<PAGE>
HARDING . LOEVNER HARDING, LOEVNER FUNDS, INC.
SEMI-ANNUAL REPORT
APRIL 30, 2000
Portfolios managed by
Harding, Loevner Management, L.P.
INTERNATIONAL EQUITY PORTFOLIO
GLOBAL EQUITY PORTFOLIO
MULTI-ASSET GLOBAL PORTFOLIO
EMERGING MARKETS PORTFOLIO
P.O. Box 9130
Boston, MA 02117-9130
Telephone: 877-435-8105
Fax: 617-927-8400
<PAGE>
HARDING, LOEVNER FUNDS, INC.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
June 22, 2000
Dear Shareholder:
Enclosed is the Semi-Annual Report to Shareholders for the six-month fiscal
period ended April 30, 2000, as required by regulation.
Our regular quarterly narrative discussing developments in the calendar quarter
ended June 30, 2000 will be sent to you shortly.
Sincerely,
/s/ David R. Loevner
David R. Loevner
President
<PAGE>
HARDING, LOEVNER FUNDS, INC.
-------------------------------------------------------------------------------
TABLE OF CONTENTS
-------------------------------------------------------------------------------
Statements of Net Assets
International Equity Portfolio ................................... 1
Global Equity Portfolio .......................................... 5
Multi-Asset Global Portfolio ..................................... 9
Emerging Markets Portfolio ....................................... 14
Statements of Operations .............................................. 18
Statements of Changes in Net Assets ................................... 19
Financial Highlights .................................................. 21
Notes to Financial Statements ......................................... 25
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM INVESTMENTS - 98.8%
COMMON STOCKS - 98.8%
AUSTRALIA - 2.3%
Rio Tinto Ltd. (Diversified Metal Producers) 563,000 $ 8,363,482
--------------------
CANADA - 3.1%
Imperial Oil Ltd. (Integrated International Oil Producers) 315,330 7,410,255
Nortel Networks Corp. (Telecommunications)* 33,500 3,793,875
--------------------
11,204,130
--------------------
DENMARK - 2.4%
ISS A/S (Service Organizations) 82,700 5,230,918
Ratin A/S - Class B (Service Organizations) 34,900 3,311,228
--------------------
8,542,146
--------------------
FRANCE - 8.3%
Air Liquide (Industrial Chemicals & Gases Manufacturers) 51,500 6,721,393
Carrefour SA (Miscellaneous Retailers) 48,300 3,151,876
Compagnie Generale d' Industrie et de Participations (General Diversified) 199,398 9,404,597
Societe BIC SA (General Diversified) 91,600 3,656,610
Suez Lyonnaise des Eaux SA (Water Companies) 43,100 6,776,031
--------------------
29,710,507
--------------------
GERMANY - 3.8%
Allianz AG (Insurance Companies) 21,330 8,232,909
Deutsche Bank AG (Commercial Banks) 82,400 5,519,803
--------------------
13,752,712
--------------------
HONG KONG - 7.2%
Dairy Farm International Holdings Ltd. (Miscellaneous Retailers) 2,461,500 1,563,053
Hutchison Whampoa Ltd. (General Diversified) 776,000 11,308,177
Johnson Electric Holdings (Diversified Electrical Manufacturers) 690,148 5,560,207
Li & Fung Ltd. (Wholesalers) 1,934,000 7,474,084
--------------------
25,905,521
--------------------
IRELAND - 3.7%
Elan Corp. plc - ADR (Ethical Drug Manufacturers)* 85,100 3,648,662
SmartForce plc - ADR (Electronic Data Processing Equipment)* 198,080 9,458,320
--------------------
13,106,982
--------------------
</TABLE>
See Notes to Financial Statements
1
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY - 2.2%
Luxottica Group SpA- ADR (Miscellaneous Retailers) 328,000 $ 7,831,000
--------------------
JAPAN - 19.3%
Asatsu-DK Inc. (Advertising Agencies) 214,000 8,827,599
Atlantis Japan Growth Fund (Mutual Funds)* 436,400 4,974,960
Canon, Inc. (Business Machines & Office Equipment) 187,000 8,544,025
Fuji Bank (Banking) 633,000 5,269,145
Fujitsu Ltd. (Computer Software & Processing) 292,000 8,264,151
Hirose Electronics Co., Ltd. (Parts & Components) 39,700 4,795,431
Mitsubishi Corp. (Wholesalers) 547,000 4,755,642
NTT Mobile Communications (Telecommunications) 398 13,288,753
Sony Corp. - ADR (Radio, TV, & Phonograph Manufacturers) 46,400 10,469,000
--------------------
69,188,706
--------------------
MEXICO - 3.6%
Grupo Televisa SA - GDR (Radio & TV Broadcasters)* 67,820 4,302,331
Telefonos de Mexico SA - Class L, ADR (Telecommunications) 74,660 4,390,941
Wal-Mart de Mexico SA de CV - ADR* (Discount Stores) 187,700 4,346,926
--------------------
13,040,198
--------------------
NETHERLANDS - 10.7%
Getronics NV (Systems & Subsystems) 64,200 3,838,379
IHC Caland NV (Shipbuilding) 180,530 7,321,809
ING Groep NV (Insurance Companies) 124,400 6,804,957
Royal Dutch Petroleum Co. - NY Shares (Holding Companies) 189,600 10,878,300
Unilever NV (Diversified Food) 90,000 4,098,019
Wolters Kluwer NV (Miscellaneous Printing & Publishing) 225,980 5,346,674
--------------------
38,288,138
--------------------
SINGAPORE - 4.4%
DBS (Commercial Banks) 813,000 11,192,443
Singapore Press Holdings (Newspaper Publishers) 236,000 4,617,692
--------------------
15,810,135
--------------------
SWEDEN - 6.7%
Investor AB - Class B (Miscellaneous Companies)* 588,000 8,279,839
Securitas AB - B Shares (Service Organizations) 283,400 7,347,877
Telefonaktiebolaget LM Ericsson - ADR (Miscellaneous Electronics) 93,000 8,224,688
--------------------
23,852,404
--------------------
</TABLE>
See Notes to Financial Statements
2
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND - 7.5%
ABB Ltd. (Power Transmission Equipment) 78,753 $ 8,862,289
Nestle SA - ADR (Diversified Food) 62,800 5,548,217
Novartis AG (Diversified Drugs, Cosmetics, & Health Care) 6,165 8,637,095
Union Bank of Switzerland AG (Commercial Banks) 15,099 3,709,990
--------------------
26,757,591
--------------------
TAIWAN - 2.2%
Taiwan Semiconductor (Parts & Components)* 1,224,628 7,904,709
--------------------
UNITED KINGDOM - 11.4%
British Telecommunications plc (Telecommunications) 160,000 2,880,262
Close Brothers Group plc (Investment Companies) 96,000 1,493,933
Glaxo Wellcome plc - ADR (Ethical Drug Manufacturers) 133,200 8,366,625
Invensys plc (Supplies & Distributors) 1,693,400 8,103,531
Pearson plc (Miscellaneous Printing & Publishing) 188,900 6,168,977
Railtrack Group plc (Other Transportation) 481,751 6,064,496
Rentokil Initial plc (Service Organizations) 1,405,500 3,861,443
Unilever plc (Diversified Food) 30,400 182,483
WPP Group plc (Advertising Agencies) 231,500 3,706,569
--------------------
40,828,319
--------------------
Total Common Stocks (Cost $261,189,470) 354,086,680
--------------------
<CAPTION>
Face
Amount
CASH EQUIVALENT - 0.4% ------------
<S> <C> <C>
Investors Bank & Trust Company Repurchase Agreement, 4.940% due 05/01/2000 in
the amount of $1,372,043; issued 04/28/2000 (collateralized by $1,382,852 par
of FNMA - ARM, 6.894% due 11/01/2022 with a market value of $1,440,130)
(Cost $1,371,478) $1,371,478 1,371,478
------------- --------------------
TOTAL INVESTMENTS - 99.2% (COST - $262,560,948) $ 355,458,158
--------------------
</TABLE>
See Notes to Financial Statements
3
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
---------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER ASSETS, NET OF LIABILITIES - 0.8%
Foreign cash (cost $1,894,109) $ 1,777,639
Receivable for securities sold 4,844,307
Tax reclaim receivable 516,501
Dividends receivable 508,332
Other assets 34,117
Payable for securities purchased (4,498,131)
Payable to Investment Adviser (222,458)
Other liablities (123,796)
--------------------
2,836,511
--------------------
NET ASSETS - 100.0%
Applicable to 21,429,547 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 358,294,669
====================
Net Asset Value, Offering and Redemption Price Per Share $ 16.72
====================
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2000 WERE AS FOLLOWS:
Paid-in capital $ 237,973,144
Distributions in excess of investment income, net (3,103,158)
Undistributed net realized gain on investment and foreign curreny related
transactions 30,705,592
Net unrealized appreciation on investments and on assets and liabilities
denominated in foreign currencies 92,719,091
--------------------
$ 358,294,669
====================
</TABLE>
SUMMARY OF ABBREVIATIONS
ADR - American Depositary Receipt
ARM - Adjustable Rate Mortgage
FNMA - Federal National Mortgage Association
GDR - Global Depositary Receipt
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
4
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM INVESTMENTS - 97.6%
COMMON STOCKS - 97.6%
AUSTRALIA - 1.7%
Rio Tinto Ltd. (Diversified Metal Producers) 30,000 $ 445,656
--------------------
DENMARK - 1.8%
Ratin A/S - Class B (Service Organizations) 5,000 474,388
--------------------
FRANCE - 4.6%
AXA (Insurance Companies) 2,000 297,299
Compagnie Generale d' Industrie et de Participations (General Diversified) 9,570 451,369
Societe BIC SA (General Diversified) 5,000 199,597
Suez Lyonnaise des Eaux SA (Water Companies) 1,500 235,825
--------------------
1,184,090
--------------------
HONG KONG - 5.9%
Hutchison Whampoa Ltd. (General Diversified) 50,000 728,620
Johnson Electric Holdings (Diversified Electrical Manufacturers) 40,000 322,262
Li & Fung Ltd. (Wholesalers) 120,000 463,749
--------------------
1,514,631
--------------------
IRELAND - 2.2%
SmartForce plc - ADR (Electronic Data Processing Equipment)* 12,000 573,000
--------------------
ITALY - 0.9%
Luxottica Group SpA - ADR (Miscellaneous Retailers) 10,000 238,750
--------------------
JAPAN - 7.8%
Asatsu Inc. (Advertising Agencies) 4,000 165,002
Atlantis Japan Growth Fund (Mutual Funds)* 25,000 285,000
Fuji Bank (Banking) 15,000 124,861
Fujitsu Ltd. (Computer Software & Processing) 20,000 566,038
Mitsubishi Corp. (Wholesalers) 50,000 434,702
Sony Corp. - ADR (Radio, TV, & Phonograph Manufacturers) 2,000 451,250
--------------------
2,026,853
--------------------
MEXICO - 3.7%
Grupo Televisa SA - GDR (Radio & TV Broadcasters)* 5,000 317,187
Telefonos de Mexico SA - Class L, ADR (Telecommunications) 6,000 352,875
Wal-Mart de Mexico SA de CV - ADR (Discount Stores)* 12,800 296,434
--------------------
966,496
--------------------
</TABLE>
See Notes to Financial Statements
5
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS - 5.4%
Getronics NV (Systems & Subsystems) 5,000 $ 298,939
Royal Dutch Petroleum Co. - NY Shares (Holding Companies) 10,000 573,750
Unilever NV (Diversified Food) 6,100 277,755
Wolters Kluwer NV (Miscellaneous Printing & Publishing) 10,000 236,599
--------------------
1,387,043
--------------------
SINGAPORE - 1.9%
Jardine Strategic Holdings Ltd. (General Diversified) 200,000 492,000
--------------------
SWEDEN - 4.5%
Investor AB - Class B (Miscellaneous Companies)* 45,000 633,661
Telefonaktiebolaget LM Ericsson - ADR (Miscellaneous Electronics) 6,100 539,469
--------------------
1,173,130
--------------------
SWITZERLAND - 3.1%
ABB Ltd. (Power Transmission Equipment) 3,984 448,330
Nestle SA - ADR (Diversified Food) 4,000 353,390
--------------------
801,720
--------------------
TAIWAN - 1.3%
Taiwan Semiconductor (Parts & Components)* 53,711 346,693
--------------------
UNITED KINGDOM - 3.5%
Pearson plc (Miscellaneous Printing & Publishing) 10,400 339,637
Rentokil Initial plc (Service Organizations) 30,000 82,421
Standard Chartered plc (Other Financial Services) 15,000 209,160
WPP Group plc (Advertising Agencies) 17,100 273,790
--------------------
905,008
--------------------
UNITED STATES - 49.3%
Air Products & Chemicals, Inc. (Industrial Chemicals & Gases Manufacturers) 8,000 248,500
Allied Capital Corp. (Commercial Finance Companies) 27,301 510,187
American International Group (Insurance Companies) 5,000 548,437
Baxter International, Inc. (Ethical Drug Manufacturers) 7,000 455,875
Berkshire Hathaway, Inc., Class A (Insurance Companies)* 5 296,500
Bristol-Myers Squibb Co. (Ethical Drug Manufacturers) 4,900 256,944
CBS Corp. (Radio & TV Broadcasters)* 9,000 528,750
</TABLE>
See Notes to Financial Statements
6
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Colgate-Palmolive Co. (Cosmetics & Toiletries) 9,000 $ 514,125
Enron Corp. (Crude Oil & Natural Gas Producers) 10,000 696,875
Exxon Mobil Corp. (Integrated International Oil Producers) 5,400 419,512
Federal National Mortgage Association (Other Financial Services) 5,000 301,563
Hewlett-Packard Company (Electronic Data Processing Equipment) 2,000 270,000
Honeywell International Inc. (Government & Defense Electronic Equipment) 8,300 464,800
Intel Corp. (Electronic Data Processing Equipment) 4,400 557,975
International Business Machines Corp. (Electronic Data Processing Equipment) 5,000 558,125
Oracle Corp. (Computer Software & Processing)* 12,000 959,250
Pfizer, Inc. (Ethical Drug Manufacturers) 19,000 800,375
Quanta Services, Inc. (Engineering & Contracting Services)* 7,500 348,281
Quintiles Transnational Corp. (Medical Services)* 20,000 286,250
Schlumberger Ltd. (Exploration, Drilling Service & Equipment) 9,000 689,062
ServiceMaster Company (Service Organizations) 20,000 272,500
Sun Microsystems, Inc. (Electronic Data Processing Equipment)* 6,000 551,625
Tyco International Ltd. (Diversified Electrical Manufacturers) 12,000 551,250
US West, Inc. (Telecommunications) 7,000 498,313
Wells Fargo & Co. (Commercial Banks) 10,000 410,625
Wisconsin Central Transportation Corp. (Railroad Holding Companies)* 15,000 218,437
WorldCom, Inc. (Telecommunications)* 6,000 272,625
Wrigley (WM.) Jr. Co. (Confectionary Goods) 4,000 289,500
--------------------
12,776,261
--------------------
Total (Cost $19,361,953) 25,305,719
--------------------
<CAPTION>
CASH EQUIVALENT - 2.0%
Investors Bank & Trust Company Repurchase Agreement, 4.940%
due 05/01/2000 in the amount of $509,596; issued 04/28/2000 (collateralized FACE
by $514,331 par of FNMA - ARM, 7.584% due 01/01/2023 with a market AMOUNT
value of $534,857) (Cost $509,386) -----------
$ 509,386 509,386
--------------------
TOTAL INVESTMENTS - 99.6% (COST - 19,871,339) $ 25,815,105
--------------------
</TABLE>
See Notes to Financial Statements
7
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
---------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER ASSETS, NET OF LIABILITIES - 0.4%
Receivable for securities sold $ 330,971
Receivable from Investment Adviser 29,328
Other assets 75,262
Payable for securities purchased (257,214)
Other liablities (67,246)
--------------------
111,101
--------------------
NET ASSETS - 100.0%
Applicable to 1,159,560 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 25,926,206
====================
Net Asset Value, Offering and Redemption Price Per Share $ 22.36
====================
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2000 WERE AS FOLLOWS:
Paid-in capital $ 17,929,923
Distributions in excess of investment income, net (156,773)
Undistributed net realized gain on investment and foreign curreny related transactions 2,218,932
Net unrealized appreciation on investments and on assets and liabilities
denominated in foreign currencies 5,934,124
--------------------
25,926,206
====================
</TABLE>
SUMMARY OF ABBREVIATIONS
ADR - American Depositary Receipt
ARM - Adjustable Rate Mortgage
FNMA - Federal National Mortgage Association
GDR - Global Depositary Receipt
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
8
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
MULTI-ASSET GLOBAL PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM INVESTMENTS - 98.7%
COMMON STOCKS - 68.4%
FRANCE - 2.9%
AXA (Insurance Companies) 350 $ 52,027
Compagnie Generale d' Industrie et de Participations (General Diversified) 1,540 72,634
Societe BIC SA (General Diversified) 1,050 41,915
Suez Lyonnaise des Eaux SA (Water Companies) 300 47,165
--------------------
213,741
--------------------
HONG KONG - 2.5%
Hutchison Whampoa Ltd. (General Diversified) 7,000 102,007
Li & Fung Ltd. (Wholesalers) 22,000 85,021
--------------------
187,028
--------------------
IRELAND - 1.1%
SmartForce plc - ADR (Electronic Data Processing Equipment)* 1,700 81,175
--------------------
JAPAN - 6.3%
Asatsu-DK, Inc. (Advertising Agencies) 1,000 41,250
Atlantis Japan Growth Fund (Mutual Funds)* 10,000 114,000
Fuji Bank (Banking) 3,000 24,972
Fujitsu Ltd. (Computer Software & Processing) 3,000 84,906
Mitsubishi Corp. (Wholesalers) 15,000 130,411
Sony Corp. - ADR (Radio, TV, & Phonograph Manufacturers) 300 67,688
--------------------
463,227
--------------------
MEXICO - 2.6%
Grupo Televisa SA - GDR (Radio & TV Broadcasters)* 800 50,750
Telefonos de Mexico SA - Class L, ADR (Telecommunications) 1,000 58,813
Wal-Mart de Mexico SA de CV - ADR (Discount Stores)* 3,600 83,372
--------------------
192,935
--------------------
NETHERLANDS - 2.7%
Getronics NV (Systems & Subsystems) 400 23,915
Royal Dutch Petroleum Co. - NY Shares (Holding Companies) 2,500 143,437
Wolters Kluwer NV (Miscellaneous Printing & Publishing) 1,400 33,124
--------------------
200,476
--------------------
SINGAPORE - 3.5%
DBS Local Cetificates (Commercial Banks) 8,000 110,135
Jardine Strategic Holdings Ltd. (General Diversified) 60,000 147,600
--------------------
257,735
--------------------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
MULTI-ASSET GLOBAL PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SWEDEN - 3.9%
Investor AB - Class B (Miscellaneous Companies)* 14,000 $ 197,139
Telefonaktiebolaget LM Ericsson - ADR (Miscellaneous Electronics) 1,000 88,438
--------------------
285,577
--------------------
SWITZERLAND - 2.3%
ABB Ltd. (Power Transmission Equipment) 696 78,323
Nestle SA - ADR (Diversified Food) 1,000 88,347
--------------------
166,670
--------------------
TAIWAN - 1.9%
Taiwan Semiconductor (Parts & Components)* 21,484 138,675
--------------------
UNITED KINGDOM - 7.4%
British Telecommunications plc - ADR (Telecommunications) 400 73,200
Pearson plc (Miscellaneous Printing & Publishing) 2,000 65,315
Rentokil Initial plc (Service Organizations) 30,000 82,421
Rio Tinto plc (Diversified Metal Producers) 6,000 93,549
Standard Chartered plc (Other Financial Services) 3,000 41,832
Unilever plc (Diversified Food) 15,000 90,041
WPP Group plc (Advertising Agencies) 6,000 96,067
--------------------
542,425
--------------------
UNITED STATES - 31.3%
Air Products & Chemicals, Inc. (Industrial Chemicals & Gases Manufacturers) 1,600 49,700
Allied Capital Corp. (Commercial Finance Companies) 6,500 121,469
American International Group (Insurance Companies) 1,250 137,109
Baxter International, Inc. (Ethical Drug Manufacturers) 1,000 65,125
Bristol-Myers Squibb Co. (Ethical Drug Manufacturers) 1,400 73,412
CBS Corp. (Radio & TV Broadcasters)* 2,000 117,500
Colgate-Palmolive Co. (Cosmetics & Toiletries) 1,500 85,688
Enron Corp. (Crude Oil & Natural Gas Producers) 2,000 139,375
Exxon Mobil Corp. (Integrated International Oil Producers) 1,800 139,838
Federal National Mortgage Association (Other Financial Services) 900 54,281
Hewlett-Packard Company (Electronic Data Processing Equipment) 350 47,250
Honeywell International, Inc. (Government & Defense Electronic Equipment) 1,800 100,800
Intel Corp. (Electronic Data Processing Equipment) 600 76,088
International Business Machines Corp. (Electronic Data Processing Equipment) 1,000 111,625
Oracle Corp. (Computer Software & Processing)* 600 47,962
Pfizer, Inc. (Ethical Drug Manufacturers) 3,400 143,225
</TABLE>
See Notes to Financial Statements
10
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
MULTI-ASSET GLOBAL PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Quanta Services, Inc. (Engineering & Contracting Services)* 1,500 $ 69,656
Quintiles Transnational Corp. (Medical Services)* 1,800 25,762
Royce Micro-Cap Trust, Inc. (Mutual Funds) 11,612 111,766
Schlumberger Ltd. (Exploration, Drilling Service & Equipment) 1,200 91,875
ServiceMaster Company (Service Organizations) 4,000 54,500
Tyco International Ltd. (Diversified Electrical Manufacturers) 2,500 114,844
US West, Inc. (Telecommunications) 1,500 106,781
Wells Fargo & Co. (Financial) 2,500 102,656
Wisconsin Central Transportation Corp. (Railroad Holding Companies)* 1,900 27,669
WorldCom, Inc. (Telecommunications)* 1,100 49,981
Wrigley (WM.) Jr. Co. (Confectionary Goods) 500 36,188
--------------------
2,302,125
--------------------
Total Common Stocks (Cost $3,948,714) 5,031,789
--------------------
WARRANTS - 0.0%
JAPAN - 0.0%
Atlantis Japan Growth Fund warrants expiring 04/30/01 (Mutual Funds)* (Cost $797) 400 900
--------------------
<CAPTION>
FACE
FIXED INCOME - 30.3% CURRENCY AMOUNT (a)
------------ ------------
<S> <C> <C> <C>
EUROPE - 0.9%
Eurotunnel 4.45% Equity Notes due 12/31/03 EUR $ 37,500 31,883
Eurotunnel 4.45% Equity Notes due 12/31/03 GBP 37,500 31,785
--------------------
63,668
--------------------
MULTINATIONAL - 1.2%
International Bank for Reconstruction & Development, 4.250%
due 9/08/05 EUR 100,000 87,384
--------------------
NEW ZEALAND - 1.3%
New Zealand Government - Series 709, 7.000% due 7/15/09 NZD 200,000 97,031
--------------------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
MULTI-ASSET GLOBAL PORTFOLIO
STATEMENT OF NET ASSETS FACE
APRIL 30, 2000 (UNAUDITED) (CONTINUED) AMOUNT (a) VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UNITED KINGDOM - 1.6%
Orange plc, 7.625% due 8/1/08 EUR 125,000 $ 118,713
--------------------
UNITED STATES - 25.3%
AES Corporation, 8.500% due 11/01/07 300,000 270,750
Comcast Corp., 10.625% due 7/15/12 100,000 117,410
GNMA, 7.000% due 6/15/09 60,984 59,837
GNMA, 7.000% due 4/15/28 122,320 117,710
GNMA, 7.500% due 6/15/27 95,278 93,730
GNMA, 8.000% due 8/15/07 7,024 7,051
GNMA, 8.500% due 5/15/18 15,678 15,975
GNMA, 9.500% due 9/20/20 2,747 2,844
Rockefeller Center Property CVT, zero coupon due 12/31/00 250,000 211,250
U.S. Treasury Inflation Index Note, 3.613% due 11/15/07 150,000 154,700
U.S. Treasury Note, 5.625% due 5/15/08 300,000 285,094
U.S. Treasury Note, 7.000% due 7/15/06 100,000 102,312
U.S. Treasury Inflation Index Bond, 3.801% due 4/15/28 225,000 226,350
U.S. Treasury Bond, 6.125% due 11/15/27 200,000 198,063
--------------------
1,863,076
--------------------
Total Fixed Income (Cost $2,375,446) 2,229,872
--------------------
TOTAL LONG-TERM INVESTMENTS (COST $6,324,957) 7,262,561
--------------------
CASH EQUIVALENTS - 0.6%
UNITED STATES - 0.6%
Investors Bank & Trust Company Repurchase Agreement, 4.940% due 05/01/2000 in
the amount of $44,017; issued 04/28/2000 (collateralized by $46,973 par of
FHLMC - Pool #303961, 7.500% due 04/01/2017 with
a market value of $46,380) (Cost $43,999) 43,999 43,999
--------------------
TOTAL INVESTMENTS - 99.3% (COST - $6,368,956) $ 7,306,560
--------------------
</TABLE>
See Notes to Financial Statements
12
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
---------------------------------------------------------------------------------------------------------------------
MULTI-ASSET GLOBAL PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER ASSETS, NET OF LIABILITIES - 0.7%
Receivable for securities sold $ 82,887
Receivables from Investment Adviser 21,626
Other Assets 57,910
Payable for securities purchased (73,490)
Other liablities (35,026)
--------------------
53,907
--------------------
NET ASSETS - 100.0%
Applicable to 583,053 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 7,360,467
====================
Net Asset Value, Offering and Redemption Price Per Share $ 12.62
====================
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2000 WERE AS FOLLOWS:
Paid-in capital $ 6,166,111
Distributions in excess of investment income, net (20,614)
Undistributed net realized gain on investment and foreign curreny related transactions 279,490
Net unrealized appreciation on investments and on assets and liabilities
denominated in foreign currencies 935,480
--------------------
$ 7,360,467
====================
</TABLE>
SUMMARY OF ABBREVIATIONS
ADR - American Depositary Receipt
CVT - Convertible Bond
EUR - European Monetary Unit (Euro)
FHLMC - Federal Home Loan Mortgage Corporation
GBP - British Pounds
GDR - Global Depositary Receipt
GNMA - Government National Mortgage Association
NZD - New Zealand Dollar
(a) Face amount shown in U.S. dollars unless otherwise indicated.
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
13
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM INVESTMENTS - 92.7%
COMMON STOCKS - 85.5%
ARGENTINA - 1.5%
PC Holdings S.A. - ADR (Integrated International Oil Producers)* 1,114 $ 17,058
Quilmes Industrial SA (Brewers) 2,800 22,750
--------------------
39,808
--------------------
BRAZIL - 7.1%
Companhia Cervejaria Brahma - ADR (Beverages, Food & Tobacco) 1,900 29,450
Compania Brasileira de Distribuicao Grupo Pao de
Acurcar (National & Regional Food Chains) 1,300 37,050
Petroleo Brasileiro SA - ADR (Holding Companies) 1,500 35,537
Telesp Celular Participacoes SA (Telecommunications) 5,729,850 90,680
--------------------
192,717
--------------------
CHILE - 2.3%
Cia de Telecomunicaciones de Chile SA - ADR (Telecommunications) 1,100 20,350
Vina Concha Y Toro SA - ADR (Brewers) 1,100 42,556
--------------------
62,906
--------------------
EGYPT - 1.3%
Al Ahram Beverages Company S.A.E. - GDR (Beverages, Food & Tobacco)* 2,000 35,200
--------------------
GREECE - 1.3%
Attica Enterprises Holding SA (Shipping) 3,160 36,811
--------------------
HONG KONG - 6.9%
China Telecom (Telecommunications)* 12,000 86,664
Johnson Electric Holdings (Diversified Electrical Manufacturers) 6,000 48,339
Li & Fung Ltd. (Wholesalers) 14,000 54,104
--------------------
189,107
--------------------
HUNGARY - 2.5%
Matav Rt. - ADR (Telecommunications) 1,100 38,294
Otp Bank (Savings & Loans) 700 31,084
--------------------
69,378
--------------------
INDIA - 9.2%
Bharat Petroleum Corp. Ltd. (Oil Refiners & Distributors)* 8,100 32,446
Hero Honda Motors Ltd. (Diversified Automotive Manufacturers)* 2,000 42,569
Hindustan Lever Ltd. (Diversified Food) 700 38,450
Housing Development Finance Corp. Ltd. (Other Financial Services) 7,500 81,347
India Fund, Inc. (Mutual Funds)* 4,000 57,250
--------------------
252,062
--------------------
</TABLE>
See Notes to Financial Statements
14
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ISRAEL - 4.6%
Orbotech, Ltd. (Medical, Surgical & Dental Suppliers)* 500 $ 42,633
Partner Communications Co. Ltd. - ADR (Telecommunications)* 2,300 24,581
Teva Pharmaceutical Industries Ltd. - ADR (Ethical Drug Manufacturers) 1,300 57,200
--------------------
124,414
--------------------
MEXICO - 11.1%
Alfa SA (Diversified Chemical Manufacturers) 8,000 24,740
Desc Sociedad de Fomento Industrial SA de CV (Shipping)* 32,000 22,580
Grupo Televisa SA - Series CPO (Radio & TV Broadcasters)* 22,000 68,268
Panamerican Beverages Inc. - Class A (Soft Drink Producers & Bottlers) 2,550 41,916
Telefonos de Mexico SA - Class L, ADR (Telecommunications) 900 52,931
Wal-Mart de Mexico SA de CV - ADR (Discount Stores)* 4,000 92,636
--------------------
303,071
--------------------
PHILIPPINES - 1.3%
ABS-CBN Broadcasting Corp. (Radio & TV Broadcasters)* 17,500 20,783
International Container Terminal Services, Inc. (Shipping)* 380,000 13,999
--------------------
34,782
--------------------
POLAND - 2.9%
Agora SA (Newspaper Publishers)* 2,400 57,770
Wielkopolski Bank Kredytowy SA (Commercial Banks) 3,800 21,697
--------------------
79,467
--------------------
SINGAPORE - 1.1%
Natsteel Electronics Ltd. (Miscellaneous Electronics) 5,000 28,705
--------------------
SOUTH AFRICA - 4.0%
De Beers Cons Mines - ADR (Diversified Metal Producers) 2,700 53,663
South Africa Breweries plc (Brewers) 7,500 55,355
--------------------
109,018
--------------------
SOUTH KOREA - 9.3%
Hite Brewery Co. Ltd. (Brewers) 1,600 45,426
Korea Telecom Corp. - ADR (Telecommunications) 1,100 37,950
Pohang Iron and Steel Co., Ltd. (Steel Producers - Integrated) 410 32,076
Samsung Electronics - GDR - 144A (Diversified Electronics) 800 64,720
SK Telecom Co. Ltd. - ADR (Telecommunications) 800 25,650
South Korea Mobile Telecommunications Corp., Ltd. (Telecommunications) 180 47,859
--------------------
253,681
--------------------
</TABLE>
See Notes to Financial Statements
15
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TAIWAN - 11.6%
Asustek Computer, Inc. (Electronic Data Processing Equipment) 4,000 $ 44,430
Hon Hai Precision Industry (Parts & Components)* 4,200 40,596
President Chain Store Corp. (National & Regional Food Chains) 8,900 31,786
Synnex Technology International Corp. - GDR (Systems & Subsystems)* 1,600 43,266
Taiwan Semiconductor (Parts & Components)* 18,220 117,606
Universal Scientific Industrial Co., Ltd. (Parts & Components)* 10,000 38,008
--------------------
315,692
--------------------
THAILAND - 2.3%
Advanced Information Service plc (Telecommunications)* 3,300 38,671
Pizza Co. Ltd. (Restaurants & Fast Food Franchisers) 5,300 8,146
Siam City Cement Public Co. Ltd. (Cement Producers)* 5,500 16,618
--------------------
63,435
--------------------
UNITED KINGDOM - 2.6%
African Lakes Corp. plc (Parts & Components)* 21,500 29,927
Standard Chartered plc (Other Finacial Services) 2,900 40,438
--------------------
70,365
--------------------
UNITED STATES - 2.0%
AES Corporation (Electric Power Companies)* 600 53,963
--------------------
VIETNAM - 0.6%
Vietnam Enterprise Investments Ltd. (Investment Companies)* 20,000 15,600
--------------------
Total Common Stocks (Cost $1,829,131) 2,330,182
--------------------
PREFERRED STOCKS - 7.2%
BRAZIL - 7.2%
Banco Itau S.A. (Commercial Banks) 755,000 55,997
Embraer - Empresa Brasileira de Aeronautica S.A.
(Military & Commercial Aircraft Manufacturers) 26,500 138,817
--------------------
Total Preferred Stocks (Cost $71,663) 194,814
--------------------
TOTAL LONG-TERM INVESTMENTS (COST $1,900,794) 2,524,996
--------------------
</TABLE>
See Notes to Financial Statements
16
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS FACE
APRIL 30, 2000 (UNAUDITED) (CONTINUED) AMOUNT VALUE (1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH EQUIVALENTS - 0.9%
Investors Bank & Trust Company Repurchase Agreement, 4.940% due 05/01/2000 in
the amount of $25,781; issued 04/28/2000 (collateralized by $27,710 par of FHLMC
- Pool #191414, 6.000% due 06/01/2004 with
a market value of $27,060) (Cost $25,771) $ 25,771 $ 25,771
--------------------
TOTAL INVESTMENTS - 93.6% (COST - $1,926,565) $ 2,550,767
--------------------
OTHER ASSETS, NET OF LIABILITIES - 6.4%
Receivable for fund shares sold 172,000
Receivable from Investment Adviser 15,773
Other assets 7,818
Other liablities (21,219)
--------------------
174,372
--------------------
NET ASSETS - 100.0%
Applicable to 161,044 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 2,725,139
====================
Net Asset Value, Offering and Redemption Price Per Share $ 16.92
====================
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2000 WERE AS FOLLOWS:
Paid-in capital $ 1,986,418
Distributions in excess of investment income, net (9,221)
Undistributed net realized gain on investment and foreign curreny related transactions 123,703
Net unrealized appreciation on investments and on assets and liabilities
denominated in foreign currencies 624,239
--------------------
$ 2,725,139
====================
</TABLE>
SUMMARY OF ABBREVIATIONS
ADR - American Depository Receipt
FHLMC - Federal Home Loan Mortgage Corporation
GDR - Global Depository Receipt
144A - Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be sold in
transactions exempt from registration, normally to qualified
buyers.
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
17
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED APRIL 30, 2000
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GLOBAL MULTI-ASSET EMERGING
EQUITY EQUITY GLOBAL MARKETS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 430,208 $ 17,223 $ 76,521 $ 1,806
Dividends (net of withholding taxes of $293,374,
$9,116, $2,571 and $700, respectively) 1,861,715 132,428 32,960 9,527
-------------- ------------- ----------- -----------
Total investment income 2,291,923 149,651 109,481 11,333
-------------- ------------- ----------- -----------
EXPENSES
Investment advisory fees 1,339,668 120,818 35,171 13,623
Administration fees 212,918 14,289 6,110 3,178
Custodian fees 156,153 13,325 6,909 6,260
Directors' fees and expenses 26,799 1,705 541 125
Shareholder record keeping fees 19,104 5,688 2,027 2,801
Audit fees 10,982 10,457 10,457 6,385
State registration filing fees 8,515 2,669 1,606 487
Organizational costs 7,083 6,212 1,534 -
Legal fees 6,690 426 135 30
Insurance expense 6,478 412 132 30
Other fees and expenses 14,566 4,313 870 277
-------------- ------------- ----------- -----------
Total operating expenses 1,808,956 180,314 65,492 33,196
Waiver of investment advisory fee and reimbursement
of other expenses (Note 3) (23,163) (29,328) (21,627) (14,076)
-------------- ------------- ----------- -----------
Total expenses 1,785,793 150,986 43,865 19,120
-------------- ------------- ----------- -----------
Investment income (loss), net 506,130 (1,335) 65,616 (7,787)
-------------- ------------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY-RELATED TRANSACTIONS
Net realized gain from investments 31,558,008 2,477,016 283,081 123,563
Net realized gain (loss) from foreign currency-related transactions (300,665) (7,857) (3,241) 141
Net change in unrealized appreciation (depreciation) on investments 8,181,820 2,315,655 309,777 276,018
Net change in unrealized appreciation (depreciation) on translation of
assets and liabilities denominated in foreign currencies (168,637) (9,281) (1,720) (88)
-------------- ------------- ----------- -----------
Realized and unrealized gain on investments and
foreign currency-related transactions 39,270,526 4,775,533 587,897 399,634
-------------- ------------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $39,776,656 $ 4,774,198 $ 653,513 $391,847
============== ============= =========== ===========
</TABLE>
See Notes to Financial Statements
18
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO GLOBAL EQUITY PORTFOLIO
----------------------------------- ----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income (loss), net $ 506,130 $ 2,448,798 $ (1,335) $ 166,819
Net realized gain from investments, in kind
redemptions and foreign currency-related
transactions 31,257,343 11,927,644 2,469,159 2,658,267
Net change in unrealized appreciation
on investments and on translation of assets and
liabilities denominated in foreign currencies 8,013,183 83,331,566 2,306,374 2,773,621
---------------- --------------- ---------------- ---------------
Net increase in net assets resulting
from operations 39,776,656 97,708,008 4,774,198 5,598,707
---------------- --------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 4,689,033 5,059,466 169,866 -
Net realized gain from investments and foreign
currency-related transactions 10,285,092 337,112 2,053,997 -
---------------- --------------- ---------------- ---------------
Total distributions 14,974,125 5,396,578 2,223,863 -
---------------- --------------- ---------------- ---------------
CAPITAL SHARE TRANSACTIONS, NET 5,018,927 (89,894,523) 2,288,800 (15,275,132)
---------------- --------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS 29,821,458 2,416,907 4,839,135 (9,676,425)
NET ASSETS
Beginning of period 328,473,211 326,056,304 21,087,071 30,763,496
---------------- --------------- ---------------- ---------------
End of period $ 358,294,669 $ 328,473,211 $ 25,926,206 $ 21,087,071
================ =============== ================ ===============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
INVESTMENT INCOME, NET $ (3,103,158) $ 1,079,745 $ (156,773) $ 14,428
================ =============== ================ ===============
</TABLE>
See Notes to Financial Statements
19
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------
MULTI-ASSET EMERGING MARKETS
GLOBAL PORTFOLIO PORTFOLIO
----------------------------------- ------------------------------------
FOR THE PERIOD FROM
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED NOVEMBER 9, 1998*
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 TO
(UNAUDITED) 1999 (UNAUDITED) OCTOBER 31, 1999
---------------- ---------------- ---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
<S> <C> <C> <C> <C>
Investment income (loss), net $ 65,616 $ 153,696 $ (7,787) $ 2,948
Net realized gain from investments, in kind
redemptions and foreign currency-related
transactions 279,840 293,059 123,704 57,716
Net change in unrealized appreciation
on investments and on translation of assets and
liabilities denominated in foreign currencies 308,057 303,251 275,930 348,309
---------------- ---------------- ---------------- ----------------
Net increase in net assets resulting
from operations 653,513 750,006 391,847 408,973
---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 194,827 168,496 2,900 -
Net realized gain from investments and foreign
currency-related transactions 274,145 85,013 59,290 -
---------------- ---------------- ---------------- ----------------
Total distributions 468,972 253,509 62,190 -
---------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS, NET 576,622 (224,414) 861,563 1,124,946
---------------- ---------------- ---------------- ----------------
NET INCREASE IN NET ASSETS 761,163 272,083 1,191,220 1,533,919
NET ASSETS
Beginning of period 6,599,304 6,327,221 1,533,919 -
---------------- ---------------- ---------------- ----------------
End of period $ 7,360,467 $ 6,599,304 $ 2,725,139 $ 1,533,919
================ ================ ================ ================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
INVESTMENT INCOME, NET $ (20,614) $ 108,597 $ (9,221) $ 1,466
================ ================ ================ ================
</TABLE>
* Commencement of operations
See Notes to Financial Statements
20
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
------------------------------------------------------
FOR
THE SIX MONTHS FOR FOR
ENDED THE YEAR THE YEAR
APRIL 30, 2000 ENDED ENDED
(UNAUDITED) OCT. 31, 1999 OCT. 31, 1998
-------------- -------------- --------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.50 $ 11.62 $ 11.79
-------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Investment income, net 0.03 0.10 0.14
Net realized and unrealized gain (loss)
on investments and foreign currency-
related transactions 1.92 3.97 (0.13)
-------------- -------------- --------------
Net increase from investment operations 1.95 4.07 0.01
-------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.23 0.18 0.11
Excess of investment income, net - - -
Net realized gain from investments
and foreign-currency related transactions 0.50 0.01 0.03
Excess of net realized gain on
investments and foreign currency-
related transactions - - 0.04
-------------- -------------- --------------
Total distributions 0.73 0.19 0.18
-------------- -------------- --------------
NET ASSET VALUE, END OF PERIOD $ 16.72 $ 15.50 $ 11.62
============== ============== ==============
TOTAL RETURN 12.25% (c) 35.46% 0.06%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $ 358,295 $ 328,473 $ 326,056
Ratio of net operating expenses to
average net assets 1.00% (d) 1.00% 1.00%
Ratio of investment income, net to
average net assets 0.28% (d) 0.75% 1.14%
Decrease reflected in above expense
ratios due to waiver of investment
advisory and administration fees,
and reimbursement of other expenses 0.01% 0.04% 0.04%
Portfolio turnover rate 31% (c) 35% 33%
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
------------------------------------------------------
FOR FOR FOR
THE YEAR THE TEN MONTHS THE YEAR
ENDED ENDED* ENDED
OCT. 31, 1997 OCT. 31, 1996 DEC. 31, 1995
-------------- -------------- --------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.61 $ 10.77 $ 9.71
-------------- -------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Investment income, net 0.13 0.08 0.10
Net realized and unrealized gain (loss)
on investments and foreign currency-
related transactions 0.05 (a) 0.97 1.06
-------------- -------------- -------------
Net increase from investment operations 0.18 1.05 1.16
-------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.00 (b) 0.08 0.10
Excess of investment income, net -- 0.03 --
Net realized gain from investments
and foreign-currency related transactions -- 0.10 --
Excess of net realized gain on
investments and foreign currency-
related transactions -- -- --
-------------- -------------- -------------
Total distributions -- 0.21 0.10
-------------- -------------- -------------
NET ASSET VALUE, END OF PERIOD $ 11.79 $ 11.61 $ 10.77
============== ============== =============
TOTAL RETURN 1.57% 9.81% (c) 11.99%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $ 387,304 $ 241,357 $ 67,727
Ratio of net operating expenses to
average net assets 1.00% 1.00% (d) 0.99%
Ratio of investment income, net to
average net assets 1.07% 1.29% (d) 1.30%
Decrease reflected in above expense
ratios due to waiver of investment
advisory and administration fees,
and reimbursement of other expenses 0.06% 0.14% (d) 0.54%
Portfolio turnover rate 31% 17% (c) 28%
</TABLE>
(a) Includes the effect of net realized gains prior to a significant increase in
shares outstanding.
(b) Rounds to less than $0.01.
(c) Not annualized
(d) Annualized
* During the period, the Portfolio changed its fiscal year end from
December 31 to October 31.
See Notes to Financial Statements
21
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
---------------------------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
---------------------------------
FOR
THE SIX MONTHS FOR
ENDED THE YEAR
APRIL 30, 2000 ENDED
(UNAUDITED) OCT. 31, 1999
-------------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.00 $ 16.16
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Investment income, net 0.01 0.05
Net realized and unrealized gain (loss) on investments
and foreign-currency related transactions 4.46 3.79
-------------- -------------
Net increase (decrease) from investment operations 4.47 3.84
-------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.16 -
Net realized gain from investments and foreign
currency-related transactions 1.95 -
-------------- -------------
Total distributions 2.11 -
-------------- -------------
NET ASSET VALUE, END OF PERIOD $ 22.36 $ 20.00
============== =============
TOTAL RETURN 22.62% (b) 23.76%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $ 25,926 $ 21,087
Ratio of net operating expenses to average net assets 1.25% (c) 1.25%
Ratio of investment income (loss), net to average net assets (0.01%)(c) 0.65%
Decrease reflected in above expense ratios due to waiver
of investment advisory and administration fees,
and reimbursement of other expenses 0.24% (c) 0.32%
Portfolio turnover rate 30% (b) 44%
<CAPTION>
GLOBAL EQUITY PORTFOLIO
-------------------------------
FOR FOR
THE YEAR THE PERIOD
ENDED ENDED
OCT. 31, 1998 OCT. 31, 1997*
------------- ---------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.70 $ 17.58 (a)
------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Investment income, net 0.20 0.19
Net realized and unrealized gain (loss) on investments
and foreign-currency related transactions (0.55) 0.94
------------- ---------------
Net increase (decrease) from investment operations (0.35) 1.13
------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.25 0.01
Net realized gain from investments and foreign
currency-related transactions 1.94 -
------------- ---------------
Total distributions 2.19 0.01
------------- ---------------
NET ASSET VALUE, END OF PERIOD $ 16.16 $ 18.70
============= ===============
TOTAL RETURN (2.46)% 6.45% (b)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $ 30,763 $ 64,882
Ratio of net operating expenses to average net assets 1.25% 1.25% (c)
Ratio of investment income (loss), net to average net assets 0.86% 1.05% (c)
Decrease reflected in above expense ratios due to waiver
of investment advisory and administration fees,
and reimbursement of other expenses 0.11% 0.12% (c)
Portfolio turnover rate 67% 39% (b)
</TABLE>
* Commencement of Operations was December 1, 1996 following a tax free merger
with GELP which was formed on September 27, 1991.
(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.
(b) Not annualized
(c) Annualized
See Notes to Financial Statements
22
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------
MULTI-ASSET GLOBAL PORTFOLIO
----------------------------------
FOR
THE SIX MONTHS FOR
ENDED THE YEAR
APRIL 30, 2000 ENDED
(UNAUDITED) OCT. 31, 1999
-------------- --------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.28 $ 11.41
-------------- --------------
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income, net 0.12 0.28
Net realized and unrealized gain on investments
and foreign-currency related transactions 1.09 1.04
-------------- --------------
Net increase from investment operations 1.21 1.32
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.36 0.30
Net realized gain from investments and foreign
currency-related transactions 0.51 0.15
-------------- --------------
Total distributions 0.87 0.45
-------------- --------------
NET ASSET VALUE, END OF PERIOD $ 12.62 $ 12.28
============== ==============
TOTAL RETURN 9.83% (a) 11.84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $ 7,360 $ 6,599
Ratio of net operating expenses to average net assets 1.25% (b) 1.25%
Ratio of investment income, net to average net assets 1.87% (b) 2.32%
Decrease reflected in above expense ratios due to waiver
of investment advisory and administration fees,
and reimbursement of other expenses 0.61% (b) 0.91%
Portfolio turnover rate 25% (a) 31%
<CAPTION>
FOR FOR
THE YEAR THE PERIOD
ENDED ENDED
OCT. 31, 1998 OCT. 31, 1997 *
--------------- ---------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.26 $ 10.00
--------------- ---------------
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income, net 0.52 0.25
Net realized and unrealized gain on investments
and foreign-currency related transactions 0.09 1.04
--------------- ---------------
Net increase from investment operations 0.61 1.29
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.26 0.03
Net realized gain from investments and foreign
currency-related transactions 0.20 -
--------------- ---------------
Total distributions 0.46 0.03
--------------- ---------------
NET ASSET VALUE, END OF PERIOD $ 11.41 $ 11.26
=============== ===============
TOTAL RETURN 5.53% 12.92% (a)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $ 6,327 $ 5,175
Ratio of net operating expenses to average net assets 1.25% 1.25% (b)
Ratio of investment income, net to average net assets 2.58% 2.50% (b)
Decrease reflected in above expense ratios due to waiver
of investment advisory and administration fees,
and reimbursement of other expenses 0.71% 0.92% (b)
Portfolio turnover rate 29% 36% (a)
</TABLE>
* Commencement of Operations was November 1, 1996.
(a) Not Annualized
(b) Annualized
See Notes to Financial Statements
23
<PAGE>
HARDING, LOEVNER FUNDS, INC.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
----------------------------------
FOR
THE SIX MONTHS
ENDED FOR THE
APRIL 30, 2000 PERIOD ENDED
(UNAUDITED) OCT. 31, 1999 *
--------------- --------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $13.68 $10.00
--------------- --------------
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income, net (0.05) 0.03
Net realized and unrealized gain on investments and
foreign-currency related transactions 3.82 3.65
--------------- --------------
Net increase from investment operations 3.77 3.68
--------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income, net 0.02 -
Net realized gain from investments and foreign
currency-related transactions 0.51 -
--------------- --------------
Total distributions 0.53 -
--------------- --------------
NET ASSET VALUE, END OF PERIOD $16.92 $13.68
=============== ==============
TOTAL RETURN 27.48% (a) 36.80% (a)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) $2,725 $1,534
Ratio of net operating expenses to average net assets 1.75% (b) 1.75% (b)
Ratio of investment income (loss), net to average net assets (0.71%)(b) 0.24% (b)
Decrease reflected in above expense ratios due to waiver of investment
advisory and administration fees, and reimbursement of other expenses 1.30% (b) 4.14% (b)
Portfolio turnover rate 14% (a) 53% (a)
</TABLE>
* Commencement of Operations was November 9, 1998.
(a) Not annualized
(b) Annualized
See Notes to Financial Statements
24
<PAGE>
HARDING, LOEVNER FUNDS, INC.
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 2000
-------------------------------------------------------------------------------
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, all of which were active as of
April 30, 2000: International Equity Portfolio ("International Equity"); Global
Equity Portfolio ("Global Equity"); Multi-Asset Global Portfolio ("Multi-Asset
Global"), and Emerging Markets Portfolio ("Emerging Markets"). 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; Multi-Asset Global - to seek long-term
capital appreciation and a growing stream of current 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; Emerging Markets Portfolio - to seek
long-term capital appreciation through investments in equity securities of
companies based in developing markets outside the United States.
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. Emerging Markets commenced operations on
November 9, 1998. The Fund is managed by Harding, Loevner Management, L.P.
(the "Investment Adviser").
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Fund are in conformity with generally accepted
accounting principles ("GAAP") for investment companies. The following is a
summary of the Fund's significant accounting policies:
ESTIMATES
The preparation of financial statements in accordance with GAAP 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.
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, 2000, there were no securities in the Fund which
required valuation by the Board of Directors.
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 accretes discount or amortizes 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.
EXPENSES
The costs incurred by the Fund in connection with the organization and initial
registration of shares are being amortized on a straight-line basis by the Fund
over a sixty-month period. The unamortized balance of organizational expenses
at April 30, 2000 was $47,226.
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.
25
<PAGE>
HARDING, LOEVNER FUNDS, INC.
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
-------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
3. SIGNIFICANT AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
The Fund's Board of Directors has approved investment advisory agreements (the
"Agreements") with the Investment Adviser. The advisory fees are computed daily
at an annual rate of 0.75%, 1.00%, 1.00% and 1.25% of the average daily net
assets of International Equity, Global Equity, Multi-Asset Global and Emerging
Markets, respectively.
In addition, the Fund has an administration agreement with Investors Bank &
Trust Company, which provides certain accounting, clerical and bookkeeping
services, Blue Sky, corporate secretarial services and assistance in the
preparation and filing of tax returns and reports to shareholders and the
Securities and Exchange Commission. Under this agreement, the Fund incurred
$236,495 in administration fees for the six months ended April 30, 2000.
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%, 1.25%, and 1.75% respectively, of the average
daily net assets of International Equity, Global Equity, Multi-Asset Global and
Emerging Markets.
Directors' fees of $13,000 were accrued for the six months ended April 30,
2000, which were payable to directors who are not employees of the Investment
Adviser.
4. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of investments, other than short-term
investments, for the six months ended April 30, 2000, were as follows for each
of the Portfolios:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
PURCHASE COST OF PROCEEDS FROM SALES OF
PORTFOLIO INVESTMENT SECURITIES INVESTMENT SECURITIES
-------------------------------------------------------------------------------
<S> <C> <C>
International Equity $ 107,581,489 $ 108,805,934
Global Equity 7,635,527 7,157,314
Multi-Asset Global 1,914,122 1,701,918
Emerging Markets 914,531 299,769
</TABLE>
26
<PAGE>
HARDING,LOEVNER FUNDS, INC.
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
-------------------------------------------------------------------------------
4. INVESTMENT TRANSACTIONS (CONTINUED)
The cost of investments for Federal income tax purposes and the components of
net unrealized appreciation on investments at April 30, 2000, for each of the
Portfolios were as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
UNREALIZED UNREALIZED NET
PORTFOLIO APPRECIATION DEPRECIATION APPRECIATION COST
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Equity $ 109,628,771 $ 16,731,561 $ 92,897,210 $ 262,560,948
Global Equity 6,859,928 916,162 5,943,766 19,871,339
Multi-Asset Global 1,345,065 407,461 937,604 6,368,956
Emerging Markets 768,096 143,894 624,202 1,926,565
</TABLE>
5. FORWARD FOREIGN EXCHANGE/SPOT 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.
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.
International Equity had open foreign currency transactions to sell currency on
the spot markets as of April 30, 2000 as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SETTLEMENT DATE SALE IN EXCHANGE FOR NET UNREALIZED
(IN U.S. DOLLARS) APPRECIATION
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5/3/2000 839,835 GBP $ 1,325,428 $ 11,882
</TABLE>
There were no open foreign currency transactions to buy or sell currency on the
spot markets as of April 30, 2000 for Global Equity, Multi-Asset Global or
Emerging Markets.
6. CAPITAL SHARE TRANSACTIONS
Transactions in capital stock for International Equity were as follows for the
periods indicated:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 1,537,750 $ 26,317,909 2,216,774 $ 30,381,144
Shares issued related to reinvestment
of dividends
769,170 13,829,683 341,566 4,266,161
-----------------------------------------------------------------------------
2,306,920 40,147,592 2,558,340 34,647,305
Shares redeemed 2,064,166 35,128,665 9,442,379 124,541,828
-----------------------------------------------------------------------------
Net increase (decrease) 242,754 $ 5,018,927 (6,884,039) $ (89,894,523)
=============================================================================
</TABLE>
27
<PAGE>
6. CAPITAL SHARE TRANSACTIONS (CONTINUED)
Transactions in capital stock for Global Equity were as follows for the period
indicated:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 9,629 $ 212,749 10,487 $ 201,051
Shares issued related to reinvestment
of dividends 96,893 2,099,666 -- --
-----------------------------------------------------------------------------
106,522 2,312,415 10,487 201,051
Shares redeemed 1,062 23,615 860,028 15,476,183
-----------------------------------------------------------------------------
Net increase (decrease) 105,460 $ 2,288,800 (849,541) $ (15,275,132)
=============================================================================
</TABLE>
Transactions in capital stock for Multi-Asset Global were as follows for the
period indicated:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 11,711 $ 147,265 36,825 $ 429,658
Shares issued related to reinvestment
of dividends 36,261 456,521 21,881 249,664
-----------------------------------------------------------------------------
47,972 603,786 58,706 679,322
Shares redeemed 2,168 27,164 75,960 903,736
-----------------------------------------------------------------------------
Net increase (decrease) 45,804 $ 576,622 (17,254) $ (224,414)
=============================================================================
</TABLE>
Transactions in capital stock for Emerging Markets were as follows for the
period indicated:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 45,357 $ 799,373 112,117 $ 1,124,946
Shares issued related to reinvestment
of dividends 3,570 62,190 -- --
-----------------------------------------------------------------------------
48,927 861,563 112,117 1,124,946
Shares redeemed -- -- -- --
-----------------------------------------------------------------------------
Net increase 48,927 $ 861,563 112,117 $ 1,124,946
=============================================================================
* Commencement of Operations
</TABLE>
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 alls 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.
28
<PAGE>
HARDING, LOEVNER FUNDS, INC.
-------------------------------------------------------------------------------
OFFICERS & DIRECTORS AND OTHER PERTINENT INFORMATION
-------------------------------------------------------------------------------
OFFICERS AND DIRECTORS ADMINISTRATOR, CUSTODIAN AND FUND
ACCOUNTING AGENT
R. Kelly Doherty
DIRECTOR OF THE FUND Investors Bank & Trust Company
P.O. Box 9130
Jane A. Freeman Boston, MA 02117
DIRECTOR OF THE FUND
Samuel R. Karetsky TRANSFER AND DIVIDEND
DIRECTOR OF THE FUND DISBURSING AGENT
Carl W. Schafer Investors Bank & Trust Company
DIRECTOR OF THE FUND P.O. Box 9130
Boston, MA 02117
David R. Loevner
PRESIDENT AND DIRECTOR
OF THE FUND LEGAL COUNSEL
Susan C. Mosher Dechert Price & Rhoads
SECRETARY OF THE FUND 1775 Eye Street, N.W
Washington, D.C. 20006-2401
Timothy F. Osborne
TREASURER OF THE FUND
INDEPENDENT AUDITORS
Richard Reiter
ASSISTANT SECRETARY Ernst & Young LLP
OF THE FUND 787 Seventh Avenue
New York, NY 10019
INVESTMENT ADVISER
Harding, Loevner Management, L.P.
50 Division Street, Suite 401
Somerville, NJ 08876
DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Road
Suite 261-E
Phoenix, AZ 85018
