Harding Loevner International Equity Strategy: Navigating Post-Pandemic Global Growth in Q2 2025

The post-pandemic world is reshaping global markets, with supply chains, consumer behavior, and technological adoption evolving at an unprecedented pace. For investors seeking to capitalize on these shifts, the Harding Loevner International Equity Strategy (Q2 2025) offers a compelling case. This actively managed fund, which targets high-quality, growing companies outside the United States, has positioned itself to harness opportunities in a fragmented but resilient global economy.

A Strategy Rooted in Quality and Discipline

Since its inception in 1989, the Harding Loevner International Equity Strategy has adhered to a disciplined, fundamental research-driven approach. As of June 30, 2025, the fund holds 63 companies, emphasizing a concentrated portfolio of high-quality, long-term growth prospects. Managed by a team of CFA charterholders—including Uday Cheruvu, Ferrill D. Roll, Patrick Todd, and Andrew West—the strategy prioritizes companies with strong balance sheets, sustainable competitive advantages, and robust earnings growth.

The fund's benchmark, the MSCI All Country World ex US Index, serves as a reference point, but the strategy's active management allows it to diverge in pursuit of superior risk-adjusted returns. Notably, the portfolio includes exposure to frontier markets and countries outside the index, reflecting a willingness to explore underappreciated regions with high-growth potential. This geographic diversification is critical in a post-pandemic world where emerging economies are rebounding and global supply chains are being restructured.

Post-Pandemic Positioning: Sectors and Regions in Focus

The fund's Q2 2025 holdings reveal a strategic tilt toward sectors poised for long-term growth. While the exact composition of the 63 holdings is not disclosed in the provided data, supplemental information highlights allocations to technology, healthcare, and renewable energy, industries that have gained momentum as the world adapts to new economic realities. For example, the fund's exposure to clean energy infrastructure aligns with global decarbonization efforts, while its healthcare holdings capitalize on aging populations and medical innovation.

Geographically, the fund's emphasis on frontier markets—such as Vietnam, Colombia, and Kenya—reflects confidence in these economies' ability to recover and grow. These markets, often overlooked by broader indices, offer access to untapped consumer demand and industrialization-driven growth. Additionally, the fund's “Other” category, which includes companies in countries outside the MSCI index, further diversifies its risk profile.

Cost Efficiency and Regulatory Compliance

Harding Loevner's cost structure is another strength. The fund offers share classes with expense ratios as low as 0.10% (Class X), making it accessible to a range of investors. Its compliance with Global Investment Performance Standards (GIPS)—verified independently from 1989 to 2025—adds a layer of transparency and credibility. As a UCITS-compliant fund domiciled in Ireland, it is also subject to rigorous regulatory oversight by the Central Bank of Ireland, ensuring investor protection.

Risks and Considerations

While the fund's active management and global diversification are strengths, investors should be mindful of currency risk and geopolitical volatility. The fund's unhedged currency classes expose it to FX fluctuations, which could amplify gains or losses in a rapidly shifting macroeconomic environment. Additionally, frontier markets, while offering growth potential, come with higher liquidity and political risks compared to developed markets.

Investment Thesis and Recommendations

For investors seeking to tap into post-pandemic global growth, the Harding Loevner International Equity Strategy presents a compelling opportunity. Its focus on high-quality, long-term growth companies—combined with a strategic allocation to frontier markets and emerging sectors—positions it to outperform in a world where traditional benchmarks may lag.

Actionable Steps for Investors:
1. Request the Q2 2025 Holdings List: Contact Harding Loevner at (908) 218-7900 or invest@hlmnet.com to access the full list of 63 holdings and assess sector/region weights.
2. Compare with Broader Indices: Use tools like to evaluate the fund's active management edge.
3. Consider Share Class Costs: For cost-sensitive investors, the Class X share (0.10% expense ratio) offers the most competitive pricing.

In a post-pandemic world where global growth is increasingly fragmented, the Harding Loevner International Equity Strategy exemplifies how active management and a focus on quality can unlock value. By balancing exposure to high-growth sectors and frontier markets with disciplined risk management, the fund is well-positioned to navigate the complexities of the evolving global economy.