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Harding Loevner International Fund

An International Fund targeting superior risk-adjusted returns through investing in high-quality and durable growing companies at reasonable prices.

June 2026 - Monthly REPORT

June Report

SUMMARY

  • The Fund rose 2.1% in June, underperforming the benchmark’s 3.0% return, mainly due to weakness in US technology and communication services holdings.
  • AI-related performance was mixed. Meta and other hyperscalers were pressured by concerns over rising capital expenditure, while ASML benefited from strong demand for semiconductor manufacturing equipment.
  • The Fund added Spotify, attracted by its scale, personalisation capabilities and growth potential, and exited Genmab, Fabrinet and Vertex Pharmaceuticals.

PORTFOLIO

Top Holdings (alphabetically)

Alphabet Inc. Class A
United States
Communication Services
Alphabet Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.
Amazon.com, Inc.
United States
Consumer Discretionary
Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, computers, electronics and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally.
Amphenol Corporation Class A
United States
Information Technology
Amphenol Corp. engages in the design, manufacture, and marketing of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and specialty cable. It operates through the following segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The Harsh Environment Solutions segment manufactures and markets a broad range of ruggedized interconnect products, including connectors and interconnect systems, printed circuits and printed circuit assemblies, and other products. The Communications Solutions segment focuses on the design, manufacture, and marketing of connector and interconnect systems, including radio frequency, power, fiber optic, and other products, together with antennas. The Interconnect and Sensor Systems segment is involved in the design, manufacture, and marketing of sensors, sensor-based systems, connectors, and value-add interconnect systems. The company was founded by Schmitt J. Arthur in 1932 and is headquartered in Wallingford, CT.
ASML Holding NV
Netherlands
Information Technology
ASML Holding N.V. develops, produces, and markets semiconductor manufacturing equipment, specifically machines for the production of chips through lithography. The Company services clients worldwide.
Meta Platforms Inc Class A
United States
Communication Services
Meta Platforms, Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. Meta Platform is also involved in advertisements, augmented, and virtual reality.
Microsoft Corporation
United States
Information Technology
Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.
NVIDIA Corporation
United States
Information Technology
NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software. The Company offers products that provides interactive 3D graphics to the mainstream personal computer market.
Samsung Electronics Co Ltd Sponsored GDR Pfd
United Kingdom
Information Technology
Samsung Electronics Co., Ltd. engages in the manufacturing and selling of electronics and computer peripherals. The company operates through following business divisions: Device Experience (DX), Device Solutions (DS), Samsung Display (SDC), and Harman. The DX division offers televisions, monitors, refrigerators, washing machines, air conditioners, smartphones, network systems, and computers. The DS division deals with semiconductor components including DRAM, NAND Flash, and mobile APs. The SDC division provides OLED panels for smartphones. The Harman division consists of digital cockpits, car audio, and portable speakers. The company was founded on January 13, 1969 and is headquartered in Suwon-si, South Korea.
Schneider Electric SE
France
Industrials
Schneider Electric SE manufactures electrical power products. The Company offers car chargers, home security goods, light switches, access control, sensors, valves, circuit breakers, cables, accessories, signaling devices, fuse, motor starters, and voltage transformers. Schneider Electric serves customers worldwide.
Taiwan Semiconductor Manufacturing Co., Ltd.
Taiwan, China
Information Technology
Taiwan Semiconductor Manufacturing Co., Ltd. engages in the manufacture and sale of integrated circuits and wafer semiconductor devices. Its chips are used in personal computers and peripheral products, information applications, wired and wireless communications systems products, and automotive and industrial equipment including consumer electronics such as digital video compact disc player, digital television, game consoles, and digital cameras. The company was founded by Chung Mou Chang on February 21, 1987 and is headquartered in Hsinchu, Taiwan.

Sector Breakdown

Capitalisation Breakdown

Region Breakdown

PERFORMANCE

PERFORMANCE SINCE STRATEGY INCEPTION

NET PERFORMANCE FOR PERIODS ENDING 30 Jun 20266

Pengana Harding Loevner International Fund Class B

The Class was established in 1 July 2015. From June 2021 Harding Loevner was appointed as the investment manager for the Fund.

1M 1Y 2Y 3Y 5Y
Since
Harding Loevner
Appointed June 20211
Since Fund
Inception
July 20152
Since Strategy
Inception
November 19893
Fund (APIR PCL0026AU)1,2

Managed by Harding Loevner from June 2021
2.1% 2.8% 8.2% 10.9% 4.8% 6.1% 9.3%
Current Strategy (Partial Simulation)4

Harding Loevner Global Equity Strategy
10.5% 9.3%
Index5 3.0% 17.0% 17.7% 18.1% 12.8% 13.5% 12.2% 8.0%

Swipe horizontally to see all columns

PERFORMANCE SINCE STRATEGY INCEPTION

NET PERFORMANCE SINCE INCEPTION7

COMMENTARY

Market Commentary

In US dollar terms, equities declined across all major regions except Europe, where returns were supported by strong gains in Dutch semiconductor equipment manufacturer and index heavyweight ASML. Hong Kong equities fell sharply amid concerns about tighter Chinese regulations aimed at limiting capital outflows. However, the weaker Australian dollar more than offset the underlying market decline, resulting in a 3.0% gain for the index over the month.

The AI trade wavered during the month. The hyperscalers – large technology companies operating vast cloud and data centre networks – are pulling back as concerns about the scale of their capital expenditure resurface. By contrast, many of the “picks and shovels” companies supplying the AI buildout, including ASML, continued to perform strongly. The Energy sector was weighed down by lower oil prices, reflecting improved prospects for a US-Iran agreement and expectations that the Strait of Hormuz would reopen.

Portfolio Commentary

The Fund rose 2.1% in June, underperforming the benchmark’s 3.0% gain, with the shortfall largely driven by US technology and communication services holdings. Netflix came under pressure after maintaining, rather than raising, its full-year 2026 revenue guidance, prompting concerns that growth may be slowing, while Meta Platforms declined amid investor concerns about the scale of its AI spending. Offsetting some of this weakness, ASML was the Fund’s strongest performer, benefiting from strong demand for equipment used in AI semiconductor manufacturing.

During the month, we purchased Spotify, the world’s largest music, podcast and audiobook streaming platform, with around 750 million users. Its competitive advantage lies in its recommendation technology, which uses extensive user data to personalise content and improve engagement and retention. We expect future growth to come from new content, including audiobooks and podcasts, as well as tools that help artists connect with audiences and promote their music.

We also exited three holdings: Genmab, due to increasing competition in key areas. Fabrinet, on valuation grounds, and Vertex Pharmaceuticals, due to concerns about its growth outlook.

PROFILE

Platform Availability

BT Panorama, Dash, Hub24, Macquarie Wrap - IDPS & Super, Netwealth - IDPS, Praemium - IDPS, SMA & Powerwrap

STATISTICAL DATA2

PORTFOLIO SUMMARY
VOLATILITY8
10.9%
NUMBER OF STOCKS
60
BETA9
0.9

FEATURES

  • APIR CODE PCL0026AU
  • REDEMPTION PRICEA$ 1.029
  • FEES * Management Fee: 0.974%
    Performance Fee: Nil
  • Minimum initial investment $10,000
  • STRATEGY INCEPTION DATE 1 December 1989
  • BenchmarkMSCI All Country World Total Return Index (net) in $A

Fund Managers

Jingyi Li

Portfolio Manager

Rick Schmidt

Portfolio Manager

Description

An International Fund targeting superior risk-adjusted returns through investing in high-quality and durable growing companies at reasonable prices.

The Pengana Harding Loevner International Fund invests in high-quality, growing companies identified through fundamental research with a long-term, global perspective.

Pengana has appointed Harding Loevner to managed the Fund.  Harding Loevner is a New Jersey-based global equity fund manager formed in 1989 with over US$86billion in Assets under Management.

Harding Loevner’ analysts search the world for companies that meet their high quality and durable growth criteria, conduct fundamental research, then value and rate their stocks to make them available to PMs for investment.

EXPLORE OUR FUNDS

Harding Loevner International Fund
Harding Loevner International Fund
Axiom International Fund
Axiom International Fund
Axiom International Fund (Hedged)
Axiom International Fund (Hedged)
Australian Equities Fund
Australian Equities Fund
High Conviction Property Securities Fund
High Conviction Property Securities Fund
Global Small Companies Fund
Global Small Companies Fund
WHEB Sustainable Impact Fund
WHEB Sustainable Impact Fund
Emerging Companies Fund
Emerging Companies Fund
High Conviction Equities Fund
High Conviction Equities Fund
Pengana International Equities Limited (ASX: PIA)
Pengana International Equities Limited (ASX: PIA)
Private Equity Trust (ASX: PE1)
Private Equity Trust (ASX: PE1)
Pengana Global Private Credit Trust (ASX:PCX)
Pengana Global Private Credit Trust (ASX:PCX)
Pengana Global Private Income Fund
Pengana Global Private Income Fund
Alpha Israel Fund
Alpha Israel Fund
Pengana Diversified Private Credit Fund
Pengana Diversified Private Credit Fund

1. Harding Loevner was appointed fund manager as of 10 May 2021. June 2021 represents the first full month of Harding Loevner managing the Fund.
2. Class B Inception date 1 July 2015. Figures shown are calculated from the continuous performance of both the current and previous strategies. For performance see row labelled Fund (APIR PCL0026AU) in the table above which is the continuous performance of both the current and previous (shaded) strategies.
3. Harding Loevner Global Equity Strategy inception 1 Dec 1989
4. Prior to June 2021, the Harding Loevner Global Equity Strategy performance (labelled ‘Current Strategy (Partial Simulation)’ and shown in the shaded area) includes the strategy performance simulated by Pengana from the monthly gross returns of the Harding Loevner Global Equity strategy. This simulation was done by: 1) the conversion of US-denominated gross returns to AUD, 2) applying the fee structure of Class B. From June 2021 the strategy performance is the performance of the Pengana Harding Loevner International Fund Class B.
5. MSCI All Country World Total Return Index in AUD.
6. Performance for periods greater than 12 months are annualised. Net performance figures are shown after all fees and expenses and assume reinvestment of distributions. No allowance has been made for buy/sell spreads. Please refer to the PDS for information regarding risks. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
7. The Harding Loevner Global Equity Strategy performance (shown in the shaded area in the chart, and in the performance table as row labeled ‘Harding Loevner Global Equity Strategy) has been simulated by Pengana from the monthly gross returns of the Harding Loevner Global Equity strategy. This simulation was done by: 1) the conversion of US-denominated gross returns to AUD, 2) applying the fee structure of the stated class. Strategy Inception 30 November 1989.
8. Annualised standard deviation since inception.
9. Relative to MSCI All Country World Total Return Index in AUD
* For further information regarding fees please see the PDS available on our website.