Despite some performance issues, Harding Loevner maintains a well-equipped roster to run its quality-growth process and continues to merit an Above Average Parent Pillar rating.
This international equity specialist has endured a particularly rough stretch so far in the 2020s. All of the firm’s strategies use the same quality-growth process, and while the flagship international equity and related foreign large-cap strategies have delivered strong long-term risk-adjusted returns, individual-name blowups, stock selection in certain areas, and significant stylistic headwinds in recent years have weighed heavily on the performance of the global-equity and emerging-markets strategies. In the wake of those strategies’ struggles, Harding Loevner has taken several steps to improve. For example, it has added a second seasoned quant specialist to the investment team to help enhance its portfolio monitoring and risk control tools and to help develop new ones.
It is still early days for these efforts, but the firm, which is majority owned by AMG, has other attributes that set it apart. It only offers international equity strategies, and it has evolved its roster sensibly over time. It excels at attracting, developing, and retaining talented professionals, and it has navigated retirements and other personnel changes smoothly. Its robust investment team includes a healthy mix of very experienced Harding Loevner veterans, seasoned international equity experts in the middle of their careers, and recent arrivals with a broad range of skills.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Harding Loevner (Branding Name ID: BN00000908), is covered by Morningstar Manager Research.
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