International Rebalancing Act

Potentially favorable international stock valuations and performance trends may make now the right time for international equity.

  • September 2020

As many investors know, the recovery of equity markets since the global financial crisis in 2009 has been dramatically uneven―particularly when comparing the S&P 500® Index to the MSCI ACWI ex USA, which boasts 348% cumulative outperformance since March 2009.

U.S. vs. International Equity Returns

Growth of $10,000 Since Market Bottom in March 2009 (03/10/09 - 09/30/20)

The impact of this uneven recovery has affected valuations

 As of 09/30/20

S&P 500 Index


 Forward P/E






Price/Cash Flow



Dividend Yield %



Est. 3-5 Yr. Earnings Per Share Growth



Return on Equity



Long-Term Debt/Capital



Source: MSCI, Standard and Poors, FactSet as of September 30, 2020. Please see below for definitions.
Past performance is no guarantee of future results.

How did Harding Loevner International Equity (HLMIX) Perform?

Growth of $10,000 Since Market Bottom in March 2009 (03/10/09 - 09/30/20)

This chart illustrates the performance of a hypothetical $10,000 investment made in the Portfolio in March 2009. It assumes reinvestment of dividends and capital gains but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance.

A Fund to Consider:

Harding Loevner International Equity Portfolio

Morningstar RatingTM


As of 8/31/2020

Average annual returns (%)1 (as of 09/30/20)

  Inception QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Since Inception

HLMNX (Investor)









HLMIX (Institutional)









HLIZX (Institutional Class Z)














Expense Ratios (gross/net): HLMNX (Investor) - 1.13%/.13%2 HLMIX (Institutional) - 0.81%/0.81%3 HLIZX (Institutional Class Z) - 0.75%/0.75%4

1 Returns for periods less than one year are not annualized.
2 The Expense Ratio is as of the most recent Prospectus and is based on expenses for the most recent fiscal year end. Harding Loevner has contractually agreed to cap the expense ratio at 1.13% through February 28, 2021. The expense ratio (without cap) is applicable to investors.
3 The Expense Ratio is as of the most recent Prospectus and is based on expenses for the most recent fiscal year end. Harding Loevner has contractually agreed to cap the expense ratio at 0.81% through February 28, 2021. The expense ratio (without cap) is applicable to investors.
4 The Expense Ratio is as of the most recent Prospectus and is based on expenses for the most recent fiscal year end. Harding Loevner has contractually agreed to cap the expense ratio at 0.75% through February 28, 2021. The expense ratio (without cap) is applicable to investors. The expense ratio (without cap) is applicable to investors.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Portfolio may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling  (877) 435-8105 or visiting Performance data shown does not reflect the 2.00% redemption fee imposed on shares held 90 days or less; otherwise, total returns would be reduced.

The Portfolio's investment objectives, risks, charges and expenses must be read and considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company. They may be obtained by calling toll free (877) 435-8105, or visiting 

Mutual fund investing involves risk. Principal loss is possible. The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the US or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. Such risks may be magnified for securities in frontier emerging markets. Investing in participation notes involve the same risks associated with a direct investment in the underlying security, currency or market.

Diversification does not guarantee a profit or protect against a loss in declining markets.

The MSCI All Country World Index (ACWI) ex-USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI ex-USA consists of 22 developed and 24 emerging market country indices. Please go to for most current list of countries represented by the index.

The S&P 500 Index is a capitalization-weighted index of 500 stocks. The S&P 500 Index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. 

The S&P 500 Index is proprietary data of Standard & Poor’s, a division of McGraw-Hill Companies, Inc. All rights reserved.

The indices are unmanaged, are not available for investment and do not incur expenses.

The value of securities may fluctuate in response to various factors including, but not limited to, public health risks; these may be magnified if conditions and events adversely impact the global economy.​

 The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by various Morningstar, Inc. subsidiaries (“Manager Research Group”) which, in the U.S., is Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. Funds are evaluated based on five key pillars – process, performance, people, parent and price – to determine how they may likely perform relative to a benchmark over the long term on a risk-adjusted basis. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, Negative. A rating of Gold, Silver or Bronze reflects the expectation of a fund's prospects for outperformance. The expectations and methodologies differ between active and passive funds. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.
For more details about Morningstar’s Analyst Rating, including its methodology, go to
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a fund, involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and should not be considered an offer or solicitation to buy or sell the fund.
© 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or Bmely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Forward price/earnings (or P/E) ratio is a measure of the price-to-earnings (P/E) ratio using forecasted earnings for the P/E calculation.

Price/book (or P/B) ratio is calculated by dividing the market price of a company's outstanding stock by its book value (total assets of a company less liabilities) and then adjusting for the number of shares outstanding. Stocks with negative book values are usually excluded from this calculation. 

Price/Cash Flow ratio is the ratio of a stock’s price to its cash flow per share. 

Dividend yield is a percentage that is calculated by dividing a company's total dividends paid over the trailing 12 months by its current per-share price and multiplying by 100.

Return on Equity or ROE is the percentage a company earns on its total equity in a given year. A common way to calculate this ratio is to divide debt-free net income by average total equity. ROE shows how much profit a company generates on the money shareholders have invested in the firm.

Long-Term Debt/Capital is a ratio showing the financial leverage of a firm, calculated by dividing long-term debt by the amount of capital available.

The Portfolio is distributed by Quasar Distributors, LLC. AMG Distributors, Inc. provides support on a wholesale basis related to making the Harding Loevner Funds available through various intermediaries. Quasar Distributors, LLC is not affiliated with AMG Funds LLC or AMG Distributors, Inc.

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About Harding Loevner

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Harding Loevner manages global and non-U.S. equity portfolios following a consistent philosophy focused on long-term investment in growing companies with high-quality fundamentals. The Firm believes diversified portfolios of the stocks of companies meeting its quality-growth criteria, purchased at reasonable prices, offer superior risk-adjusted returns over the long term.

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