international equity adr - foialts.com equity adr year end 2016 review city of grand rapids march...

International Equity ADRYear End 2016 Review

City of Grand Rapids

March 15, 2017

TABLE OF CONTENTS

Page 4: Firm Profile

Page 6: Investment Philosophy

Page 7: Performance & Attribution

4: Supplemental InformationInvestment Philosophy & Process (cont.)Historical AttributionInvestment Team Responsibilities

3

FIRM PROFILE

4

As of December 31, 2016

35 investment professionals International Equity Portfolio Management Team averages 13 years at

Harding Loevner

Total AUM $45B

AUM includes all the assets under management and is presented as supplemental information. Please read the disclosures on the last page, which are an integral part of this presentation.

Intl Ord56%

Intl ADR44%

OUR GLOBAL CLIENTELEOUR GLOBAL EQUITY STRATEGIES

31%

1%

25%

43%

<1%Emerging Markets

Frontier EmergingMarkets

Global

International(non-US)

International SmallCompanies

12%2%

5%

<1%

11%

70%

Asia Pacific

Canada

Europe

Latin America &Caribbean

Middle East &Africa

United States

INVESTMENT TEAM

5

Our team combines deep industry experience and long HL tenure with new talent.

Ferrill Roll, CFA, Co-Lead Portfolio ManagerAlexander Walsh, CFA, Co-Lead Portfolio ManagerBryan Lloyd, CFA, Portfolio ManagerPatrick Todd, CFA, Portfolio ManagerAndrew West, CFA, Portfolio Manager

International Equity Portfolio Managers

Simon Hallett, CFAFerrill Roll, CFACo-Chief Investment Officers

Andrew West, CFAManager of Research

Timothy Kubarych, CFADeputy Manager of Research

Analysts

Primarily organized by global sectorCo-located to ensure consistent approachAverage of 8 yrs. at HL, 20 yrs. industry experience21 CFA® charterholders, 18 advanced degrees

50.9

65.8

40

50

60

70

11.4

7.0

14.3

2.4

4.5

9.2

5.97.5

9.1

4.5

12.3

3.3

0.3

5.94.9 4.7

0

10

20

Profit Margin Return onAssets

Return onEquity

Debt/Equity Std Dev ofROE

Trailing 5-YrSales Growth

Trailing 5-YrEarningsGrowth

Trailing 5-YrCash Flow

Growth

Trailing 5-YrDividendGrowth

HL International Equity ADR MSCI ACW ex-US Index

Source: FactSet. Growth and volatility metrics are based on five-year historical data; the other ratios are based on the most recent annual data. All metrics and ratios are presented as weighted medians. Please read the disclosures on the last page, which are an integral part of this presentation.

A PORTFOLIO OF HIGH-QUALITY, GROWING COMPANIES

6


Faster GrowthHigher Quality

More Profitable Lower Risk

Per

cent

LAST QUARTER 1 YEAR SINCE INCEPTION1,2

CITY OF GRAND RAPIDS GENERAL RETIREMENT SYSTEM -4.01 4.09 -1.18

CITY OF GRAND RAPIDS POLICE & FIRE RETIREMENT SYSTEM -4.00 4.04 -1.21

MSCI ALL COUNTRY WORLD EX-US INDEX3,4 -1.20 5.01 -2.27

Performance (% Total Return)

PORTFOLIO PERFORMANCE SUMMARY

7


1Annualized Returns; 2Inception date for performance analysis: April 1, 2015; 3The Benchmark Index; 4Gross of withholding taxes. 5Supplemental Index.

Portfolio performance is shown after management fees. Please read the disclosures on the last page, which are an integral part of this presentation.

MSCI ACW INDEX RETURNS 4Q16 AND 2016

8

Value Far Outperforms Growth

-5.7

0.5

3.4

9.6

-10

-8

-6

-4

-2

0

2

4

6

8

10

ACWI xUS 4Q16 ACWI ex-US 2016

Ret

urn

(%)

Growth

Value

Source: MSCI, Inc. Data as of December 31, 2016.

MSCI ACW EX-US INDEX TOTAL RETURNS BY QUALITY, GROWTH, AND VALUE RANK

9

Source: FactSet; Data as of December 31, 2016.

-5.0

-2.7 -2.6

-0.2

4.9

-6

-4

-2

0

2

4

6

Best UpperMid

Mid LowerMid

Worst

Ret

urn

(%)

4Q16 Quality Rank Quintiles

-4.1

-1.5

0.2 0.7

-1.2

-6

-4

-2

0

2

4

6

Best UpperMid

Mid LowerMid

WorstR

etur

n (%

)

4Q16 Growth Rank Quintiles

1.9

6.1

2.5

4.2

10.0

0

2

4

6

8

10

12

Best UpperMid

Mid LowerMid

Worst

Ret

urn

(%)

2016 Quality Rank Quintiles

7.2

3.5 3.64.9 5.4

0

2

4

6

8

10

12

Best UpperMid

Mid LowerMid

Worst

Ret

urn

(%)

2016 Growth Rank Quintiles

5.3

2.9

0.8

-5.1

-9.8-12-10

-8-6-4-20246

Least Expensive Middle Most Expensive

Ret

urn

(%)

4Q16 Value Rank Quintiles

7.8

9.4

5.3

1.20.4

0

2

4

6

8

10

Least Expensive Middle Most Expensive

Ret

urn

(%)

2016 Value Rank Quintiles

BENCHMARK SECTOR/REGION RETURNS

10

Fourth Quarter

ENER

FINA

MATS

DSCR

MSCI ACWIxUS

INDU

HL IADR COMPOSITE

INFT

TCOM

UTIL

RLST

HLTH

STPL

Source: FactSet; Data as of December 31, 2016.Past performance does not guarantee future results. Please read the disclosures on the last page, which are an integral part of this presentation.

CANADA

EMU

JAPAN

MSCI ACWIxUS

XEMU

PACXJ

HL IADR COMPOSITE

EMERGE

MIDEAST

Sector Total Return (%) Region Total Return (%)

-11.2

-4.1

-4.1

-2.7

-2.0

-1.2

-0.1

1.5

3.4

-15.0 -10.0 -5.0 0.0 5.0

-10.0

-8.1

-7.8

-7.0

-6.6

-4.9

-4.1

-2.2

-1.2

-0.8

2.6

6.9

8.4

-15.0 -10.0 -5.0 0.0 5.0 10.0

PERFORMANCE ATTRIBUTION | COMPOSITE VS BENCHMARK

11

Fourth Quarter

-3.0

-1.5

0.0

1.5

3.0

STPL RLST ENER TCOM UTIL CASH INDU DSCR MATS INFT HLTH FINA

Selection Effect Allocation Effect Total Effect

TOP 3 CONTRIBUTORS TO ABSOLUTE RETURNS

BUNGE

ROYAL DUTCH SHELL

TENARIS

Sector

“Composite”: International Equity ADR Composite. “Benchmark”: MSCI All Country World ex-US Index. 1Includes companies classified in countries outside the Index. Past performance does not guarantee future results. Sector and Region Attribution and Contributors and Detractors are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation. The portfolio holdings identified above do not represent all of the securities held in the portfolio. It should not be assumed that investment in the securities identified has been or will be profitable. The following information is available upon request: (1) information describing the methodology of the contribution data and (2) a list showing the weight and contribution of all holdings during the quarter. Contribution is the contribution to overall performance over the period. Contributors and detractors exclude cash and securities in the Composite not held in the Model Portfolio. Quarterly data is not annualized. Please read the disclosures on the last page, which are an integral part of this presentation.

Total Effect: -2.9Selection Effect: -1.8Allocation Effect: -1.1

Effe

ct (%

)

TOP 3 DETRACTORS FROM ABSOLUTE RETURNS

AIA GROUP

SYSMEX

DASSAULT SYSTÈMES

-2.0

-1.0

0.0

1.0

2.0

OTHER MIDEAST CASH CANADA XEMU EMERGE PACXJ EMU JAPAN

RegionTotal Effect: -2.9Selection Effect: -3.9Allocation Effect: 1.0

Effe

ct (%

)

1

BENCHMARK SECTOR/REGION RETURNS

12

Trailing 12 Months

ENER

MATS

INFT

INDU

FINA

MSCI ACWIxUS

HL IADR COMPOSITE

RLST

DSCR

STPL

UTIL

TCOM

HLTH

Source: FactSet; Data as of December 31, 2016.Past performance does not guarantee future results. Please read the disclosures on the last page, which are an integral part of this presentation.

CANADA

EMERGE

PACXJ

MSCI ACWIxUS

HL IADR COMPOSITE

JAPAN

EMU

XEMU

MIDEAST

Sector Total Return (%) Region Total Return (%)

-24.5

-1.6

2.2

2.7

4.3

5.0

8.0

11.6

25.5

-30.0 -15.0 0.0 15.0 30.0

-12.5

-3.7

-2.8

-1.6

-0.6

2.2

4.3

5.0

5.2

7.0

11.0

28.1

31.9

-20.0 0.0 20.0 40.0

PERFORMANCE ATTRIBUTION | COMPOSITE VS BENCHMARK

13

Trailing 12 Months

-2.0

-1.0

0.0

1.0

2.0

INFT TCOM UTIL STPL DSCR ENER RLST CASH INDU HLTH FINA MATS


TOP 3 CONTRIBUTORS TO ABSOLUTE RETURNS

ARM HOLDINGS

TAIWAN SEMICONDUCTOR

ITAU UNIBANCO

Sector

“Composite”: International Equity ADR Composite. “Benchmark”: MSCI All Country World ex-US Index. 1Includes companies classified in countries outside the Index. Past performance does not guarantee future results. Sector and Region Attribution and Contributors and Detractors are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation. The portfolio holdings identified above do not represent all of the securities held in the portfolio. It should not be assumed that investment in the securities identified has been or will be profitable. The following information is available upon request: (1) information describing the methodology of the contribution data and (2) a list showing the weight and contribution of all holdings during the period. Contribution is the contribution to overall performance over the period. Contributors and detractors exclude cash and securities in the Composite not held in the Model Portfolio. Data is not annualized. Please read the disclosures on the last page, which are an integral part of this presentation.

Total Effect: -0.8Selection Effect: -0.8Allocation Effect: 0.0

Effe

ct (%

)

TOP 3 DETRACTORS FROM ABSOLUTE RETURNS

ICICI BANK

ROCHE HOLDING

BAIDU

-2.0

-1.0

0.0

1.0

2.0

XEMU OTHER MIDEAST CASH EMU JAPAN EMERGE CANADA PACXJ

RegionTotal Effect: -0.8Selection Effect: 0.0Allocation Effect: -0.8

Effe

ct (%

)

1

COMPLETED PORTFOLIO TRANSACTIONS

14

Fourth Quarter

The portfolio is actively managed therefore holdings shown may not be current. The portfolio holdings identified above do not represent all of the securities held in the portfolio. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of portfolio holdings for the past year, contact Harding Loevner. Holdings are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.Please read the disclosures on the last page, which are an integral part of this presentation.

Positions Established Positions Sold

Portfolio Turnover (5-yr avg annual): 15.0% Active Share: 88%

COMPANY COUNTRY SECTOR COMPANY COUNTRY SECTOR

ASPEN PHARMACARE SOUTH AFRICA HEALTH CARE ANHEUSER-BUSCH INBEV BELGIUM CONS STAPLES

HSBC UNITED KINGDOM FINANCIALS COLOPLAST DENMARK HEALTH CARE

ICICI BANK INDIA FINANCIALS KONE FINLAND INDUSTRIALS

SHIRE UNITED KINGDOM HEALTH CARE MTN GROUP SOUTH AFRICA TELECOM SERVICES

PORTFOLIO ALLOCATION COMPARISON

15

December 31, 2016 vs December 31, 2015

33.5

22.5

15.6

10.1

7.0

2.4

1.8

4.7

2.4

30.7

24.2

14.2

12.0

8.7

2.9

0.0

4.3

3.0

0.0 17.0 34.0

EMU

XEMU

EMERGE

JAPAN

PACXJ

CANADA

MIDEAST

OTHER

CASH

12/31/2016 12/31/2015

17.6

16.3

15.7

13.0

10.1

9.2

7.5

7.2

1.0

0.0

2.4

15.5

17.5

16.2

10.3

14.9

9.2

6.3

6.3

0.0

0.8

3.0

0.0 10.0 20.0

HLTH

INFT

FINA

INDU

STPL

DSCR

ENER

MATS

RLST

TCOM

CASH

12/31/2016 12/31/2015

Sector (%) Region (%)

1Includes companies classified in countries outside the Index. Sector and Region end weights are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation. Please read the disclosures on the last page, which are an integral part of this presentation.

1

PORTFOLIO PROFILE END WEIGHTS

16


SECTORHL%

ACWIxUS%

HLTH 17.6 8.1

INFT 16.3 9.3

CASH 2.4 ‒

INDU 13.0 11.6

STPL 10.1 9.8

ENER 7.5 7.2

MATS 7.2 8.0

RLST 1.0 3.3

DSCR 9.2 11.5

UTIL 0.0 3.2

TCOM 0.0 4.6

FINA 15.7 23.4

COMPANY COUNTRY SECTOR WT (%) COMPANY COUNTRY SECTOR WT (%)

BAYER GERMANY HLTH 4.1 ROYAL DUTCH SHELL UNITED KINGDOM ENER 3.6

DASSAULT SYSTÈMES FRANCE INFT 3.9 AIA GROUP HONG KONG FINA 3.5

ROCHE HOLDING SWITZERLAND HLTH 3.8 TAIWAN SEMICONDUCTOR TAIWAN INFT 3.5

BAIDU CHINA INFT 3.7 SAP GERMANY INFT 3.4

NESTLÉ SWITZERLAND STPL 3.7 WPP UNITED KINGDOM DSCR 3.1

(10.0) (5.0) 0.0 5.0 10.0

REGIONHL%

ACWIxUS%

EMU 33.5 21.8

OTHER1 4.7 ‒

CASH 2.4 ‒

MIDEAST 1.8 0.5

FRONTIER2 0.0 ‒

XEMU 22.5 22.6

PACXJ 7.0 8.5

CANADA 2.4 7.0

JAPAN 10.1 16.9

EMERGE 15.6 22.7

(12.0) (6.0) 0.0 6.0 12.0

(Under) / Over

1Includes companies classified in countries outside the Index; 2Includes countries with less-developed markets outside the Index.Source: Harding Loevner International Equity ADR Model; MSCI Inc. and S&P. Sector and Region end weights are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation. Please read the disclosures on the last page, which are an integral part of this presentation.

(Under) / Over

Ten Largest Holdings – Total Weight 36.3%

INTERNATIONAL EQUITY ADR PORTFOLIO GUIDELINES

17

Strategy guidelines ensure diversification and limit risk.

GUIDELINE

GENERAL LIMITS

Number of holdings 30 – 60

Maximum in one security 5%

Minimum number of markets 15

Maximum cash 10% (normally ~3%)

Maximum in one industry 15%

Minimum number of sectors 7

Maximum in one sector 25%

GEOGRAPHIC LIMITS

Japan 0 – 40%

United Kingdom 0 – 30%

France, Germany, Netherlands, Switzerland1 0 – 20%Australia, Canada, Denmark, Finland,

Hong Kong, Italy, Singapore, Spain, Sweden10 – 10%

Other single developed market 0 – 5%Brazil, China, India, Mexico, Russia,

South Africa, South Korea, Taiwan10 – 10%

Other single emerging market 0 – 5%

Single frontier market 0 – 5%

Emerging and Frontier markets in aggregate 0 – 30%

Frontier markets in aggregate 0 – 15%

1The geographic and regional constraints set forth above are per-country constraints, not aggregate constraints, and are grouped together for convenience. As of December 31, 2016, subject to change.

PORTFOLIO STATISTICS | AS OF DECEMBER 31, 2016

HL INTL EQUITY ADR MSCI ACW XUS INDEX MSCI EAFE INDEX

NUMBER OF HOLDINGS 49 1,856 930

DIVIDEND YIELD1 (%) 2.3 3.0 3.1

PORTFOLIO TURNOVER (5-YR AVG ANNUAL %) 15.0

QUALITY METRICS

PROFIT MARGIN2 (%) 11.4 9.1 7.8

RETURN ON ASSETS2 (%) 7.0 4.5 4.2

RETURN ON EQUITY2 (%) 14.3 12.3 11.8

DEBT/EQUITY2 (%) 50.9 65.8 67.3

STD DEV OF 5-YR ROE2 (%) 2.4 3.3 3.3

GROWTH METRICS

SALES GROWTH2,3 (%) 4.5 0.3 -0.7

EARNINGS GROWTH2,3 (%) 9.2 5.9 4.7

CASH FLOW GROWTH2,3 (%) 5.9 4.9 3.0

DIVIDEND GROWTH2,3 (%) 7.5 4.7 4.9

VALUATION METRICS

PRICE/EARNINGS4 20.4 16.7 18.3

PRICE/CASH FLOW4 14.3 9.7 10.0

PRICE/BOOK4 2.4 1.6 1.7

MARKET CAP

WTD MED MARKET CAP ($B) 44.7 30.1 33.1

WTD AVG MARKET CAP ($B) 70.9 53.3 54.2

1Weighted mean; 2Weighted median; 3Trailing five years, annualized; 4Weighted harmonic mean. Statistics are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation. Please read the disclosures on the last page, which are an integral part of this presentation.

18

MODEL PORTFOLIO HOLDINGS | AS OF DECEMBER 31, 2016SECTOR / COMPANY / DESCRIPTION COUNTRY WGT

(%)MKT CAP($US B)

TRAILING P/E

TRAILING P/CF

5-YR ROE (%)

5-YR EPS GROWTH (%)

5-YR CF GROWTH (%)

CONSUMER DISCRETIONARY

BMW Automobile manufacturer Germany 1.9 61.5 8.4 4.9 16.5 14.6 -44.7LVMH MOËT HENNESSY Luxury goods group France 1.2 96.3 24.6 15.5 16.7 2.3 5.8NASPERS Media, internet, pay TV company South Africa 2.3 63.5 61.4 64.7 13.1 18.5 -29.2TELEVISA Media, broadcasting and entertainment Mexico 0.7 12.3 54.4 9.7 12.1 6.5 10.7WPP Advertising and marketing services UK 3.1 29.8 27.8 14.5 13.7 13.6 0.4CONSUMER STAPLES

BUNGE Soybean processor US 2.2 10.1 16.6 8.6 5.1 -19.8 N.A.L’ORÉAL Beauty and personal care products France 2.7 102.3 33.5 22.8 14.1 9.2 5.9NESTLÉ Food company Switzerland 3.7 223.7 26.1 18.6 17.4 -22.2 2.5UNILEVER Consumer products manufacturer UK 1.6 115.5 25.4 16.6 33.3 -0.6 2.9ENERGY

ROYAL DUTCH SHELL Oil exploration UK 3.6 236.1 54.2 8.6 8.4 -37.5 1.0SCHLUMBERGER Oilfield services company US 2.6 116.8 N.A. 23.9 13.8 -13.6 9.7TENARIS Steel pipe manufacturer Italy 1.4 21.1 N.A. 73.4 9.7 N.A. 24.7FINANCIALS

AIA GROUP Life insurance Hong Kong 3.5 68.0 26.8 N.M. 11.2 0.0 N.A.ALLIANZ Multiline insurance Germany 2.7 75.7 10.2 N.M. 11.0 5.4 6.9BBVA Commercial bank Spain 2.8 43.8 11.1 N.A. 3.7 -20.1 N.A.DBS GROUP Commercial bank Singapore 1.8 30.5 10.1 N.A. 11.6 19.9 -4.6GARANTI BANK Commercial bank Turkey 0.8 9.1 6.3 N.A. 15.2 1.9 16.4HSBC Multinational commercial bank UK 1.3 162.0 34.4 N.A. 8.3 -2.1 -25.7ICICI Bank Commercial bank India 1.0 21.9 16.5 N.A. 14.1 10.4 7.2ITAU UNIBANCO Commercial bank Brazil 1.7 67.9 9.9 N.A. 21.4 17.3 -6.8HEATH CARE

ASPEN PHARMACARE Pharma manufacturer & distributor South Africa 0.9 9.5 30.1 24.9 16.4 13.3 5.4BAYER Crop chemicals and pharmaceuticals Germany 4.1 86.5 17.5 10.3 16.1 25.9 5.3CSL LIMITED Blood plasma and recombinants Australia 1.6 33.2 27.2 22.7 40.5 16.3 13.2

N.A. – Not Applicable; N.M. – Not Meaningful.The portfolio is actively managed therefore holdings shown may not be current. Portfolio holdings should not be considered recommendations to buy or sell any security. It should not be assumed that investment in the security identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. Portfolio holdings are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

19

MODEL PORTFOLIO HOLDINGS | AS OF DECEMBER 31, 2016SECTOR / COMPANY / DESCRIPTION COUNTRY WGT

(%)MKT CAP($US B)

TRAILING P/E

TRAILING P/CF

5-YR ROE (%)

5-YR EPS GROWTH (%)

5-YR CF GROWTH (%)

HEATH CARE (continued)

FRESENIUS MEDICAL CARE Dialysis services & equipment Germany 2.3 26.0 22.7 13.8 12.2 4.4 11.1GRIFOLS Biopharmaceutical and diagnostics Spain 0.9 13.6 24.2 17.5 17.4 23.5 34.8ROCHE HOLDING Pharma and diagnostic equipment Switzerland 3.8 195.0 21.8 15.3 57.4 0.5 2.7SHIRE Prescription medicine developer UK 1.0 52.2 149.2 17.7 28.4 15.7 19.7SONOVA HOLDING Hearing aid manufacturer Switzerland 1.0 7.9 24.3 18.9 16.4 7.9 4.7SYSMEX Clinical testing equipment Japan 1.9 12.1 32.8 24.8 16.4 25.7 16.6INDUSTRIALS

ALFA LAVAL Heat transfer and fluid separation equipment Sweden 1.1 7.0 24.2 13.0 19.9 4.5 7.5ATLAS COPCO Industrial compressors and mining equipment Sweden 1.8 37.2 32.1 22.8 31.7 3.3 10.1BBA AVIATION Flight support systems UK 0.6 3.7 N.A. 10.1 11.2 -6.9 -8.0CANADIAN NATIONAL RAILWAY Railway operator Canada 2.4 51.7 19.8 14.8 23.8 14.4 14.9FANUC Industrial robots, controls, machine tools Japan 2.8 32.9 30.1 25.7 12.3 5.9 2.9JGC CORP Industrial facilities engineer Japan 1.3 4.6 N.A. N.A. 11.0 11.0 N.A.KUBOTA Farming and construction machinery Japan 1.0 17.8 16.3 9.6 13.0 22.0 19.7MONOTARO Online maintenance supplies distributor Japan 0.8 2.5 51.5 N.A. 35.3 41.4 60.6PARK24 24-hr automated parking operator Japan 1.2 4.0 33.1 13.2 20.0 15.8 13.1INFORMATION TECHNOLOGY

BAIDU Internet search provider China 3.7 44.7 11.4 10.3 39.4 58.9 36.8CHECK POINT SOFTWARE Software company Israel 1.8 14.5 20.9 20.6 18.9 11.9 10.2DASSAULT SYSTÈMES CAD/CAM software designer France 3.9 19.4 43.6 29.0 13.1 11.4 7.9SAP Enterprise software provider Germany 3.4 107.3 29.2 21.8 19.0 11.0 4.3TAIWAN SEMICONDUCTOR Semiconductor chip foundry Taiwan 3.5 146.0 15.3 8.9 25.9 13.6 18.4MATERIALS

AIR LIQUIDE Industrial gas company France 2.4 39.4 21.7 12.0 15.4 4.4 3.0FUCHS PETROLUB Lubricants manufacturer Germany 1.2 5.8 22.4 18.9 26.0 7.1 15.5LINDE Industrial gases and engineering Germany 1.4 30.6 23.4 9.3 9.2 0.8 7.0SASOL Refined product and chemicals group South Africa 1.0 19.6 18.4 6.2 16.2 -8.1 6.7SYMRISE Global flavor and fragrance supplier Germany 1.2 7.9 31.1 17.1 17.2 11.0 9.8

N.A. – Not Applicable.The portfolio is actively managed therefore holdings shown may not be current. Portfolio holdings should not be considered recommendations to buy or sell any security. It should not be assumed that investment in the security identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. Portfolio holdings are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

20

MODEL PORTFOLIO HOLDINGS | AS OF DECEMBER 31, 2016

SECTOR / COMPANY / DESCRIPTION COUNTRY WGT(%)

MKT CAP($US B)

TRAILING P/E

TRAILING P/CF

5-YR ROE (%)

5-YR EPS GROWTH (%)

5-YR CF GROWTH (%)

REAL ESTATE

MITSUBISHI ESTATE Property management and real estate Japan 1.0 27.7 38.1 N.A. 4.8 5.4 -8.3TELECOM SERVICES

No holdings

UTILITIES

No holdings

CASH 2.4

21

N.A. – Not Applicable.The portfolio is actively managed therefore holdings shown may not be current. Portfolio holdings should not be considered recommendations to buy or sell any security. It should not be assumed that investment in the security identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. Portfolio holdings are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

4.32

1.15

7.35

4.14

7.90

3.58

0.44

6.58

3.38

7.03

5.01

-1.32

5.48

1.42

4.71

-5.0

0.0

5.0

10.0

1 Year 3 Years 5 Years 10 Years Since Inception

Per

cent

HL International Equity ADR (gross) HL International Equity ADR (net) MSCI ACW ex-US Index

HL INTL ADR MSCI ACWI XUS HL INTL ADR MSCI ACWI XUS

Alpha (%) 2.23 Sharpe Ratio 0.57 0.41

Beta 0.92 1.00 Information Ratio 0.51

R-Squared 0.92 1.00 Up/Down Capture (%) 96/86

Standard Deviation (%) 12.65 13.23

Investment statistics shown are derived from trailing five years’ monthly returns. Statistics are supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation. Please read the disclosures on the last page, which are an integral part of this presentation.

Annualized Returns for Trailing Periods (%)

Past performance does not guarantee future results. The performance returns shown are preliminary. The 3-year, 5-year, 10-year, and since inception returns are annualized. Inception Date: August 31, 2000. Performance prior to August 31, 2000 is that of the International Equity Composite which was managed similarly and materially represented the strategy of the International Equity ADR Composite.

COMPOSITE PERFORMANCE | AS OF DECEMBER 31, 2016We aim for above-market investment returns without additional volatility.

22

COMPOSITE PERFORMANCE SUMMARY | AS OF DECEMBER 31, 2016HL INTL

ADR GROSS

(%)

HL INTL ADR NET(%)

MSCI ACW EX-US

INDEX1

(%)

MSCI EAFE

INDEX2

(%)

HL INTL ADR 3-YR STD DEV3

(%)

MSCI ACWIEX-US 3-YR

STD DEV3

(%)

MSCI EAFE3-YR

STD DEV3

(%)

INTERNALDISPERSION4

(%)

NO. OFACCOUNTS5

COMPOSITEASSETS5

($M)

FIRM ASSETS

(%)

20166 4.32 3.58 5.01 1.51 12.80 12.53 12.48 0.2 165 680 1.74

2015 -0.63 -1.30 -5.25 -0.39 12.52 12.13 12.47 0.3 165 630 1.89

2014 -0.16 -0.88 -3.44 -4.48 11.90 12.78 12.99 0.4 160 533 1.52

2013 14.93 14.10 15.78 23.29 15.03 16.20 16.22 0.7 159 520 1.57

2012 19.87 18.99 17.39 17.90 17.92 19.22 19.32 0.5 151 417 1.84

2011 -10.40 -11.08 -13.33 -11.73 21.86 22.74 22.45 0.3 167 365 2.68

2010 17.00 16.13 11.60 8.21 25.55 27.33 26.28 0.3 157 380 3.45

2009 35.76 34.69 42.14 32.46 23.40 25.30 23.65 0.4 118 265 4.14

2008 -35.17 -35.67 -45.24 -43.06 18.87 20.90 19.26 0.3 91 161 4.93

2007 14.08 13.28 17.12 11.63 10.27 10.62 9.41 0.6 84 243 3.82

2006 23.63 22.69 27.16 26.86 10.54 10.18 9.29 0.7 80 153 3.241Benchmark Index; 2Supplemental Index; 3Variability of the composite and the Index returns over the preceding 36-month period, annualized; 4Asset-weighted standard deviation (gross of fees); 5Total product accounts and assets are 24,160 and $8,578 million, respectively, at December 31, 2016, and are presented as supplemental information; 6The 2016 performance returns and assets shown are preliminary.

The International Equity ADR Composite contains fully discretionary, fee paying international equity accounts with the objective of long-term capital appreciation. Securities are held in Depository Receipt (DR) form, including American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) or are otherwise traded on US exchanges. For comparison purposes, the Composite is measured against the MSCI All Country World ex-US Index, presented gross of withholdings. (Prior to December 31, 2012, the Composite was measured against the MSCI All Country World ex-US Index net of foreign withholding taxes for the periods presented. The presentation was changed to conform the treatment of withholding of the benchmark with that of the Composite.) The exchange rate source of the benchmark is Reuters. The exchange rate source of the Composite is Bloomberg. Additional information about the benchmark, including the percentage of Composite assets invested in countries or regions not included in the benchmark, is available upon request.The MSCI All Country World ex-US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US. The Index consists of 45 developed and emerging market countries. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. The Index consists of 21 developed market countries. You cannot invest directly in these Indices.Harding Loevner LP claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Harding Loevner has been independently verified by Ashland Partners & Company, LLP for the period November 1, 1989 through September 30, 2016. Verification assesses whether (1) the firm has complied with all composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policy and procedures are designed to calculate and present performance in compliance with GIPS standards. The International Equity ADR Composite has been examined for the periods January 1, 1990 through September 30, 2016. The verification and performance examination reports are available upon request.Harding Loevner LP is an investment adviser registered with the Securities and Exchange Commission. Harding Loevner is an affiliate of Affiliated Managers Group, Inc. (NYSE: AMG), an investment holding company with stakes in a diverse group of boutique firms. The firm maintains a complete list and description of composites, which is available upon request.Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance is presented gross of foreign withholding taxes on dividends, interest income and capital gains. Additional information is available upon request. Past performance does not guarantee future results. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

23

The US dollar is the currency used to express performance. Returns are presented both gross and net of management fees and include the reinvestment of all income. Net returns are calculated using actual fees. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. The standard fee schedule generally applied to separate International Equity ADR accounts is 0.80% annually of the market value up to $20 million; 0.40% of amounts above $20 million. Actual investment advisory fees incurred by clients may vary. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year.The International Equity ADR Composite was created on August 31, 2000. Performance prior to August 31, 2000 is that of the International Equity Composite, which was managed similarly and materially represented the strategy of the International Equity ADR Composite.

SUPPLEMENTAL INFORMATION

Low Tracking Error

†International Equity ADR Composite (gross), calculated monthly.*Universe of International Large Cap Growth managers, i.e., active managers that pursue a style similar to that of Harding Loevner.Box represents range from 25th to 75th percentile of the universe, including median manager and “whisker” represents 5th and 95th percentiles of the universe.**“Active Share” is the proportion of holdings by weight that differ from holdings of the benchmark index. Data as of December 31, 2016.

HL International Equity ADR Tracking Error†

Compared to Peer Universe – 5 Years Rolling Annually

Trac

king

Err

or (%

)

eVestment ACWI ex-US Large Cap Growth Equity Universe*

ACTIVE MANAGEMENTOur Tracking Error vs. the benchmark is low relative to our peer active managers, while our high Active Share reflects strong expression of specific investment insights.

25

HL International ADR

Strong Insight Expression

5-Year Average Active Share: 89%**

Share weights in HL

International Equity ADR

Share weights in MSCI ACW ex-US Index

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Jan 12 Jan 13 Jan 14 Jan 15 Jan 16Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Research Universe≈ 4000 Companies

Research Universe

Companies Qualified for Further Research

Valuedand Rated Stocks

PortfolioHoldings

≈ 5,000 Companies

≈ 400

≈ 325

≈ 55

INVESTMENT PROCESSWe narrow the investable universe in stages according to our insights about industries and companies, before considering stock prices.

26

STAGE 1: QUALIFICATIONWe use fundamental data and professional judgment to sort companies by apparent business quality and growth prospects.

Source: Harding Loevner, HOLT database. HOLT data as of December 19, 2016. Size of bubble reflects market cap. The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. It should not be assumed that investment in the securities identified has been or will be profitable. Please read the disclosures on the last page, which are an integral part of this presentation.

EXAMPLE: INFORMATION TECHNOLOGY SECTOR

Gro

wth

Ran

kH

igh

Low

Quality Rank HighLow

COMPETITIVE ADVANTAGE

SUSTAINABLE GROWTH

FINANCIAL STRENGTH

QUALITY MANAGEMENT

KEY CRITERIA

27

EM

DM

FM

STAGE 2: IN-DEPTH RESEARCHAnalysts assess business quality using our standardized framework.

QUALITY ASSESSMENT FRAMEWORK

6

8

8

5

6

7

7

7

9

7

0 5 10

Threat of new entrants

Threat of substitution

Bargaining power of buyers

Bargaining power of suppliers

Intensity of rivalry

Growth persistence and variability

Strength of free cash flow

Balance sheet strength

Foresight and change management

ESG risk factors

Total Score 70/100

COMPANY STRATEGY

COMPETITIVE INDUSTRY STRUCTURE

KEY CRITERIA

COMPANY EXAMPLE: Dassault Systèmes (Product Lifecycle Management software provider)

Michael E. Porter, “The Five Competitive Forces that Shape Strategy.” Harvard Business Review, January 2008, 78-93. The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. The portfolio is actively managed therefore securities shown may not be current. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner.

28

Broad suite of software solutions which improve and become embedded in the product design and manufacturing process via simulation

COMPETITIVE ADVANTAGE

Increasing global demand for efficient product development and automation solutions across multiple industries

Strong balance sheet and cash flow generation

Long-tenured team exhibits foresight in acquisitions which have expanded the addressable market opportunity

SUSTAINABLE GROWTH

FINANCIAL STRENGTH

QUALITY MANAGEMENT

STAGE 2: IN-DEPTH RESEARCHCompanies become candidates for investment after their growth potential and business quality are confirmed.

Source: Harding Loevner, HOLT database. HOLT data as of December 19, 2016. Financials are not included due to non-comparability issues in the metrics chosen. Size of bubble reflects market cap. The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. It should not be assumed that investment in the securities identified has been or will be profitable. Please read the disclosures on the last page, which are an integral part of this presentation.

CANDIDATES FOR INVESTMENT (EX-FINANCIALS)

Gro

wth

Ran

kH

igh

Low


29

EM

DM

FM

STAGE 3: VALUATION & RATINGShifting from company analysis to security analysis, analysts build comprehensive forecasts, estimate fair value, and issue stock ratings.

The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. The portfolio is actively managed therefore securities shown may not be current. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. CFROI® and HOLT™ are trademarks or registered trademarks of Credit Suisse or its affiliates in the United States and other countries.

Data as of December 30, 2016

30

ANALYSTS’ FORECASTS FINANCIAL TREND ESTIMATES VALUATION AND RATING

BUY

HOLD

SELL

Analysts define business “mileposts” that companies must meet for their investment theses to remain intact.

Warranted Price

72.39

Net Cash Flows

(1+Discount Rate)

=n

t=1€

0.0

10.0

20.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Cash Flow Return on Investment (Hist)

Cash Flow Return on Investment (F'cast)

Discount Rate (%)

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Historical Asset Growth (%)Forecast Asset Growth (%)Sustainable Growth Rate (%)

DASSAULT SYSTÈMES Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20Reported Currency: EUR 2015 2016 2017 2018 2019 2020

Profit & Loss Statement DriversSales 2,839 3,167 3,520 3,911 4,333 4,813 Organic Sales Growth 23.8% 8.0% 8.0% 8.0% 8.0% 9.0%Gross Profit (Cash) 2,453 2,749 3,069 3,422 3,791 4,212 Gross Profit, % margin 86.4% 86.8% 87.2% 87.5% 87.5% 87.5%- Total SG&A 1,596 1,762 1,941 2,156 2,389 2,654 Total SG&A, % Sales 56.2% 55.6% 55.1% 55.1% 55.1% 55.1%EBITDA 857 987 1,128 1,265 1,402 1,557EBIT 645 763 883 992 1,101 1,235 EBIT, % margin 22.7% 24.1% 25.1% 25.4% 25.4% 25.6% EBIT, % ∆ yoy 37.3% 18.2% 15.7% 12.4% 11.0% 12.1%Pretax Income 633 765 883 994 1,105 1,240 Effective Tax Rate, % NPBTA 31.6% 30.0% 30.0% 30.0% 30.0% 30.0%Net Income 402 476 553 622 692 781 NI, % ∆ yoy 38.1% 18.3% 16.1% 12.6% 11.2% 12.8%

Cash Flow Statement DriversTotal Capex 44 47 53 59 65 72Cash from Operations 707 753 856 959 1,062 1,183Cash from Investing -293 -748 -759 -772 -783 -694Cash from Financing 760 -119 -138 -154 -171 -233

Balance SheetTotal Current Assets 3,241 3,229 3,298 3,454 3,694 4,100Net PP&E 135 147 161 177 196 216Other Assets 2,935 3,448 3,947 4,430 4,893 5,244Total Assets 6,311 6,824 7,406 8,061 8,783 9,560Interest Bearing Debt 1,000 1,000 1,000 1,000 1,000 1,000Common Equity 3,469 3,802 4,188 4,624 5,108 5,615Other Liabilities 1,842 2,022 2,218 2,437 2,675 2,945Total Liabilities & Equity 6,311 6,824 7,406 8,061 8,783 9,560

STAGE 4: PORTFOLIO CONSTRUCTIONPortfolio Managers engage with Analysts, judge the relative merits of qualified stocks, and manage portfolio risk.

31

BUY CRITERIA Covered, valued, and rated by an Analyst at HL

Underpriced, implying high expected return

Diversifier of portfolio risk

SELL CRITERIA Fails to achieve business mileposts set in advance by Analysts

Overpriced, implying low expected return

Holding too large due to relative appreciation

STAGE 4: PORTFOLIO CONSTRUCTIONOur ranking tools help Portfolio Managers visualize their opportunity set and comprehensively consider relative valuations.

HL VALUED AND RATED STOCKS (EX-FINANCIALS)

Source: Harding Loevner, HOLT database. HOLT data as of December 19, 2016. Financials are not included due to non-comparability issues in the metrics chosen.The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. The portfolio is actively managed therefore securities shown may not be current. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. Please read the disclosures on the last page, which are an integral part of this presentation.

32

Rel

ativ

e Va

luat

ion

Expe

nsiv

eC

heap

Quality and Growth Rank HighLow

Consumer Discretionary

Consumer Staples

Energy

Health Care

Industrials

Telecom Services

Utilities

Info Technology

Materials

Real Estate

PAPER PORTFOLIOS

Patrick Todd, CFA

Bryan Lloyd, CFA

Andrew West, CFA

Ferrill Roll, CFACo-Lead

Alexander Walsh, CFACo-Lead

INTERNATIONALMODEL

PORTFOLIO

INTERNATIONALCLIENT

PORTFOLIOS

STAGE 4: PORTFOLIO CONSTRUCTIONOur portfolio decision-making structure promotes transparency and accountability; paper portfolios are used for signaling, training, and succession planning.

33

Ana

lyst

s’ R

ecom

men

dati

ons

STAGE 4: RISK MANAGEMENTHarding Loevner monitors and manages risk at the security, portfolio and enterprise levels.

34

SECURITY RISK In-depth company research

Continuous attention to prices

Uncompromising focus on business quality

Ongoing monitoring of milepost achievement

PORTFOLIO RISK Enforced risk guidelines

Regular CIO review

ENTERPRISE RISK Close control of operational risks

Culture of compliance

Conservative financial management

ACTIVE SHARE DETAIL | AS OF DECEMBER 31, 2016

A B CHL Holdings

NOT in the BenchmarkHL Holdings at Different Weight

than BenchmarkBenchmark Holdings NOT in HL Portfolio

Active Share4%

Count5*

Active Share40%

Count45

Active Share44%

Count1,811

Top Stock Componentsof Active Share



SCHLUMBERGER DASSAULT SYSTÈMES SAMSUNG ELECTRONICS

BUNGE BAYER NOVARTIS

MONOTARO BAIDU TOYOTA MOTOR CORP

BBA AVIATION AIA GROUP TENCENT

SAP BP

Source: FactSet; Harding Loevner International Equity ADR Model; MSCI Inc.*Includes Cash.“Active Share” is the proportion of holdings by weight that differ from holdings of the benchmark index, the MSCI All Country World ex-US Index.“Top Stock Components” refers to the stocks’ contribution to Active Share.The portfolio is actively managed therefore holdings shown may not be current. Portfolio holdings should not be considered recommendations to buy or sell any security. It should not be assumed that investment in the security identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. Portfolio Holdings are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

A CB

Share weights in HL

International Equity ADR

Share weights in MSCI

ACWxUS Index

Active Share: 88%

35

QUALITY-GROWTH SECTOR RANKING

36

Source: Harding Loevner, HOLT database. HOLT data as of December 19, 2016. Financials are not included due to non-comparability issues in the metrics chosen.The information provided in this Presentation should not be considered a recommendation to purchase or sell a particular security. To request a complete list of portfolio holdings for the past year contact Harding Loevner.

INTERNATIONAL EQUITY RESEARCH UNIVERSEBY MSCI GICS SECTOR (EX-FINANCIALS)

Gro

wth

Ran

kH

igh

Low


Followed

Not Followed

STAGE 2: IN-DEPTH RESEARCH

CANDIDATES FOR INVESTMENT (FINANCIALS ONLY)

Source: Harding Loevner, HOLT database. HOLT data as of December 19, 2016. Size of bubble reflects market cap. The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. It should not be assumed that investment in the securities identified has been or will be profitable. Please read the disclosures on the last page, which are an integral part of this presentation.

37

Gro

wth

Ran

kH

igh

Low

Quality Rank High

Diversified Banks

Insurance Brokers

Investment Banking & Brokerage

Thrifts & Mortgage Finance

Regional Banks

Low

Financial Exchanges & Data

Source: Harding Loevner, HOLT database. HOLT data as of December 19, 2016. Size of bubble reflects market cap. The information provided in this presentation should not be considered a recommendation to purchase or sell a particular security. The portfolio is actively managed therefore securities shown may not be current. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of portfolio holdings for the past year contact Harding Loevner. Please read the disclosures on the last page, which are an integral part of this presentation.

STAGE 4: PORTFOLIO CONSTRUCTION

38

HL VALUED AND RATED STOCKS (FINANCIALS ONLY)R

elat

ive

Valu

atio

n

Quality and Growth RankLow

Diversified Banks

Insurance Brokers

Investment Banking & Brokerage

Thrifts & Mortgage Finance

Regional Banks

Financial Exchanges & Data

High

Expe

nsiv

eC

heap

FIVE-YEAR SECTOR PERFORMANCE ATTRIBUTION | AS OF DECEMBER 31, 2016

-1.0

-0.5

0.0

0.5

1.0

INFT MATS HLTH ENER FINA UTIL STPL INDU RLST CASH TCOM DSCR


Largest Contributors to Relative Return Largest Detractors from Relative Return

SECTORSELECTION EFFECT (%)

SYSMEX HLTH 2.16

TAIWAN SEMICONDUCTOR INFT 1.92

ARM HOLDINGS INFT 1.75

WPP DSCR 1.65

AIR LIQUIDE MATS 1.19

SECTORSELECTION EFFECT (%)

LI & FUNG DSCR -1.91

JGC CORP INDU -1.18

SANDS CHINA DSCR -0.99

TESCO STPL -0.93

MTN GROUP TCOM -0.89

HL International Equity ADR Composite vs MSCI ACW ex-US Index

Portfolio holdings identified above do not represent all of the securities held in the portfolio. It should not be assumed that investment in the securities identified has been or will be profitable. The following information is available upon request: (1) information describing the methodology of the selection effect in the charts above; and (2) a list showing the weight and relative contribution to return of all holdings during the last 5 years. Past performance does not guarantee future results. In the charts above, “selection effect" is the holdings’ contribution to return relative to the GICS sector return. However, a stock with positive relative performance may nevertheless have lost value and may have contributed negatively to the absolute performance of the strategy. Contributors and detractors exclude cash and securities in the Composite not held in the Model Portfolio. Sector Attribution and Contributors and Detractors are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

Total Effect: 1.6Selection Effect: 0.7Allocation Effect: 0.9

Effe

ct (%

)

39

S E C T O R

CASH

INFT

HLTH

STPL

DSCR

INDU

ENER

TCOM

UTIL

MATS

FINA

RLST

Portfolio Absolute Weight Portfolio Relative Weight*

*Relative to the benchmark, the MSCI All Country World ex-US Index. Historical sector weights are shown for the International Equity ADR Model. Absolute end weights and relative weights are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

HISTORICAL SECTOR WEIGHTS

40

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16-30%

-20%

-10%

0%

10%

20%

30%

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

FIVE-YEAR GEOGRAPHIC PERFORMANCE ATTRIBUTION | AS OF DECEMBER 31, 2016

-1.0

-0.5

0.0

0.5

1.0

XEMU EMU EMERGE PACXJ CANADA MIDEAST OTHER CASH JAPAN


Largest Contributors to Relative Return Largest Detractors from Relative Return

COUNTRYSELECTIONEFFECT (%)

ARM HOLDINGS UNITED KINGDOM 2.73

WPP UNITED KINGDOM 2.27

TAIWAN SEMICONDUCTOR TAIWAN 1.98

SYSMEX JAPAN 1.94

CSL LIMITED AUSTRALIA 1.36

COUNTRYSELECTIONEFFECT (%)

LI & FUNG HONG KONG -2.09

FRESENIUS MEDICAL CARE GERMANY -1.33

JGC CORP JAPAN -1.10

SANDS CHINA HONG KONG -1.09

BG GROUP UNITED KINGDOM -0.99

HL International Equity ADR Composite vs MSCI ACW ex-US Index

1 Includes companies classified in countries outside the Index.The portfolio holdings identified above do not represent all of the securities held in the portfolio. It should not be assumed that investment in the securities identified has been or will be profitable. The following information is available upon request: (1) information describing the methodology of the selection effect in the charts above; and (2) a list showing the weight and relative contribution to return of all holdings during the last 5 years. Past performance does not guarantee future results. In the charts above, "selection effect" is the holdings’ contribution to return relative to the MSCI country return. However, a stock with positive relative performance may nevertheless have lost value and may have contributed negatively to the absolute performance of the strategy. Contributors and detractors exclude cash and securities in the Composite not held in the Model Portfolio. Geographic Attribution and Contributors and Detractors are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

Total Effect: 1.6Selection Effect: 1.0Allocation Effect: 0.6

Effe

ct (%

)

41

1

G E O G R A P H Y

CASH

OTHER1

XEMU

EMU

MIDEAST

JAPAN

PACXJ

CANADA

EMERGE

Portfolio Absolute Weight Portfolio Relative Weight*

*Relative to the benchmark, the MSCI All Country World ex-US Index.1Includes companies classified in countries outside the Index. Historical geographic weights are shown for the International Equity ADR Model. Absolute end weights and relative weights are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

HISTORICAL GEOGRAPHIC WEIGHTS

42

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Sector Industry

Consumer Discretionary

Peter Baughan, CFA Retailing, Consumer Services

Maria Lernerman, CFA Retailing

Sergei Pliutsinski Consumer Durables & Apparel

Jafar Rizvi, CFA Media

Andrew West, CFA Automobiles & Components

Consumer Staples

Richard Schmidt, CFA Food Beverage & Tobacco

Sergei Pliutsinski Household & Personal Products

Energy

Craig Shaw, CFA

Shali Zhu, CFA

Financials

Bryan Lloyd, CFA Banks, Diversified Financials, Insurance

Ferrill Roll, CFA Banks, Diversified Financials

Moon Surana, CFA Diversified Financials

Health Care

Patrick Todd, CFA Health Care Eqpt. & Svcs.,Pharmaceuticals Biotechnology & Life SciencesAlexander Walsh, CFA

Industrials

Peter Baughan, CFA Commercial & Professional Svcs.

Jingyi Li Capital Goods

Anix Vyas, CFA Capital Goods

Andrew West, CFA Transportation

Information Technology

Christopher Mack, CFASoftware & Svcs., Tech Hardware & Eqpt., Semiconductors & Semiconductor Eqpt.

Lakshman Venkitaraman, CFA Software & Svcs., Tech Hardware & Eqpt.

Sector Industry

Materials

Anix Vyas, CFA

Alexander Walsh, CFA

Andrew West, CFA

Shali Zhu, CFA

Real Estate

Bryan Lloyd, CFA

Moon Surana, CFA

Telecom Services

Jafar Rizvi, CFA

Utilities

Jingyi Li

ANALYST RESPONSIBILITIES

43

Country/Region

China

Jingyi Li

Wenting Shen

Emerging Markets

Scott Crawshaw

G. Rusty Johnson, CFA

Frontier Emerging Markets

Pradipta Chakrabortty

Babatunde Ojo, CFA

Sergey Dubin, CFA

Japan

Yoko Sakai, CFA

Capitalization

International Small Companies

Sean Contant, CFA

Jafar Rizvi, CFA

Other

Special Projects

Timothy Kubarych, CFA

Peter Baughan, CFA PREVIOUS EXPERIENCERockefeller & Co., Inc., 1988–97 Investment Analyst, New York & London Private Equity Manager, Paris

Chase Manhattan Bank, N.A., 1983–88 Distressed Debt Manager, Indonesia International Credit, New York

EDUCATIONUniversity of North Carolina, Chapel Hill, BA, Political Science, 1983Chartered Financial Analyst, 1993

INVESTMENT PROFESSIONALS

44

Pradipta Chakrabortty PREVIOUS EXPERIENCETempleton Capital Advisors, July-September 2007 Summer Analyst (Asian Equities), Bahamas

Cornerstone Investment Partners, May-July 2007 Summer Analyst (US Equities), Atlanta

General Mills, Inc., 2004–06 Group Brand Manager, India

Hutchison Essar (Vodafone), 2003–04 Head – Prepaid Telecom Marketing, India

GlaxoSmithKline Consumer Healthcare, 1998–2003 Group Product Manager, India Brand Manager, India Area Sales Manager, India

HCL Ltd., 1994–95 Marketing Executive, India

EDUCATIONBIRLA Institute of Technology & Science, BE, Engineering, 1994XLRI School of Management, MBA, Finance & Marketing, 1998University of Pennsylvania, The Wharton School, MBA, Finance, 2008

Analyst, Cons Discretionary & Industrials

Portfolio Manager, Global Equity (Co-Lead)

Partner

JOINED HARDING LOEVNER IN 1997

Analyst, Frontier Emerging Markets

Portfolio Manager, Frontier Emerging Markets (Co-Lead) & Emerging Markets

Partner


Sean Contant, CFA PREVIOUS EXPERIENCEHarding Loevner LP Research Associate, 2012–14 Investment Associate, 2011–12

EDUCATIONUniversity of Massachusetts, Amherst, BBA, Finance and Operations Management, 2011Chartered Financial Analyst, 2015

Associate Analyst, International Small Companies


Scott Crawshaw PREVIOUS EXPERIENCERussell Investments, 2004–14 Senior Portfolio Manager (Emerging Markets

Equities), London Research Analyst (Emerging Markets Equities),

LondonISIS Asset Management, 1998–2003 Fund Manager, Global Emerging Markets Equities

Bacon and Woodrow – London Investment Division, 1995–98 Assistant Investment Consultant

EDUCATIONUniversity of Bristol, BSc, Mathematics, 1995

Analyst, Emerging Markets

Portfolio Manager, Emerging Markets


Sergey Dubin, CFA PREVIOUS EXPERIENCEConsilium Investment Management, LLC, 2011–15 Senior Research Analyst

Armor Capital Management, LLC, 2008–09 Research Analyst

Palisade Capital Management, LLC, 1999–2007 Vice President - Private Equity Investments

Bear, Stearns & Co. Inc.,1997–99 Financial Analyst, Investment Banking

EDUCATIONSyracuse University, M.J. Whitman School of Management and Maxwell School of Citizenship and Public Affairs, BS, Finance and Economics, 1997Chartered Financial Analyst, 2007


45



Simon Hallett, CFA PREVIOUS EXPERIENCEJardine Fleming Investment Management, 1984–90 Director/Investment Manager, Hong Kong

Kleinwort Benson Ltd., 1982–84 Investment Manager, Hong Kong

Dominion Securities, 1981–82 Account Executive, Hong Kong

Buckmaster & Moore, 1979–80 Assistant Investment Manager, London

EDUCATIONOxford University, BA, Philosophy, Politics, Economics, 1978Chartered Financial Analyst, 1997

Co-Chief Investment Officer

Partner


G. Rusty Johnson, CFA PREVIOUS EXPERIENCEPeregrine Brokerage, 1993–94 International Equity Sales, New York

Jardine Fleming/Robert Fleming, 1987–93 Institutional Broker, New York Equity Analyst, Hong Kong & Thailand

Chin Tung Futures, 1986–87 Analyst, Hong Kong

EDUCATIONWashington and Lee University, BA, Economics, 1986Chartered Financial Analyst, 1991

Analyst, Emerging Markets

Portfolio Manager, Emerging Markets (Co-Lead)

Partner


Andrew Fradin EDUCATIONBowdoin College, BA, Economics and Classics, 2016

Research Associate



46

Michelle Lee EDUCATIONRutgers University School of Arts and Science, BA, Economics, 2014

Research Associate


Maria Lernerman, CFA PREVIOUS EXPERIENCEFranklin Templeton, 2005–15 VP/Equity Research Analyst Equity Research Analyst Associate Equity Research Analyst

Citigroup Asset Management, 2003–05 Equity Research Associate

EDUCATIONThe Wharton School, University of Pennsylvania, BS, Economics, 2003Chartered Financial Analyst, 2008

Analyst, Cons Discretionary


Jingyi Li PREVIOUS EXPERIENCENew China Capital Management, LLC (manager of The Cathay Capital Group), 2005–10 Vice President, Connecticut and China

Harding, Loevner Management, L.P., 2004 Summer Analyst

China International Economics Consultants, 2002–03 Senior Strategy Consultant, China

Accenture, 1998–2002 Consultant, China

EDUCATIONShanghai Jiaotong University, BA, International Trade, 1998Yale School of Management, MBA, Finance, 2005

Analyst, Industrials, Utilities, & China


Timothy Kubarych, CFA PREVIOUS EXPERIENCEHarding Loevner LP Analyst (Special Projects), 2011–15 Research Associate, 2010–11

EDUCATIONHamilton College, BA, Mathematics, 2010Chartered Financial Analyst, 2014

Deputy Manager of Research



47

David R. Loevner, CFA, CIC PREVIOUS EXPERIENCERockefeller & Co., Inc., 1981–89 Managing Director, Rockefeller & Co., Ltd.,

Hong Kong Manager, Client Services, New York Portfolio Manager, New York

The World Bank, 1978–81 Brazil Country Economist, Washington, D.C.

Trustee Emeritus and Endowment Committee, Goucher CollegeDirector Emeritus, Princeton University Investment Company Executive Committee, Daniel M. Sachs Scholarship (Chair, 1994–2013)EDUCATIONPrinceton University, AB, Mathematical Sociology, 1976Oxford University (Sachs Scholar), MSc, Applied Statistics, 1977; BPhil (MPhil), Economics, 1978Chartered Financial Analyst, 1997; Chartered Investment Counselor, 1997

Chief Executive Officer

Partner

FOUNDED HARDING LOEVNER IN 1989

Christopher Mack, CFA PREVIOUS EXPERIENCEHarding Loevner LP Research Associate, 2006–08 Investment Assistant, 2004–06

EDUCATIONLafayette College, BA, Economics and Business, 2004Chartered Financial Analyst, 2011

Analyst, Info Technology

Portfolio Manager, Global Equity


Isaac May EDUCATIONBowdoin College, BA, History and Computer Science, 2015

Research Associate


Bryan Lloyd, CFA PREVIOUS EXPERIENCECalamos Asset Management, 2003–11 Vice President, Senior Analyst - Financial

Services Research Analyst, Research and Portfolio

ManagementCredit Suisse First Boston, 1999–2003 Associate, Equity Research Valuation Analyst, Global Banking and

InsuranceABN AMRO Bank, 1998–99 Credit Analyst, Media &

Telecommunications FinanceM&T Bank Corporation, 1996–98 Financial Analyst, Finance Division

EDUCATIONLafayette College, BA, Mathematics and Economics, 1996Chartered Financial Analyst, 2001

Analyst, Financials & Real Estate

Portfolio Manager, International Equity

Partner



48

Babatunde Ojo, CFA PREVIOUS EXPERIENCEAmerican Century Investments, Summer 2011 Global Research Analyst Intern, New York

Asset & Resource Management (ARM) Company, 2006–10 Head of Equity Research/Portfolio

Manager, Nigeria Equity Research Analyst, Nigeria

PricewaterhouseCoopers, 2005–06 Associate, Nigeria

Intercontinental Bank, 2003–04 Banking Officer, Nigeria

EDUCATIONUniversity of Lagos, BS, Biochemistry, 2002Imperial College, University of London, MSc, Food Chain Management, 2005University of Pennsylvania, The Wharton School, MBA, Finance and Management, 2012Chartered Financial Analyst, 2009


Portfolio Manager, Frontier Emerging Markets (Co-Lead)


Sergei V. Pliutsinski PREVIOUS EXPERIENCELao Golden Capital LLC, 2013 Managing Partner

Credit Suisse, 2005–13 Head of US Custom Solutions Group Custom Solutions Analyst

Proctor & Gamble Co., Personal Care Division, 2004–05 Marketing Research Analyst

EDUCATIONBelarusian State University, LLM in International Law at Faculty of International Relationships, 2002Northeastern University, BS, Finance and Economics, 2005

Analyst, Cons Discretionary & Cons Staples


Jafar Rizvi, CFA PREVIOUS EXPERIENCECohen, Klingenstein and Marks, 2006–08 Senior Analyst, Technology & Telecom

Fiduciary Trust Company International/Franklin Templeton Investments, 2001–05 Vice President/Senior Equity Analyst, Global

Telecom Equipment, Semiconductors, Telecom Services

Sands Brothers & Co., Ltd., 2000 Senior Analyst

NDB Capital Markets/Deutsche Bank, 1998–2000 Analyst/Senior Analyst

EDUCATIONAligarh University, BA, Economics, 1988 J Nehru University, MA, Economics, 1990 Baruch College, The City University of NY, MBA, Computer Information Systems, 1998 Columbia University, School of International & Public Affairs, MPA, International Economic Policy and Management, 2010Chartered Financial Analyst, 2003

Analyst, Cons Discretionary, Telecom Services, & Intl Small Companies

Portfolio Manager, Intl Small Companies

Partner


Christopher Nealand EDUCATIONFordham University Gabelli School of Business, MS, Finance, 2015University of Nevada, BSBA, Concentration: Finance, 2014

Research Associate



49

Yoko Sakai, CFA PREVIOUS EXPERIENCEMitsubishi Securities (USA), Inc., 1999–2003 Vice President, Equities Sales Group, New York

Jefferies & Co., 1994–97 Vice President, International Linked Products,

Tokyo Vice President, International Equity Trading,

TokyoHSBC Securities, 1989–94 Manager, Derivative Products, Tokyo Assistant Vice President, Japanese Warrant

Department, New YorkEDUCATIONColumbia University, BS, MechanicalEngineering, 1989Chartered Financial Analyst, 1999

Analyst, Japan

Partner


Richard Schmidt, CFA PREVIOUS EXPERIENCEOranda Capital Management, 2007–11 Chief Investment Officer, New York

JPMorgan Asset Management, 2002–05 Managing Director, New York

JPMorganFleming Asset Management, 2000–02 Portfolio Manager, London

Jardine Fleming Investment Management, 1994–2000 Director, Hong Kong

Jardine Fleming Securities, 1991–94 Director, Hong Kong

BT Brokerage, 1987–91 Vice President, Hong Kong

Winfull, Laing & Cruickshank, 1986–87 Research Analyst, Hong Kong

EDUCATIONGeorgetown University, BS, Foreign Service, 1986Chartered Financial Analyst, 1995

Analyst, Cons Staples

Portfolio Manager, Global Equity, Emerging Markets, & Frontier Emerging Markets

Partner


Craig J. Shaw, CFA PREVIOUS EXPERIENCEConsultant, 1999–2000 Capital Markets, Accounting, Treasury

ABN AMRO Securities, 1997–98 Securities Analyst, Asia

Barclays de Zoete Wedd, 1996–97 Securities Analyst, Asia

Credit Lyonnais Securities Asia, 1994–96 Securities Analyst, Asia

Parker Drilling Co./Consultant, 1990–94 Finance & Accounting Manager, Africa,

KazakhstanEDUCATIONConcordia College, BA, Business Administration, 1986American Graduate School of International Management (Thunderbird), MIM, 1989Chartered Financial Analyst, 2000

Analyst, Energy

Portfolio Manager,Emerging Markets (Co-Lead)

Partner


Co-Chief Investment Officer

Analyst, Financials

Portfolio Manager, Global Equity (Co-Lead) & International Equity (Co-Lead)

Partner


Ferrill D. Roll, CFA PREVIOUS EXPERIENCECesar Montemayor Capital, L.P., 1992–95 Portfolio Manager & General Partner

Barings Securities, Inc., 1989–92 International Equity Sales Equity Research, Germany

First Boston Corporation, 1985–89 International Equity Sales

JP Morgan, 1980–85 Forex Advisor & Options Trader

EDUCATIONStanford University, BA, Economics, 1980Chartered Financial Analyst, 1998


50

Moon Surana, CFA PREVIOUS EXPERIENCEHarding Loevner LP Research Associate, 2009–11Infosys Technologies Limited, 2005–07 Software Engineer, India

EDUCATIONManipal Institute of Technology, BE, Electronics and Communications, 2005University of Michigan, MS, Financial Engineering, 2008Chartered Financial Analyst, 2013

Analyst, Financials & Real Estate

Associate Portfolio Manager, Global Equity Research, International Equity Research, & Emerging Markets Research


Patrick Todd, CFA PREVIOUS EXPERIENCEGabelli & Company, Inc. / GAMCO Investors, Inc., 2011–12 Research Analyst

Ironbound Capital, 2006–10 Research Analyst Research Associate

Merrill Lynch Investment Managers, 2005–06 Portfolio Specialist

EDUCATIONHarvard University, BA, Biochemical Sciences, 2002Columbia Business School, MBA, Applied Value Investing, 2011Chartered Financial Analyst, 2011

Analyst, Health Care

Portfolio Manager, International Equity


Lakshman Venkitaraman, CFA PREVIOUS EXPERIENCECupps Capital Management, 2008-–13 Equity Analyst

Fidelity Investments, Summer 2007 Equity Analyst Intern

Microsoft Corporation, 2000–06 Software Design Engineer

Siemens LTD., 1997–98 Graduate Trainee Engineer, India

EDUCATIONThe University of Mumbai, (V.E.S.I.T), BE, Electronics, 1997The University of Texas at Austin, MS, Electrical and Computer Engineering, 2000The University of Chicago Booth School of Business, MBA, 2008Chartered Financial Analyst, 2012

Analyst, Info Technology


Analyst, China


Wenting Shen PREVIOUS EXPERIENCEDel Rey Global Investors, 2014–16 Equity Analyst, Los Angeles

Fidelity Worldwide Investments, 2013 Summer Analyst, Hong Kong

Gratia Capital Partners, L.P., 2013 Research Intern, Los Angeles

Goldman Sachs & Co., 2009–12 Analyst, China, Singapore

EDUCATIONPeking (Beijing) University, BA, Finance, 2009UCLA Anderson School of Management, MBA, Financial and Investment Management Track, 2014


51

Shali Zhu, CFA PREVIOUS EXPERIENCEHarding Loevner LP Research Associate, 2012–15

EDUCATIONUniversity of Cincinnati, BA, Mathematics and BBA, Finance, 2011Oxford University, MSc, Applied Statistics, 2012Chartered Financial Analyst, 2015

Associate Analyst, Energy & Materials


Andrew H. West, CFA PREVIOUS EXPERIENCEStandard & Poor’s Equity Research, 2003–06 Senior Industry Analyst (Industrials,

Materials, Transportation)Veitia & Associates, 2001–03 Investment and Portfolio Consultant

International Assets Advisory Corp., 1992–2001 Senior Vice President, Global Assets Advisors Assistant Vice President, Research

Department Research Analyst

EDUCATIONUniversity of Central Florida, BS, Business Administration, Finance 1991New York University, Leonard N. Stern School of Business, MBA, Finance & International Business, 2003Chartered Financial Analyst, 1997

Manager of Research

Analyst, Cons Discretionary, Industrials, & Materials

Portfolio Manager, International Equity, Global Equity Research, International Equity Research, & Emerging Markets Research

Partner


Alexander T. Walsh, CFA PREVIOUS EXPERIENCEPaineWebber, 1987–94 First Vice President

Merrill Lynch, 1982–87 Account Executive

J. Henry Schroder Bank & Trust, 1979–81 Assistant Treasurer & Operations

EDUCATIONMcGill University, BA, North American Studies, 1978Chartered Financial Analyst, 1998Analyst, Health Care &

Materials

Portfolio Manager, International Equity (Co-Lead)

Partner


Anix Vyas, CFA PREVIOUS EXPERIENCEGabelli & Company, Inc. / GAMCO Investors, Inc., 2010–13 Research Analyst

Amerigas, 2004–08 Manager, Operations and Corporate

DevelopmentBear, Stearns & Company, Inc., 2003–04 Staff Accountant

The Mony Group, Inc., 2002–03 Staff Accountant

EDUCATIONFordham University, BS/BA, Finance and Accounting, 2002University of Pennsylvania, The Wharton School, MBA, Finance, 2010Chartered Financial Analyst, 2006

Analyst, Industrials & Materials


INVESTMENT COMMUNICATION

52

S. Clarke Moody, CFA PREVIOUS EXPERIENCEHarding Loevner LP Director, Institutional Marketing, 2004–11 Marketing Manager, 1999–2004 Analyst (Info Technology, Telecom Services),

1996–98ABN AMRO Bank, 1994–96 Managing Director, Global Media &

Communications Division, New YorkBarclays de Zoete Wedd, 1993–94 Director, Technology & Defense Division,

New YorkChase Manhattan Bank, 1981–93 Director, Pharmaceutical Division, New York

& Puerto Rico Director, Capital Goods & Industrials

Division, New York & HoustonEDUCATIONColby College, BA, English Literature, 1978University of London, Goldsmith’s CollegeChartered Financial Analyst, 2000

Portfolio Specialist

Partner


Ray Vars, CFA PREVIOUS EXPERIENCENorthRoad Capital Management, 2002–16 Founding Principal and Portfolio Manager

Lazard Asset Management, 1995–2002 Portfolio Manager/Analyst Analyst

Asset Strategy Consulting, 1993–95 Associate

EDUCATIONYale University, BA, Political Science, 1993Chartered Financial Analyst, 1998

Portfolio Specialist


Jonathan Mortenson

TRADERS

53

Vikram Gowda PREVIOUS EXPERIENCEHarding Loevner LP Trading Systems Analyst, 2011–13

Westrock Institutional Group, 2010 Junior Equity Trader

Instinet Group, LLC, 2007–10 Account Executive

Deutsche Bank, 2006–07 Consultant, Priority Client Management

Goldman, Sachs & Co., 2005–06 Consultant, New Account Administrator –

Investment Banking DivisionWachovia Securities, 2004–05 Assistant

EDUCATIONMonmouth University, BS, Business Administration, 2004

Sean O’Connell PREVIOUS EXPERIENCEHarding Loevner LP Manager, Trading Execution, 2008–13 Trader, 2005–08

Susquehanna International Group, 2001–04 Assistant Trader

EDUCATIONDrexel University, BS, Business, 2004

PREVIOUS EXPERIENCEArtio Global Investors Inc., 2006–11 Vice President, Senior International Trader

Collins Stewart, Inc., 2003–06 Senior Vice President, International Sales

Trading ING Barings / CCF Charterhouse Securities, 1999–2003 Vice President, International Sales Trading

BT Alex. Brown, 1994–99 Associate, International Convertible Bond

Sales, London Training Program, New York / London Junior Convertible Bond Trader Sales Assistant

EDUCATIONCollege of the Holy Cross, BA, Economics, 1994

Trader


Senior Trader


Manager, Trading

Partner


George Antonak PREVIOUS EXPERIENCEHarding Loevner LP Sales Manager, Northeast & Midwest Regions,

2010–15Anton Consulting, 2007-2010 Founder, Business Development Consultant

Merrill Lynch, 2000–06 Managing Director, Head of Business Sales &

Relationship ManagementScudder Kemper Investments, 1987–00 Senior Vice President, Head of Sales & Business

Development Vice President, Head of Sales & Business

Development Director, Head of Sales & Business Development Sales & Service

EDUCATIONUniversity of Michigan, Ross School of Business, BBA, 1986Cornell University, Johnson Graduate School of Management, MBA, 2010

BUSINESS DEVELOPMENT

54

Manager, Institutional Business Development


Hannah Chase PREVIOUS EXPERIENCEHarding Loevner LP Marketing Associate, 2013–14

Kroll Advisory Solutions, 2012–13 Associate Case Manager

EDUCATIONAmerican University, BA, International Studies, 2012

Business Development Associate


Jason Caiola, CFA, CFP® PREVIOUS EXPERIENCERS Investments, Investment Research Group, April–November 2013 Investment Director

Merrill Lynch Managed Solutions Group, 2006–13 Associate Wealth Management Specialist, Vice

President Internal Wealth Management Specialist,

Assistant Vice PresidentMerrill Lynch Financial Advisory Center, 2005–06 Investor Services Advisor

EDUCATIONRider University, BA, Business Administration & Health Administration, 2004Certified Financial PlannerTM Certificant, 2008Chartered Financial Analyst, 2011



Kristin Burke PREVIOUS EXPERIENCEHarding Loevner LP Sales Manager, Northeast Region, 2004–09 Investment Assistant, 2003–04

EDUCATIONPrinceton University, AB, Political Economy, 2003University of Pennsylvania, The Wharton School, MBA, 2009


Partner



55

Jon Hearn PREVIOUS EXPERIENCEUS Trust, 2010–11 Senior Vice President, Wealth

ManagementGenesee Investments, 2006–10 Managing Director, Global Sales

Wentworth, Hauser & Violich (WHV) Investment Management, 2004–06 Vice President, Wealth Management

The Harris, my CFO, 2002–04 Vice President, Wealth Management

Russell Investments, 2000–02 Regional Director, Institutional Marketing

Key Asset Management, 1997–2000 Director, Institutional Marketing

Sutro & Co., 1994–97 Vice President

Kidder Peabody & Co., 1991–94 Investment Executive

EDUCATIONArizona State University, BS, Economics, 1986



Stephen Gannon PREVIOUS EXPERIENCEMarvin & Palmer Associates, Inc., 1995–2011 Director of Marketing and Client Service,

Principal Marketing Representative

Lyons Marketing Communications, 1993–95 Senior Account Executive

University Brands, 1989–93 Director of Marketing Marketing Manager Sales Representative

EDUCATIONWesleyan University, BA, English Literature, 1989



Jay Green PREVIOUS EXPERIENCEAmerican Century Investments, 1998-2016 Vice President, Institutional Consultant

RelationsAllstate Insurance, 1996-1998 Marketing Program Manager, Interactive

Marketing GroupAndersen Consulting, 1992-1996 Senior Consultant, Emerging Technology

Solutions GroupEDUCATIONUniversity of Kansas, MBA, Marketing and Finance, 1992University of Tulsa, BA, Psychology, 1990



Kevin Ferguson PREVIOUS EXPERIENCEVardon Capital Management, LLC, 2007 Director of Business Development

Lord, Abbett & Co. LLC, 1999–2006 Partner, Director – MidCap Growth

Lynch & Mayer, Inc., 1992–98 Senior Vice President, Portfolio Manager

Credit Suisse First Boston Corporation, Summer, 1991 Associate, Sales and Trading

American Express Company, 1986–90 Senior Financial Analyst, Risk Financing Associate, Financial Management

Development ProgramEDUCATIONBoston College, BS, Finance, 1986New York University, Leonard N. Stern School of Business, MBA, 1992


Partner



56

Bill Wilton, CFA, CAIA PREVIOUS EXPERIENCEHighland Capital Management LP, 2014-2016 Regional Sales Director

Dearborn Capital Management, LLC, 2012-2014 Director

Zacks Investment Research, Inc., 2005-2011 Equity Strategist Sales/Product Manager Account Manager

EDUCATIONUniversity of Illinois at Urbana-Champaign, BA, Finance, 2005Chartered Financial Analyst, 2012Chartered Alternative Financial Analyst, 2013



John Parsons PREVIOUS EXPERIENCEHarding Loevner LP Product Specialist, Emerging Markets, 2003–06

Mayfair Capital Group LLC, 2002–03 Managing Director, New York

EFG Asset Management Ltd., 2001–02 Marketing Director, London

Barclays Global Investors N.A., 1997–2001 Sales Director, Latin America & Caribbean,

Barclays International Funds Director, Research & Planning, London,

Barclays International FundsJohn Parsons & Associates, 1985–97 Principal, Management Consultant

Armco, Inc., 1981–85 Manager, Corporate Development, New York

EDUCATIONUniversity of Cambridge (UK), St. John’s College, BA, Engineering, 1975University of Cambridge (UK), MA, Engineering, 1980


Partner


Gregory Klobucar, CFA PREVIOUS EXPERIENCEHarding Loevner LP Manager, Institutional Marketing, 2012–13

Merrill Lynch Wealth Management, 2009–12 Vice President, Portfolio Specialist

Wachovia Securities, 2005–07 Assistant Vice President, Business

Development GroupLord, Abbett & Company, 2003–05 Regional Consultant

EDUCATIONPennsylvania State University, BS, Marketing and International Business, 2002Georgetown University, McDonough School of Business, MBA, 2009Chartered Financial Analyst, 2012

Manager, Wealth Management & Regional Consultants


Lisa Mehmet, CFA PREVIOUS EXPERIENCEHarding Loevner LP Manager, Broker-Dealers & Banks Client

Management, 2013‒15 Investment Associate, 2012‒13

SEI, 2007‒12 Investment Manager Services Supervisor Portfolio Accounting Analyst

EDUCATIONDickinson College, BA, International Business and Management, 2006Saint Joseph’s University, MBA, Finance, 2011Chartered Financial Analyst, 2014

Manager, Business Development


The information provided in this Presentation should not be considered a recommendation to purchase or sell a particular security. Non-performance based criteria have been used to select the securities listed. The portfolio is actively managed therefore securities shown may not be current. It should not be assumed that investment in the securities identified has been or will be profitable.

Investing in stocks entails the risks of market volatility. The value of all types of stocks may increase or decrease over varying time periods. To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes, and differences in financial and accounting standards.

Statistics, performance attribution, selection effect, profile and holdings are shown as supplemental information only and complement the fully compliant International Equity ADR Composite GIPS Presentation.

The MSCI All Country World ex-US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US. The Index consists of 45 developed and emerging market countries. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. The Index consists of 21 developed market countries. You cannot invest directly in these Indices.

Profit Margin: relationship of gross profits to net sales. Return on Assets: net income for past 12 months divided by total assets. Return on Equity: the net income divided by total common equity outstanding, expressed as a percent. Debt/Equity Ratio: total long-term debt divided by total shareholder’s equity. Standard Deviation: the statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. Sales Per Share: the total revenue earned per share over a 12-month period; net of returns, allowances, and discounts. Earnings Per Share: portion of a company’s profit allocated to each outstanding share of common stock. Cash Flow: a measure of the cash generating capability of a company calculated by adding non-cash charges (e.g. depreciation) and interest expense to pretax income. Dividend Per Share: a total dividends per share paid during the previous fiscal year. Alpha: a measure of risk-adjusted return. Beta: a measure of the portfolio’s sensitivity to the market. R-Squared: a measure of how well a portfolio tracks the market. Information Ratio: a measure of risk-adjusted return calculated by dividing the portfolio active return (i.e., portfolio returns minus benchmark return) by the standard deviation of the active return. Sharpe Ratio: the return over the risk free rate per unit of risk. Up/Down Capture: a measure of the manager’s performance in up/down markets relative to the market itself. Market Capitalization: the product of a security’s price & the number of shares outstanding. Price/Earnings Ratio: the ratio of a firms closing stock price and its trailing 12 months earnings per share. Price/Book Ratio: the ratio of a firms closing stock price and its fiscal year end book value per share. Price/Cash Flow Ratio: the ratio of a firms closing stock price and its fiscal year end cash flow per share. Turnover: calculated by dividing the lesser of Purchases or Sales by Average Capital.

The Composite and Attribution returns may show discrepancies due to the different data sources for these returns. Composite performance is obtained from Harding Loevner’s accounting system and Attribution returns are obtained from the FactSet portfolio analysis system. Please note returns from FactSet are not audited for GIPS compliance and are for reference only.

All performance and data shown are in US dollar terms, unless otherwise noted.

Growth Rank and Quality Rank are Harding Loevner’s proprietary measures determined using objective data to rank companies on a number of factors that, in the case of Quality, attempt to measure the stability, trend, and level of profitability, as well as balance sheet strength. In the case of Growth, objective data is utilized to rank companies based on an assessment of historic growth of earnings, sales, and assets, as well as expected moves in earnings and profitability.

Source (Performance Attribution, Selection Effect): FactSet; Harding Loevner International Equity ADR Composite; MSCI Inc.Source (Portfolio Statistics [run date January 6, 2017], Active Share, Profile Sector & Geographic end weights, Portfolio Holdings): FactSet; Harding Loevner International Equity ADR Model; MSCI Inc. and S&P.Source (Performance Statistics, Tracking Error): eVestment Alliance; Harding Loevner International Equity ADR Composite, based on composite returns.

CFROI® is a registered trademark of Credit Suisse or its affiliates in the United States and other countries.

MSCI Inc. and S&P do not make any express or implied warranties or representations and shall have no liability whatsoever with respect to any GICS data contained herein.FactSet Fundamentals, Copyright 2017 FactSet Research Systems, Inc. All rights reserved.

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