HLREX — Emerging Markets Research Portfolio
Data updated: 2024-03-27
HLREX — Emerging Markets Research Portfolio. Japan Value Equity · $5.97M AUM · 1.15% expense ratio. Holdings, fees, performance and SEC filings.
HLREX Fund Overview
HLREX — Emerging Markets Research Portfolio is a US mutual fund managed by Harding Loevner Funds INC, categorised as Japan Value Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Harding Loevner Funds INC
- Category: Japan Value Equity
- Assets under management: $5.97M
- 1-year return: -7.3%
- Ticker: HLREX
- SEC CIK: 0001018170
- SEC series ID: S000055772
- Share class ID: C000175606
HLREX Investment Objective and Strategy
Emerging Markets Research Portfolio describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Harding Loevner Funds INC.
Investment objective
The Emerging Markets Research Portfolio (the “Portfolio”) seeks long-term capital appreciation through investments in equity securities of companies based in emerging markets.
Principal investment strategy
The Portfolio invests primarily in companies that are based in emerging and frontier markets. Emerging and frontier markets offer investment opportunities that arise from long-term trends in demographics, deregulation, offshore outsourcing and improving corporate governance in developing countries. Harding Loevner LP (Harding Loevner), the Portfolios investment adviser, undertakes fundamental research in an effort to identify companies that are well managed, financially sound, fast growing, and strongly competitive, and whose shares are under-priced relative to estimates of their value. The investment advisers analysts, after completing this research, assign a rating to each stock based upon its potential return relative to an appropriate benchmark. The universe of stocks eligible for investment in the Portfolio are those rated for purchase by the analysts and that otherwise meet the investment characteristics and guidelines established for the Portfolio.
These guidelines include limits on exposure by geography, industry, and currency, and may include other limits, such as market capitalization. To reduce its volatility, the Portfolio is diversified across these elements. The Portfolio may invest in companies in all capitalization ranges, including smaller and medium-sized companies. The investment adviser expects that a majority of the stocks that its analysts have rated for purchase that meet the Portfolios investment characteristics and guidelines will be held in the Portfolio. The portfolio managers may exclude any stock in their discretion based on factors such as trading volumes, market capitalization, or geography. In determining the weight of each security in the Portfolio, the portfolio managers will seek to maintain a portfolio that, over time, is generally less volatile than the Portfolios benchmark, taking into consideration factors including the relevant securitys predicted relative price performance, the timeliness of investment potential, the implications for portfolio risk and the requirement to observe the investment characteristics and guidelines established for the Portfolio.
The portfolio managers will periodically re-balance the portfolio when and as they deem appropriate, to reflect, among other things, changes to securities prices, analysts ratings, desired investment characteristics, investment guidelines, or assumptions about prospective volatility or tracking error. The portfolio managers will use risk models and other quantitative tools to assist them in determining portfolio weightings. The Portfolio normally holds investments across at least 15 countries. Emerging and frontier markets include countries that have an emerging stock market as defined by Morgan Stanley Capital International, countries or markets with low- to middle-income economies as classified by the World Bank, and other countries or markets with similar characteristics. Emerging and frontier markets tend to have relatively low gross national product per capita compared to the worlds major economies and may have the potential for rapid economic growth.
Factors bearing on whether a company is considered to be based in an emerging or frontier market may include: (1) it is legally domiciled in an emerging or frontier market; (2) it conducts at least 50% of its business, as measured by the location of its sales, earnings, assets, or production, in an emerging or frontier market; or (3) it has the principal exchange listing for its securities in an emerging or frontier market. The Portfolio will invest broadly in equity securities of companies domiciled in one of at least 15 countries with emerging or frontier markets, generally considered to include all countries except Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
At least 65% of the Portfolios total assets will be denominated in at least three currencies other than the U.S. dollar. For purposes of compliance with this restriction, American Depositary Receipts, Global Depositary Receipts, and European Depositary Receipts (collectively, Depositary Receipts) will be considered to be denominated in the currency of the country where the securities underlying the Depositary Receipts are principally traded. The Portfolio invests at least 65% of its total assets in common stocks, preferred stocks, rights, and warrants issued by companies that are based in emerging or frontier markets, securities convertible into such securities (including Depositary Receipts), and investment companies that invest in the types of securities in which the Portfolio would normally invest.
The Portfolio also may invest in securities of U.S. companies that derive, or are expected to derive, a significant portion of their revenues from their foreign operations, although under normal circumstances, not more than 15% of the Portfolios total assets will be invested in securities of U.S. companies. The Portfolio invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets securities, which includes frontier markets securities, and investment companies that invest in the types of securities in which the Portfolio would normally invest. Because some emerging market countries do not permit foreigners to participate directly in their securities markets or otherwise present difficulties for efficient foreign investment, the Portfolio may use equity derivative securities, and, in particular, participation notes, to gain exposure to those countries.
HLREX Performance
Total returns for HLREX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -7.3% |
| 3 years (annualised) | -8.2% |
HLREX Risk Information
Risk metrics for HLREX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 16.7%
HLREX Costs and Fees
HLREX costs about $115 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.15%
- Gross expense ratio: 2.36%
- Portfolio turnover: 43%
- Brokerage commissions: 14.26 bps of average net assets (SEC N-CEN)
HLREX Cashflows
Over the 12 months to 2024-01, Emerging Markets Research Portfolio had net inflows of $689.43K, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-01 | $549.87K |
| 2023-12 | $107.58K |
| 2023-11 | $2.81K |
| 2023-10 | $9.29K |
| 2023-09 | $747 |
| 2023-08 | $1.90K |
HLREX Debt Constituents
No individual debt constituents are reported in Emerging Markets Research Portfolio's latest SEC N-PORT filing.
HLREX Prospectus and SEC Filings
Official Emerging Markets Research Portfolio filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-02-27
- Prospectus (485BPOS) — filed 2022-02-28
- Prospectus (485BPOS) — filed 2021-02-26
- Portfolio holdings (N-PORT) — filed 2024-03-27
- Portfolio holdings (N-PORT) — filed 2023-12-27
- Portfolio holdings (N-PORT) — filed 2023-09-26
- Annual census (N-CEN) — filed 2024-01-12
- Annual census (N-CEN) — filed 2023-01-13
Related Funds
Other Japan Value Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.