| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.08% | 18.92% | 18.34% |
Harding Loevner's Emerging Markets Equity strategy returned 19.2% gross in Q2 2026, trailing the MSCI EM Index's 24.2% rise primarily due to underweights in semiconductors and semiconductor equipment. The quarter was shaped by the continued acceleration of the global AI infrastructure boom and the US-Iran conflict. Taiwan and South Korea surged 49% and 88% respectively, driven by AI supply chain companies, while China lagged on soft domestic demand. The concentration of EM stock returns within Information Technology masks the breadth of AI-related innovation occurring among EM companies. Since DeepSeek's breakthroughs, intense competition has produced highly efficient AI models at a fraction of frontier model costs, enabling companies like Naver, Tencent, and Bochu to use AI pragmatically to improve products and expand markets while funding investments from operating cash flows. The strategy adjusted risk guidelines to provide greater flexibility in IT sector exposure, raising the sector limit to 35% and single stock limit to 8%, while maintaining its fundamental process of building a diverse portfolio across industries.
Emerging markets companies are at the forefront of AI innovation beyond just semiconductor manufacturing, with businesses across diverse industries developing creative uses of affordable AI to strengthen competitive advantages, accelerate growth, and generate higher earnings while maintaining disciplined capital allocation.
The manager believes the adjustment to risk guidelines is justified by the long-term investment opportunities the IT sector could provide, despite potential timing risk following strong performance. The added flexibility will afford portfolio managers greater discretion to actively manage tracking error risk in the context of more concentrated index weights. The fundamental process of building a diverse portfolio of compelling investments across a range of industries remains unchanged. EM companies are expected to continue using lower-cost AI to improve products, expand into adjacent markets, and reinforce competitive advantages while funding investments from operating cash flows, offering a favorable balance of risks and enhanced return potential.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 17 2026 | 2026 Q2 | 000660 KS, 005930 KS, 035420 KS, 0700.HK, 1299 HK, 1810 HK, 2317.TW, 2318 HK, 2330.TW, 2331 HK, 2359.HK, 2454.TW, 3454.HK, 3690 HK, 5269.TW, 9618 HK, 9988 HK, BABA, HDFCB.NS, TSMC | AI, Asia, Data centers, emerging markets, semiconductors, South Korea, Taiwan, technology | - | Emerging markets delivered the strongest quarterly return since 2009, led by Taiwan and South Korea's AI supply chain dominance. Beyond semiconductor manufacturing, EM companies are innovating with affordable AI models to strengthen competitive advantages across diverse industries. Harding Loevner adjusted risk guidelines to capture long-term IT opportunities while maintaining portfolio diversification, adding positions in power semiconductors, social media, and Vietnamese steel manufacturing. |
| Apr 13 2026 | 2026 Q1 | 2269 HK, 2454.TW, 300750.SZ, MELI, TCOM, TS | AI Infrastructure, E-Commerce, emerging markets, Energy Storage, Energy Transition, Renewable Energy, semiconductors, technology |
002594.SZ MELI 2359.HK |
EM equity portfolio leverages companies leading energy transition and AI infrastructure. CATL dominates energy storage systems solving renewable intermittency. Taiwan semiconductor firms benefit from AI server demand. Re-purchased MercadoLibre and WuXi AppTec on reduced political and regulatory risks. Minimal fossil fuel exposure positions for structural energy shift while capturing AI growth themes. |
| Jan 20 2026 | 2025 Q4 | 000660.KS, 005930.KS, 2330.TW, 700.HK, ASIANPAINT.NS, BABA, EPAM, GLOB, HDFCBANK.NS, ICICIBC.NS, ITUB, MARUTI.NS, MELI, MMYT, PING, SE, TCOM, TCS, TSM, WALMEX.MX | AI, emerging markets, energy, Memory, nuclear, semiconductors, technology |
005930 KS 000660 KS KAP LI 688188 CH |
Emerging markets delivered outstanding 2025 returns driven by AI-related stocks, with EM companies critical to AI infrastructure buildout. The memory semiconductor industry is experiencing structural changes supporting higher profitability for leaders Samsung and SK hynix through customized products, capacity constraints, and AI-driven demand. Despite bubble concerns, favorable dynamics expected to persist through 2026. |
| Oct 19 2025 | 2025 Q3 | 005930.KS, 1211.HK, 1398.HK, 2317.TW, 2454.TW, BABA, CATL, EPAM, GLOB, HDFCBANK.NS, ICICIBANK.NS, ITUB, MARUTI.NS, MELI, MMYT, TCEHY, TCS.NS, TRIP, TSM, WEGE3.SA | AI, Automation, China, competition, E-Commerce, emerging markets, Travel | - | Emerging markets strategy outperformed on Chinese tech strength, led by Alibaba's e-commerce market share gains through aggressive food delivery competition. Added automation and travel exposure via Bochu and MakeMyTrip while exiting weaker competitors JD.com and MercadoLibre. Focus remains on companies with durable advantages navigating China's competitive landscape and benefiting from structural growth themes. |
| Jul 16 2025 | 2025 Q2 | 000333.SZ, 018880.KS, 035720.KS, 1211.HK, 2317.TW, 2330.TW, 3690.HK, 4966.T, BABA, GEELY, GLOB, KSPI.L, LREN3.SA, MELI, RDNI3.SA, SE, SHOP.TO, TCS.NS, TS, TTI | AI, Brazil, competition, E-Commerce, emerging markets, South Korea, Taiwan, Trade Policy |
MELI MELI 4966.T 2317.TW 018880.KS |
Emerging market companies with strong local advantages are thriving despite global competition. Brazilian e-commerce leader MercadoLibre competes aggressively against Shopee while maintaining integrated ecosystem benefits. Taiwanese tech companies capitalize on AI server demand with higher margins. South Korean governance reforms drive dividend increases. Portfolio added Taiwan tech exposure during tariff-driven weakness. |
| Mar 31 2025 | 2025 Q1 | 005930.KS, ASIANPAINT.NS, BABA, CATL, CIB, EPAM, GLOB, HDFCBANK.NS, ICICIBANK.NS, ITUB, JD, MARUTI.NS, MELI, MINDRAY, SAFARICOM, SANY, SBUX, TCEHY, TCS, TSMC | AI, China, Electric Vehicles, emerging markets, India, productivity, technology, Trade Policy |
SUPREMEIND.NS BAJAJ-AUTO.NS |
China's shift from real estate speculation to supporting innovative private companies in AI and electric vehicles could drive higher-quality economic growth. Recent policy support and technological advances by companies like DeepSeek and Alibaba suggest China may avoid Japan's stagnation path. Trade tensions create near-term uncertainty, but the long-term transition toward productivity-driven growth remains compelling. |
| Dec 31 2024 | 2024 Q4 | 000333.SZ, 005930.KS, 035420.KS, 0700.HK, 1299.HK, 1398.HK, 2308.TW, 2317.TW, 2330.TW, 2357.TW, 2454.TW, 300760.SZ, 9888.HK, 9988.HK, BABA, BBAS3.SA, BBDC4.SA, BBRI.JK, CATL, CLS.JO, COWAY, DIS.JO, EMAAR.DU, EPAM, GLOB, HDFCBANK.NS, HDFCLIFE.NS, ICICIBANK.NS, ITUB, JD, KSPI.KZ, MARUTI.NS, MELI, RDNI3.SA, SAFX.JO, SBER.ME, SBK.JO, TCOM, TCS.NS, TS, WEGE3.SA | AI, China, emerging markets, semiconductors, Stimulus, tariffs, Trade Policy | - | Emerging markets declined 8% in Q4 on Trump trade policy concerns but gained 2% for 2024. China's massive stimulus drove regional rebound while manager increased geographic diversification. Portfolio positioned in AI beneficiaries like TSMC and resilient global companies with diversified supply chains. Despite near-term uncertainty, emerging markets offer compelling valuations and structural growth opportunities. |
| Sep 30 2024 | 2024 Q3 | 005930.KS, 0700.HK, 1211.HK, 1299.HK, 2454.TW, ASML, BABA, EPAM, GLOB, HDFCBANK.NS, ITUB, JD, MARUTI.NS, MELI, TCOM, TCS.NS, TS, TSM, TTI.HK, WALMEX.MX | China, E-Commerce, emerging markets, growth, semiconductors, Stimulus, value, Vietnam | - | Harding Loevner's EM strategy outperformed on China's late-quarter stimulus rally, returning 12.5% versus 8.9% for the index. The fund continues diversifying into smaller markets like Vietnam while managing political risks through selective exits. Despite semiconductor headwinds, the manager sees compelling valuations across quality EM businesses as global ownership hits two-decade lows and rates decline. |
| Jul 18 2024 | 2024 Q2 | 005930.KS, 0700.HK, 1211.HK, 1398.HK, 2330.TW, B3SA3.SA, BABA, CATL, EPAM, GFNORTEO.MX, GLOB, HDFCBANK.NS, ITUB, MARUTI.NS, MELI, RENT3.SA, TCS.NS, TS, TSMC, XP | AI, China, Elections, emerging markets, financials, semiconductors, underperformance, valuation |
RADL3.SA ICICIBANK.NS |
Emerging markets strategy underperformed due to AI concentration effects, cheap stock outperformance, and Latin America political headwinds. Added Indian banks and Brazilian pharmacy chain at attractive valuations. Manager maintains conviction in quality-growth approach despite near-term challenges, viewing current market optimism around AI and elevated valuations as unsustainable long-term. |
| Apr 15 2024 | 2024 Q1 | 005930.KS, 0700.HK, 1299.HK, 2330.TW, 300750.SZ, 9618.HK, 9988.HK, BABA, CATL, EPAM, GLOB, HDFCBANK.NS, JD, KASPI.KZ, MARUTI.NS, MELI, SCOM.NR, TCOM, TCS.NS, TSM | China, E-Commerce, emerging markets, Geopolitical, healthcare, payments, semiconductors, technology |
MELI BH.BK TLKM.JK |
Emerging markets faced headwinds from US-China tensions and dollar strength, with the portfolio underperforming due to financials and healthcare exposure. The manager exited Chinese biotech names over regulatory risks while adding positions in Latin American payments leader MercadoLibre and Thai medical tourism operator Bumrungrad Hospital, targeting companies solving structural market gaps. |
| Jan 31 2024 | 2023 Q4 | 005930.KS, 1211.HK, 1398.HK, 2015.HK, AIA, ASIANPAINT.NS, BABA, EPAM, FEMSA, GFNORTEO.MX, GLOB, HDFCBANK.NS, ITUB, JD, MARUTI.NS, TCEHY, TCS.NS, TENARIS, TSM, WALMEX.MX | China, Electric Vehicles, emerging markets, India, Manufacturing, technology, value | - | Emerging markets diverged sharply in 2023 with China falling 11% while other EMs rose 21%. Despite Chinese headwinds from real estate deleveraging and geopolitical tensions, Harding Loevner maintains conviction in quality Chinese companies with manufacturing advantages and technology leadership. The manager sees current weakness as creating attractive entry points for long-term investors. |
| Jun 30 2023 | 2023 Q2 | 005930.KS, 1211.HK, 1398.HK, 2308.TW, 2330.TW, 2331.HK, 2454.HK, 300207.SZ, 601012.SS, BABA, BBDC4.SA, EMAAR.DU, EPAM, HDFCBANK.NS, ITUB4.SA, JD, MARUTI.NS, TCS.NS, WEG, XP | Brazil, China, Electrification, emerging markets, Energy Transition, financials, semiconductors | - | Harding Loevner's EM strategy outperformed in Q2 2023 despite China headwinds, driven by electrification theme investments in Delta Electronics and StarPower. Strong Brazilian financials performance offset weakness in Chinese growth stocks. The manager sees electrification as a multi-decade transformation opportunity, with EM companies' technical expertise creating durable competitive advantages in the energy transition. |
| May 31 2023 | 2023 Q1 | 005930.KS, 1810.HK, 2269.HK, BABA, BBD, EPAM, GLOB, HDFCB.NS, ITUB, JD, KSPI.L, LONGI, MARUY, MELI, RENT3.SA, TCEHY, TCS, TSM | Banking, Capital Allocation, China, emerging markets, Fintech, semiconductors, value |
RENT3.SA MARUTI.NS KSPI.L ARGX BB|DAVA|DDOG|GLOB|ILMN|LOAR|MELI|NET|NU|NVDA|TSM |
EM equity strategy underperformed in Q1 despite banking sector resilience during US/European crisis. Manager initiated fintech position in Kaspi.kz and adjusted bank holdings based on valuations. Core thesis remains focused on disciplined capital allocators like Localiza and Maruti Suzuki that can weather higher rates while capturing structural growth in digital transformation across emerging markets. |
| Mar 3 2023 | 2022 Q4 | - | - | - | |
| Jun 30 2022 | 2022 Q2 | 002050 CH, 035420 KS, 1476 TT, ABEV, EPAM, TCS IN | - | - | |
| Mar 30 2022 | 2022 Q1 | 000333 CH, CATL LN, D3H GR, EPAM, SXC GR, TS | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI development has expanded beyond the US, with EM companies playing crucial roles in hardware supply chains and developing innovative applications. The economics of AI have changed dramatically since DeepSeek's breakthroughs, with intense competition among EM developers producing highly efficient AI models at a fraction of frontier model costs. EM companies are using affordable AI to improve products, expand into adjacent markets, and reinforce competitive advantages while funding investments from operating cash flows. |
AI infrastructure AI models AI agents DeepSeek Frontier models |
SemiconductorsSemiconductor and technology hardware industries contributed more to the MSCI EM Index return than the overall index in the first half of 2026. TSMC, Samsung Electronics, and SK hynix all exceeded trillion-dollar market capitalizations. Samsung and SK hynix announced a combined $518 billion investment to expand chipmaking capacity to meet surging AI-driven demand. The IT sector dominated performance, rising 73% in Q2. |
TSMC Samsung Electronics SK hynix HBM Chipmaking capacity | |
Data CentersMassive capital investment plans to build out vast AI data centers are supporting elevated demand for GPUs, CPUs, memory chips, cooling systems, and power management. EM companies are at the leading edge of electric power, cooling, batteries, and optical communications equipment critical for ramping up computing power needed for advanced AI models. Naver is building global AI factories across Europe, the Middle East, and Africa to provide sovereign AI infrastructure. |
AI data centers GPUs Cooling systems Power management Sovereign AI | |
EnergyThe US-Iran conflict caused volatility in energy markets during the quarter. Energy stocks fell, reflecting the nearly 40% oil price decline that began in late April. Higher energy costs and weaker currencies hurt several markets including Indonesia, Malaysia, Philippines, and Turkey. |
Oil prices US-Iran conflict Energy volatility | |
ChinaChina lagged the broader EM index with soft domestic demand and intensifying competition among internet platform companies weighing on sentiment. Communication Services and Consumer Discretionary underperformed amid concerns about the disruptive impact of AI on internet platform businesses. However, the portfolio maintained strong stock selection in China with WuXi AppTec and ASM Pacific Technology as key contributors. |
Domestic demand Internet platforms Competition | |
South KoreaSouth Korea stood out with an 88% rise in Q2, driven by surging revenues and profitability of companies in the AI supply chain. Samsung Electronics and SK hynix announced massive capacity expansion plans. The portfolio had strong stock selection in South Korea, with SK hynix benefiting from HBM chip demand and plans for a US ADR listing. |
AI supply chain Capacity expansion HBM chips | |
TaiwanTaiwan rose 49% in Q2, benefiting from the AI infrastructure boom. Portfolio holdings Aspeed and Delta Electronics were large contributors, with Aspeed reporting strong earnings growth from BMC chips optimized for AI servers and Delta Electronics benefiting from its position as a supplier of AI infrastructure including server power and liquid cooling products. |
AI infrastructure BMC chips Server power Liquid cooling | |
Risk ManagementThe strategy made infrequent adjustments to risk-control guidelines to address increasing concentration in the MSCI EM Index. The IT sector limit was raised from 30% to the higher of 35% or index weight, and the single stock limit increased from 6% to 8%. These changes provide greater flexibility when investing in globally dominant companies while managing tracking error in the context of more concentrated index weights. |
Risk limits Index concentration Tracking error Portfolio diversification | |
| 2026 Q1 |
Energy TransitionEM companies play crucial roles in renewable energy development, with China leading global cost reduction in solar and wind. The portfolio benefits from companies supporting electrification and diversification beyond fossil fuels, including energy storage systems that solve intermittency challenges. |
Renewable Energy Solar Wind Electrification Energy Storage |
AIAI infrastructure buildout drives demand for semiconductors, data centers, and power equipment. Companies like CATL benefit from AI data centers' energy storage needs, while Taiwan and South Korea tech companies gain from hyperscaler spending on AI infrastructure. |
Data Centers Semiconductors Infrastructure Computing Power | |
Energy StorageEnergy storage systems represent a key growth opportunity, with CATL leading the global ESS market. ESS solves renewable energy intermittency and enables grid-scale deployment of wind and solar power for utilities and commercial applications. |
Batteries Grid Storage Utilities Renewable Integration Power Management | |
E-commerceLatin American e-commerce remains competitive with MercadoLibre facing intensified competition from Amazon and Shopee in Brazil. The company responds with strategic investments in logistics and fulfillment centers to maintain market position. |
Online Retail Logistics Competition Market Share Fulfillment | |
SemiconductorsSemiconductor companies benefit from AI server demand, with Aspeed's baseboard management chips seeing strong growth. Memory producers like Samsung Electronics gain from soaring demand while re-establishing technology leadership. |
Memory AI Servers Chip Design Technology Leadership Demand Growth | |
| 2025 Q4 |
DividendsThe fund focuses on carefully selected quality companies with strong dividend growth globally. Portfolio managers aim to provide dividend growth and consistent returns with lower volatility over the long-term. The fund seeks high-quality, dividend-paying companies that can generate strong, consistent returns. |
Dividend Growth Quality Companies Income Yield Distribution |
AIAI infrastructure demand remained strong with SK Hynix benefiting from robust memory demand. However, concerns emerged about AI potentially hurting parts of RELX's business, leading to position exit. IT rotation and year-end softness drove sentiment weakness in AI-related holdings. |
Artificial Intelligence Memory Infrastructure Technology | |
SemiconductorsSK Hynix added to returns as memory demand stayed strong within AI infrastructure. Robust results and peer commentary reinforced its leading position amid favorable supply-demand dynamics. TSMC is held as a top 10 position representing 3.63% of the portfolio. |
Memory Supply Chain Chip Demand Technology Hardware | |
| 2025 Q3 |
E-commerceAlibaba regained dominance in Chinese e-commerce through aggressive competition in food delivery and quick commerce, using AI tools and financial firepower to transform market structure. The company leveraged synergies across businesses and integrated management to outspend rivals and boost market share significantly. |
Food delivery Quick commerce AI tools Market share Competition |
AIChinese tech companies applied AI tools to their operations, with Alibaba using AI expertise to offer better software and marketing tools to merchants. AI-enabled features like personalized restaurant recommendations and merchant mapping provided competitive advantages in the quick commerce battle. |
Machine learning Personalization Software tools Competitive advantage Innovation | |
AutomationIndustrial automation demand is growing in China driven by shrinking labor force, worker safety concerns, and higher-precision manufacturing needs. Bochu dominates laser control systems for automated manufacturing, benefiting from the trend toward factory automation across industries. |
Industrial controls Manufacturing Labor shortage Precision Factory automation | |
TravelOnline travel agencies like MakeMyTrip in India and Trip.com in China showed strong performance. MakeMyTrip dominates Indian online travel with 50% market share and deep reach into smaller cities, while Trip.com announced a $5 billion buyback program with better-than-expected growth. |
Online booking Market dominance Tourism growth Digital platforms Travel recovery | |
Battery Supply ChainCATL surged on developments in solid-state battery technology with higher power density and safety features. The company benefits from accelerating demand for commercial energy storage systems and potential new applications in aviation, shipping, and robotics. |
Solid-state batteries Energy storage Power density Commercial applications Technology advancement | |
| 2025 Q2 |
E-commerceBrazilian e-commerce companies like MercadoLibre face intensifying competition from foreign entrants like Shopee, driving innovation in logistics and payment services. MercadoLibre has built competitive advantages through deep local market knowledge, integrated ecosystems, and massive logistics investments. Competition is spurring market expansion as e-commerce penetration remains low at under 20% in Brazil. |
Brazil Logistics Payments Competition Market Share |
Trade PolicyTrump's renewed tariff policies are accelerating the trend of emerging market companies looking to other EM markets for growth rather than developed markets. This trade war dynamic is reshuffling competitive landscapes and forcing companies to adapt their geographic strategies and supply chains. |
Tariffs Trade Wars Supply Chains Geographic Strategy | |
AITaiwanese technology companies are benefiting from strong AI server demand, with companies like Aspeed seeing higher average selling prices for AI server components versus general servers. The AI value chain is driving robust revenue growth and margin expansion for semiconductor and hardware companies. |
Servers Semiconductors Taiwan Hardware Margins | |
DividendsSouth Korean companies are increasing dividend payouts as part of the new government's value-up program designed to improve shareholder returns. Companies like Coway are hiking dividends as part of efforts to boost the low multiples at which Korean stocks trade versus emerging market peers. |
South Korea Shareholder Returns Valuations Corporate Governance | |
| 2025 Q1 |
ChinaChina outperformed most major markets in Q1 as policymakers showed stronger support for private enterprise. The government has shifted from real estate-led growth to supporting innovative companies in AI, electric vehicles, and technology. This transition could lead to higher-quality, more productive economic growth similar to Taiwan's path rather than Japan's stagnation. |
China Private Enterprise Productivity Innovation Government Policy |
AIChinese AI companies like DeepSeek and Alibaba have made significant advances in AI models and applications. DeepSeek released a large language model rivaling leading models at a fraction of training cost. Tencent grew short-form video revenues 60% using AI for targeted advertising, while Alibaba's AI-integrated marketing tools increased e-commerce sales. |
AI DeepSeek Machine Learning Advertising E-commerce | |
Electric VehiclesChina has developed globally leading ecosystems for electric vehicles, led by battery systems maker CATL and supported by companies like Sanhua Intelligent Controls which makes thermal-management components for Tesla's humanoid robots and energy-storage systems. |
Electric Vehicles Batteries CATL Tesla Energy Storage | |
IndiaIndia's total factor productivity has grown steadily for years, providing a good backdrop for investors. However, valuations were at five-year highs until a recent correction provided opportunities. The fund added Supreme Industries and Bajaj Auto, benefiting from infrastructure development and rising household wealth. |
India Productivity Infrastructure Valuations Correction | |
Trade PolicyThe Trump administration unveiled severe tariffs on Chinese imports, prompting China to raise its own tariffs and restrict commodity exports to the US. This trade war disruption reinforces the need for portfolio resilience, though emerging markets trade more within their borders than with the US. |
Tariffs Trade War Trump Exports Disruption | |
| 2024 Q4 |
AIAI developments have boosted growth outlook for several EM companies. TSMC expects AI-related revenue to grow at 50% cumulative rate over next five years with 80% market share in leading-edge semiconductors. Delta Electronics commands 50% market share in sophisticated power supplies for high-end servers. IT services companies have started working on business-transformation projects helping clients adopt AI. |
Semiconductors Hardware IT Services Growth Revenue |
Trade PolicyTrump's election focused attention on significant changes in US trade policies affecting global trade. Manager expects global trade to continue shifting as it has since Trump's first term, bringing different opportunities for EM landscape. Companies are adapting through diversification, supply chain strengthening, and new technologies. Global trade hit record $33 trillion in 2024. |
Tariffs Supply Chain Diversification Globalization Policy | |
ChinaChina rebounded 20% for the year after three consecutive years of declines during worst economic downcycle since late 1990s. Policymakers launched biggest coordinated stimulus package since global financial crisis including $1.4 trillion program to shore up local government balance sheets. Despite domestic problems, China must remain focused on trade and signed new trade deals. |
Stimulus Economic Policy Trade Recovery Government | |
Energy TransitionWEG has fast-growing business in electricity generation and distribution for renewable energy sources. The company generated 53% of revenue outside Brazil with 63 manufacturing sites across four continents. Energy transition trends support long-term growth outlook for companies positioned in renewable infrastructure. |
Renewables Infrastructure Manufacturing Global Growth | |
| 2024 Q3 |
ChinaChinese stocks rallied 25% in the final nine trading days of the quarter following extensive monetary and fiscal stimulus measures. The People's Bank of China reduced interest rates and bank-reserve requirements while implementing measures targeting the real-estate sector and establishing new facilities for institutional stock purchases. |
Stimulus Monetary Policy Real Estate E-commerce Electric Vehicles |
E-commerceConsumer Discretionary sector dominated by Chinese e-commerce platforms performed strongly on stimulus plans. The fund added to Trip.com and holds positions in JD.com and Alibaba. Mobile World in Vietnam represents expansion into grocery retail leveraging e-commerce experience. |
Platforms Consumer Digital Retail Growth | |
VietnamVietnam emerged as a winner from global supply chain reconfiguration following US-China trade tensions. The fund made its first investment in Mobile World, the country's largest multi-format retailer, as foreign ownership caps created opportunities at reasonable valuations. |
Supply Chain Retail Growth Demographics Trade | |
SemiconductorsInformation Technology was the worst-performing sector this quarter, dragged down by South Korean memory giants Samsung Electronics and SK Hynix. Concerns arose that memory-chip price recovery was fading and expanding high-bandwidth memory capacity was outpacing near-term AI demand. |
Memory AI Capacity Pricing Cycle | |
| 2024 Q2 |
AIStrong performance driven by AI supply chain in Taiwan, particularly TSMC and semiconductor companies benefiting from NVIDIA chip orders. Portfolio holds AI-enabling companies like Aspeed which saw accelerating growth from hyperscalers and rising demand for traditional and AI servers. |
Semiconductors TSMC NVIDIA Hyperscalers Servers |
ChinaChinese markets recovered 7% amid government housing crisis interventions and trade-in subsidies. Portfolio holds positions in Tencent, which outperformed on successful mobile game launches, and various Chinese companies across sectors despite ongoing real estate market challenges. |
Housing Government Policy Tencent Real Estate Stimulus | |
ElectionsMajor emerging market elections in South Korea, Mexico, India, and South Africa prompted mixed market reactions. Concerns about policy changes and institutional checks led to volatility, with Mexico dropping 16% after ruling party landslide victory raised regulatory and fiscal policy concerns. |
Political Risk Policy Changes Coalition Government Institutional Risk Regulatory | |
FinancialsMixed performance across regions with Latin American banks hurt by higher tax burden concerns in Mexico and higher-for-longer rates in Brazil. Added new positions in Indian banks ICICI and HDFC Life at attractive valuations while exiting Kotak due to regulatory restrictions. |
Banking Interest Rates Regulation Valuation India | |
| 2024 Q1 |
PaymentsDigital payment systems are transforming financial inclusion in emerging markets, particularly Latin America. Companies like MercadoLibre and FEMSA have built payment platforms that serve unbanked populations while strengthening their core businesses. These platforms provide first-time access to digital payments and credit for millions of customers. |
Digital payments Financial inclusion Mobile money Credit access Unbanked |
E-commerceE-commerce platforms in emerging markets are gaining market share by building integrated payment and logistics infrastructure. MercadoLibre has achieved over 20% market share in Mexico and nearly 40% in Brazil by offering superior payment solutions and fulfillment capabilities that address local market constraints. |
Online retail Market share Logistics Fulfillment Digital commerce | |
SemiconductorsThe semiconductor sector showed strength driven by AI demand, with TSMC benefiting from escalating requirements for AI training chips. However, US restrictions on China's access to semiconductor technology and equipment weighed on Chinese technology stocks and created geopolitical headwinds for the sector. |
AI chips Semiconductor equipment Technology restrictions TSMC Memory | |
TravelMedical tourism is growing as a specialized segment within healthcare, with Thailand emerging as a top destination. Bumrungrad Hospital capitalizes on this trend with international patients comprising two-thirds of revenue. The company offers complex surgeries at significantly lower costs than developed markets while maintaining superior service quality. |
Medical tourism Healthcare services International patients Cost advantage Quality care | |
ChinaChina's economy continued to face challenges with a faltering real estate market and muted consumption recovery despite policy support. Geopolitical tensions with the US, including semiconductor restrictions and the proposed Biosecure Act, weighed heavily on Chinese technology and healthcare stocks throughout the quarter. |
Real estate Consumption Geopolitical tensions Technology restrictions Policy support | |
| 2023 Q4 |
ChinaChina performed poorly despite reopening optimism, falling 11% for the year due to real estate deleveraging, weak consumer confidence, and geopolitical tensions. However, the manager sees significant opportunities in Chinese companies with strong growth prospects and competitive advantages in manufacturing and technology. |
Electric Vehicles Manufacturing Consumer Real Estate Geopolitical |
Electric VehiclesCATL dominates the global EV battery market with technology leadership and cost advantages through proprietary manufacturing lines. The company faces competition from BYD's vertical integration but maintains strong competitive moats and growth prospects despite recent stock weakness. |
Battery Manufacturers EV Batteries Manufacturing Technology | |
IndiaIndia rose 21% for the year driven by steady private investment growth and manufacturing expansion. The manager added HDFC Life to capitalize on the underpenetrated life insurance market with ambitious regulatory targets for coverage expansion. |
Life Insurance Manufacturing Growth | |
ManufacturingChina's manufacturing advantages have strengthened through automation, innovation, and skilled workforce leverage. The manager sees opportunities across industries from consumer goods to medical equipment, despite increasing local competition. |
Automation Innovation Industrial Policy | |
| 2023 Q2 |
Energy TransitionThe manager views electrification as a transformative multi-decade opportunity, with emerging markets driving over 80% of electricity demand growth by 2030. They highlight three portfolio companies adapting their technical expertise to this new environment: WEG (electric motors), Delta Electronics (power supplies for EVs), and StarPower (semiconductor components for solar and EVs). |
Electrification Renewable Solar Electric Vehicles Power |
ChinaThe manager expresses significant concern about China's economic trajectory, noting weak industrial activity, contracting imports, subdued investment, and consumer sentiment hampered by property sector instability. They prefer high-quality growth stocks but acknowledge underperformance in this environment where low-quality state-owned companies proved more resilient. |
China Economic Property Growth Policy | |
SemiconductorsThe manager discusses semiconductor opportunities driven by AI demand, particularly memory semiconductors and computing equipment manufacturers. However, they also express caution about competitive dynamics in power management chips, leading to the sale of Silergy due to concerns about Texas Instruments' capacity expansion. |
Semiconductors Memory AI Computing Chips | |
BrazilThe manager views Brazil positively as inflation threats recede and rate cut expectations grow. They highlight strong performance from Brazilian financials and note that President Lula's limited business interference has supported investor sentiment. However, they sold Banco Bradesco due to concerns about its exposure to lower-income customers during the interest rate cycle. |
Brazil Inflation Rates Financials Policy | |
| 2023 Q1 |
BankingEM banks proved resilient during the US/European banking crisis, with better risk management practices and shorter duration assets. Manager adjusted bank holdings based on valuations, adding to Banco Bradesco while trimming Itaú Unibanco and Kotak Mahindra Bank. |
Regional Banks Credit Stress Risk Management Valuations Interest Rates |
FintechFintech represents enormous opportunity in smaller emerging and frontier markets. Manager initiated position in Kaspi.kz, Kazakhstan's leading digital payments provider with 67% market share and 60%+ cash flow return on equity. |
FinTech Payments Digital Transformation Kazakhstan Growth | |
Capital AllocationFocus on companies with disciplined capital allocation that can weather higher interest rates. Localiza and Maruti Suzuki exemplify prudent financial management, while Adani Group illustrates risks of excessive external financing dependence. |
Capital Allocation Financial Discipline Interest Rates Cash Flow Balance Sheet | |
SemiconductorsSemiconductor stocks rallied as TSMC projected cyclical recovery in second half of 2023. Pent-up demand from smartphone makers and high-performance computing customers should support growth, with ChatGPT-type models increasing demand for computing power. |
Semiconductor Cycle TSMC Recovery AI Computing | |
China RecoveryChina's equity market rallied after lifting COVID restrictions, though companies reported mixed Q4 results. Policymakers announced additional monetary stimulus and officials expressed support for domestic tech sector development. |
China Recovery Stimulus Tech Sector COVID |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2023 | Fund Letters | Harding Loevner Emerging Markets Equity | RENT3.SA | Localiza | Industrials | Ground Transportation | Bull | B3 | Brazil, capital allocation, Car Rental, Disciplined Management, Fleet Management, Ground Transportation, Industrials, Scale Advantages | Login |
| Mar 31, 2023 | Fund Letters | Harding Loevner Emerging Markets Equity | MARUTI.NS | Maruti Suzuki | Consumer Discretionary | Automobile Manufacturers | Bull | NSE | Automobile Manufacturer, Cash Fortress, Electric Vehicles, Emerging markets, Free Cash Flow, India, market leader, Strategic Partnerships | Login |
| Mar 31, 2023 | Fund Letters | Harding Loevner Emerging Markets Equity | KSPI.L | Kaspi.kz | Financials | Financial Services | Bull | LSE | digital payments, e-commerce, Emerging markets, Fintech, Kazakhstan, network effects, Retail Lending, super app | Login |
| Mar 31, 2023 | Fund Letters | Harding Loevner Emerging Markets Equity | ARGX BB|DAVA|DDOG|GLOB|ILMN|LOAR|MELI|NET|NU|NVDA|TSM | Globant | Information Technology | IT Consulting & Other Services | Bull | NYSE | AI, Argentina, Cloud Operations, cybersecurity, Digital transformation, IT services, net cash, Software Development | Login |
| Apr 13, 2026 | Fund Letters | Harding Loevner Emerging Markets Equity | 002594.SZ | CATL | Auto Manufacturers | Electrical Components & Equipment | Bull | Shenzhen Stock Exchange | AI data centers, Battery Manufacturer, China, Electric Vehicle, Energy Storage Systems, Grid Storage, Industrials, Lithium-ion, market leader, renewable energy | Login |
| Apr 13, 2026 | Fund Letters | Harding Loevner Emerging Markets Equity | MELI | MercadoLibre | Internet Retail | Internet & Direct Marketing Retail | Bull | NASDAQ | Brazil, competitive positioning, Consumer Discretionary, e-commerce, Gmv Growth, Latin America, Logistics, market leader, marketplace | Login |
| Apr 13, 2026 | Fund Letters | Harding Loevner Emerging Markets Equity | 2359.HK | WuXi AppTec | Diagnostics & Research | Life Sciences Tools & Services | Bull | New York Stock Exchange | Biosecure Act, Biotech, China, contract research, CRDMO, drug development, GLP-1 Therapies, Health Care, Peptides, Pharmaceutical Services | Login |
| Jan 20, 2026 | Fund Letters | Edmund Bellord | 005930 KS | Samsung Electronics Co., Ltd. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI, Capacity, DRAM, HBM, Pricingpower | Login |
| Jan 20, 2026 | Fund Letters | Edmund Bellord | 000660 KS | SK hynix Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI, cashflow, HBM, Margins, NVIDIA | Login |
| Jan 20, 2026 | Fund Letters | Edmund Bellord | KAP LI | National Atomic Company Kazatomprom | Energy | Uranium | Bull | New York Stock Exchange | Aipower, cashflow, Costleadership, Nuclear, uranium | Login |
| Jan 20, 2026 | Fund Letters | Edmund Bellord | 688188 CH | Bochu Technology Co., Ltd. | Information Technology | Software | Bull | Shanghai Stock Exchange | Automation, Industrialsoftware, Lasers, manufacturing, productivity | Login |
| Jul 16, 2025 | Fund Letters | Edmund Bellord | MELI | Marcos Galperin's MercadoLibre Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Credit, ecommerce, Logistics, Payments, scale | Login |
| Jun 30, 2025 | Fund Letters | Harding Loevner Emerging Markets Equity | MELI | MercadoLibre | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Argentina, Brazil, credit services, digital payments, e-commerce, Fintech, growth, Latin America, Logistics, marketplace, Scale Advantages, Unbanked | Login |
| Jun 30, 2025 | Fund Letters | Harding Loevner Emerging Markets Equity | 4966.T | Aspeed Technology | Information Technology | Semiconductors & Semiconductor Equipment | Bull | Taiwan Stock Exchange | AI servers, BMC Chips, data centers, growth, Hardware Monitoring, margin expansion, semiconductors, Server Infrastructure, Taiwan, technology | Login |
| Jun 30, 2025 | Fund Letters | Harding Loevner Emerging Markets Equity | 2317.TW | Hon Hai Precision Industry | Information Technology | Technology Hardware, Storage & Peripherals | Bull | Taiwan Stock Exchange | AI servers, contract manufacturing, Electronics Manufacturing, growth, hyperscalers, margin expansion, Nvidia partnership, Taiwan, technology hardware, vertical integration | Login |
| Jun 30, 2025 | Fund Letters | Harding Loevner Emerging Markets Equity | 018880.KS | Coway | Consumer Discretionary | Household Durables | Bull | Korea Exchange | Air Purifiers, Consumer Appliances, Corporate Governance, Dividend Growth, High quality, international expansion, Malaysia, shareholder returns, South Korea, water treatment | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Emerging Markets Equity | SUPREMEIND.NS | Supreme Industries | Materials | Chemicals | Bull | National Stock Exchange of India | Brand, distribution network, India, infrastructure, manufacturing, market share, materials, Pipes, Plastic Products, urbanization | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Emerging Markets Equity | BAJAJ-AUTO.NS | Bajaj Auto | Consumer Discretionary | Automobiles | Bull | National Stock Exchange of India | Asia, automotive, Exports, India, Latin America, Motorcycles, premium, ROE, Three-Wheeler, Two-Wheeler | Login |
| Jun 30, 2024 | Fund Letters | Harding Loevner Emerging Markets Equity | RADL3.SA | Raia Drogasil | Consumer Staples | Drug Retail | Bull | B3 (Brazil Stock Exchange) | Brazil, Demographics, Drug Retail, e-commerce, market consolidation, Omnichannel, Pharmacy Chain, Scale Advantages | Login |
| Jun 30, 2024 | Fund Letters | Harding Loevner Emerging Markets Equity | ICICIBANK.NS | ICICI Bank | Financials | Banks | Bull | National Stock Exchange of India | Branch Network, Corporate Banking, financial services, India, Private Bank, retail banking, risk management, technology | Login |
| Mar 31, 2024 | Fund Letters | Harding Loevner Emerging Markets Equity | MELI | MercadoLibre | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | competitive moat, credit services, digital payments, e-commerce, Financial Inclusion, Fintech, Latin America, market share gains, Unbanked Population | Login |
| Mar 31, 2024 | Fund Letters | Harding Loevner Emerging Markets Equity | BH.BK | Bumrungrad Hospital | Health Care | Health Care Facilities | Bull | SET | capacity expansion, Complex Surgery, growth, healthcare, high ROE, International Patients, Medical Tourism, premium pricing, Thailand | Login |
| Mar 31, 2024 | Fund Letters | Harding Loevner Emerging Markets Equity | TLKM.JK | Telkom Indonesia | Communication Services | Integrated Telecommunication Services | Bull | IDX | Data Consumption Growth, digital services, high ROE, Indonesia, market leader, network infrastructure, premium pricing, Scale Advantages, telecommunications | Login |
| TICKER | COMMENTARY |
|---|---|
| 035420.KS | South Korea's Naver spent less than $1 billion on capital expenditures last year—compared with Alphabet's $91 billion—yet it has successfully deployed its own AI foundation model to improve advertising targeting and defend its leading position in Korea against its much larger global rival. Now, Naver is leveraging its expertise in scaling AI infrastructure quickly and affordably into a new business, building what it calls global AI factories across Europe, the Middle East, and Africa, beginning with Morocco. These facilities provide sovereign AI infrastructure for governments and businesses seeking greater control over their data instead of relying entirely on US or Chinese hyperscalers. Naver will focus on operating the facilities while letting financial investors own the capital-intensive physical infrastructure, allowing the company to expand its addressable market while maintaining attractive cash returns. |
| 0700.HK | In March, China's Tencent launched the AI agent platform WorkBuddy to take advantage of this innovation. WorkBuddy has rapidly become one of the most widely used agent platforms outside the US. It can perform a variety of tasks, including assisting with office work, with the option of using models locally, even on laptop computers, instead of sending data to the cloud. This is appealing for businesses concerned about not only privacy but also cost, now that the largest global AI model providers have begun raising prices for their advanced services. For Tencent, WorkBuddy opens up a potential new growth area in the enterprise computing market, where the company historically hasn't had a strong presence. |
| 2330.TW | Semiconductor giants TSMC in Taiwan and Samsung Electronics and SK hynix in South Korea have all exceeded trillion-dollar market capitalizations. The portfolio's underweight in IT (particularly the semiconductors and semiconductor equipment industry) was the primary cause of underperformance. In Industrials Brazilian industrial equipment manufacturer WEG reported disappointing earnings due to weak growth in its domestic market and margin pressure from higher copper prices and US tariffs. |
| 005930.KS | Semiconductor giants TSMC in Taiwan and Samsung Electronics and SK hynix in South Korea have all exceeded trillion-dollar market capitalizations. South Korea's Samsung Electronics and SK hynix announced a combined $518 billion investment to expand chipmaking capacity to meet surging AI-driven demand. Samsung Electronics was a large detractor with the portfolio's underweight in IT (particularly the semiconductors and semiconductor equipment industry) being the primary cause of underperformance. |
| 000660.KS | Semiconductor giants TSMC in Taiwan and Samsung Electronics and SK hynix in South Korea have all exceeded trillion-dollar market capitalizations. South Korea's Samsung Electronics and SK hynix announced a combined $518 billion investment to expand chipmaking capacity to meet surging AI-driven demand. In South Korea, SK hynix continued to benefit from the surge in demand for HBM chips. Market sentiment was also bolstered by SK hynix's plans for a US ADR listing, which is expected to boost the stock's liquidity. |
| 2308.TW | In IT, Taiwan's Aspeed and Delta Electronics were large contributors. Aspeed continued to report strong earnings growth backed by good demand for its baseboard management controller (BMC) chips used in servers, including higher-margin BMCs that are optimized for complex AI servers. Delta Electronics also enjoyed strong earnings growth due to its position as an important supplier of AI infrastructure, including server power and liquid cooling products. Aspeed and Delta Electronics were the top contributors in Taiwan. |
| 5269.TW | In IT, Taiwan's Aspeed and Delta Electronics were large contributors. Aspeed continued to report strong earnings growth backed by good demand for its baseboard management controller (BMC) chips used in servers, including higher-margin BMCs that are optimized for complex AI servers. Aspeed and Delta Electronics were the top contributors in Taiwan. |
| 3454.HK | In China, WuXi AppTec and electric equipment manufacturer ASM Pacific Technology (ASMPT) were key contributors. ASMPT has benefited from its leadership position in advanced packaging technologies for semiconductor chips, specifically thermo compression bonding for high bandwidth memory (HBM) chips that are in high demand for AI applications, including optical communications. |
| 2359.HK | In Health Care, China's WuXi AppTec, a leading provider of outsourced drug-development services, reported strong first-quarter 2026 earnings growth. Its growth outlook continues to look favorable, backed by a strong pipeline of products that benefit from global demand for GLP-1 peptides. In China, WuXi AppTec and electric equipment manufacturer ASM Pacific Technology (ASMPT) were key contributors. |
| 1299.HK | In Financials, Chinese insurance companies AIA Group and Ping An Insurance both reported resilient new business growth. However, AIA's shares fell due to concerns over regulators enforcing outbound capital controls against purchases of insurance by mainland visitors in Hong Kong, while weak macroeconomic conditions in China and fears that sliding equity markets would dampen investment income hurt Ping An. |
| 2318.HK | In Financials, Chinese insurance companies AIA Group and Ping An Insurance both reported resilient new business growth. However, AIA's shares fell due to concerns over regulators enforcing outbound capital controls against purchases of insurance by mainland visitors in Hong Kong, while weak macroeconomic conditions in China and fears that sliding equity markets would dampen investment income hurt Ping An. |
| 2331.HK | In Consumer Discretionary, Chinese athletic apparel company Li Ning's earnings have been soft amid weak consumer demand and widening of retail discounts. |
| HDFCB.NS | HDFC Bank was a large detractor from relative performance over the trailing 12 months. |
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