Portfolio of the Fund to qualify as a regulated
investment company, if such qualification is in the best interest of its
shareholders, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of taxable income sufficient to relieve
it from substantially all Federal income and excise taxes.
Valuation
All investments in the Fund are valued daily at their market price, which
results in unrealized gains or losses. Securities traded on an exchange are
valued at their last sales price on that exchange. Securities for which no sales
are reported are valued at the latest bid price obtained from a quotation
reporting system or from established market makers. Repurchase agreements are
valued at their amortized cost plus accrued interest. Securities for which
market quotations are not readily available are valued by the Board of
Directors. As of April 30, 1998, there were no securities in the Fund which
required valuation by the Board of Directors.
Expenses
Expenses directly attributed to a specific Portfolio of the Fund are charged to
that Portfolio's operations; expenses not directly attributable to a specific
Portfolio are allocated among the Portfolios either equitably or based on their
average daily net assets.
Dividends to Shareholders
It is the policy of the Fund to declare dividends from net investment income
annually. Net short-term and long-term capital gains distributions for the
Portfolios, if any, normally are distributed on an annual basis.
Dividends from net investment income and distributions from net realized gains
from investment transactions have been determined in accordance with income tax
regulations and may differ from net investment income and realized gains
recorded by the Portfolios for financial reporting purposes. Differences result
primarily from foreign currency transactions and timing differences related to
recognition of income, and gains and losses from investment transactions. To the
extent that any differences which are permanent in nature result in
overdistributions to shareholders, the amount of the overdistribution is
reclassified within the capital accounts based on its federal tax basis
treatment. Temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
distributions in excess of net investment income and net realized capital gains,
respectively. To the extent that they exceed net investment income and net
realized gains for tax purposes, they are reported as returns of capital.
Harding, Loevner Funds, Inc.
===============================================================================
Notes to Financial Statements (continued)
April 30, 1998 (unaudited)
===============================================================================
2. Summary of Significant Accounting Policies (continued)
Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rates of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at exchange rates prevailing when accrued. The Fund does
not isolate that portion of the results of operations resulting from changes in
foreign exchange rates on investments from the fluctuations arising from changes
in market prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
Net realized gains and losses from foreign currency-related transactions arise
from sales of foreign currency, currency gains or losses realized between the
trade and settlement dates on securities transactions, and the difference
between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Portfolio's books, and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized appreciation or depreciation on
translation of assets and liabilities denominated in foreign currencies arise
from changes in the value of assets and liabilities other than investments in
securities at the period end, resulting from changes in the exchange rate.
Estimates
The preparation of financial statements in accordance with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
3. Investment Advisory Agreement and Affiliated Transactions
The Fund's Board of Directors has approved investment advisory agreements (the
"Agreements") with the Investment Adviser. In addition, the Fund has an
administration agreement with Investors Capital Services, Inc. (formerly AMT
Capital Services, Inc.), which assists in managing and supervising all aspects
of the Portfolios other than investment advisory activities. The advisory fee
and administration fees are computed daily at an annual rate of .75% and .15%,
respectively, of the average daily net assets of International Equity, and 1.00%
and .15%, respectively, for each of Global Equity and Multi-Asset Global. The
Investment Adviser has voluntarily agreed to reduce its fee to the extent that
aggregate expenses (exclusive of brokerage commissions, other investment
expenses, interest on borrowings, taxes and extraordinary expenses) exceed an
annual rate of 1.00%, 1.25%, and 1.25%, respectively, of the average daily net
assets of International Equity, Global Equity and Multi-Asset Global.
Directors' fees of $27,000 were accrued for the period ended April 30, 1998 to
directors who are not employees of the Investment Adviser.
4. Investment Transactions
Purchase cost and proceeds from sales of investment securities, other than
short-term investments, for the periods ended April 30, 1998 were as follows for
each of the Portfolios:
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
Purchase Cost of Proceeds from Sales of
Portfolio Investment Securities Investment Securities
- ----------------------------------------------------------------------------------------------------
International Equity $ 43,052,158 $ 62,924,037
Global Equity 9,804,867 17,847,420
Multi-Asset Global 1,150,341 485,212
</TABLE>
The cost of investments for Federal income tax purposes and the components of
net unrealized appreciation on investments at April 30, 1998 for each of the
Portfolios were as follows:
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Unrealized Unrealized
Portfolio Appreciation Depreciation Net
- ------------------------------------------------------------------------------------------------------------------------
International Equity $ 75,766,508 $ 30,669,503 $ 45,097,005
Global Equity 22,010,931 2,783,248 19,227,683
Multi-Asset Global 977,384 140,510 836,874
</TABLE>
5. Forward Foreign Exchange Contracts
The Portfolios, on occasion, enter into forward foreign exchange contracts in
order to hedge their exposure to changes in foreign currency exchange rates on
their foreign portfolio holdings. A forward foreign exchange contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference between
the cost of the original contracts and the closing of such contracts is included
in net realized gains or losses on foreign currency-related transactions.
Fluctuations in the value of forward foreign exchange contracts are recorded for
book purposes as unrealized appreciation or depreciation on assets and
liabilities denominated in foreign currencies by the Portfolio. The Portfolios
are also exposed to credit risk associated with counter party nonperformance on
these forward foreign exchange contracts which is typically limited to the
unrealized gain on each open contract.
At April 30, 1998, International Equity had the following outstanding forward
foreign exchange contracts:
<TABLE>
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
Contract Unrealized
Amount Currency Proceeds Value (Depreciation)
- -------------------------------------------------------------------------------
Forward Foreign Exchange Sell Contracts
11,419 Australian Dollar closing 5/4/98 $ 7,404 $ 7,454 $ (50)
=======================
</TABLE>
The Portfolios enter into foreign currency transactions on the spot markets in
order to pay for foreign investment purchases or to convert to dollars the
proceeds from foreign investment sales or coupon interest receipts. There were
no open foreign currency transactions to buy or sell currency on the spot
markets as of April 30, 1998.
6. Capital Share Transactions
Transactions in capital stock for International Equity were as follows for the
periods indicated:
<TABLE>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 1998 October 31, 1997
------------------------------------- ---------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------
Shares 1,896,664 $ 23,022,943 15,892,968 $ 194,937,235
sold
Shares issued related to
reinvestment of dividends 356,184 4,099,676 3,525 43,005
---------------------------------------------------------------------------
2,252,848 27,122,619 15,896,493 194,980,240
Shares redeemed 3,352,487 39,918,503 3,843,988 48,332,560
------------------------------------- ---------------------------------
Net increase (1,099,639) $ (12,795,884) 12,052,505 $ 146,647,680
===================================== =================================
</TABLE>
Transactions in capital stock for Global Equity were as follows for the period
indicated:
<TABLE>
<S> <C> <C> <C> <C>
Six Months Ended December 1, 1996*
April 30, 1998 to October 31, 1997
-----------------------------------------------------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------------------------
Shares issued related to acquisition of GELP - $ - 3,866,979 $ 67,977,294
Shares sold 39,944 209,562 3,734,452
702,193
Shares issued related to reinvestment
of dividends 414,700 7,049,904 2,220 38,964
------------------------------------------------------------------------
454,644 7,752,097 4,078,761 71,750,710
Shares redeemed 432,129 7,517,702 608,308 11,308,285
Net increase 22,515 $ 234,395 3,470,453 $ 60,442,425
=============================================================================
</TABLE>
* Commencement of Operations
6. Capital Share Transactions (continued)
Transactions in capital stock for Multi-Asset Global were as follows for the
period indicated:
<TABLE>
<S> <C> <C> <C> <C>
Six Months Ended November 1, 1996*
April 30, 1998 to October 31, 1997
----------------------------------------------------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------------
Shares sold 75,831 $ 861,816 458,497 $ 4,701,866
Shares issued related to reinvestment
of dividends 19,604 217,995 1,170 12,110
------------------------------------------------------------------------
95,435 1,079,811 459,667 4,713,976
Shares redeemed 13,824 152,618 80 851
Net increase 81,611 $ 927,193 459,587 $ 4,713,125
========================================================================
</TABLE>
* Commencement of Operations
7. Repurchase and Reverse Repurchase Agreements
Each Portfolio may enter into repurchase agreements under which a bank or
securities firm that is a primary or reporting dealer in U.S. Government
securities agrees, upon entering into a contract, to sell such securities to a
Portfolio and repurchase such securities from such Portfolio at a mutually
agreed upon price and date.
Each Portfolio also is permitted to enter into reverse repurchase agreements
under which a primary or reporting dealer in U.S. Government securities
purchases securities from a Portfolio and such Portfolio agrees to repurchase
the securities at an agreed upon price and date.
Each Portfolio may engage in repurchase and reverse repurchase transactions with
parties selected on the basis of such party's creditworthiness. Securities
purchased subject to repurchase agreements must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Portfolio will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Portfolio maintains the right to sell the underlying securities
at market value and may claim any resulting loss against the seller. When a
Portfolio engages in reverse repurchase agreement transactions, such Portfolio
will maintain, in a segregated account with its custodian, liquid securities
equal in value to those subject to the agreement.
8. Fund Mergers and Acquisitions
Effective as of the close of business on October 31, 1996, International Equity
received the net assets of the AMT Capital Portfolio pursuant to an Agreement
and Plan of Reorganization dated October 14, 1996. The shareholders of the AMT
Capital Portfolio approved the tax-free reorganization on October 30, 1996. All
assets and liabilities of the AMT Capital Portfolio were transferred to
International Equity. Prior to the reorganization, International Equity had no
operations.
Effective as of the close of business on November 30, 1996, Global Equity
acquired the net assets of GELP pursuant to approval of a tax-free
reorganization by the Limited Partners of GELP. The acquisition was accomplished
by a tax-free exchange of 38,670 units of GELP for 3,866,979 shares of Global
Equity, in a 1:100 exchange on November 30, 1996. The aggregate net assets of
GELP and Global Equity immediately before the acquisition were $67,977,294 (of
which $16,488,450 represented unrealized appreciation) and $0, respectively.
Immediately after the acquisition, the combined net assets amounted to
$67,977,294.
Officers & Directors and Other Pertinent Information
Officers and Directors
James C. Brady III
Director of the Fund
Jane A. Freeman
Director of the Fund
Samuel R. Karetsky
Director of the Fund
Carl W. Schafer
Director of the Fund
David R. Loevner
President and Director
of the Fund
William E. Vastardis
Secretary and Treasurer
of the Fund
Richard Reiter
Assistant Secretary
of the Fund
Carla E. Dearing
Assistant Treasurer
of the Fund
Investment adviser
Harding, Loevner Management, L.P.
50 Division Street, Suite 401
Somerville, NJ 08876
Administrator
Investors Capital Services, Inc.
600 Fifth Avenue, 26th Floor
New York, NY 10020
Distributor
AMT Capital Securities, L.L.C.
600 Fifth Avenue, 26th Floor
New York, NY 10020
Custodian and Fund
Accounting Agent
Investors Bank & Trust Company
P.O. Box 9130
Boston, MA 02117
Transfer and Dividend
Disbursing Agent
Investors Bank & Trust Company
P.O. Box 9130
Boston, MA 02117
Legal Counsel
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
Independent Auditors
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018170
<NAME> HARDING, LOEVNER FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> INTERNATIONAL EQUITY PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 363278
<INVESTMENTS-AT-VALUE> 408375
<RECEIVABLES> 2413
<ASSETS-OTHER> 773
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 411561
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 356
<TOTAL-LIABILITIES> 356
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 366967
<SHARES-COMMON-STOCK> 31738
<SHARES-COMMON-PRIOR> 32838
<ACCUMULATED-NII-CURRENT> 25
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (870)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 45083
<NET-ASSETS> 411205
<DIVIDEND-INCOME> 2179
<INTEREST-INCOME> 390
<OTHER-INCOME> 0
<EXPENSES-NET> 1928
<NET-INVESTMENT-INCOME> 641
<REALIZED-GAINS-CURRENT> (870)
<APPREC-INCREASE-CURRENT> 42502
<NET-CHANGE-FROM-OPS> 42273
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3376
<DISTRIBUTIONS-OF-GAINS> 2200
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1897
<NUMBER-OF-SHARES-REDEEMED> 3353
<SHARES-REINVESTED> 356
<NET-CHANGE-IN-ASSETS> 23901
<ACCUMULATED-NII-PRIOR> 2760
<ACCUMULATED-GAINS-PRIOR> 2200
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1447
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2027
<AVERAGE-NET-ASSETS> 388979
<PER-SHARE-NAV-BEGIN> 11.79
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 1.27
<PER-SHARE-DIVIDEND> (0.11)
<PER-SHARE-DISTRIBUTIONS> (0.07)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.96
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018170
<NAME> HARDING, LOEVNER FUNDS, INC.
<SERIES>
<NUMBER> 2
<NAME> GLOBAL EQUITY PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 45923
<INVESTMENTS-AT-VALUE> 65151
<RECEIVABLES> 540
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