N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-7739
Harding, Loevner Funds, Inc.
(Exact name of registrant as specified in charter)
50 Division Street, Somerville, NJ					08876
(Address of principal executive offices)					(Zip code)
David R. Loevner, President   50 Division Street, Somerville, NJ 08876
(Name and address of agent for service)
Registrant’s telephone number, including area code:				(877) 435-8105
Date of fiscal year end:	10/31/2009
Date of reporting period:		10/31/2009

Item 1. Reports to Stockholders

Annual Report October 31, 2009

Mutual Funds for Individual Investors

·Emerging Markets Portfolio

·International Equity Portfolio

·International Small Companies Portfolio

·Global Equity Portfolio

State Street Bank and Trust Company

Attn: Harding, Loevner Funds, Inc.

200 Clarendon Street, 16th Floor, JHT 1651

Boston, MA 02116

(877) 435-8105· www.hardingloevnerfunds.com

Harding, Loevner Funds, Inc.

Table of Contents

Expense Example	2
Performance Information and Statements of Net Assets
Emerging Markets Portfolio	3
International Equity Portfolio	10
International Small Companies Portfolio	17
Global Equity Portfolio	24
Statements of Operations	31
Statements of Changes in Net Assets	33
Financial Highlights	37
Notes to Financial Statements	41
Report of Independent Registered Public Accounting Firm	53
Supplemental Tax Information	54
Directors and Principal Officers	55
Supplemental Information	58

For use only when preceded or accompanied by a prospectus. Read the prospectus carefully before you invest or send money.

Harding, Loevner Funds, Inc.

Expense Example

October 31, 2009 (unaudited)

As a shareholder of a Harding Loevner Portfolio, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on May 1, 2009 and held for the entire six month period from May 1, 2009 to October 31, 2009 for the Emerging Markets Portfolio, International Equity Portfolio—Investor Class, International Small Companies—Investor Class and Global Equity Portfolio.

Actual Expenses

The first line under each Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Portfolio under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line under each Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under each Portfolio in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2009		Ending Account Value October 31, 2009		Annualized Expense Ratio			Expenses Paid During Period* (May 1, 2009 to October 31, 2009)
Emerging Markets Portfolio
Actual	$	1,000.00	$	1,358.00		1.64	%	$	9.75
Hypothetical (5% annual return before expenses)		1,000.00		1,016.90		1.64	%		8.34
International Equity Portfolio—Investor Class
Actual		1,000.00		1,319.40		1.25	%		7.31
Hypothetical (5% annual return before expenses)		1,000.00		1,018.90		1.25	%		6.36
International Small Companies Portfolio— Investor Class
Actual		1,000.00		1,535.30		1.75	%		11.18
Hypothetical (5% annual return before expenses)		1,000.00		1,016.40		1.75	%		8.89
Global Equity Portfolio
Actual		1,000.00		1,265.30		1.25	%		7.14
Hypothetical (5% annual return before expenses)		1,000.00		1,018.90		1.25	%		6.36

*  Expenses are calculated using each Portfolio's annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by number of days in the period (184 days), and divided by the number of days in the year (365 days).

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns									Average Annualized Total Return
FUND NAME	Last 12 Months			5 YR			10 YR			5 YR			10 YR
Emerging Markets Portfolio (Inception date 11/9/98)		48.44	%		99.83	%		265.23	%		14.85	%		13.83	%
MSCI Emerging Markets (Net dividend)		64.11	%		117.14	%		188.93	%		16.77	%		11.19	%
Lipper Emerging Markets Funds Index		56.90	%		96.12	%		182.23	%		14.42	%		10.93	%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

3

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio (Individual) — Overview
October 31, 2009

The Emerging Markets Portfolio gained 48.44% for the fiscal year ending October 31, 2009, as compared to a gain of 64.11% for its benchmark, the MSCI Emerging Markets Index.

Consistent with its investment objectives and policies, the Portfolio was invested primarily in the securities of emerging markets companies that exhibit the fundamental characteristics of growth, financial strength, management quality, and durable competitive advantage.

The Portfolio's underperformance this period was the result primarily of unfavorable stock selection. Because we did not own some of the most distressed, cyclically-exposed companies in the Financials, Industrials, and Consumer Discretionary sectors that had previously declined the most in 2008, our companies did not benefit as much in the early stages of the rally that began in late February. Our overweight in the lagging Health Care sector and underweight in the booming Materials sector also detracted from relative returns.

Our holdings lagged the most in the Financials, Industrials, and Information Technology sectors, where the poor stocks included Samsung Fire & Marine, China Communications Construction, and Delta Electronics. Portfolio companies in Consumer Staples and Telecom Services outperformed overall. Strong stocks in these sectors included Hengan International, JBS, and Telekom Indonesia.

From a geographic perspective, the largest detractor from performance was our underweight and poor stock selection in Asia, including East Asia (China, Taiwan, and South Korea). Many listed companies in Asia are export-focused manufacturers, for whom we believe the potential for further expansion of excess capacity and margin-destroying competition presents risks for investors. In China, poor corporate governance and the lack of corporate capital allocation discipline remain obstacles to our finding attractive investments in this market.

Past performance does not guarantee future results.

The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Portfolio in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consists of 22 emerging market countries. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

4

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Airlines		0.9	%
Banks		18.2
Beverages, Food & Tobacco		4.5
Building Materials		2.0
Chemicals		2.7
Commercial Services & Supplies		3.8
Communications		8.5
Computers & Information		0.5
Cosmetics & Personal Care		1.0
Electric Utilities		1.2
Electrical Equipment		5.4
Electronics		1.7
Engineering & Construction		2.5
Financial Services		1.0
Food		1.1
Food Retailers		1.4
Health Care Providers & Services		2.6
Home Construction, Furnishings & Appliances		2.1
Household Products		1.1
Insurance		3.6
Iron & Steel		0.5
Media		1.4
Medical Supplies		0.7
Metals & Mining		3.9
Oil & Gas		12.0
Pharmaceuticals		3.3
Real Estate		1.4
Retailers		3.4
Semiconductors		5.3
Total Investments		97.7
Other Assets Less Liabilities		2.3	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 9.

See Notes to Financial Statements
5

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 96.1%
Brazil - 17.1%
Anhanguera Educacional Participacoes SA (Commercial Services & Supplies)		1,663,882	$	22,999,277
Banco Bradesco SA - ADR (Banks)		1,688,200		33,257,540
Cia Brasileira de Distribuicao Grupo Pao de Acucar - Sponsored ADR (Food)		289,200		17,493,708
Itau Unibanco Banco Multiplo SA - ADR (Banks)		1,364,058		26,108,070
JBS SA (Beverages, Food & Tobacco)		4,530,400		25,126,026
Natura Cosmeticos SA (Cosmetics & Personal Care)		891,900		15,973,799
Petroleo Brasileiro SA - ADR (Oil & Gas)		1,457,084		67,346,423
Usinas Siderurgicas de Minas Gerais SA (Iron & Steel)		305,900		7,586,723
Vale SA - Sponsored ADR (Metals & Mining)		1,866,200		47,569,438
				263,461,004
Chile - 2.5%
Banco Santander - ADR (Banks)		328,244		17,278,764
Sociedad Quimica y Minera de Chile SA - Sponsored ADR (Chemicals)		576,500		21,186,375
				38,465,139
China - 11.8%
Anhui Conch Cement Co., Ltd. (Building Materials)		2,530,000		16,369,685
China Communications Construction Co., Ltd. - Class H (Engineering & Construction)		18,090,000		19,521,536
China Insurance International Holdings Co., Ltd. (Insurance)		6,411,600		22,421,416
China Mobile Ltd. - Sponsored ADR (Communications)		346,061		16,171,430
China Overseas Land & Investment Ltd. (Real Estate)		9,720,000		20,948,952
Hengan International Group Co., Ltd. (Health Care Providers & Services)		6,241,000		40,009,646
Jiangsu Expressway Co., Ltd. - Class H (Commercial Services & Supplies)		24,020,000		21,309,861
New Oriental Education & Technology Group - Sponsored ADR (Commercial Services & Supplies)		203,500		14,212,440
Shandong Weigao Group Medical Polymer Co., Ltd. (Medical Supplies)		3,196,000		11,146,921
				182,111,887
Colombia - 1.1%
BanColombia SA - Sponsored ADR (Banks)		436,300		17,268,754
Czech Republic - 0.9%
Central European Media Enterprises Ltd. (Media)*		526,000		13,223,640
Egypt - 1.1%
Orascom Construction Industries - GDR, Reg. S (Engineering & Construction)		338,200		16,341,977
Greece - 0.9%
Coca Cola Hellenic Bottling Co. SA (Beverages, Food & Tobacco)*		535,200		13,946,578
Hungary - 0.5%
Richter Gedeon Nyrt (Pharmaceuticals)		40,500		8,404,874
India - 5.2%
Axis Bank Ltd. (Banks)		989,400		18,666,115
HDFC Bank Ltd. - ADR (Banks)		238,497		26,380,153
Hindustan Unilever Ltd. (Household Products)		2,713,700		16,218,916
NTPC Ltd. (Electric Utilities)		4,065,900		18,139,733
				79,404,917

See Notes to Financial Statements
6

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Indonesia - 2.4%
PT Bank Rakyat Indonesia (Banks)		24,259,000	$	17,708,576
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		581,450		19,716,969
				37,425,545
Israel - 3.0%
Israel Chemicals Ltd. (Chemicals)		1,796,400		21,001,512
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		485,300		24,497,944
				45,499,456
Luxembourg - 1.1%
Millicom International Cellular SA (Communications)		266,100		16,673,826
Malaysia - 1.2%
Public Bank Berhad (Banks)		212,682		664,258
Public Bank Berhad (Banks)		5,582,000		17,377,037
				18,041,295
Mexico - 6.8%
America Movil SA de CV, Series L - ADR (Communications)		664,600		29,328,798
Grupo Aeroportuario del Sureste SAB de CV, Series B - ADR (Engineering & Construction)		71,598		2,913,323
Grupo Financiero Banorte SA de CV, Class O (Financial Services)		4,701,840		15,422,640
Grupo Televisa SA - Sponsored ADR (Media)		466,600		9,033,376
Telmex Internacional SAB de CV, Series L - ADR (Communications)		913,800		12,299,748
Urbi Desarrollos Urbanos SA de CV (Home Construction, Furnishings & Appliances)		6,278,500		12,363,230
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		690,707		24,043,511
				105,404,626
Panama - 0.9%
Copa Holdings SA - Class A (Airlines)		336,900		14,227,287
Peru - 1.1%
Credicorp Ltd. (Banks)		247,500		17,084,925
Philippines - 0.4%
Philippine Long Distance Telephone Co. - Sponsored ADR (Communications)		127,215		6,780,560
Poland - 1.9%
Bank Pekao SA (Banks)		304,861		16,215,115
Central European Distribution Corp. (Beverages, Food & Tobacco)		394,200		12,263,562
				28,478,677
Russia - 6.0%
Lukoil - Sponsored ADR (Oil & Gas)		574,894		33,573,809
OAO Gazprom - Sponsored ADR (Oil & Gas)		1,550,285		37,016,842
X 5 Retail Group NV - GDR, Reg. S (Food Retailers)		885,985		21,227,088
				91,817,739
South Africa - 5.8%
Massmart Holdings Ltd. (Retailers)		1,299,700		15,012,809
MTN Group Ltd. (Communications)		2,002,700		30,061,582
Pretoria Portland Cement Co., Ltd. (Building Materials)		3,309,000		13,810,207
SABMiller plc (Beverages, Food & Tobacco)		650,600		17,382,162
Standard Bank Group Ltd. (Banks)		1,021,316		12,776,510
				89,043,270

See Notes to Financial Statements
7

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
South Korea - 8.7%
KB Financial Group Inc. - ADR (Banks)		459,337	$	21,790,947
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		143,080		43,343,050
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		48,759		9,686,609
Samsung Fire & Marine Insurance Co., Ltd. (Insurance)		182,400		33,438,270
Shinsegae Co., Ltd. (Retailers)		31,500		13,680,197
Taewoong Co., Ltd. (Metals & Mining)		189,000		12,693,767
				134,632,840
Taiwan - 9.4%
Delta Electronics (Electrical Equipment)		10,986,751		30,650,798
Hon Hai Precision Industry Co., Ltd. (Electrical Equipment)		6,192,000		24,378,311
HTC Corp. (Computers & Information)		774,650		7,745,302
MediaTek Inc. (Semiconductors)		2,016,144		28,542,609
Synnex Technology International Corp. (Electronics)		13,422,050		25,474,050
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		15,804,637		28,745,983
				145,537,053
Thailand - 2.7%
PTT Exploration & Production plc (Oil & Gas)		4,866,800		21,112,520
Siam Commercial Bank-Alien (Banks)		8,863,300		20,484,366
				41,596,886
Turkey - 2.4%
Arcelik (Home Construction, Furnishings & Appliances)		6,289,700		20,465,602
Turkiye Garanti Bankasi AS (Banks)		4,793,300		17,182,443
				37,648,045
United Kingdom - 1.2%
Hikma Pharmaceuticals plc (Pharmaceuticals)		2,349,000		18,145,625
Total Common Stocks (Cost $1,107,825,521)				1,480,666,425
Preferred Stocks - 1.7%
Brazil - 0.2%
Petroleo Brasileiro SA - Sponsored ADR (Oil & Gas)		54,000		2,166,480
Russia - 1.5%
Oil & Gas - 1.5%
Transneft (Oil & Gas)		26,900		23,403,000
Total Preferred Stocks (Cost $9,383,336)				25,569,480
Total Investments - 97.8% (Cost $1,117,208,857)			$	1,506,235,905

See Notes to Financial Statements
8

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 2.2%
Cash	$	35,826,736
Dividends and interest receivable		1,636,929
Foreign currency (cost $696,586)		690,157
Receivable for Fund units sold		2,688,326
Tax reclaim receivable		145,936
Prepaid expenses		1,284
Payable to Investment Advisor		(1,410,034	)
Payable for Fund units redeemed		(2,412,116	)
Other liabilities		(2,581,376	)
		34,585,842
Net Assets - 100%
Applicable to 38,868,544 outstanding $.001 par value units (authorized 500,000,000 shares)	$	1,540,821,747
Net Asset Value, Offering Price and Redemption Price Per Unit	$	39.64
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	1,316,113,524
Accumulated undistributed net investment income		4,594,502
Accumulated net realized loss from investment transactions		(167,193,464	)
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies		387,307,185
	$	1,540,821,747

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

Reg S  Security sold outside United States without registration under the Securities Act of 1933.

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

See Notes to Financial Statements
9

Harding, Loevner Funds, Inc.

International Equity Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns							Average Annualized Total Return
FUND NAME	Last 12 Months			5 YR	Inception			5 YR	Inception
International Equity Investor Class (Inception date 09/30/05)		32.48	%	N/A		14.26	%	N/A		3.32	%
MSCI All Country World ex-US (Net dividend)		34.13	%	N/A		13.47	%	N/A		3.14	%
Lipper International Fund Index		28.17	%	N/A		8.73	%	N/A		2.07	%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

10

Harding, Loevner Funds, Inc.

International Equity Portfolio (Investor Class) — Overview
October 31, 2009

The International Equity Portfolio gained 32.48% for the fiscal year ending October 31, 2009. In comparison, its benchmark, the MSCI All Country World ex-US Index, rose 34.13%.

Consistent with its investment objectives and policies, the Portfolio was invested primarily in the securities of non-US companies that exhibited the fundamental characteristics of growth, financial strength, management quality, and durable competitive advantage.

The portfolio's return was near the benchmark return. Good relative stock performance within sectors offset poor allocation between sectors. Heavy weightings in Health Care and Consumer Staples, along with light weightings in Materials and Financials hindered performance. The portfolio benefited from good stock selection in a number of industry groups, including consumer durables & apparel (LVMH), retailing (Li & Fung, China Resources Enterprise), food & staples retailing (Olam International), pharmaceuticals & biotech (Qiagen), capital goods (Atlas Copco, Schneider Electric), and telecom services (Telekom Indonesia). Positive stock selection was offset by a few holdings that lagged their industry groups, including companies in energy (Imperial Oil, Encana), diversified financials (Nomura Holdings), insurance (Swiss Reinsurance), health care equipment & services (Fresenius), technology hardware & equipment (Nokia), and materials (Air Liquide).

Viewed geographically, the portfolio enjoyed good stock selection in developed markets across Europe and Japan, but our holdings in emerging markets failed to keep up with the torrid pace of the emerging markets sub-index. Stock selection was particularly strong in the UK (Standard Chartered), France (LVMH, Schneider Electric), Germany (Allianz, Qiagen), Japan (Kubota, JSR), Hong Kong (Li & Fung) and Singapore (Olam International), along with Bermuda (Bunge). Emerging markets holdings that lagged included companies in Russia (Gazprom), South Africa (Sasol), Indonesia (Telekom Indonesia), and Taiwan (Taiwan Semiconductor).

Past performance does not guarantee future results.

The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Portfolio in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The portfolio invests in smaller companies which involve additional risks such as limited liquidity and greater volatility.

The MSCI All Country World ex-US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US. The Index consists of 44 developed and emerging market countries. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

11

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Banks		7.6	%
Beverages, Food & Tobacco		13.3
Chemicals		5.5
Commercial Services & Supplies		5.9
Communications		5.9
Computer Software & Processing		3.2
Cosmetics & Personal Care		2.2
Electrical Equipment		8.5
Electronics		2.0
Financial Services		3.5
Health Care Providers & Services		1.2
Heavy Machinery		2.4
Holding Companies - Diversified		2.2
Insurance		2.8
Machinery - Diversified		1.3
Media		5.0
Medical Supplies		5.4
Oil & Gas		9.9
Oil & Gas Services		1.7
Pharmaceuticals		2.1
Real Estate		1.3
Retailers		3.3
Semiconductors		2.0
Total Investments		98.2
Other Assets Less Liabilities		1.8	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 16.

See Notes to Financial Statements
12

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 97.5%
Australia - 1.8%
Cochlear Ltd. (Medical Supplies)		93,800	$	5,375,496
Austria - 2.0%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		149,220		5,995,923
Bermuda - 2.5%
Bunge Ltd. (Beverages, Food & Tobacco)		129,280		7,376,717
Brazil - 0.8%
Petroleo Brasileiro SA - ADR (Oil & Gas)		52,888		2,444,483
Canada - 3.2%
EnCana Corp. (Oil & Gas)		79,882		4,424,664
Imperial Oil Ltd. (Oil & Gas)		137,290		5,168,968
				9,593,632
China - 2.7%
China Resources Enterprise (Financial Services)		2,442,000		8,151,832
Finland - 2.0%
Nokia Oyj - Sponsored ADR (Communications)		465,240		5,866,676
France - 15.1%
Air Liquide (Chemicals)		94,402		10,194,126
Dassault Systemes SA (Computer Software & Processing)		163,800		9,443,602
L'Oreal SA (Cosmetics & Personal Care)		65,170		6,641,877
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		64,430		6,684,127
Schlumberger Ltd. (Oil & Gas Services)		83,400		5,187,480
Schneider Electric SA (Electrical Equipment)		66,450		6,902,044
				45,053,256
Germany - 5.8%
Allianz SE (Insurance)		73,400		8,412,189
Fresenius AG (Health Care Providers & Services)		73,368		3,649,800
Qiagen NV (Commercial Services & Supplies)*		253,470		5,257,080
				17,319,069
Hong Kong - 3.4%
Hutchison Whampoa Ltd. (Commercial Services & Supplies)		531,000		3,717,414
Li & Fung Ltd. (Commercial Services & Supplies)		1,550,200		6,419,433
				10,136,847
Indonesia - 1.8%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		154,940		5,254,015
Israel - 0.8%
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		44,160		2,229,197
Japan - 14.3%
Fanuc Ltd. (Electrical Equipment)		65,400		5,493,297
Hoya Corp. (Electronics)		267,300		5,854,040

See Notes to Financial Statements
13

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Japan (continued)
JSR Corp. (Chemicals)		323,900	$	6,305,223
Jupiter Telecommunications Co., Ltd. (Media)		6,085		5,589,849
Keyence Corp. (Electrical Equipment)		34,765		6,897,888
Kubota Corp. (Machinery - Diversified)		505,300		3,920,034
Nomura Holdings Inc. (Financial Services)		335,200		2,345,623
So-net M3 Inc. (Commercial Services & Supplies)		664		2,278,830
Sumitomo Realty & Development Co., Ltd. (Real Estate)		199,000		3,739,343
				42,424,127
Malaysia - 2.2%
Sime Darby Berhad (Holding Companies - Diversified)		2,574,810		6,652,016
Mexico - 4.3%
America Movil SA de CV, Series L - ADR (Communications)		144,000		6,354,720
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		184,620		6,426,622
				12,781,342
Poland - 1.0%
Bank Pekao SA - GDR, Reg. S (Banks)#,*		52,560		2,857,825
Russia - 2.3%
OAO Gazprom - Sponsored ADR (Oil & Gas)		280,570		6,699,294
Singapore - 3.3%
DBS Group Holdings Ltd. (Banks)		607,083		5,539,736
Olam International Ltd. (Beverages, Food & Tobacco)		2,230,900		4,277,217
				9,816,953
South Africa - 0.7%
Sasol Ltd. (Oil & Gas)		55,641		2,084,364
South Korea - 2.0%
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		18,520		5,610,241
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		1,500		297,994
				5,908,235
Sweden - 2.3%
Atlas Copco AB - Class A (Heavy Machinery)		510,600		6,977,482
Switzerland - 9.5%
Alcon Inc. (Medical Supplies)		49,370		7,049,542
Nestle SA - Sponsored ADR (Beverages, Food & Tobacco)		220,350		10,250,682
Roche Holding AG - Genusschein (Pharmaceuticals)		24,350		3,901,402
Swatch Group AG (Retailers)		14,880		3,468,954
Synthes Inc. (Medical Supplies)		29,320		3,479,419
				28,149,999
Taiwan - 2.0%
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		3,330,125		6,056,939
United Kingdom - 11.7%
BG Group plc (Oil & Gas)		372,680		6,424,711
Standard Chartered plc (Banks)		338,010		8,300,246
Tesco plc (Beverages, Food & Tobacco)		874,980		5,838,969

See Notes to Financial Statements
14

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
United Kingdom (continued)
Unilever plc (Beverages, Food & Tobacco)		167,425	$	5,011,364
WPP plc (Media)		1,043,920		9,361,788
				34,937,078
Total Common Stocks (Cost $230,874,100)				290,142,797
Preferred Stocks - 0.7%
Brazil - 0.7%
Petroleo Brasileiro SA - Sponsored ADR (Oil & Gas)		55,400		2,222,648
Total Preferred Stocks (Cost $1,789,747)				2,222,648
Total Investments - 98.2% (Cost $232,663,847)			$	292,365,445

See Notes to Financial Statements
15

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 1.8%
Cash	$	4,718,958
Dividends and interest receivable		415,158
Foreign currency (cost $29,515)		29,654
Receivable for Fund units sold		317,218
Tax reclaim receivable		84,743
Prepaid expenses		2,508
Payable to Investment Advisor		(182,237	)
Payable for Fund units redeemed		(54,407	)
Payable for distribution fees		(15,865	)
Other liabilities		(97,840	)
		5,217,890
Net Assets - 100%
Investor Class
Applicable to 3,173,243 outstanding $.001 par value units (authorized 250,000,000 shares)	$	38,133,502
Net Asset Value, Offering Price and Redemption Price Per Unit	$	12.02
Institutional Class
Applicable to 21,549,438 outstanding $.001 par value units (authorized 250,000,000 shares)	$	259,449,833
Net Asset Value, Offering Price and Redemption Price Per Unit	$	12.04
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	247,801,995
Accumulated undistributed net investment income		2,365,492
Accumulated net realized loss from investment transactions		(12,296,884	)
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies		59,712,732
	$	297,583,335

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

Reg S  Security sold outside United States without registration under the Securities Act of 1933.

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

#  Security valued at fair value as determined in good faith under policies and procedures established by and under the supervision of the Portfolio's Board of Directors.

See Notes to Financial Statements
16

Harding, Loevner Funds, Inc.

International Small Companies Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns						Average Annualized Total Return
FUND NAME	Last 12 Months			Inception			Inception
International Small Companies Investor Class (Inception date 03/26/07)		63.47	%		(8.75	)%		(3.46	)%
MSCI All Country World ex-US Small Cap		60.12	%		(19.08	)%		(7.81	)%
Lipper International Small Cap Index		44.85	%		(24.90	)%		(10.42	)%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

17

Harding, Loevner Funds, Inc.

International Small Companies (Individual) — Overview
October 31, 2009

The International Small Companies Portfolio rose 63.47% for the fiscal year ending October 31, 2009, while its benchmark, the MSCI All Country World ex-US Small Cap Index, rose 60.12%.

Consistent with its investment objectives and policies, the Portfolio was invested primarily in the securities of non-US smaller capitalization companies that exhibit the fundamental characteristics of growth, financial strength, management quality, and durable competitive advantage.

The Portfolio benefitted from strong stock selection in a wide range of sectors this period, particularly Consumer Discretionary, Health Care, Industrials, Materials, and Telecom Services. Notable stocks included Supermax Corporation (a Singapore-based maker of rubber and latex medical gloves) and Choong Ang Vaccine (a South Korean animal vaccine producer). Two Industrials companies, Canadian water treatment and paper equipment services company GLV and crane rental company Tat Hong of Singapore, were also strong performers this period. The Portfolio's underweight in Financials was beneficial as well.

Stock selection was weak in Financials, with the poor performance of Japanese cash-management services company Fidec and Irish insurance company FBD Holdings outweighing the positive contribution from Australia's Bank of Queensland. Our overweight in the underperforming Health Care sector was an additional detractor.

Past performance does not guarantee future results.

The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. The portfolio invests in smaller companies which involve additional risks such as limited liquidity and greater volatility.

The MSCI All Country World ex-US Small Cap Index is a free-float market capitalization index that is designed to measure small cap developed and emerging market equity performance. The Index consists of 44 developed and emerging markets countries and targeting companies market capitalization range of USD 170—4,200 million in terms of the company's full market capitalization. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

18

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Agriculture		1.3	%
Apparel		0.6
Automotive		3.1
Banks		4.2
Chemicals		9.8
Commercial Services & Supplies		5.4
Communications		3.4
Computers & Information		1.3
Cosmetics & Personal Care		1.0
Distribution/Wholesale		2.6
Electrical Equipment		2.0
Electronics		4.1
Engineering & Construction		1.3
Environmental Controls		2.6
Financial Services		4.2
Food		6.4
Gas		1.5
Gold and Silver Ores		1.7
Hand/Machine Tools		2.4
Health Care Providers & Services		2.8
Insurance		2.1
Leisure Time		1.5
Machinery - Diversified		5.4
Media		1.3
Medical Supplies		4.1
Miscellaneous Manufacturing		7.6
Oil & Gas Services		1.2
Packaging & Containers		1.3
Pharmaceuticals		3.4
Retailers		3.6
Semiconductors		2.8
Textiles & Apparel		1.2
Transportation		1.1
Trucking & Leasing		1.6
Total Investments		99.9
Other Assets Less Liabilities		0.1	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 23.

See Notes to Financial Statements
19

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 98.6%
Australia - 7.2%
Bank of Queensland Ltd. (Banks)		8,794	$	95,652
Bradken Ltd. (Engineering & Construction)		14,800		81,596
Imdex Ltd. (Gold and Silver Ores)		145,430		108,830
PIPE Networks Ltd. (Communications)		14,132		76,294
SAI Global Ltd. (Media)		26,800		82,394
				444,766
Austria - 2.9%
BWT AG (Environmental Controls)		3,286		84,206
Semperit AG Holding (Miscellaneous Manufacturing)		2,730		96,005
				180,211
Belgium - 1.2%
Sioen Industries NV (Textiles & Apparel)		11,960		75,744
Canada - 2.8%
GLV, Inc. - Class A (Machinery - Diversified)*		11,400		95,031
Laurentian Bank of Canada (Banks)		2,100		76,718
				171,749
China - 2.7%
Changmao Biochemical Engineering Co., Ltd. - Class H (Chemicals)		456,000		72,906
Chen Hsong Holdings Ltd. (Machinery - Diversified)		170,000		49,104
Dalian Refrigeration Co., Ltd. (Machinery - Diversified)		76,000		48,220
				170,230
Denmark - 2.7%
NKT Holding A/S (Miscellaneous Manufacturing)*		1,450		82,388
Topsil Semiconductor Materials (Semiconductors)*		560,000		85,146
				167,534
Finland - 2.4%
Vacon Oyj (Hand/Machine Tools)		2,377		84,428
Vaisala Oyj, Class A (Electronics)		1,823		64,719
				149,147
France - 3.9%
Boiron SA (Pharmaceuticals)		2,073		85,332
Robertet SA (Food)		550		66,249
Rubis (Gas)		990		90,943
				242,524
Germany - 6.3%
Bijou Brigitte Modische Accessoires AG (Retailers)		482		78,023
Carl Zeiss Meditec AG (Medical Supplies)		6,170		91,656
Drillisch AG (Communications)*		21,510		136,887
Gerresheimer AG (Packaging & Containers)		2,920		83,029
				389,595
Hong Kong - 6.4%
Chong Hing Bank Ltd. (Banks)		46,000		89,058
Pico Far East Holdings Ltd. (Commercial Services & Supplies)		544,000		99,145
Top Form International Ltd. (Apparel)*		540,000		39,834
Wasion Meters Group Ltd. (Electronics)		86,000		71,518
Yip's Chemical Holdings Ltd. (Chemicals)		140,000		97,351
				396,906

See Notes to Financial Statements
20

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Ireland - 2.4%
FBD Holdings plc (Insurance)		6,730	$	65,962
Grafton Group plc (Retailers)*		17,000		83,779
				149,741
Italy - 4.9%
Cembre S.p.A (Electrical Equipment)		11,880		81,618
Marr S.p.A (Distribution/Wholesale)		9,963		87,834
SABAF S.p.A (Electrical Equipment)		1,966		44,814
Sol S.p.A (Chemicals)		15,441		91,558
				305,824
Japan - 15.7%
AISAN INDUSTRY Co., Ltd. (Automotive)		5,400		39,753
Asahi Diamond Industrial Co., Ltd. (Hand/Machine Tools)		9,000		63,026
ASKUL Corp. (Retailers)		3,000		59,352
BML Inc. (Health Care Providers & Services)		2,800		74,870
C. Uyemura & Co., Ltd. (Chemicals)		1,300		54,142
LINTEC Corp. (Chemicals)		4,100		73,002
MIURA Co., Ltd. (Machinery - Diversified)		2,700		74,847
NAKANISHI Inc. (Pharmaceuticals)		900		77,397
Pasona Inc. (Commercial Services & Supplies)		85		66,058
PIGEON Corp. (Cosmetics & Personal Care)		1,600		61,283
Stella Chemifa Corp. (Chemicals)		2,800		152,645
TSUMURA & Co. (Pharmaceuticals)		1,500		51,546
VIC TOKAI Corp. (Computers & Information)		6,500		79,388
Yamatake Corp. (Electronics)		2,200		46,763
				974,072
Malaysia - 4.1%
MNRB Holdings Berhad (Insurance)		70,600		64,117
Supermax Corp. Berhad (Miscellaneous Manufacturing)		104,200		109,276
United Plantations Berhad (Agriculture)		20,700		82,507
				255,900
Netherlands - 2.8%
Brunel International (Commercial Services & Supplies)		2,527		71,526
Kas Bank NV (Financial Services)		4,938		101,563
				173,089
New Zealand - 0.9%
Sanford Ltd. (Food)		16,253		56,489
Singapore - 4.0%
Goodpack Ltd. (Trucking & Leasing)		109,000		98,498
KS Energy Services Ltd. (Oil & Gas Services)		98,000		77,239
Tat Hong Holdings Ltd. (Distribution/Wholesale)		99,000		72,354
				248,091
South Korea - 2.1%
Binggrae Co., Ltd. (Food)		1,700		63,925
Han Kuk Carbon Co., Ltd. (Chemicals)		13,100		67,917
				131,842
Spain - 1.1%
Construcciones y Auxiliar de Ferrocarriles SA (Transportation)		142		69,903

See Notes to Financial Statements
21

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Sweden - 4.5%
KABE Husvagnar AB, Class B (Miscellaneous Manufacturing)		9,600	$	105,606
Mekonomen AB (Automotive)		5,200		101,443
Studsvik AB (Environmental Controls)		7,100		74,587
				281,636
Switzerland - 1.1%
Lem Holding SA (Electronics)		246		70,875
Taiwan - 4.9%
Merida Industry Co., Ltd. (Leisure Time)		56,000		90,615
Nak Sealing Technologies Corp. (Automotive)		56,000		49,359
Taiwan Paiho Ltd. (Miscellaneous Manufacturing)		123,390		76,671
Youngtek Electronic Corp. (Semiconductors)		39,642		86,232
				302,877
Thailand - 1.2%
Khon Kaen Sugar Industry plc (Food)		193,800		72,476
United Kingdom - 10.4%
Corin Group plc (Medical Supplies)		72,577		83,973
Greggs plc (Food)		10,700		75,588
Hamworthy KSE (Machinery - Diversified)		15,852		66,137
PayPoint plc (Financial Services)		9,097		66,821
Rathbone Brothers plc (Financial Services)		6,130		92,807
Robert Wiseman Dairies plc (Food)		9,051		65,951
RPS Group plc (Commercial Services & Supplies)		28,526		97,882
Synergy Healthcare plc (Health Care Providers & Services)		9,813		97,571
				646,730
Total Common Stocks (Cost $6,372,605)				6,127,951
Preferred Stocks - 1.3%
Germany - 1.3%
Draegerwerk AG (Medical Supplies)		2,182		78,178
Total Preferred Stocks (Cost $103,330)				78,178
Total Investments - 99.9% (Cost $6,475,935)			$	6,206,129

See Notes to Financial Statements
22

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 0.1%
Cash	$	23,288
Dividends and interest receivable		7,516
Foreign currency (cost $4,489)		4,500
Tax reclaim receivable		4,613
Prepaid expenses		61
Receivable from Investment Advisor		12,565
Payable for distribution fees		(12,847	)
Other liabilities		(30,432	)
		9,264
Net Assets - 100%
Investor Class
Applicable to 696,734 outstanding $.001 par value units (authorized 250,000,000 shares)	$	6,215,393
Net Asset Value, Offering Price and Redemption Price Per Unit	$	8.92
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	6,792,548
Accumulated undistributed net investment income		37,558
Accumulated net realized loss from investment transactions		(340,563	)
Net unrealized depreciation on investments and on assets and liabilities denominated in foreign currencies		(274,150	)
	$	6,215,393

Summary of Abbreviations

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

See Notes to Financial Statements
23

Harding, Loevner Funds, Inc.

Global Equity Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns									Average Annualized Total Return
FUND NAME	Last 12 Months			5 YR			10 YR			5 YR			10 YR
Global Equity Portfolio (Inception date 12/1/96)		28.05	%		42.57	%		51.50	%		7.35	%		4.24	%
MSCI All Country World Index (Net dividend)		22.66	%		20.04	%		10.00	%		3.72	%		0.96	%
Lipper Global Equity Fund Index		19.51	%		20.14	%		23.09	%		3.74	%		2.10	%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

24

Harding, Loevner Funds, Inc.

Global Equity Portfolio — Overview
October 31, 2009

The Global Equity Portfolio gained 28.05% for the fiscal year ending October 31, 2009. In comparison, its benchmark, the MSCI All Country World Index, rose 22.66%.

Consistent with its investment objectives and policies, the Portfolio was invested primarily in the securities of global companies that exhibit the fundamental characteristics of growth, financial strength, management quality, and durable competitive advantage.

The Portfolio's outperformance was derived almost entirely from strong stock selection, especially in the Consumer Discretionary, Consumer Staples, and Health Care sectors, rather than from good allocation between sectors. Standout stocks in these sectors included Li & Fung (in the retailing industry group), Coach and Swatch (consumer durables and apparel), Olam International and Walgreen (food & staples retailing), and Medco Health Solutions and Sonova Holdings (health care equipment & services). These were partially offset by holdings in Energy, Financials, and Information Technology that lagged their industry groups, including Exxon Mobil (energy), Wells Fargo< font face="Times New Roman PS, Times New Roman, Times" size="1"> (banks), Schwab (diversified financials), Swiss Reinsurance (insurance), and Qualcomm and Keyence (technology & equipment).

Viewed geographically, stock selection in the US was especially strong, with our holdings in aggregate returning 25% versus the 10% return of the overall US market, led by eBay, Coach, Google, and Walgreen. Good stock selection also helped results in the UK (Standard Chartered) and Singapore (Olam International), partly offset by lagging results in Emerging Markets (China Merchants, Gazprom, Sasol, Telekom Indonesia, Teva Pharmaceuticals).

Past performance does not guarantee future results.

The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Portfolio in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.

The MSCI All Country World Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The Index consists of 45 developed and emerging market countries. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

25

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Apparel		2.3	%
Banks		5.1
Beverages, Food & Tobacco		7.8
Biotechnology		1.5
Chemicals		5.8
Commercial Services & Supplies		5.2
Communications		7.7
Computer Software & Processing		6.4
Cosmetics & Personal Care		6.0
Electrical Equipment		5.7
Financial Services		4.2
Gold and Silver Ores		1.6
Health Care Providers & Services		1.1
Holding Companies - Diversified		2.3
Internet		7.3
Media		1.1
Medical Supplies		3.5
Miscellaneous Manufacturing		2.1
Office/Business Equip		1.2
Oil & Gas		6.6
Oil & Gas Services		2.0
Pharmaceuticals		5.9
Retailers		6.5
Toys/Games/Hobbies		0.6
Total Investments		99.5
Other Assets Less Liabilities		0.5	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 30.

See Notes to Financial Statements
26

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 99.5%
Australia - 3.0%
Cochlear Ltd. (Medical Supplies)		16,730	$	958,764
Rio Tinto Ltd. (Gold and Silver Ores)		19,113		1,061,382
				2,020,146
Austria - 0.8%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		13,600		546,472
Bermuda - 1.9%
Bunge Ltd. (Beverages, Food & Tobacco)		21,870		1,247,902
Canada - 1.9%
EnCana Corp. (Oil & Gas)		22,890		1,267,877
China - 1.0%
China Merchants Holdings International Co., Ltd. (Holding Companies - Diversified)		214,000		683,376
Denmark - 1.0%
Novo Nordisk A/S, Series B (Pharmaceuticals)		10,700		665,426
France - 8.4%
Air Liquide (Chemicals)		9,529		1,029,002
Dassault Systemes SA (Computer Software & Processing)		16,850		971,457
L'Oreal SA (Cosmetics & Personal Care)		15,410		1,570,528
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		6,784		703,789
Schlumberger Ltd. (Oil & Gas Services)		21,790		1,355,338
				5,630,114
Germany - 3.0%
Fresenius AG (Health Care Providers & Services)		14,420		717,345
Qiagen NV (Commercial Services & Supplies)*		30,678		636,275
SAP AG - Sponsored ADR (Computer Software & Processing)		14,130		639,665
				1,993,285
Hong Kong - 2.7%
Li & Fung Ltd. (Commercial Services & Supplies)		429,800		1,779,817
Indonesia - 1.2%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		23,780		806,380
Israel - 1.1%
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		15,000		757,200
Japan - 6.8%
Canon Inc. - Sponsored ADR (Office/Business Equip)		22,000		828,520
Fanuc Ltd. (Electrical Equipment)		6,800		571,169
JSR Corp. (Chemicals)		39,200		763,090
Keyence Corp. (Electrical Equipment)		7,060		1,400,808
Nintendo Co., Ltd. (Toys/Games/Hobbies)		1,500		382,501
So-net M3 Inc. (Commercial Services & Supplies)		166		569,707
				4,515,795

See Notes to Financial Statements
27

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Malaysia - 1.2%
Sime Darby Berhad (Holding Companies - Diversified)		319,157	$	824,541
Mexico - 1.5%
America Movil SA de CV, Series L - ADR (Communications)		22,700		1,001,751
Russia - 2.2%
OAO Gazprom - Sponsored ADR (Oil & Gas)		61,900		1,478,014
Singapore - 3.8%
Olam International Ltd. (Beverages, Food & Tobacco)		1,310,100		2,511,803
South Africa - 1.0%
Sasol Ltd. (Oil & Gas)		17,730		664,182
Sweden - 1.0%
Telefonaktiebolaget LM Ericsson - Class B - Sponsored ADR (Communications)		66,200		688,480
Switzerland - 5.6%
Nestle SA - Sponsored ADR (Beverages, Food & Tobacco)		16,455		765,486
Novartis AG - Registered (Pharmaceuticals)		15,020		783,492
Sonova Holding AG (Medical Supplies)		8,780		903,472
Swatch Group AG (Retailers)		3,650		850,919
Synthes Inc. (Medical Supplies)		3,840		455,695
				3,759,064
United Kingdom - 4.1%
RPS Group plc (Commercial Services & Supplies)		146,300		502,003
Standard Chartered plc (Banks)		60,800		1,493,018
WPP plc (Media)		80,470		721,648
				2,716,669
United States - 46.3%
3M Co. (Miscellaneous Manufacturing)		18,870		1,388,266
Abbott Laboratories (Pharmaceuticals)		21,680		1,096,358
Adobe Systems Inc. (Computer Software & Processing)*		44,890		1,478,677
Charles Schwab Corp. (Financial Services)		46,900		813,246
Cisco Systems Inc. (Communications)*		81,015		1,851,193
Coach Inc. (Apparel)		46,900		1,546,293
Colgate-Palmolive Co. (Cosmetics & Personal Care)		15,250		1,199,108
eBay Inc. (Internet)*		83,200		1,852,864
Emerson Electric Co. (Electrical Equipment)		49,570		1,871,267
Exxon Mobil Corp. (Oil & Gas)		13,590		973,995
Genzyme Corp. (Biotechnology)*		20,450		1,034,770
Google Inc. - Class A (Internet)*		3,167		1,697,892
Greenhill & Co. Inc. (Financial Services)		11,700		1,008,891
JPMorgan Chase & Co. (Financial Services)		23,000		960,710
Medco Health Solutions Inc. (Pharmaceuticals)*		11,868		666,032
Oracle Corp. (Computer Software & Processing)		55,110		1,162,821
Praxair Inc. (Chemicals)		10,120		803,933
Procter & Gamble Co. (Cosmetics & Personal Care)		21,300		1,235,400
Qualcomm Inc. (Communications)		18,520		766,913
Sigma-Aldrich Corp. (Chemicals)		24,700		1,282,671

See Notes to Financial Statements
28

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
United States (continued)
Staples Inc. (Retailers)		69,310	$	1,504,027
Walgreen Co. (Retailers)		53,550		2,025,796
Wells Fargo & Co. (Banks)		50,850		1,399,392
Yahoo! Inc. (Internet)*		83,700		1,330,830
				30,951,345
Total Common Stocks (Cost $51,329,641)				66,509,639
Total Investments - 99.5% (Cost $51,329,641)			$	66,509,639

See Notes to Financial Statements
29

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 0.5%
Cash	$	476,149
Dividends and interest receivable		59,828
Foreign currency (cost $2,659)		2,773
Tax reclaim receivable		13,321
Prepaid expenses		223
Payable to Investment Advisor		(14,440	)
Payable for Fund units redeemed		(192,231	)
Other liabilities		(44,949	)
		300,674
Net Assets - 100%
Institutional Class Applicable to 3,295,642 outstanding $.001 par value units (authorized 500,000,000 shares)	$	66,810,313
Net Asset Value, Offering Price and Redemption Price Per Unit	$	20.27
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	53,105,959
Accumulated undistributed net investment income		149,249
Accumulated net realized loss from investment transactions		(1,626,235	)
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies		15,181,340
	$	66,810,313

Summary of Abbreviations

ADR  American Depository Receipt

(1)   See Note 2 to Financial Statements.

*  Non-income producing security.

See Notes to Financial Statements
30

Harding, Loevner Funds, Inc.

Statements of Operations

Year Ended October 31, 2009

	Emerging Markets Portfolio			International Equity Portfolio
Investment Income
Interest	$	11,751		$	1,688
Dividends (net of foreign withholding taxes of $3,655,161 and $598,510, respectively)		26,227,411			5,126,101
Total investment income		26,239,162			5,127,789
Expenses
Investment advisory fees (Note 3)		14,921,754			1,668,949
Administration fees (Note 3)		758,546			148,573
Distribution fees, Investor Class		—			51,886
Custodian and accounting fees (Note 3)		1,117,792			145,302
Directors' fees and expenses (Note 3)		180,998			35,488
Shareholder record keeping fees (Note 3)		117,029			64,508
Printing and postage fees		353,788			57,757
State registration filing fees		24,000			31,066
Professional fees		255,085			75,299
Sub Transfer Agent Fees		1,611,789			50,383
Other fees and expenses		249,844			49,612
Total expenses		19,590,625			2,378,823
Less Waiver of investment advisory fee (Note 3)		—			(107,630	)
Net expenses		19,590,625			2,271,193
Net investment income		6,648,537			2,856,596
Realized and Unrealized Gain (Loss)
Net realized gain (loss) —
Investment transactions		(142,828,259	)		(11,874,044	)
Foreign currency transactions		(1,263,805	)		(69,544	)
Net realized (loss)		(144,092,064	)		(11,943,588	)
Change in unrealized appreciation (depreciation) —
Investments		633,935,416			76,755,156
Translation of assets and liabilities denominated in foreign currencies		(1,610,307	)		4,152
Net change in unrealized appreciation		632,325,109			76,759,308
Net realized and unrealized gain		488,233,045			64,815,720
Net increase in net assets resulting from operations	$	494,881,582		$	67,672,316

See Notes to Financial Statements
31

Harding, Loevner Funds, Inc.

Statements of Operations (continued)

Year Ended October 31, 2009

	International Small Companies Portfolio			Global Equity Portfolio
Investment Income
Interest	$	28		$	211
Dividends (net of foreign withholding taxes of $11,381 and $41,540, respectively)		108,040			737,251
Total investment income		108,068			737,462
Expenses
Investment advisory fees (Note 3)		48,410			440,171
Administration fees (Note 3)		6,671			32,870
Distribution fees, Investor Class		9,682			—
Custodian and accounting fees (Note 3)		49,921			64,716
Directors' fees and expenses (Note 3)		666			7,476
Shareholder record keeping fees (Note 3)		30,452			31,940
Printing and postage fees		2,255			13,033
State registration filing fees		14,016			17,127
Professional fees		35,074			76,145
Sub Transfer Agent Fees		2,287			22,034
Other fees and expenses		2,352			9,958
Total expenses		201,786			715,470
Less Waiver/Reimbursement of Fund expenses from Investment Advisor (Note 3)		(134,013	)		(165,256	)
Net expenses		67,773			550,214
Net investment income		40,295			187,248
Realized and Unrealized Gain (Loss)
Net realized gain (loss) —
Investment transactions		(275,832	)		(1,571,426	)
Foreign currency transactions		(472	)		(31,919	)
Net realized (loss)		(276,304	)		(1,603,345	)
Change in unrealized appreciation (depreciation) —
Investments		2,412,025			16,794,484
Translation of assets and liabilities denominated in foreign currencies		(4,062	)		851
Net change in unrealized appreciation		2,407,963			16,795,335
Net realized and unrealized gain		2,131,659			15,191,990
Net increase in net assets resulting from operations	$	2,171,954		$	15,379,238

See Notes to Financial Statements
32

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets

	Emerging Markets Portfolio
	Year Ended October 31, 2009			Year Ended October 31, 2008
Increase in Net Assets From Operations
Net investment income	$	6,648,537		$	43,649,519
Net realized loss on investments and foreign currency transactions		(144,092,064	)		(22,939,239	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		632,325,109			(1,373,615,678	)
Net increase (decrease) in net assets resulting from operations		494,881,582			(1,352,905,398	)
Distributions to Shareholders from:
Net investment income		(36,974,029	)		(4,690,474	)
Net realized gain from investments and foreign-currency related transactions		—			(129,872,683	)
Total distributions to shareholders		(36,974,029	)		(134,563,157	)
Transactions in units of Common Stock
Proceeds from sale of units		522,043,263			597,246,046
Net Asset Value of shares issued to shareholders upon reinvestment of dividends		30,745,773			120,546,841
Cost of shares units		(556,153,126	)		(707,556,978	)
Redemption fees		154,275			399,319
Net increase (decrease) in net assets from Fund share transactions		(3,209,815	)		10,635,228
Net increase (decrease) in net assets		454,697,738			(1,476,833,327	)
Net Assets
At beginning of year		1,086,124,009			2,562,957,336
At end of year	$	1,540,821,747		$	1,086,124,009
Accumulated undistributed net investment income included in net assets	$	4,594,502		$	36,583,212

See Notes to Financial Statements
33

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets (continued)

	International Equity Portfolio
	Year Ended October 31, 2009			Year Ended October 31, 2008
Increase in Net Assets From Operations
Net investment income	$	2,856,596		$	3,314,737
Net realized gain (loss) on investments and foreign currency transactions		(11,943,588	)		40,264,254
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		76,759,308			(197,938,277	)
Net increase (decrease) in net assets resulting from operations		67,672,316			(154,359,286	)
Distributions to Shareholders from:
Net investment income
Investor Class		(160,740	)		(85,868	)
Institutional Class		(3,101,928	)		(2,611,777	)
Net realized gain from investments and foreign-currency related transactions
Investor Class		(2,318,758	)		(1,359,303	)
Institutional Class		(36,230,389	)		(29,187,907	)
Total distributions to shareholders		(41,811,815	)		(33,244,855	)
Transactions in units of Common Stock
Proceeds from sale of units
Investor Class		24,524,810			7,489,395
Institutional Class		37,754,041			13,994,514
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Investor Class		2,337,103			1,330,261
Institutional Class		38,985,473			30,928,420
Cost of units redeemed
Investor Class		(5,664,340	)		(3,696,097	)
Institutional Class		(29,797,831	)		(66,170,127	)
Redemption fees
Investor Class		2,232			481
Institutional Class		9,202			3,098
Net increase (decrease) in net assets from Fund share transactions		68,150,690			(16,120,055	)
Net increase (decrease) in net assets		94,011,191			(203,724,196	)
Net Assets
At beginning of year		203,572,144			407,296,340
At end of year	$	297,583,335		$	203,572,144
Accumulated undistributed net investment income included in net assets	$	2,365,492		$	2,842,758

See Notes to Financial Statements
34

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets (continued)

	International Small Companies Portfolio
	Year Ended October 31, 2009			Year Ended October 31, 2008
Increase in Net Assets From Operations
Net investment income	$	40,295		$	58,463
Net realized loss on investments and foreign currency transactions		(276,304	)		(76,901	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		2,407,963			(3,040,639	)
Net increase (decrease) in net assets resulting from operations		2,171,954			(3,059,077	)
Distributions to Shareholders from:
Net investment income
Investor Class		(35,907	)		(15,014	)
Net realized gain from investments and foreign-currency related transactions
Investor Class		—			(39,692	)
Total distributions to shareholders		(35,907	)		(54,706	)
Transactions in units of Common Stock
Proceeds from sale of units
Investor Class		1,954,457			2,368,797
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Investor Class		35,907			54,707
Cost of units redeemed
Investor Class		(687,371	)		(1,737,767	)
Net increase in net assets from Fund unit transactions		1,302,993			685,737
Net increase (decrease) in net assets		3,439,040			(2,428,046	)
Net Assets
At beginning of year		2,776,353			5,204,399
At end of year	$	6,215,393		$	2,776,353
Accumulated undistributed net investment income included in net assets	$	37,558		$	33,643

See Notes to Financial Statements
35

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets (continued)

	Global Equity Portfolio
	Year Ended October 31, 2009			Year Ended October 31, 2008
Increase in Net Assets From Operations
Net investment income	$	187,248		$	188,392
Net realized loss on investments and foreign currency transactions		(1,603,345	)		(49,681	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		16,795,335			(16,291,482	)
Net increase (decrease) in net assets resulting from operations		15,379,238			(16,152,771	)
Distributions to Shareholders from:
Net investment income		(140,635	)		(117,879	)
Net realized gain from investments and foreign-currency related transactions		—			(2,820,181	)
Total distributions to shareholders		(140,635	)		(2,938,060	)
Transactions in units of Common Stock
Proceeds from sale of units		29,033,478			6,806,873
Net Asset Value of shares issued to shareholders upon reinvestment of dividends		76,577			2,881,495
Cost of units redeemed		(3,752,668	)		(4,193,388	)
Redemption fees		6,503			1,820
Net increase in net assets from Fund unit transactions		25,363,890			5,496,800
Net increase (decrease) in net assets		40,602,493			(13,594,031	)
Net Assets
At beginning of year		26,207,820			39,801,851
At end of year	$	66,810,313		$	26,207,820
Accumulated undistributed net investment income included in net assets	$	149,249		$	140,612

See Notes to Financial Statements
36

Harding, Loevner Funds, Inc.

Financial Highlights

	Emerging Markets Portfolio
	For the Year Ended Oct. 31, 2009			For the Year Ended Oct. 31, 2008			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005
Per Share Data
Net asset value, beginning of year	$	27.73		$	64.07		$	40.67		$	30.41		$	22.31
Increase (Decrease) in Net Assets from Operations
Net investment income		0.26			1.12			0.16			0.22			0.11
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		12.68			(34.06	)		23.26			10.19			8.43
Net increase (decrease) from investment operations		12.94			(32.94	)		23.42			10.41			8.54
Distributions to Shareholders from:
Net investment income		(1.03	)		(0.12	)		(0.02	)		(0.09	)		(0.02	)
Net realized gain from investments and foreign currency-related transactions		—			(3.28	)		—			(0.06	)		(0.42	)
Total distributions		(1.03	)		(3.40	)		(0.02	)		(0.15	)		(0.44	)
Net asset value, end of year	$	39.64		$	27.73		$	64.07		$	40.67		$	30.41
Total Return		48.44	%		(54.17	)%		57.62	%		34.29	%		38.76	%
Ratios/Supplemental Data:
Net assets, end of year (000's)	$	1,540,822		$	1,086,124		$	2,562,957		$	1,452,468		$	690,968
Net expenses to average net assets		1.64	%		1.61	%		1.60	%		1.63	%		1.68	%
Net investment income to average net assets		0.56	%		2.10	%		0.36	%		0.61	%		0.87	%
Portfolio turnover rate		48	%		46	%		29	%		59	%		36	%

See Notes to Financial Statements
37

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	International Equity Portfolio - Investor Class
	For the Year Ended Oct. 31, 2009			For the Year Ended Oct. 31, 2008			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005 (1)
Per Share Data
Net asset value, beginning of year	$	11.41		$	21.66		$	18.65		$	14.91		$	15.63
Increase (Decrease) in Net Assets from Operations
Net investment income		0.13			0.13			0.09			0.11	(2)		0.00	*
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		2.83			(8.58	)		4.32			3.71			(0.72	)
Net increase (decrease) from investment operations		2.96			(8.45	)		4.41			3.82			(0.72	)
Distributions to Shareholders from:
Net investment income		(0.15	)		(0.11	)		(0.06	)		(0.07	)		—
Net realized gain from investments and foreign currency-related transactions		(2.20	)		(1.69	)		(1.34	)		(0.01	)		—
Total distributions		(2.35	)		(1.80	)		(1.40	)		(0.08	)		—
Net asset value, end of year	$	12.02		$	11.41		$	21.66		$	18.65		$	14.91
Total Return		32.48	%		(42.46	)%		24.95	%		25.74	%		(4.61	)%(B)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	38,134		$	12,122		$	16,637		$	9,884		$	510
Net expenses to average net assets		1.25	%		1.23	%		1.23	%		1.25	%		1.25	%(A)
Net investment income (loss) to average net assets		1.03	%		0.81	%		0.48	%		0.61	%		(1.25	)%(A)
Decrease reflected in above expense ratios due to expense reductions		0.14	%		—			0.00	%		0.01	%		0.08	%(A)
Portfolio turnover rate		22	%		18	%		19	%		35	%		38	%(B)

(1)  For the period September 30, 2005 (commencement of operations) through October 31, 2005.

(2)  Computed using average units outstanding throughout the year.

*  Rounds to less than $(0.01).

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
38

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	International Small Companies Portfolio - Investor Class
	For the Year Ended Oct. 31, 2009			For the Year Ended Oct. 31, 2008			For the Year Ended Oct. 31, 2007 (1)
Per Share Data
Net asset value, beginning of year	$	5.53		$	11.67		$	10.00
Increase (Decrease) in Net Assets from Operations
Net investment income		0.06			0.11			0.02
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		3.40			(6.15	)		1.65
Net increase (decrease) from investment operations		3.46			(6.04	)		1.67
Distributions to Shareholders from:
Net investment income		(0.07	)		(0.03	)		—
Net realized gain from investments and foreign currency-related transactions		—			(0.07	)		—
Total distributions		(0.07	)		(0.10	)		—
Net asset value, end of year	$	8.92		$	5.53		$	11.67
Total Return		63.47	%		(52.17	)%		16.70	%(B)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	6,215		$	2,776		$	5,204
Net expenses to average net assets		1.75	%		1.75	%		1.75	%(A)
Net investment income to average net assets		1.04	%		1.22	%		0.56	%(A)
Decrease reflected in above expense ratios due to expense reductions		3.46	%		2.47	%		8.19	%(A)
Portfolio turnover rate		24	%		26	%		12	%(B)

(1)  For the period from March 26, 2007 (commencement of operations) through October 31, 2007.

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
39

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	Global Equity Portfolio
	For the Year Ended Oct. 31, 2009			For the Year Ended Oct. 31, 2008			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005
Per Share Data
Net asset value, beginning of year	$	15.92		$	28.03		$	24.04		$	20.36		$	17.17
Increase (Decrease) in Net Assets from Operations
Net investment income		0.06			0.12			0.09			0.08			0.09
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		4.38			(10.15	)		5.78			4.14			3.12
Net increase (decrease) from investment operations		4.44			(10.03	)		5.87			4.22			3.21
Distributions to Shareholders from:
Net investment income		(0.09	)		(0.08	)		(0.08	)		(0.06	)		(0.02	)
Net realized gain from investments and foreign currency-related transactions		—			(2.00	)		(1.80	)		(0.48	)		—
Total distributions		(0.09	)		(2.08	)		(1.88	)		(0.54	)		(0.02	)
Net asset value, end of year	$	20.27		$	15.92		$	28.03		$	24.04		$	20.36
Total Return		28.05	%		(38.54	)%		26.01	%		21.08	%		18.72	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	66,810		$	26,208		$	39,802		$	31,106		$	25,317
Net expenses to average net assets		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Net investment income to average net assets		0.43	%		0.51	%		0.34	%		0.37	%		0.44	%
Decrease reflected in above expense ratios due to expense reductions		0.38	%		0.20	%		0.18	%		0.35	%		0.36	%
Portfolio turnover rate		31	%		38	%		16	%		27	%		35	%

See Notes to Financial Statements
40

Harding, Loevner Funds, Inc.

Notes to Financial Statements

October 31, 2009

1. Organization

Harding, Loevner Funds, Inc. (the "Fund") was organized as a Maryland corporation on July 31, 1996 and is registered under the Investment Company Act of 1940, as amended, ("1940 Act"), as an open-end diversified management investment company. The Fund currently has six Portfolios all of which were active as of October 31, 2009: International Equity Portfolio ("International Equity"); Global Equity Portfolio ("Global Equity"); Institutional Emerging Markets Portfolio, Emerging Markets Portfolio ("Emerging Markets"); International Small Companies Portfolio ("International Small Companies") and Frontier Emerging Markets Portfolio ("Frontier Emerging Markets"). Information presented in these financial statements pertains to Emerging Markets and Global Equity and Investor Class shares of International Equity and International Small Companies (individually, "Portfolio"; collectively, "Portfolios"). Information pertaining to Institutional Class sha res of International Equity Portfolio, Frontier Emerging Markets Portfolio and Institutional Emerging Markets Portfolio is presented in a separate report. The investment objective of each Portfolio is as follows: Emerging Markets—to seek long-term capital appreciation through investments in equity securities of companies based in emerging markets; International Equity—to seek long-term capital appreciation through investments in equity securities of companies based outside the United States; International Small Companies—to seek long-term capital appreciation through investments in equity securities of small companies based outside the United States; Global Equity—to seek long-term capital appreciation through investments in equity securities of companies based both inside and outside the United States.

Emerging Markets commenced operations on November 9, 1998. International Equity commenced operations on October 31, 1996 after acquiring the net assets of Harding Loevner LP's AMT Capital Fund, Inc. Effective August 5, 2005, International Equity Portfolio launched Investor Class Shares and converted existing shareholders to the Institutional Class. Investor Class of International Small Companies Portfolio commenced operations on March 26, 2007. Global Equity Portfolio commenced operations on December 1, 1996 following the acquisition of net assets of HLM Global Equity Limited Partnership, a limited partnership, in a tax-free reorganization. Effective November 3, 2009, Global Equity Portfolio launched Institutional Class shares and converted existing shareholders to the Advisor Class.

On August 26, 2009, Harding Loevner LLC, investment adviser to the Fund, its parent company, HLM Holdings, Inc., and certain shareholders of HLM Holdings consummated an agreement with Affiliated Managers Group, Inc. ("AMG") pursuant to which Harding Loevner LLC agreed to sell a majority interest in its business to AMG. AMG is a publicly traded Delaware corporation listed on the New York Stock Exchange. As part of the transaction, Harding Loevner LLC transferred its business to a new entity, Harding Loevner LP, and AMG acquired a majority interest in Harding Loevner LP.

The Fund is managed by Harding Loevner LP (the "Investment Advisor").

2. Summary of Significant Accounting Policies

The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States ("GAAP") for investment companies. The following is a summary of the Fund's significant accounting policies:

Indemnifications

Under the Fund's organizational document, its officers and Board are indemnified against certain liability arising out of the performance of their duties to the Portfolios. In the normal course of business, the Fund may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Valuation

The Board has adopted procedures ("Procedures") to govern the valuation of the securities held by each Portfolio of the Fund in accordance with the 1940 Act. The Procedures incorporate principles set forth in relevant pronouncements of the Securities and Exchange Commission ("SEC") and its staff, including guidance on the obligations of the Portfolios and their Directors to determine, in good faith, the fair value of the Portfolios' securities when market quotations are not readily available.

41

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

All investments in the Portfolios are valued daily at their market prices, which results in unrealized gains or losses. Securities traded on an exchange are valued at their last sales price on that exchange. Securities for which no sales are reported are valued at the latest bid price obtained from a quotation reporting system or from established market makers. Repurchase agreements are valued at their amortized cost plus accrued interest. Securities for which market quotations are not readily available are fair valued by the Board or its delegate in accordance with the Procedures, although the actual calculations may be done by others. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, availa ble information concerning other securities in similar circumstances. If a significant event occurs after the close of trading but before the calculation of the Portfolio's net asset value and such significant event has a material impact on the Portfolio's net asset value per share (i.e. more than $0.01 per share), then the security may be fair valued in accordance with the Procedures. As of October 31, 2009, there was one security in the International Equity Portfolio which required valuation by the Board or its delegate. The Fund has implemented additional fair value pricing on a daily basis for all foreign equity securities held by the Portfolios. The fair value pricing utilizes quantitative models developed by an independent pricing service unless the Fund determines that use of another additional fair valuation methodology is appropriate.

GAAP establishes a hierarchy for net asset value determination purposes in which various inputs are used in determining the value of each Portfolio's assets or liabilities. GAAP defines fair value as the price that the Portfolio would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability including assumptions about risk. Such risks include the inherent risk in a particular valuation technique which is used to measure fair value. This may include the pricing model and/or the inputs to the pricing model used in the valuation technique. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1—quoted prices in active markets for identical investments

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3—significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments)

GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly.

42

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

The following is a summary of the inputs used as of October 31, 2009 in valuing the Portfolio's investments:

Emerging Markets

ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Brazil	$	263,461,004	$	—	$	—	$	263,461,004
Cayman Islands		14,212,440		—		—		14,212,440
Chile		38,465,139		—		—		38,465,139
China		16,171,430		151,728,017		—		167,899,447
Colombia		17,268,754		—		—		17,268,754
Czech Republic		13,223,640		—		—		13,223,640
Egypt		—		16,341,977		—		16,341,977
Greece		—		13,946,578		—		13,946,578
Hungary		—		8,404,874		—		8,404,874
India		26,380,153		53,024,764		—		79,404,917
Indonesia		19,716,969		17,708,576		—		37,425,545
Israel		24,497,944		21,001,512		—		45,499,456
Luxembourg		16,673,826		—		—		16,673,826
Malaysia		—		18,041,295		—		18,041,295
Mexico		105,404,626		—		—		105,404,626
Panama		14,227,287		—		—		14,227,287
Peru		17,084,925		—		—		17,084,925
Philippines		6,780,560		—		—		6,780,560
Poland		12,263,562		16,215,115		—		28,478,677
Russia		33,573,809		58,243,930		—		91,817,739
South Africa		—		89,043,270		—		89,043,270
South Korea		21,790,947		112,841,893		—		134,632,840
Taiwan		—		145,537,053		—		145,537,053
Thailand		41,596,886		—		—		41,596,886
Turkey		—		37,648,045		—		37,648,045
United Kingdom		—		18,145,625		—		18,145,625
Total Common Stocks		702,793,901		777,872,524		—		1,480,666,425
Preferred Stocks
Brazil		2,166,480		—		—		2,166,480
Russia
Oil & Gas		23,403,000		—		—		23,403,000
Total Preferred Stocks		25,569,480		—		—		25,569,480
Total Investments		728,363,381		777,872,524		—		1,506,235,905
Total	$	728,363,381	$	777,872,524	$	—	$	1,506,235,905

43

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

International Equity

ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Australia	$	—	$	5,375,496	$	—	$	5,375,496
Austria		—		5,995,923		—		5,995,923
Bermuda		7,376,717		—		—		7,376,717
Brazil		2,444,483		—		—		2,444,483
Canada		9,593,632		—		—		9,593,632
China		—		8,151,832		—		8,151,832
Finland		5,866,676		—		—		5,866,676
France		5,187,480		39,865,776		—		45,053,256
Germany		—		17,319,069		—		17,319,069
Hong Kong		—		10,136,847		—		10,136,847
Indonesia		5,254,015		—		—		5,254,015
Israel		2,229,197		—		—		2,229,197
Japan		—		42,424,127		—		42,424,127
Malaysia		—		6,652,016		—		6,652,016
Mexico		12,781,342		—		—		12,781,342
Poland		—		—		2,857,825		2,857,825
Russia		—		6,699,294		—		6,699,294
Singapore		—		9,816,953		—		9,816,953
South Africa		—		2,084,364		—		2,084,364
South Korea		—		5,908,235		—		5,908,235
Sweden		—		6,977,482		—		6,977,482
Switzerland		17,300,224		10,849,775		—		28,149,999
Taiwan		—		6,056,939		—		6,056,939
United Kingdom		—		34,937,078		—		34,937,078
Total Common Stocks		68,033,766		219,251,206		2,857,825		290,142,797
Preferred Stocks
Brazil		2,222,648		—		—		2,222,648
Total Preferred Stocks		2,222,648		—		—		2,222,648
Total Investments		70,256,414		219,251,206		2,857,825		292,365,445
Total	$	70,256,414	$	219,251,206	$	2,857,825	$	292,365,445

44

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

International Small Companies

ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Australia	$	—	$	444,766	$	—	$	444,766
Austria		—		180,211		—		180,211
Belgium		—		75,744		—		75,744
Canada		171,749		—		—		171,749
China		—		259,288		—		259,288
Denmark		—		167,534		—		167,534
Finland		—		149,147		—		149,147
France		—		242,524		—		242,524
Germany		—		389,595		—		389,595
Hong Kong		—		307,848		—		307,848
Ireland		65,962		83,779		—		149,741
Italy		—		305,824		—		305,824
Japan		—		974,072		—		974,072
Malaysia		—		255,900		—		255,900
Netherlands		—		173,089		—		173,089
New Zealand		—		56,489		—		56,489
Singapore		—		248,091		—		248,091
South Korea		—		131,842		—		131,842
Spain		—		69,903		—		69,903
Sweden		—		281,636		—		281,636
Switzerland		—		70,875		—		70,875
Taiwan		—		302,877		—		302,877
Thailand		72,476		—		—		72,476
United Kingdom		—		646,730		—		646,730
Total Common Stocks		310,187		5,817,764		—		6,127,951
Preferred Stocks
Germany		—		78,178		—		78,178
Total Preferred Stocks		—		78,178		—		78,178
Total Investments		310,187		5,895,942		—		6,206,129
Total	$	310,187	$	5,895,942	$	—	$	6,206,129

45

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

Global Equity

ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Australia	$	—	$	2,020,146	$	—	$	2,020,146
Austria		—		546,472		—		546,472
Bermuda		1,247,902		—		—		1,247,902
Canada		1,267,877		—		—		1,267,877
China		—		683,376		—		683,376
Denmark		—		665,426		—		665,426
France		1,355,338		4,274,776		—		5,630,114
Germany		639,665		1,353,620		—		1,993,285
Hong Kong		—		1,779,817		—		1,779,817
Indonesia		806,380		—		—		806,380
Israel		757,200		—		—		757,200
Japan		828,520		3,687,275		—		4,515,795
Malaysia		—		824,541		—		824,541
Mexico		1,001,751		—		—		1,001,751
Russia		—		1,478,014		—		1,478,014
Singapore		—		2,511,803		—		2,511,803
South Africa		—		664,182		—		664,182
Sweden		688,480		—		—		688,480
Switzerland		765,486		2,993,578		—		3,759,064
United Kingdom		—		2,716,669		—		2,716,669
United States		30,951,345		—		—		30,951,345
Total Common Stocks		40,309,944		26,199,695		—		66,509,639
Total Investments		40,309,944		26,199,695		—		66,509,639
Total	$	40,309,944	$	26,199,695	$	—	$	66,509,639

Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining value:

Asset Valuation Inputs

	Investments in Securities
International Equity	Balance as of October 31, 2008		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Net Purchases		Net Sales		Net Transfers in to Level 3		Net Transfers out of Level 3		Balance as of October 31, 2009		Change in Unrealized Appreciation (Depreciation) from Investments Held at October 31, 2009
Common
Stocks
Poland	$	2,150,488	$	0	$	0	$	456,787	$	250,550	$	0	$	0	$	0	$	2,857,825	$	456,787
Total	$	2,150,488	$	0	$	0	$	456,787	$	250,550	$	0	$	0	$	0	$	2,857,825	$	456,787

46

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

Securities

All securities transactions are recorded on a trade date basis. Interest income and expenses are recorded on an accrual basis. Dividend income is recorded on the ex-dividend date (except for certain foreign dividends that may be recorded as soon as the Portfolio is informed of such dividends). The Portfolios accrete discount or amortize premium using the effective interest method on a daily basis as adjustments to interest income and the cost of investments. The Portfolios use the specific identification method for determining realized gains or losses from sales of securities.

Income Tax

It is the policy of each Portfolio of the Fund to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

Management has performed an analysis of each Portfolios' tax positions for the open tax years as of October 31, 2009 and has concluded that no provisions for income tax are required. The Portfolios' federal tax returns for the prior three fiscal years (open tax years: October 31, 2006; October 31, 2007; October 31, 2008; October 31, 2009) remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Portfolios. However, management's conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

Expenses

Expenses directly attributed to a specific Portfolio of the Fund are charged to that Portfolio's operations; expenses not directly attributable to a specific Portfolio are allocated among all the Portfolios of the Fund either equitably or based on their average daily net assets. As of July 1, 2009, pursuant to the Fund's multiple class expense allocation plan, certain expenses are allocated to particular classes of the International Equity Portfolio.

Dividends to Shareholders

It is the policy of the Portfolios to declare dividends from net investment income annually. Net short-term and long-term capital gains distributions for the Portfolios, if any, normally are distributed on an annual basis.

Dividends from net investment income and distributions from net realized gains from investment transactions have been determined in accordance with income tax regulations and may differ from net investment income and realized gains recorded by the Portfolios for financial reporting purposes. Differences result primarily from foreign currency transactions and timing differences related to recognition of income, and gains and losses from investment transactions. In general, to the extent that any differences which are permanent in nature result in over distributions to shareholders, the amount of the over distribution is reclassified within the capital accounts based on its federal tax basis treatment and may be reported as return of capital. Temporary differences do not require reclassification.

Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of the Portfolios' securities are translated at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at exchange rates prevailing when accrued. The Portfolios do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Net realized gains and losses from foreign currency-related transactions arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Portfolios' books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation or depreciation on translation of assets and liabilities denominated in foreign currencies arise from changes in the value of assets and liabilities other than investments in securities at the period end, resulting from changes in the exchange rates.

Securities Lending

Each Portfolio is authorized to lend securities from its investment portfolio to banks, brokers and other financial institutions if it receives collateral in cash, U.S. Government securities or other liquid investments which will be maintained at all times in an amount equal to at least 102% of the current market value of loaned domestic securities (including ADRs) and 105% of loaned foreign securities. The loans

47

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

will be terminable at any time by the Fund. During the period of such a loan, the Portfolio receives an agreed upon portion of the income on the loaned securities and/or a loan fee and may thereby increase its total return. A Portfolio continues to receive interest or dividends on the securities loaned and simultaneously earns either interest on the investment of the cash collateral or fee income if the loan is collateralized with securities rather than cash. However, the Portfolio normally pays lending fees and related expenses from the interest or dividends earned on invested collateral. Although the Fund is indemnified by the securities lending agent, should the borrower of the securities fail financially, there is a risk of delay in recovery of the securities or loss of rights in the collateral. However, loans are made only to borrowers deemed to be in good financial standing by the lending agent based on its ongoing review of such borro wers and are recommended to and approved by the Board. The Portfolios may invest cash collateral they receive in connection with a loan of securities in short-term money market instruments, securities of the U.S. Government and its agencies and other high quality short-term debt instruments. For purposes of complying with the Portfolios' investment policies and restrictions, collateral received in connection with securities loans will not be deemed an asset of the Portfolio unless otherwise required by law. The Board has appointed State Street Bank and Trust Company ("State Street Bank and Trust") as the lending agent for the Portfolios. However, the Portfolios are not currently lending securities. As of October 31, 2009, there were no securities on loan.

3. Significant Agreements and Transactions with Affiliates

The Board has approved investment an advisory agreement (the "Agreement") with the Investment Advisor. The advisory fees are computed daily at an annual rate of 1.25%, 0.75%, 1.25% and 1.00%, respectively, of the average daily net assets of Emerging Markets, International Equity, International Small Companies and Global Equity.

For the year ended October 31, 2009, the Investment Advisor has voluntarily agreed to reduce its fee to the extent that aggregate expenses exceed an annual rate of 1.75%, 1.25%, 1.75%, and 1.25%, respectively, of the average daily net assets of Emerging Markets, Investor Class shares of International Equity, Investor Class shares of International Small Companies and shares of Global Equity. For the year ended October 31, 2009, the Investment Advisor voluntarily waived and/or reimbursed $0, $107,630, $134,013 and $165,256 which came from investment advisory fees and other class-specific expenses from Emerging Markets, International Equity, International Small Companies and Global Equity, respectively.

In addition, the Fund has an administration agreement with State Street Bank and Trust, which provides certain accounting, clerical and bookkeeping services, corporate secretarial services, assistance in the preparation and filing of tax returns and reports to shareholders and the SEC, and the service of some State Street Bank and Trust employees as officers serving the Board of Directors. Under this agreement, Emerging Markets, International Equity, International Small Companies and Global Equity incurred $2,149,605, $388,387, $87,537 and $135,213 respectively, for the year ended October 31, 2009.

State Street Bank and Trust serves as transfer agent and chief compliance officer, dividend disbursing agent and agent in connection with any accumulation, open-account or similar plans provided to the shareholders of the Portfolios.

The Fund, on behalf of the Portfolios, has agreements with various financial intermediaries and "mutual fund supermarkets" under which customers of these intermediaries may purchase and hold Portfolio shares. These intermediaries assess fees in consideration for providing certain distribution, account maintenance, record keeping and transactional services. In recognition of the savings of expenses to the Portfolio arising from the intermediaries' assumption of functions that the Portflio would otherwise perform, such as providing sub-accounting and related shareholder services, each Portfolio or class is authorized, pursuant to a shareholder services plan, to pay to each intermediary up to 0.15% of its average daily net assets attributable to that intermediary (subject to the voluntary expense cap). The balance of the intermediaries' fees, after payments made pursuant to the plan of distribution adopted pursuant to Rule 12b-1 under the 1940 Act, if applicable, is paid by the Investment Advisor. Because of voluntary caps on the Portfolios' fees and expenses, the Investment Advisor paid a portion of the Portfolios' share of these fees during the year ended October 31, 2009.

4. Investment Transactions

Cost of purchases and proceeds from sales of investment securities, other than short-term investments, for the year ended October 31, 2009, were as follows for each Portfolio:

Portfolio	Purchase Cost of Investment Securities		Proceeds from Sales of Investment Securities
Emerging Markets	$	561,681,144	$	724,325,525
International Equity		64,509,209		48,099,945
International Small Companies		1,979,434		947,444
Global Equity		37,156,219		13,345,160

48

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

4. Investment Transactions (continued)

The Portfolios are permitted to purchase or sell securities from or to certain other Harding Loevner portfolios under specified conditions outlined in procedures adopted by the Board of Directors of the Fund. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolios from or to another portfolio that is or could be considered an affiliate by virtue of having a common investment advisor complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the year ended October 31, 2009, Emerging Markets Portfolio engaged in securities purchases of $4,909,112.

The cost of investments for federal income tax purposes and the components of net unrealized appreciation on investments at October 31, 2009, for each of the Portfolios were as follows:

Portfolio	Unrealized Appreciation		Unrealized Depreciation			Net			Cost
Emerging Markets	$	391,884,785	$	(21,320,079	)	$	370,564,706		$	1,135,671,199
International Equity		74,040,383		(14,931,993	)		59,108,390			233,257,055
International Small Companies		655,350,		(950,042	)		(294,692	)		6,500,821
Global Equity		15,202,777		(550,373	)		14,652,404			51,857,235

The unrealized appreciation (depreciation) on foreign currency for Emerging Markets, International Equity, International Small Companies, and Global Equity was $(1,719,863), $11,134, $(4,344), and $1,342, respectively, for the year ended October 31, 2009.

5. Distributions to Shareholders

During the year ended October 31, 2009, the tax character of distributions paid from ordinary income was $36,974,029, $3,260,397, $35,907, and $140,635, respectively, for Emerging Markets, International Equity, International Small Companies, and Global Equity. The tax character of distributions paid from long-term capital gains was $38,551,418 for International Equity.

During the year ended October 31, 2008, the tax character of distributions paid from ordinary income was $27,907,253, $9,427,753, $66,872, and $216,645, respectively for Emerging Markets, International Equity, International Small Companies, and Global Equity. The tax character of distributions paid from long-term capital gains was $112,274,523, $26,554,287, and $2,754,682 for Emerging Markets, International Equity, and Global Equity.

As of the components of accumulated earnings/(deficit) on a tax basis were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Capital and Other Losses			Unrealized Appreciation (Depreciation)*			Total Accumulated Earnings/(Deficit)
Emerging Markets	$	4,594,502	$	—	$	(148,731,122	)	$	368,844,843		$	224,708,223
International Equity		2,365,492		—		(11,703,675	)		59,119,523			49,781,340
International Small Companies		37,560		—		(315,679	)		(299,036	)		(577,155	)
Global Equity		149,249		—		(1,098,641	)		14,653,746			13,704,354

*  The difference between book basis and tax basis net unrealized appreciation is attributable primarily to the tax deferral of losses on certain sales of securities.

At October 31, 2009 Emerging Markets, International Small Companies and Global Equity had $16,503,240, $64,733 and $20,904, respectively, available as capital loss carryforwards which expire in 2016. Emerging Markets, International Equity, International Small Companies and Global Equity had $132,227,882, $11,703,675, $250,946 and $1,077,737, respectively, available as capital loss carryforwards which expire in 2017.

Primarily as a result of differing book/tax treatment of foreign currency transactions and foreign capital gain tax expenses, the Fund made reclassifications among certain capital accounts. The reclassifications have no impact on the net assets of the Portfolio. As of October 31, 2009, the following reclassifications were made to the Statement of Net Assets.

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Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

5. Distributions to Shareholders (continued)

Portfolio	Paid-in-Capital		Accumulated Undistributed Net Realized Gain/Loss on Investment & Foreign Currency Related Transactions		Accumulated Undistributed Net Investment Income
Emerging Markets	$	395,008	$	1,268,210	$	(1,663,218	)
International Equity		—		71,194		(71,194	)
International Small Companies		—		472		(472	)
Global Equity		—		37,976		(37,976	)

6. Foreign Exchange Contracts

The Portfolios, on occasion, enter into forward foreign exchange contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings. A forward foreign exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the cost of the original contracts and the closing of such contracts is included in net realized gains or losses on foreign currency-related transactions. Fluctuations in the value of forward foreign exchange contracts are recorded for book purposes as unrealized appreciation or depreciation on assets and liabilities denominated in foreign currencies by the Portfolios. The Portfolios are also exposed to credit risk associated with counterparty nonperformance on these forward foreign exchange contracts which is typically limited to the unrealized gain on each open con tract.

The Portfolios enter into foreign currency transactions on the spot markets in order to pay for foreign investment purchases or to convert to dollars the proceeds from foreign investment sales or coupon interest receipts. The Portfolios held no open forward foreign currency exchange contracts on October 31, 2009.

7. Capital Share Transactions

Transactions in capital stock for Emerging Markets were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		16,825,424		$	522,043,263			12,410,621		$	597,246,046
Shares issued upon reinvestment of dividends		1,149,520			30,745,773			2,090,569			120,546,841
		17,974,944			552,789,036			14,501,190			717,792,887
Shares redeemed		(18,269,280	)		(556,153,126	)		(15,340,254	)		(707,556,978	)
Net increase (decrease)		(294,336	)	$	(3,364,090	)		(839,064	)	$	(10,235,909	)

Transactions in capital stock for International Equity—Investor Class were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		2,406,941		$	24,524,810			440,350		$	7,489,395
Shares issued upon reinvestment of dividends		256,261			2,337,103			68,854			1,330,261
		2,663,202			26,861,913			509,204			8,819,656
Shares redeemed		(551,993	)		(5,664,340	)		(215,285	)		(3,696,097	)
Net increase		2,111,209		$	21,197,573			293,919		$	5,123,559

50

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

7. Capital Share Transactions (continued)

Transactions in capital stock for International Equity—Institutional Class were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		3,607,416		$	37,754,041			814,257		$	13,994,514
Shares issued upon reinvestment of dividends		4,274,140			38,985,473			1,599,857			30,928,420
		7,881,556			76,739,514			2,414,114			44,922,934
Shares redeemed		(3,062,169	)		(29,797,831	)		(3,678,345	)		(66,170,127	)
Net increase (decrease)		4,819,387		$	46,941,683			(1,264,231	)	$	(21,247,193	)

Transactions in capital stock for International Small Companies—Investor Class were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		287,938		$	1,954,457			238,264		$	2,368,797
Shares issued upon reinvestment of dividends		6,686			35,907			5,151			54,707
		294,624			1,990,364			243,415			2,423,504
Shares redeemed		(100,105	)		(687,371	)		(187,161	)		(1,737,767	)
Net increase		194,519		$	1,302,993			56,254		$	685,737

Transactions in capital stock for Global Equity were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		1,872,104		$	29,033,478			301,469		$	6,806,873
Shares issued upon reinvestment of dividends		5,005			76,577			113,938			2,881,495
		1,877,109			29,110,055			415,407			9,688,368
Shares redeemed		(227,787	)		(3,752,668	)		(189,186	)		(4,193,388	)
Net increase		1,649,322		$	25,357,387			226,221		$	5,494,980

Redemptions made within 90 days of purchase may be subject to a redemption fee equal to 2% of the amount redeemed. For the year ended October 31, 2009, Emerging Markets, Investor Class of International Equity and Global Equity received $154,275, $2,232 and $6,503, respectively, in redemption fees related to transactions in shares of common stock as disclosed in the Portfolios' Statements of Changes in Net Assets. For the year ended October 31, 2009, International Small Companies Investor Class did not receive any redemption fees.

8. Concentration of Ownership

At October 31, 2009, the percentage of total shares outstanding held by record shareholders each owning 10% or greater of the aggregate total shares outstanding for each Portfolio or for the share classes listed of each Portfolio was as follows:

	No. of Shareholders		% Ownership
Emerging Markets		2		74	%*
International Equity		1		38	%*
International Small Companies		3		66	%*
Global Equity		3		58	%*

*  Represents omnibus position of broker-dealer representing numerous shareholder accounts.

Investment activities of these shareholders may have a material effect on the Portfolios.

51

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

9. Repurchase Agreements

Each Portfolio may enter into repurchase agreements under which a bank or securities firm that is a primary or reporting dealer in U.S. Government securities agrees, upon entering into a contract, to sell such securities to a Portfolio and repurchase such securities from such Portfolio at a mutually agreed upon price and date.

Each Portfolio may engage in repurchase transactions with parties selected on the basis of such party's creditworthiness. Securities purchased subject to repurchase agreements must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Portfolio will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Portfolio maintains the right to sell the underlying securities at market value and may claim any resulting loss against the seller.

10. Concentration of Risk

Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in U.S. issuers. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities. These risks are greater with respect to securities of issuers located in emerging market countries in which Emerging Markets, International Equity, International Small Companies and Global Equity are authorized to invest.

11. Line of Credit

The Fund participates in a $50 million line of credit agreement with State Street Bank and Trust. Borrowings will be made solely to facilitate the handling of redemptions or unusual or unanticipated short-term cash requirements. Because several Portfolios participate there is no assurance that an individual Portfolio will have access to the entire $50 million at any particular time. Borrowings for International Equity and Global Equity are limited to the lesser of the remaining available credit or 25% of net assets. Borrowings for Emerging Markets and International Small Companies are limited to the lesser of the remaining available credit or 15% of net assets. Interest is charged to each Portfolio based on its borrowings at an amount above the Federal Funds rate. In addition, a commitment fee computed at an annual rate of 0.10% on the line of credit is allocated among the Portfolios. During the year ended October 31, 2009, Emerging Markets had borrowings on two days with a maximum balance of $36,268,115, at an average weighted interest rate of 1.35%; International Equity had borrowings on one day with a maximum balance of $66,185 at an average weighted interest rate of 0.85%; International Small Companies had borrowings on three days with a maximum balance of $85,819, at an average weighted interest rate of 0.99% and Global Equity had borrowings on one day with a maximum balance of $67,488, at an average weighted interest rate of 1.46%.

12. Subsequent Event

Global Equity launched Institutional Class shares on November 3, 2009. In accordance with the provisions set forth in FASB Accounting Standards Codification No. 855, "Subsequent Events," adopted by the Fund, Management has evaluated the possibility of additional subsequent events existing in the Portfolios' financial statements through December 21, 2009, the date the financial statements were issued. Management has determined that there are no additional subsequent events that would require disclosure in the Portfolios' financial statements through this date.

52

Harding, Loevner Funds, Inc.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
Harding, Loevner Funds, Inc.

We have audited the accompanying statements of net assets of the Harding, Loevner Funds, Inc. (comprising, the Emerging Markets Portfolio, Global Equity Portfolio, International Equity Portfolio, and International Small Companies Portfolio), (collectively the "Portfolios") as of October 31, 2009, and the related statements of operations for the year then ended, statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the four-year period then ended. These financial statements and financial highlights are the responsibility of the Portfolios' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Portfolios for the year or period in the year ended October 31, 2005 were audited by other auditors whose report dated December 6, 2005, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Portfolios of the Harding, Loevner Funds, Inc. as of October 31, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania
December 21, 2009

53

Harding, Loevner Funds, Inc.

Supplemental Tax Information

(unaudited)

During the year ended October 31, 2009, Global Equity designated 100% of distributions from net investment income as qualifying for the dividend received deduction for corporations.

Emerging Markets, International Equity, International Small Companies and Global Equity paid qualifying foreign taxes of $2,387,024, $456,565, $8,477 and $33,474, and earned $29,894,323, $5,726,299, $119,449 and $503,954 foreign source income during the year ended October 31, 2009, respectively. Pursuant to Section 853 of the Internal Revenue Code, Emerging Markets, International Equity, International Small Companies and Global Equity designated $0.0614, $0.0185, $0.0122 and $0.0102 per share as foreign taxes paid and $0.7691, $0.2316, $0.1714 and $0.1529 per share as income earned from foreign sources for the year ended October 31, 2009, respectively.

Emerging Markets, International Equity, International Small Companies and Global Equity had qualifying dividend income of $14,106,661 $4,355,260, $88,417 and $650,578 respectively, during the year ended October 31, 2009.

Pursuant to Section 852 of the Internal Revenue Code, International Equity designated $38,551,418 as long term capital gain dividends for the year ended October 31, 2009.

54

Harding, Loevner Funds, Inc.

Directors and Principal Officers of the Fund

(unaudited)

Disinterested Directors:

Name, Address and Age	Position with the Fund	Term of Office and Length of Time Served*	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen By Director		Other Directorships Held by Director
William E. Chapman, II c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 68	Director	Indefinite; Director since 2008	Longboat Retirement Planning Solutions (Consulting Firm), President and Owner, 1998-present; Hewitt Associates, LLC (consulting firm), part-time provider of retirement and investment education seminars, 2000-present; Bowdoin College, Trustee, 2002-present.		6	Trustee, The Managers Funds, (9 portfolios); Trustee, Managers AMG Funds (6 portfolios), Managers Trust I (10 portfolios) and Managers Trust II (6 portfolios); Trustee, Third Avenue Trust (4 portfolios); Trustee, Third Avenue Variable Trust (1 portfolio).
R. Kelly Doherty c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 51	Director	Indefinite; Director since 2004	Cayman Partners (private investment vehicles), Managing Partner, 1999-present.		6	L.P. Thebault & Co. (commercial printing); The Peck School
Charles Freeman c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 45	Director	Indefinite; Director since 2008	Cayman Partners (private investment vehicles), Managing Partner, 1999-present.		6	National Committee for U.S. - China Relations.
Jane A. Freeman c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 56	Director	Indefinite; Director since 1996; Chairperson of Audit Committee 2005-2008; Lead Non-Interested Director since 2008	Scientific Learning Corporation (Education Software), Executive Vice President and Chief Financial Officer, 2000-present; Finance & Business Development, Treasurer and Vice President, 1999-2000.		6	None
Samuel R. Karetsky c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 64	Director	Indefinite; Director since 1998	The Karetsky Group, LLC (Advisory Firm), Managing Member, 2003-present; Wetherby Asset Management, Principal, 2004-present; European Investors Inc., Managing Director, 1998-2002		6	None

55

Harding, Loevner Funds, Inc.

Directors and Principal Officers of the Fund (continued)

(unaudited)

Name, Address and Age	Position with the Fund	Term of Office and Length of Time Served*	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen By Director		Other Directorships Held by Director
Eric Rakowski c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 51	Director	Indefinite; Director since 2008	University of California at Berkeley School of Law, Professor, 1990-present.		6	Trustee, The Managers Funds, (9 portfolios); Trustee, Managers AMG Funds (6 portfolios), Managers Trust I (10 portfolios) and Managers Trust II (6 portfolios); Trustee, Third Avenue Trust (4 portfolios); Trustee, Third Avenue Variable Trust (1 portfolio).
Raymond J. Clark** c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 73	Director Emeritus	1 year; Director Emeritus since 2009	The Woodrow Wilson National Fellowship Foundation, Treasurer, 08/04-present; Wellesley College, Interim Vice President of Finance and Treasurer, 10/03-6/04; Princeton University, Treasurer, 1987-2001.		6	Princeton Healthcare System

Interested Director:

David R. Loevner*** Harding Loevner LP 50 Division Street, Fourth Floor Somerville, NJ 08876 Age, 55	Director, President and Chairman of the Board	Indefinite; Director, President and Chairman of the Board since 1996	Harding Loevner LP, President, 7/89-present; Parks Tennant Corporation (real estate), President, 1/01-present.	6	Director, Harding, Loevner Funds, plc (4 portfolios)
Jennifer M. Borggaard*** Affiliated Managers, Group, Inc. 600 Hale Street Prides Crossing, MA 01965 Age, 40	Director	Indefinite; Director since 2008	Affiliated Managers Group, Inc. ("AMG") (Asset Management Firm), Senior Vice President, 2007-present, Vice President, 2004-2007, Director and Senior Counsel, 2001-2004.	6	Director, DFD Fund of Funds, plc (4 portfolios)

*  Each director is elected to serve in accordance with the Articles of Incorporation and By-Laws of the Fund until his or her successor is duly elected and qualified.

**  Effective September 9, 2009, Mr. Clark retired as a voting member of the Board and was elected to the position of "Director Emeritus" with a one-year term.

***  David R. Loevner is considered an "interested person" of the Fund as defined in the Investment Company Act of 1940, as amended, because he serves as President of Harding Loevner LP, the Fund's investment advisor. Jennifer M. Borggaard is an interested person of the Fund because she is an officer of AMG.

56

Harding, Loevner Funds, Inc.

Directors and Principal Officers of the Fund (continued)

(unaudited)

Principal Officers of the Fund

Name, Address and Age	Position with the Fund	Term of Office and Length of Time Servedt	Principal Occupation (s) During Past Five Years
Richard Reiter Harding Loevner LP 50 Division Street, Fourth Floor Somerville, NJ 08876 Age, 43	Vice President	1 year ; Vice President since 2007	Harding Loevner LP, Chief Operating Officer 4/96-current.
Puran Dulani Harding Loevner LP 50 Division Street, Fourth Floor Somerville, NJ 08876 Age, 51	Chief Financial Officer and Treasurer	1 year; Chief Financial Officer and Treasurer since 2007	Harding Loevner LP, Chief of Operations and Accounting 3/02-present.
Ellen Blanchard State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 35	Anti-Money Laundering Compliance Officer	1 year; Anti-Money Laundering Compliance Officer since 2007	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Director and Senior Associate Counsel, 1/06-present; Senior Manager and Associate Counsel, 8/04-12/05; Manager and Associate Counsel 8/02-8/04; Product Manager, 8/99-8/02.
Donna M. Rogers State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 43	Chief Compliance Officer of the Funds	1 year; Chief Compliance Officer since 2007	State Street Bank & Trust Company, (formerly, Investors Bank & Trust Company), Senior Director, 2002-present.
Brendan J. O'Neill State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 41	Assistant Treasurer	1 year; Assistant Treasurer since 2004	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Unit Director 11/07-present, Director 1/05-10/07; Senior Manager 11/02-12/04; Manager 7/00-10/02.
Francine S. Hayes State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 41	Secretary	1 year; Secretary since 2008	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Vice President and Senior Counsel, from 2004-present; and Assistant Vice President and Counsel, 2001-2004.
Lori Renzulli Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 41	Assistant Secretary	1 year; Assistant Secretary since 2008	Harding Loevner LP, Chief Counsel and Chief Compliance Officer, 6/06-present; Met Life, Director, Corporate Ethics and Compliance, 1/06-5/06; CitiStreet Retirement Services, Vice President and Counsel, 7/89-12/05.
Brian C. Poole State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 38	Assistant Secretary	1 year; Assistant Secretary since 2008	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Vice President and Counsel, 3/08-present and Associate Counsel, 7/04-9/07

t  Officers are elected to hold such office until their successor is elected and qualified to carry out the duties and responsibilities of their office, or until he or she resigns or is removed from office.

The Fund's Statement of Additional Information contains additional information about the Directors of the Fund and is available, without charge, upon request, by calling 1-877-435-8105.

57

Harding, Loevner Funds, Inc.

Supplemental Tax Information

(unaudited)

Quarterly Form N-Q Portfolio Schedule

Each Portfolio will file its complete schedule of investments with the SEC on Form N-Q at the end of the first and third fiscal quarters within 60 days of the end of the quarter to which it relates. The Portfolios' Form N-Q will be available on the SEC's website at www.sec.gov and may also be reviewed and copied at the SEC's Public Reference Room whose telephone number is 1-800-SEC-0330. Additionally, they are available upon request by calling 1-877-435-8105.

Proxy Voting Record

The Fund's proxy voting record relating to the Portfolios' securities during the most recent 12-month period ended June 30 is available on the Fund's website at www.hardingloevnerfunds.com and on the SEC's website at www.sec.gov, on Form N-PX.

Proxy Voting Policies and Procedures

A description of the Fund proxy voting policies and procedures are located in the Statement of Additional Information and is available without charge, upon request, by calling 1-877-435-8105 or on the SEC's website at www.sec.gov.

58

Harding, Loevner Funds, Inc.

Officers & Directors and Other Pertinent Information

OFFICERS AND DIRECTORS

David R. Loevner

Director, President and Chairman
of the Board of the Funds

Jennifer M. Borggaard

Director of the Funds

William E. Chapman II

Director of the Funds

R. Kelly Doherty

Director of the Funds

Charles Freeman

Director of the Funds

Jane A. Freeman

Director of the Funds

Samuel R. Karetsky

Director of the Funds

Eric Rakowski

Director of the Funds

Raymond J. Clark

Director Emeritus of the Funds

Donna Rogers

Chief Compliance Officer of the Funds

Ellen Blanchard

Anti-Money Laundering Compliance
Officer of the Funds

Puran Dulani

Chief Financial Officer and Treasurer
for the Funds

Richard Reiter

Vice President of the Funds

Brendan J. O'Neill

Assistant Treasurer of the Funds

Francine S. Hayes

Secretary of the Funds

Lori Renzulli

Assistant Secretary of the Funds

Brian C. Poole

Assistant Secretary of the Funds

59

HARDING, LOEVNER FUNDS, INC.

INVESTMENT ADVISER	DISTRIBUTOR
Harding Loevner LP	Quasar Distributors, LLC
50 Division Street, Fourth Floor	615 East Michigan Street
Somerville, NJ 08876-2943	Milwaukee, WI 53202-5210
ADMINISTRATOR, CUSTODIAN, FUND	INDEPENDENT REGISTERED PUBLIC
ACCOUNTANT, TRANSFER AGENT AND	ACCOUNTING FIRM
DIVIDEND DISBURSING AGENT
	KPMG LLP
State Street Bank and Trust Company	1601 Market Street
200 Clarendon Street, 16th Floor, JHT 1651	Philadelphia, PA 19103-2499
Boston, MA 02116
LEGAL COUNSEL
Dechert LLP
1095 Avenue of the Americas
New York, New York 10036-6797

This report is intended for shareholders of Harding, Loevner Funds, Inc. It may not be used as sales literature unless preceded or accompanied by the current Prospectus, which gives details about charges, expenses, investment objectives, risks and policies of the Portfolios.

HLFSANINV-G 12/09

Annual Report October 31, 2009

Mutual Funds for Institutional Investors

·Institutional Emerging Markets Portfolio

·International Equity Portfolio

·Frontier Emerging Markets Portfolio

State Street Bank and Trust Company

Attn: Harding, Loevner Funds, Inc.

200 Clarendon Street, 16th Floor, JHT 1651

Boston, MA 02116

(877) 435-8105· www.hardingloevnerfunds.com

Harding, Loevner Funds, Inc.

Table of Contents

Expense Example	3
Performance Information and Statements of Net Assets
Institutional Emerging Markets Portfolio	4
International Equity Portfolio	11
Frontier Emerging Markets Portfolio	18
Statements of Operations	26
Statements of Changes in Net Assets	28
Financial Highlights	31
Notes to Financial Statements	34
Report of Independent Registered Public Accounting Firm	45
Supplemental Tax Information	46
Directors and Principal Officers	47
Supplemental Information	51

For use only when preceded or accompanied by a prospectus. Read the prospectus carefully before you invest or send money.

This Page Intentionally Left Blank

Harding, Loevner Funds, Inc.

Expense Example

October 31, 2009 (unaudited)

As a shareholder of a Harding Loevner Portfolio, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on May 1, 2009 and held for the entire six month period from May 1, 2009 to October 31, 2009 for the International Equity Portfolio—Institutional Class, Institutional Emerging Markets Portfolio, and Frontier Emerging Markets Portfolio—Institutional Class.

Actual Expenses

The first line under the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for the Portfolio under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line under each Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Portfolio in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2009		Ending Account Value October 31, 2009		Annualized Expense Ratio			Expenses Paid During Period* (May 1, 2009 to October 31, 2009)
Institutional Emerging Markets Portfolio
Actual	$	1,000.00	$	1,364.50		1.30	%	$	7.75
Hypothetical (5% annual return before expenses)		1,000.00		1,018.70		1.30	%		6.61
International Equity Portfolio—Institutional Class
Actual		1,000.00		1,321.60		0.99	%		5.79
Hypothetical (5% annual return before expenses)		1,000.00		1,020.20		0.99	%		5.04
Frontier Emerging Markets Portfolio—Institutional Class
Actual		1,000.00		1,413.50		2.00	%		12.17
Hypothetical (5% annual return before expenses)		1,000.00		1,015.10		2.00	%		10.16

*  Expenses are calculated using each Portfolio's annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by number of days in the period (184 days), and divided by the number of days in the year (365 days).

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns							Average Annualized Total Return
FUND NAME	Last 12 Months			5 YR	Inception			5 YR	Inception
Institutional Emerging Markets Portfolio (Inception date 10/17/05)		48.92	%	N/A		44.61	%	N/A		9.56	%
MSCI Emerging Markets (Net dividend)		64.11	%	N/A		61.27	%	N/A		12.55	%
Lipper Emerging Markets Funds Index		56.90	%	N/A		47.26	%	N/A		10.05	%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

4

Harding, Loevner Funds, Inc.

Institutional Emerging Markets — Overview

October 31, 2009

The Institutional Emerging Markets Portfolio gained 48.92% for the fiscal year ending October 31, 2009, as compared to a gain of 64.11% for its benchmark, the MSCI Emerging Markets Index.

Consistent with its investment objectives and policies, the Portfolio was invested primarily in the securities of emerging markets companies that exhibit the fundamental characteristics of growth, financial strength, management quality, and durable competitive advantage.

The Portfolio's underperformance this period was the result primarily of unfavorable stock selection. Because we did not own some of the most distressed, cyclically-exposed companies in the Financials, Industrials, and Consumer Discretionary sectors that had previously declined the most in 2008, our companies did not benefit as much in the early stages of the rally that began in late February. Our overweight in the lagging Health Care sector and underweight in the booming Materials sector also detracted from relative returns.

Our holdings lagged the most in the Financials, Industrials, and Information Technology sectors, where the poor stocks included Samsung Fire & Marine, China Communications Construction, and Delta Electronics. Portfolio companies in Consumer Staples and Telecom Services outperformed overall. Strong stocks in these sectors included Hengan International, JBS, and Telekom Indonesia.

From a geographic perspective, the largest detractor from performance was our underweight and poor stock selection in Asia, including East Asia (China, Taiwan, and South Korea). Many listed companies in Asia are export-focused manufacturers, for whom we believe the potential for further expansion of excess capacity and margin-destroying competition presents risks for investors. In China, poor corporate governance and the lack of corporate capital allocation discipline remain obstacles to our finding attractive investments there.

Past performance does not guarantee future results.

The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks and differences in accounting methods. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Portfolio in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consists of 22 emerging market countries. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

5

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Airlines		1.0	%
Banks		18.2
Beverages, Food & Tobacco		4.6
Building Materials		2.0
Chemicals		2.8
Commercial Services & Supplies		3.8
Communications		8.5
Computers & Information		0.5
Cosmetics & Personal Care		1.1
Electric Utilities		1.1
Electrical Equipment		5.2
Electronics		1.7
Engineering & Construction		2.5
Financial Services		1.0
Food		1.1
Food Retailers		1.4
Health Care Providers & Services		2.6
Home Construction, Furnishings & Appliances		2.1
Household Products		1.0
Insurance		3.6
Iron & Steel		0.5
Media		1.5
Medical Supplies		0.7
Metals & Mining		3.7
Oil & Gas		12.1
Pharmaceuticals		3.3
Real Estate		1.4
Retailers		3.5
Semiconductors		5.5
Total Investments		98.0
Other Assets Less Liabilities		2.0	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 10.

See Notes to Financial Statements
6

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 96.4%
Brazil - 16.8%
Anhanguera Educacional Participacoes SA (Commercial Services & Supplies)*		210,956	$	2,915,973
Banco Bradesco SA - ADR (Banks)		217,900		4,292,630
Cia Brasileira de Distribuicao Grupo Pao de Acucar - Sponsored ADR (Food)		37,000		2,238,130
Itau Unibanco Banco Multiplo SA - ADR (Banks)		174,696		3,343,681
JBS SA (Beverages, Food & Tobacco)		584,900		3,243,911
Natura Cosmeticos SA (Cosmetics & Personal Care)		120,900		2,165,301
Petroleo Brasileiro SA - ADR (Oil & Gas)		195,646		9,042,758
Usinas Siderurgicas de Minas Gerais SA (Iron & Steel)		41,500		1,029,255
Vale SA - Sponsored ADR (Metals & Mining)		235,240		5,996,268
				34,267,907
Chile - 2.5%
Banco Santander - ADR (Banks)		41,836		2,202,247
Sociedad Quimica y Minera de Chile SA - Sponsored ADR (Chemicals)		79,000		2,903,250
				5,105,497
China - 11.9%
Anhui Conch Cement Co., Ltd. (Building Materials)		340,000		2,199,879
China Communications Construction Co., Ltd. - Class H (Engineering & Construction)		2,290,000		2,471,217
China Insurance International Holdings Co., Ltd. (Insurance)*		814,000		2,846,565
China Mobile Ltd. - Sponsored ADR (Communications)		45,189		2,111,682
China Overseas Land & Investment Ltd. (Real Estate)		1,308,000		2,819,056
Hengan International Group Co., Ltd. (Health Care Providers & Services)		839,000		5,378,640
Jiangsu Expressway Co., Ltd. - Class H (Commercial Services & Supplies)		3,231,000		2,866,451
New Oriental Education & Technology Group - Sponsored ADR (Commercial Services & Supplies)*		27,600		1,927,584
Shandong Weigao Group Medical Polymer Co., Ltd. (Medical Supplies)		432,000		1,506,718
				24,127,792
Colombia - 1.1%
BanColombia SA - Sponsored ADR (Banks)		59,170		2,341,949
Czech Republic - 0.9%
Central European Media Enterprises Ltd. (Media)*		70,930		1,783,180
Egypt - 1.1%
Orascom Construction Industries - GDR, Reg. S (Engineering & Construction)		45,600		2,203,413
Greece - 1.0%
Coca Cola Hellenic Bottling Co. SA (Beverages, Food & Tobacco)*		76,330		1,989,055
Hungary - 0.6%
Richter Gedeon Nyrt (Pharmaceuticals)		5,450		1,131,026
India - 4.9%
Axis Bank Ltd. (Banks)		126,900		2,394,107
HDFC Bank Ltd. - ADR (Banks)		30,403		3,362,876
Hindustan Unilever Ltd. (Household Products)		336,700		2,012,348
NTPC Ltd. (Electric Utilities)		516,900		2,306,114
				10,075,445

See Notes to Financial Statements
7

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Indonesia - 2.5%
PT Bank Rakyat Indonesia (Banks)		3,316,000	$	2,420,613
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		79,230		2,686,689
				5,107,302
Israel - 2.9%
Israel Chemicals Ltd. (Chemicals)		245,130		2,865,788
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		61,500		3,104,520
				5,970,308
Luxembourg - 1.0%
Millicom International Cellular SA (Communications)*		32,100		2,011,386
Malaysia - 1.3%
Public Bank Berhad (Banks)		106,425		332,391
Public Bank Berhad (Banks)		711,700		2,215,557
				2,547,948
Mexico - 6.7%
America Movil SA de CV, Series L - ADR (Communications)		82,550		3,642,932
Grupo Aeroportuario del Sureste SAB de CV, Series B - ADR (Engineering & Construction)		10,305		419,310
Grupo Financiero Banorte SA de CV, Class O (Financial Services)		630,180		2,067,072
Grupo Televisa SA - Sponsored ADR (Media)		63,000		1,219,680
Telmex Internacional SAB de CV, Series L - ADR (Communications)		123,800		1,666,348
Urbi Desarrollos Urbanos SA de CV (Home Construction, Furnishings & Appliances)*		786,100		1,547,939
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		88,115		3,067,283
				13,630,564
Panama - 1.0%
Copa Holdings SA - Class A (Airlines)		46,000		1,942,580
Peru - 1.1%
Credicorp Ltd. (Banks)		31,300		2,160,639
Philippines - 0.5%
Philippine Long Distance Telephone Co. - Sponsored ADR (Communications)		17,555		935,682
Poland - 1.9%
Bank Pekao SA (Banks)*		41,354		2,199,559
Central European Distribution Corp. (Beverages, Food & Tobacco)*		53,250		1,656,608
				3,856,167
Russia - 6.0%
Lukoil - Sponsored ADR (Oil & Gas)		80,978		4,729,115
OAO Gazprom - Sponsored ADR (Oil & Gas)		199,300		4,758,774
X 5 Retail Group NV - GDR, Reg. S (Food Retailers)*		117,256		2,809,307
				12,297,196
South Africa - 6.0%
Massmart Holdings Ltd. (Retailers)		180,000		2,079,176
MTN Group Ltd. (Communications)		282,050		4,233,719
Pretoria Portland Cement Co., Ltd. (Building Materials)		454,000		1,894,782
SABMiller plc (Beverages, Food & Tobacco)		88,200		2,356,451
Standard Bank Group Ltd. (Banks)		137,768		1,723,457
				12,287,585

See Notes to Financial Statements
8

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
South Korea - 9.0%
KB Financial Group Inc. - ADR (Banks)*		61,991	$	2,940,853
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		20,030		6,067,663
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		6,691		1,329,254
Samsung Fire & Marine Insurance Co., Ltd. (Insurance)		24,660		4,520,766
Shinsegae Co., Ltd. (Retailers)		4,380		1,902,199
Taewoong Co., Ltd. (Metals & Mining)		23,900		1,605,191
				18,365,926
Taiwan - 9.3%
Delta Electronics (Electrical Equipment)		1,387,189		3,869,975
Hon Hai Precision Industry Co., Ltd. (Electrical Equipment)		782,000		3,078,785
HTC Corp. (Computers & Information)		106,200		1,061,836
MediaTek Inc. (Semiconductors)		273,816		3,876,421
Synnex Technology International Corp. (Electronics)		1,802,530		3,421,068
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		2,015,577		3,665,996
				18,974,081
Thailand - 2.7%
PTT Exploration & Production plc (Oil & Gas)		641,000		2,780,703
Siam Commercial Bank-Alien (Banks)		1,201,170		2,776,077
				5,556,780
Turkey - 2.5%
Arcelik (Home Construction, Furnishings & Appliances)*		853,000		2,775,515
Turkiye Garanti Bankasi AS (Banks)		645,000		2,312,118
				5,087,633
United Kingdom - 1.2%
Hikma Pharmaceuticals plc (Pharmaceuticals)		320,920		2,479,052
Total Common Stocks (Cost $157,616,163)				196,236,093
Preferred Stocks - 1.6%
Russia - 1.6%
Transneft (Oil & Gas)		3,729		3,244,230
Total Preferred Stocks (Cost $1,990,692)				3,244,230
Total Investments - 98.0% (Cost $159,606,855)			$	199,480,323

See Notes to Financial Statements
9

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 2.0%
Cash	$	3,104,170
Dividends and interest receivable		224,957
Foreign currency (cost $604,176)		599,322
Receivable for Fund units sold		599,975
Tax reclaim receivable		14,275
Payable to Investment Advisor		(205,510	)
Other liabilities		(269,555	)
		4,067,634
Net Assets - 100%
Applicable to 15,319,796 outstanding $.001 par value units (authorized 500,000,000 shares)	$	203,547,957
Net Asset Value, Offering Price and Redemption Price Per Unit	$	13.29
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	224,793,444
Accumulated undistributed net investment income		1,100,413
Accumulated net realized loss from investment transactions		(62,011,095	)
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies		39,665,195
	$	203,547,957

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

Reg S  Security sold outside United States without registration under the Securities Act of 1933.

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

See Notes to Financial Statements
10

Harding, Loevner Funds, Inc.

International Equity Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns									Average Annualized Total Return
FUND NAME	Last 12 Months			5 YR			10 YR			5 YR			10 YR
International Equity Institutional Class (Inception date 11/1/94)		32.77	%		45.76	%		33.18	%		7.83	%		2.91	%
MSCI All Country World ex-US (Net dividend)		34.13	%		40.95	%		42.12	%		7.11	%		3.58	%
Lipper International Fund Index		28.17	%		33.39	%		38.62	%		5.93	%		3.32	%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

11

Harding, Loevner Funds, Inc.

International Equity Portfolio — Overview

October 31, 2009

The International Equity Portfolio gained 32.77% for the fiscal year ending October 31, 2009. In comparison, its benchmark, the MSCI All Country World ex-US Index, rose 34.13%.

Consistent with its investment objectives and policies, the Portfolio was invested primarily in the securities of non-US companies that exhibited the fundamental characteristics of growth, financial strength, management quality, and durable competitive advantage.

The portfolio's return was near the benchmark return. Good relative stock performance within sectors offset poor allocation between sectors. Heavy weightings in Health Care and Consumer Staples, along with light weightings in Materials and Financials hindered performance. The portfolio benefited from good stock selection in a number of industry groups, including consumer durables & apparel (LVMH), retailing (Li & Fung, China Resources Enterprise), food & staples retailing (Olam International), pharmaceuticals & biotech (Qiagen), capital goods (Atlas Copco, Schneider Electric), and telecom services (Telekom Indonesia). Positive stock selection was offset by a few holdings that lagged their industry groups, including companies in energy (Imperial Oil, Encana), diversified financials (Nomura Holdings), insurance (Swiss Reinsurance), health care equipment & services (Fresenius), technology hardware & equipment (Nokia), and materials (Air Liquide).

Viewed geographically, the portfolio enjoyed good stock selection in developed markets across Europe and Japan, but our holdings in emerging markets failed to keep up with the torrid pace of the emerging markets sub-index. Stock selection was particularly strong in the UK (Standard Chartered), France (LVMH, Schneider Electric), Germany (Allianz, Qiagen), Japan (Kubota, JSR), Hong Kong (Li & Fung) and Singapore (Olam International), along with Bermuda (Bunge). Emerging markets holdings that lagged included companies in Russia (Gazprom), South Africa (Sasol), Indonesia (Telekom Indonesia), and Taiwan (Taiwan Semiconductor).

Past performance does not guarantee future results.

The Portfolio invests in foreign securities, which will involve greater volatility and political, economic, and currency risks. It also invests in emerging markets, which involve unique risks, such as exposure to economies less diverse and mature than the U.S. or other more established foreign markets. Economic and political instability may cause larger price changes in emerging markets securities than other foreign securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Portfolio in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The portfolio invests in smaller companies which involve additional risk such as limited liquidity and greater volatility.

The MSCI All Country World ex-US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US. The Index consists of 44 developed and emerging market countries. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

12

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Banks		7.6	%
Beverages, Food & Tobacco		13.3
Chemicals		5.5
Commercial Services & Supplies		5.9
Communications		5.9
Computer Software & Processing		3.2
Cosmetics & Personal Care		2.2
Electrical Equipment		8.5
Electronics		2.0
Financial Services		3.5
Health Care Providers & Services		1.2
Heavy Machinery		2.4
Holding Companies-Diversified		2.2
Insurance		2.8
Machinery - Diversified		1.3
Media		5.0
Medical Supplies		5.4
Oil & Gas		9.9
Oil & Gas Services		1.7
Pharmaceuticals		2.1
Real Estate		1.3
Retailers		3.3
Semiconductors		2.0
Total Investments		98.2
Other Assets Less Liabilities		1.8	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 17.

See Notes to Financial Statements
13

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 97.5%
Australia - 1.8%
Cochlear Ltd. (Medical Supplies)		93,800	$	5,375,496
Austria - 2.0%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		149,220		5,995,923
Bermuda - 2.5%
Bunge Ltd. (Beverages, Food & Tobacco)		129,280		7,376,717
Brazil - 0.8%
Petroleo Brasileiro SA - ADR (Oil & Gas)		52,888		2,444,483
Canada - 3.2%
EnCana Corp. (Oil & Gas)		79,882		4,424,664
Imperial Oil Ltd. (Oil & Gas)		137,290		5,168,968
				9,593,632
China - 2.7%
China Resources Enterprise (Financial Services)		2,442,000		8,151,832
Finland - 2.0%
Nokia Oyj - Sponsored ADR (Communications)		465,240		5,866,676
France - 15.1%
Air Liquide (Chemicals)		94,402		10,194,126
Dassault Systemes SA (Computer Software & Processing)		163,800		9,443,602
L'Oreal SA (Cosmetics & Personal Care)		65,170		6,641,877
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		64,430		6,684,127
Schlumberger Ltd. (Oil & Gas Services)		83,400		5,187,480
Schneider Electric SA (Electrical Equipment)		66,450		6,902,044
				45,053,256
Germany - 5.8%
Allianz SE (Insurance)		73,400		8,412,189
Fresenius AG (Health Care Providers & Services)		73,368		3,649,800
Qiagen NV (Commercial Services & Supplies)*		253,470		5,257,080
				17,319,069
Hong Kong - 3.4%
Hutchison Whampoa Ltd. (Commercial Services & Supplies)		531,000		3,717,414
Li & Fung Ltd. (Commercial Services & Supplies)		1,550,200		6,419,433
				10,136,847
Indonesia - 1.8%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		154,940		5,254,015
Israel - 0.8%
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		44,160		2,229,197

See Notes to Financial Statements
14

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Japan - 14.3%
Fanuc Ltd. (Electrical Equipment)		65,400	$	5,493,297
Hoya Corp. (Electronics)		267,300		5,854,040
JSR Corp. (Chemicals)		323,900		6,305,223
Jupiter Telecommunications Co., Ltd. (Media)		6,085		5,589,849
Keyence Corp. (Electrical Equipment)		34,765		6,897,888
Kubota Corp. (Machinery - Diversified)		505,300		3,920,034
Nomura Holdings Inc. (Financial Services)		335,200		2,345,623
So-net M3 Inc. (Commercial Services & Supplies)		664		2,278,830
Sumitomo Realty & Development Co., Ltd. (Real Estate)		199,000		3,739,343
				42,424,127
Malaysia - 2.2%
Sime Darby Berhad (Holding Companies-Diversified)		2,574,810		6,652,016
Mexico - 4.3%
America Movil SA de CV, Series L - ADR (Communications)		144,000		6,354,720
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		184,620		6,426,622
				12,781,342
Poland - 1.0%
Bank Pekao SA - GDR, Reg. S (Banks)#,*		52,560		2,857,825
Russia - 2.3%
OAO Gazprom - Sponsored ADR (Oil & Gas)		280,570		6,699,294
Singapore - 3.3%
DBS Group Holdings Ltd. (Banks)		607,083		5,539,736
Olam International Ltd. (Beverages, Food & Tobacco)		2,230,900		4,277,217
				9,816,953
South Africa - 0.7%
Sasol Ltd. (Oil & Gas)		55,641		2,084,364
South Korea - 2.0%
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		18,520		5,610,241
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Semiconductors)		1,500		297,994
				5,908,235
Sweden - 2.3%
Atlas Copco AB - Class A (Heavy Machinery)		510,600		6,977,482
Switzerland - 9.5%
Alcon Inc. (Medical Supplies)		49,370		7,049,542
Nestle SA - Sponsored ADR (Beverages, Food & Tobacco)		220,350		10,250,682
Roche Holding AG - Genusschein (Pharmaceuticals)		24,350		3,901,402
Swatch Group AG (Retailers)		14,880		3,468,954
Synthes Inc. (Medical Supplies)		29,320		3,479,419
				28,149,999
Taiwan - 2.0%
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		3,330,125		6,056,939

See Notes to Financial Statements
15

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
United Kingdom - 11.7%
BG Group plc (Oil & Gas)		372,680	$	6,424,711
Standard Chartered plc (Banks)		338,010		8,300,246
Tesco plc (Beverages, Food & Tobacco)		874,980		5,838,969
Unilever plc (Beverages, Food & Tobacco)		167,425		5,011,364
WPP plc (Media)		1,043,920		9,361,788
				34,937,078
Total Common Stocks (Cost $230,874,100)				290,142,797
Preferred Stocks - 0.7%
Brazil - 0.7%
Petroleo Brasileiro SA - Sponsored ADR (Oil & Gas)		55,400		2,222,648
Total Preferred Stocks (Cost $1,789,747)				2,222,648
Total Investments - 98.2% (Cost $232,663,847)			$	292,365,445

See Notes to Financial Statements
16

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 1.8%
Cash	$	4,718,958
Dividends and interest receivable		415,158
Foreign currency (cost $29,515)		29,654
Receivable for Fund units sold		317,218
Tax reclaim receivable		84,743
Prepaid expenses		2,508
Payable to Investment Advisor		(182,237	)
Payable for Fund units redeemed		(54,407	)
Payable for distribution fees		(15,865	)
Other liabilities		(97,840	)
		5,217,890
Net Assets - 100%
Investor Class
Applicable to 3,173,243 outstanding $.001 par value units (authorized 250,000,000 shares)	$	38,133,502
Net Asset Value, Offering Price and Redemption Price Per Unit	$	12.02
Institutional Class
Applicable to 21,549,438 outstanding $.001 par value units (authorized 250,000,000 shares)	$	259,449,833
Net Asset Value, Offering Price and Redemption Price Per Unit	$	12.04
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	247,801,995
Accumulated undistributed net investment income		2,365,492
Accumulated net realized loss from investment transactions		(12,296,884	)
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies		59,712,732
	$	297,583,335

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

Reg S  Security sold outside United States without registration under the Securities Act of 1933.

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

#  Security valued at fair value as determined in good faith under policies and procedures established by and under the supervision of the Portfolio's Board of Directors.

See Notes to Financial Statements
17

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio — Overview
(unaudited)
October 31, 2009

	Returns for the Year Ended October 31, 2009
	Cumulative Total Returns						Average Annualized Total Return
FUND NAME	Last 12 Months			Inception			Inception
Frontier Emerging Markets Portfolio - Institutional Class (Inception date 05/27/08)		26.71	%		(36.90	)%		(27.48	)%
MSCI Frontier Emerging Markets Index (Net Dividends)		12.09	%		(40.96	)%		(30.77	)%
S&P Frontier Broad Market Index		(6.16	)%		(46.05	)%		(34.99	)%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting the website at www.hardingloevnerfunds.com.

Investment return reflects voluntary fee waivers in effect. Absence such waivers, total return would be reduced. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

18

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio — Overview
October 31, 2009

The Frontier Emerging Markets Portfolio rose 26.71% for the fiscal year ending October 31, 2009, while its benchmark, the MSCI Frontier Emerging Markets Index rose 12.09%.

Consistent with its investment objectives and policies, the Portfolio was invested in the securities of companies with strong growth prospects located in frontier and smaller emerging markets countries that we regard as both economically stable and offering attractive long-term investment potential.

Strong stock selection in Europe, Asia, and the Gulf States was the main positive contributor to returns this period. Two Ukrainian food companies, Astarta Holding and Kernel Holding, along with Thailand's Home Products Center, a do-it-yourself retailer, were standouts. The Portfolio's large weighting in the outperforming Consumer Staples and Industrials sectors, and underweight the lagging Financials sector, were also beneficial.

Returns were hurt by the Portfolio's underweight and stock selection in Latin America, the strongest region in the Index this year. In Peru, for example, our holdings including domestic bank Credicorp performed well on an absolute basis, but still did not match the extraordinary rise of the country's overall market. The Portfolio's large exposure to Africa—particularly Nigeria where the market fell as political uncertainty in the Nigerian Delta oil region led to a decline in oil production—was another drag on performance. We continue to maintain a large weight in Africa, a reflection of our positive view of the long-term growth prospects for select companies in the region.

Past performance does not guarantee future results.

Foreign investments involve additional risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. Emerging markets countries involve greater risks, such as immature economic structures, national policies restricting investments by foreigners, and different legal systems. Such risks may be magnified with respect to securities of issuers in frontier emerging markets. The Portfolio can have significant concentration in a single industry, and investment opportunities in frontier markets may be concentrated in the banking industry. The Portfolio will be vulnerable to factors affecting an industry in which it is concentrated. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated and non-rated securities presents a greater risk of loss of principal and interest than hig her-rated securities. Mutual fund investing involves risk. Principal loss is possible.

The MSCI Frontier Emerging Markets Index is a free float-adjusted market capitalization index designed to measure equity market performance in all countries from the MSCI Frontier Markets Index and the lower size spectrum of the MSCI Emerging Markets Index. The Index consists of 25 frontier markets and 5 emerging markets. The Index is net of foreign withholding taxes on dividends. You cannot invest directly in this Index.

It is not possible to invest directly in an index.

19

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009

Industry	Percentage of Net Assets
Agriculture		1.9	%
Airlines		0.6
Banks		21.8
Beverages, Food & Tobacco		8.0
Building Materials		5.9
Chemicals		2.9
Commercial Services & Supplies		2.6
Communications		9.6
Electric Utilities		2.1
Electrical Equipment		1.2
Engineering & Construction		6.5
Financial Services		5.0
Food		1.3
Gold and Silver Ores		1.3
Heavy Machinery		0.4
Holding Companies-Diversified		4.0
Industrial - Diversified		1.1
Internet		1.0
Investment Companies		1.6
Iron & Steel		0.2
Lodging		2.2
Media		1.8
Metals & Mining		2.0
Oil & Gas		4.9
Pharmaceuticals		4.4
Real Estate		0.8
Textiles & Apparel		1.1
Transportation		2.9
Total Investments		99.1
Other Assets Less Liabilities		0.9	*
Net Assets		100.0	%

*  Breakout of other assets and liabilities can be found on page 25.

The staff of the Securities and Exchange Commission considers concentration of investments as the investment of more than 25% of the value of a fund's assets in the securities of companies in any one industry or group of industries. As of October 31, 2009, Frontier Emerging Markets Portfolio did not concentrate its investments in the securities of companies in any one industry or group of industries.

See Notes to Financial Statements
20

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Common Stocks - 99.0%
Argentina - 1.4%
Molinos Rio De La Plata SA (Beverages, Food & Tobacco)		41,398	$	128,437
Bangladesh - 3.4%
Lafarge Surma Cement Ltd. (Building Materials)*		10,100		70,753
Power Grid Co., Ltd. of Bangladesh (Electric Utilities)		7,000		74,202
Square Pharmaceuticals Ltd. (Pharmaceuticals)		4,235		165,816
				310,771
Canada - 1.3%
Katanga Mining Ltd. (Gold and Silver Ores)*		176,575		119,126
Colombia - 8.5%
BanColombia SA - Sponsored ADR (Banks)		6,210		245,792
Cementos Argos SA - Sponsored ADR (Building Materials)#		7,440		185,953
Ecopetrol SA - Sponsored ADR (Oil & Gas)		3,200		82,528
Grupo de Inversiones Suramericana SA - ADR (Investment Companies)#		6,300		141,715
Interconexion Electrica SA (Electric Utilities)#		800		116,171
				772,159
Croatia - 2.9%
Atlantic Grupa (Beverages, Food & Tobacco)		1,230		168,862
Ericsson Nikola Tesla (Communications)		361		98,594
				267,456
Egypt - 6.3%
Elswedy Cables Holdings Co. (Electrical Equipment)		8,393		112,311
Orascom Construction Industries - GDR, Reg. S (Engineering & Construction)		4,030		194,732
Orascom Telecom Holding SAE - GDR (Communications)		4,866		165,498
Oriental Weavers (Textiles & Apparel)		16,000		97,538
				570,079
Estonia - 1.1%
Tallink Group Ltd. (Transportation)*		179,840		100,571
Ghana - 0.5%
Ghana Commercial Bank (Banks)		68,600		43,152
Indonesia - 2.4%
PT Bank Rakyat Indonesia (Banks)		293,000		213,884
Jordan - 2.8%
Arab Bank (Banks)		10,500		199,085
Arab Potash Co. (Chemicals)		1,193		50,901
				249,986
Kazakhstan - 3.4%
Halyk Savings Bank of Kazakhstan JSC - GDR, Reg. S (Banks)*		18,799		127,102
Kazakhstan Kagazy plc - GDR, Reg. S (Industrial - Diversified)*		93,020		25,116
KazMunaiGas Exploration Production - GDR, Reg. S (Oil & Gas)		5,150		121,543
Steppe Cement Ltd. (Building Materials)*		31,250		32,654
				306,415

See Notes to Financial Statements
21

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Kenya - 7.6%
Accesskenya (Internet)		336,200	$	89,885
East African Breweries Ltd. (Beverages, Food & Tobacco)		62,300		119,642
Equity Bank Ltd. (Banks)		380,000		73,730
Kenya Airways Ltd. (Airlines)		172,500		56,347
Kenya Oil Co., Ltd. (Oil & Gas)		67,900		41,824
Nation Media Group (Media)		66,400		106,958
Safaricom Ltd. (Communications)		3,726,400		201,179
				689,565
Lebanon - 1.2%
Banque Audi sal- Audi Saradar Group - GDR, Reg. S (Banks)		1,200		105,600
Lithuania - 1.2%
Teo Lt AB (Communications)		131,040		107,662
Mauritius - 2.9%
Mauritius Commercial Bank (Banks)		31,400		151,550
Sun Resorts Ltd. - Class A (Lodging)		42,340		111,974
				263,524
Morocco - 4.4%
Douja Prom Addoha (Real Estate)		4,620		68,295
Managem (Metals & Mining)*		1,522		52,659
Maroc Telecom (Communications)		7,400		140,266
Ona SA (Holding Companies-Diversified)		785		133,891
				395,111
Nigeria - 4.7%
Dangote Sugar Refinery plc (Agriculture)		844,530		84,061
Diamond Bank plc (Banks)		2,122,578		106,762
First Bank of Nigeria plc (Banks)		782,715		76,975
UAC of Nigeria plc (Holding Companies-Diversified)		579,880		157,555
				425,353
Pakistan - 1.1%
Engro Chemical Ltd. (Chemicals)		7,560		15,049
MCB Bank Ltd. (Banks)		12,650		32,304
Pakistan Petroleum Ltd. (Oil & Gas)		27,060		56,487
				103,840
Peru - 3.7%
Cementos Lima (Building Materials)		7,612		83,735
Credicorp Ltd. (Financial Services)		3,200		220,896
Ferreyros SA (Heavy Machinery)		34,219		31,760
				336,391
Philippines - 1.0%
International Container Term Services Inc. (Transportation)		222,000		94,325
Poland - 0.1%
Ciech SA (Chemicals)*		588		7,837
Qatar - 2.8%
Industries Qatar (Chemicals)		6,150		186,985
Qatar Shipping Co. (Transportation)		7,100		65,569
				252,554

See Notes to Financial Statements
22

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Romania - 2.8%
Albalact SA (Beverages, Food & Tobacco)*		636,200	$	80,640
Banca Transilvania (Banks)		217,790		130,315
SNP Petrom SA (Oil & Gas)*		535,400		46,773
				257,728
Senegal - 1.8%
Sonatel (Communications)		595		160,187
Serbia - 0.8%
Energoprojekt Holding ad Beograd (Holding Companies-Diversified)*		4,550		73,493
Sri Lanka - 2.6%
John Keells Holdings plc (Commercial Services & Supplies)		190,000		234,445
Thailand - 7.6%
Home Product Center plc (Building Materials)		1,042,910		130,422
Major Cineplex Group (Media)		274,800		60,016
Minor International plc (Lodging)		283,000		90,594
PTT Exploration & Production plc (Oil & Gas)		22,400		97,173
Siam Commercial Bank-Alien (Banks)		101,100		233,657
Thai Vegetable Oil plc (Beverages, Food & Tobacco)		172,600		82,104
				693,966
Trinidad And Tobago - 2.1%
Neal & Massy Holdings Ltd. (Industrial - Diversified)#		9,900		76,719
Republic Bank Ltd. (Banks)		6,250		83,030
Trinidad Cement Ltd. (Building Materials)*		60,000		33,307
				193,056
Turkey - 3.0%
BIM Birlesik Magazalar AS (Food)		3,260		118,396
Turkiye Is Bankasi Series C (Banks)		41,336		155,253
				273,649
Ukraine - 2.7%
Astarta Holding N.V. (Beverages, Food & Tobacco)*		11,660		137,715
Ferrexpo plc (Iron & Steel)		8,320		20,161
Kernel Holding SA (Agriculture)*		5,900		85,075
				242,951
United Arab Emirates - 6.9%
Arabtec Holding Co. (Engineering & Construction)*		452,000		393,972
Dubai Financial Market (Financial Services)		370,000		233,037
				627,009
United Kingdom - 4.0%
Hikma Pharmaceuticals plc (Pharmaceuticals)		30,700		237,152
Kazakhmys plc (Metals & Mining)*		7,300		129,260
				366,412
Total Common Stocks (Cost $9,164,059)				8,986,694

See Notes to Financial Statements
23

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Shares		Value (1)
Warrant - 0.1%
Thailand - 0.1%
Thai Vegetable Oil., Issued by Thai Vegetable Oil., Expires 05/18/2012 (Beverages, Food & Tobacco)*		34,520	$	7,333
Total Investments - 99.1% (Cost $9,166,296)			$	8,994,027

See Notes to Financial Statements
24

Harding, Loevner Funds, Inc.

Frontier Emerging Markets Portfolio
Statement of Net Assets
October 31, 2009 (continued)

	Value (1)
Liabilities, Net of Other Assets - 0.9%
Cash	$	91,610
Dividends and interest receivable		16,453
Foreign currency (cost $22,238)		20,538
Tax reclaim receivable		910
Receivable from Investment Advisor		5,645
Other liabilities		(57,880	)
		77,276
Net Assets - 100%
Applicable to 1,442,448 outstanding $.001 par value units (authorized 400,000,000 shares)	$	9,071,303
Net Asset Value, Offering Price and Redemption Price Per Unit	$	6.29
Components of Net Assets as of October 31, 2009 were as follows:
Paid-in capital	$	10,789,015
Accumulated undistributed net investment income		67,258
Accumulated net realized loss from investment transactions		(1,577,373	)
Net unrealized depreciation on investments and on assets and liabilities denominated in foreign currencies		(207,597	)
	$	9,071,303

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

Reg S  Security sold outside United States without registration under the Securities Act of 1933.

(1)  See Note 2 to Financial Statements.

#  Security valued at fair value as determined in good faith under policies and procedures established by and under the supervision of the Portfolio's Board of Directors.

*  Non-income producing security.

See Notes to Financial Statements
25

Harding, Loevner Funds, Inc.

Statements of Operations

Year Ended October 31, 2009

	Institutional Emerging Markets Portfolio			International Equity Portfolio
Investment Income
Interest	$	3,858		$	1,688
Dividends (net of foreign withholding taxes of $501,366 and $598,510, respectively)		3,604,163			5,126,101
Total investment income		3,608,021			5,127,789
Expenses
Investment advisory fees (Note 3)		2,026,214			1,668,949
Administration fees (Note 3)		107,697			148,573
Distribution fees, Investor Class		—			51,886
Custodian and accounting fees (Note 3)		195,371			145,302
Directors' fees and expenses (Note 3)		28,804			35,488
Shareholder record keeping fees (Note 3)		30,613			64,508
Printing and postage fees		15,377			57,757
State registration filing fees		9,224			31,066
Professional fees		57,653			75,299
Sub Transfer Agent Fees		451			50,383
Other fees and expenses		34,629			49,612
Total Expenses		2,506,033			2,378,823
Less Waiver of investment advisory fee (Note 3)		(398,771	)		(107,630	)
Net expenses		2,107,262			2,271,193
Net investment income		1,500,759			2,856,596
Realized and Unrealized Gain (Loss)
Net realized gain (loss) —
Investment transactions		(34,036,112	)		(11,874,044	)
Foreign currency transactions		(179,163	)		(69,544	)
Net realized (loss)		(34,215,275	)		(11,943,588	)
Change in unrealized appreciation (depreciation) —
Investments		102,020,940			76,755,156
Translation of assets and liabilities denominated in foreign currencies		(184,442	)		4,152
Net change in unrealized appreciation		101,836,498			76,759,308
Net realized and unrealized gain		67,621,223			64,815,720
Net increase in net assets resulting from operations	$	69,121,982		$	67,672,316

See Notes to Financial Statements
26

Harding, Loevner Funds, Inc.

Statements of Operations (continued)

Period Ended October 31, 2009

	Frontier Emerging Markets Portfolio
Investment Income
Interest	$	205
Dividends (net of foreign withholding taxes of $16,542)		215,640
Total investment income		215,845
Expenses
Investment advisory fees (Note 3)		95,437
Administration fees (Note 3)		9,135
Custodian and accounting fees (Note 3)		34,382
Directors' fees and expenses (Note 3)		1,116
Shareholder record keeping fees (Note 3)		27,705
Printing and postage fees		1,721
State registration filing fees		3,882
Professional fees		83,023
Other fees and expenses		3,374
Total Expenses		259,775
Less Reimbursement of Fund expenses from Investment Advisor (Note 3)		(37,088	)
Less Waiver of investment advisory fee (Note 3)		(95,437	)
Net expenses		127,250
Net investment income		88,595
Realized and Unrealized Gain (Loss)
Net realized gain (loss) —
Investment transactions		(1,571,395	)
Foreign currency transactions		(17,724	)
Net realized (loss)		(1,589,119	)
Change in unrealized appreciation (depreciation) —
Investments		3,655,845
Translation of assets and liabilities denominated in foreign currencies		(34,691	)
Net change in unrealized appreciation		3,621,154
Net realized and unrealized gain		2,032,035
Net increase in net assets resulting from operations	$	2,120,630

See Notes to Financial Statements
27

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets

	Institutional Emerging Markets Portfolio
	Year Ended October 31, 2009			Year Ended October 31, 2008
Increase in Net Assets From Operations
Net investment income	$	1,500,759		$	6,267,430
Net realized loss on investments and foreign currency transactions		(34,215,275	)		(28,057,851	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		101,836,498			(145,291,730	)
Net increase (decrease) in net assets resulting from operations		69,121,982			(167,082,151	)
Distributions to Shareholders from:
Net investment income		(5,277,778	)		(1,028,938	)
Net realized gain from investments and foreign-currency related transactions		—			(8,286,256	)
Total distributions to shareholders		(5,277,778	)		(9,315,194	)
Transactions in units of Common Stock
Proceeds from sale of units		45,649,131			86,978,082
Net Asset Value of shares issued to shareholders upon reinvestment of dividends		4,205,119			8,746,852
Cost of shares units		(42,223,167	)		(32,362,942	)
Redemption fees
Institutional Class		35,508			11,981
Net increase in net assets from fund unit transactions		7,666,591			63,373,973
Net increase (decrease) in net assets		71,510,795			(113,023,372	)
Net Assets
At beginning of year		132,037,162			245,060,534
At end of year	$	203,547,957		$	132,037,162
Accumulated undistributed net investment income included in net assets	$	1,100,413		$	5,094,625

See Notes to Financial Statements
28

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets (continued)

	International Equity Portfolio
	Year Ended October 31, 2009			Year Ended October 31, 2008
Increase in Net Assets From Operations
Net investment income	$	2,856,596		$	3,314,737
Net realized gain (loss) on investments and foreign currency transactions		(11,943,588	)		40,264,254
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		76,759,308			(197,938,277	)
Net increase (decrease) in net assets resulting from operations		67,672,316			(154,359,286	)
Distributions to Shareholders from:
Net investment income
Investor Class		(160,740	)		(85,868	)
Institutional Class		(3,101,928	)		(2,611,777	)
Net realized gain from investments and foreign-currency related transactions
Investor Class		(2,318,758	)		(1,359,303	)
Institutional Class		(36,230,389	)		(29,187,907	)
Total distributions to shareholders		(41,811,815	)		(33,244,855	)
Transactions in units of Common Stock
Proceeds from sale of units
Investor Class		24,524,810			7,489,395
Institutional Class		37,754,041			13,994,514
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Investor Class		2,337,103			1,330,261
Institutional Class		38,985,473			30,928,420
Cost of units redeemed
Investor Class		(5,664,340	)		(3,696,097	)
Institutional Class		(29,797,831	)		(66,170,127	)
Redemption fees
Investor Class		2,232			481
Institutional Class		9,202			3,098
Net increase (decrease) in net assets from fund share transactions		68,150,690			(16,120,055	)
Net increase (decrease) in net assets		94,011,191			(203,724,196	)
Net Assets
At beginning of year		203,572,144			407,296,340
At end of year	$	297,583,335		$	203,572,144
Accumulated undistributed net investment income included in net assets	$	2,365,492		$	2,842,758

See Notes to Financial Statements
29

Harding, Loevner Funds, Inc.

Statements of Changes in Net Assets (continued)

	Frontier Emerging Markets Portfolio
	Year Ended October 31, 2009			Period Ended October 31, 2008 (A)
Increase in Net Assets From Operations
Net investment income	$	88,595		$	8,230
Net realized loss on investments and foreign currency transactions		(1,589,119	)		(2,562	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		3,621,154			(3,828,751	)
Net increase (decrease) in net assets resulting from operations		2,120,630			(3,823,083	)
Distributions to Shareholders from:
Net investment income
Institutional Class		(15,259	)		—
Total distributions to shareholders		(15,259	)		—
Transactions in units of Common Stock
Proceeds from sale of units
Institutional Class		2,540,000			8,698,504
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Institutional Class		4,708			—
Cost of units redeemed
Institutional Class		(454,197	)		—
Net increase in net assets from fund unit transactions		2,090,511			8,698,504
Net increase in net assets		4,195,882			4,875,421
Net Assets
At beginning of year		4,875,421			—
At end of year	$	9,071,303		$	4,875,421
Accumulated undistributed net investment income included in net assets	$	67,258		$	11,646

(A)  The Institutional Class shares commenced operations on May 27, 2008.

See Notes to Financial Statements
30

Harding, Loevner Funds, Inc.

Financial Highlights

	Institutional Emerging Markets Portfolio
	For the Year Ended Oct. 31, 2009			For the Year Ended Oct. 31, 2008			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005 (1)
Per Share Data
Net asset value, beginning of year	$	9.29		$	21.20		$	13.42		$	9.92		$	10.00
Increase (Decrease) in Net Assets from Operations
Net investment income (loss)		0.10			0.44			0.10			0.07			(0.00	)*
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		4.27			(11.53	)		7.70			3.45			(0.08	)
Net increase (decrease) from investment operations		4.37			(11.09	)		7.80			3.52			(0.08	)
Distributions to Shareholders from:
Net investment income		(0.37	)		(0.09	)		(0.02	)		(0.02	)		—
Net realized gain from investments and foreign currency-related transactions		—			(0.73	)		—			—			—
Total distributions		(0.37	)		(0.82	)		(0.02	)		(0.02	)		—
Net asset value, end of year	$	13.29		$	9.29		$	21.20		$	13.42		$	9.92
Total Return		48.92	%		(54.33	)%		58.18	%		35.38	%		(0.70	)%(B)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	203,548		$	132,037		$	245,061		$	85,930		$	4,962
Net expenses to average net assets		1.30	%		1.30	%		1.30	%		1.30	%		1.30	%(A)
Net investment income to average net assets		0.93	%		2.56	%		0.72	%		0.88	%		(0.19	)%(A)
Decrease reflected in above expense ratios due to expense reductions		0.25	%		0.22	%		0.25	%		0.51	%		20.02	%(A)
Portfolio turnover rate		57	%		51	%		32	%		38	%		1	%(B)

(1)  For the period from October 17, 2005 (commencement of operations) through October 31, 2005.

*  Rounds to less than $(0.01).

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
31

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	International Equity Portfolio - Institutional Class
	For the Year Ended Oct. 31, 2009			For the Year Ended Oct. 31, 2008			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005
Net asset value, beginning of year	$	11.44		$	21.71		$	18.68		$	14.90		$	12.41
Increase (Decrease) in Net Assets from Operations
Net investment income		0.13			0.20			0.14			0.12	(1)		0.13
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		2.86			(8.63	)		4.33			3.75			2.42
Net increase (decrease) from investment operations		2.99			(8.43	)		4.47			3.87			2.55
Distributions to Shareholders from:
Net investment income		(0.19	)		(0.15	)		(0.10	)		(0.08	)		(0.06	)
Net realized gain from investments and foreign currency-related transactions		(2.20	)		(1.69	)		(1.34	)		(0.01	)		—
Total distributions		(2.39	)		(1.84	)		(1.44	)		(0.09	)		(0.06	)
Net asset value, end of year	$	12.04		$	11.44		$	21.71		$	18.68		$	14.90
Total Return		32.77	%		(42.33	)%		25.24	%		26.06	%		20.58	%
Ratios/Supplemental Data:
Net assets, end of year (000's)	$	259,450		$	191,450		$	390,659		$	343,965		$	300,227
Net expenses to average net assets		1.00	%		0.98	%		0.98	%		1.00	%		1.00	%
Net investment income to average net assets		1.31	%		1.05	%		0.70	%		0.69	%		0.77	%
Decrease reflected in above expense ratios due to expense reductions		0.04	%		—			—			0.01	%		0.05	%
Portfolio turnover rate		22	%		18	%		19	%		35	%		38	%

(1)  Computed using average units outstanding throughout the year.

See Notes to Financial Statements
32

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	Frontier Emerging Markets Portfolio - Institutional Class
	For the Year Ended Oct. 31, 2009			For the Period Ended Oct. 31, 2008 (1)
Per Share Data
Net asset value, beginning of year	$	4.98		$	10.00
Increase (Decrease) in Net Assets from Operations
Net investment income		0.07			0.01
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		1.26			(5.03	)
Net increase (decrease) from investment operations		1.33			(5.02	)
Distributions to Shareholders from:
Net investment income		(0.02	)		—
Total distributions		(0.02	)		—
Net asset value, end of year	$	6.29		$	4.98
Total Return		26.71	%		(50.20	)%(B)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	9,071		$	4,875
Net expenses to average net assets		2.00	%		2.00	%(A)
Net investment income to average net assets		1.39	%		0.42	%(A)
Decrease reflected in above expense ratios due to expense reductions		2.08	%		6.92	%(A)
Portfolio turnover rate		55	%		1	%(B)

(A)  Annualized.

(B)  Not Annualized.

(1)  For the period from May 27, 2008 (commencement of operations) through October 31, 2008.

See Notes to Financial Statements
33

Harding, Loevner Funds, Inc.

Notes to Financial Statements

October 31, 2009

1. Organization

Harding, Loevner Funds, Inc. (the "Fund") was organized as a Maryland corporation on July 31, 1996 and is registered under the Investment Company Act of 1940, as amended ("the 1940 Act"), as an open-end diversified management investment company. The Fund currently has six Portfolios, all of which were active as of October 31, 2009: International Equity Portfolio ("International Equity"); Emerging Markets Portfolio ("Emerging Markets"); Institutional Emerging Markets Portfolio ("Institutional Emerging Markets"); Global Equity Portfolio ("Global Equity"); International Small Companies Portfolio ("International Small Companies") and Frontier Emerging Markets Portfolio ("Frontier Emerging Markets"). Information presented in these financial statements pertains to Institutional Emerging Markets, Institutional Class shares of International Equity and Frontier Emerging Markets (individually, "Portfolio"; collectively, "Portfolios"). Information pert aining to Investor Class shares of International Equity, Emerging Markets, Global Equity and Investor Class shares of International Small Companies Portfolios is presented in a separate report. The investment objective of each Portfolio is as follows: Institutional Emerging Markets—to seek long-term capital appreciation through investments in equity securities of companies based in emerging markets; International Equity—to seek long-term capital appreciation through investments in equity securities of companies based outside the United States; and Frontier Emerging Markets—to seek long-term capital appreciation through investments in securities of companies based in frontier and smaller emerging markets.

Institutional Emerging Markets Portfolio commenced operations on October 17, 2005. International Equity commenced operations on October 31, 1996 after acquiring the net assets of Harding Loevner LP's AMT Capital Fund, Inc. Effective August 5, 2005, International Equity launched Investor Class shares and converted existing shareholders to the Institutional Class. Institutional Class of Frontier Emerging Markets Portfolio commenced operations on May 27, 2008.

Effective April 29, 2009, shareholders of Frontier Emerging Markets approved a change in the Portfolio's fundamental investment policy regarding concentration which may, under certain conditions, permit the Portfolio to invest up to 35% of its net assets in companies in the same industry. During periods when the Portfolio makes use of its ability to so invest, it will operate as a concentrated portfolio and be subject to additional risks and greater volatility.

On August 26, 2009, Harding Loevner LLC, investment adviser to the Fund, its parent company, HLM Holdings, Inc., and certain shareholders of HLM Holdings consummated an agreement with Affiliated Managers Group, Inc. ("AMG") pursuant to which Harding Loevner LLC agreed to sell a majority interest in its business to AMG. AMG is a publicly traded Delaware corporation listed on the New York Stock Exchange. As part of the transaction, Harding Loevner LLC transferred its business to a new entity, Harding Loevner LP, and AMG acquired a majority interest in Harding Loevner LP.

The Fund is managed by Harding Loevner LP (the "Investment Advisor").

2. Summary of Significant Accounting Policies

The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States ("GAAP") for investment companies. The following is a summary of the Fund's significant accounting policies:

Indemnifications

Under the Fund's organizational document, its officers and Board are indemnified against certain liability arising out of the performance of their duties to the Portfolios. In the normal course of business, the Fund may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Valuation

The Board has adopted procedures ("Procedures") to govern the valuation of the securities held by each Portfolio of the Fund in accordance with the 1940 Act. The Procedures incorporate principles set forth in relevant pronouncements of the Securities and Exchange Commission ("SEC") and its staff, including guidance on the obligations of the Portfolios and their Directors to determine, in good faith, the fair value of the Portfolios' securities when market quotations are not readily available.

34

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

All investments in the Portfolios are valued daily at their market prices, which results in unrealized gains or losses. Securities traded on an exchange are valued at their last sales price on that exchange. Securities for which no sales are reported are valued at the latest bid price obtained from a quotation reporting system or from established market makers. Repurchase agreements are valued at their amortized cost plus accrued interest. Securities for which market quotations are not readily available are fair valued by the Board or its delegate in accordance with the Procedures, although the actual calculations may be done by others. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, availa ble information concerning other securities in similar circumstances. If a significant event occurs after the close of trading but before the calculation of the Portfolio's net asset value and such significant event has a material impact on the Portfolio's net asset value per share (i.e. more than $0.01 per share), then the security may be fair valued in accordance with the Procedures. As of October 31, 2009, there were five securities in the Portfolios which required valuation by the Board or its delegate. International Equity and Frontier Emerging Markets each held such securities. The Fund has implemented additional fair value pricing on a daily basis for all foreign equity securities held by the Portfolios. The fair value pricing utilizes quantitative models developed by an independent pricing service unless the Fund determines that use of another additional fair valuation methodology is appropriate.

GAAP establishes a hierarchy for net asset value determination purposes in which various inputs are used in determining the value of each Portfolio's assets or liabilities. GAAP defines fair value as the price that the Portfolio would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability including assumptions about risk. Such risks include the inherent risk in a particular valuation technique which is used to measure fair value. This may include the pricing model and/or the inputs to the pricing model used in the valuation technique. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1—quoted prices in active markets for identical investments

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3—significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments)

GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly.

35

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

The following is a summary of the inputs used as of October 31, 2009 in valuing the Portfolio's investments:

Institutional Emerging Markets
ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Brazil	$	34,267,907	$	—	$	—	$	34,267,907
Cayman Islands		1,927,584		—		—		1,927,584
Chile		5,105,497		—		—		5,105,497
China		2,111,682		20,088,526		—		22,200,208
Colombia		2,341,949		—		—		2,341,949
Czech Republic		1,783,180		—		—		1,783,180
Egypt		—		2,203,413		—		2,203,413
Greece		—		1,989,055		—		1,989,055
Hungary		—		1,131,026		—		1,131,026
India		3,362,876		6,712,569		—		10,075,445
Indonesia		2,686,689		2,420,613		—		5,107,302
Israel		3,104,520		2,865,788		—		5,970,308
Luxembourg		2,011,386		—		—		2,011,386
Malaysia		—		2,547,948		—		2,547,948
Mexico		13,630,564		—		—		13,630,564
Panama		1,942,580		—		—		1,942,580
Peru		2,160,639		—		—		2,160,639
Philippines		935,682		—		—		935,682
Poland		1,656,608		2,199,559		—		3,856,167
Russia		4,729,115		7,568,081		—		12,297,196
South Africa		—		12,287,585		—		12,287,585
South Korea		2,940,853		15,425,073		—		18,365,926
Taiwan		—		18,974,081		—		18,974,081
Thailand		5,556,780		—		—		5,556,780
Turkey		—		5,087,633		—		5,087,633
United Kingdom		—		2,479,052		—		2,479,052
Total Common Stocks		92,256,091		103,980,002		—		196,236,093
Preferred Stocks
Russia		3,244,230		—		—		3,244,230
Total Preferred Stocks		3,244,230		—		—		3,244,230
Total Investments		95,500,321		103,980,002		—		199,480,323
Total	$	95,500,321	$	103,980,002	$	—	$	199,480,323

36

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

International Equity
ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Australia	$	—	$	5,375,496	$	—	$	5,375,496
Austria		—		5,995,923		—		5,995,923
Bermuda		7,376,717		—		—		7,376,717
Brazil		2,444,483		—		—		2,444,483
Canada		9,593,632		—		—		9,593,632
China		—		8,151,832		—		8,151,832
Finland		5,866,676		—		—		5,866,676
France		5,187,480		39,865,776		—		45,053,256
Germany		—		17,319,069		—		17,319,069
Hong Kong		—		10,136,847		—		10,136,847
Indonesia		5,254,015		—		—		5,254,015
Israel		2,229,197		—		—		2,229,197
Japan		—		42,424,127		—		42,424,127
Malaysia		—		6,652,016		—		6,652,016
Mexico		12,781,342		—		—		12,781,342
Poland		—		—		2,857,825		2,857,825
Russia		—		6,699,294		—		6,699,294
Singapore		—		9,816,953		—		9,816,953
South Africa		—		2,084,364		—		2,084,364
South Korea		—		5,908,235		—		5,908,235
Sweden		—		6,977,482		—		6,977,482
Switzerland		17,300,224		10,849,775		—		28,149,999
Taiwan		—		6,056,939		—		6,056,939
United Kingdom		—		34,937,078		—		34,937,078
Total Common Stocks		68,033,766		219,251,206		2,857,825		290,142,797
Preferred Stocks
Brazil		2,222,648		—		—		2,222,648
Total Preferred Stocks		2,222,648		—		—		2,222,648
Total Investments		70,256,414		219,251,206		2,857,825		292,365,445
Total	$	70,256,414	$	219,251,206	$	2,857,825	$	292,365,445

37

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

Frontier Emerging Markets
ASSETS VALUATION INPUT

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Argentina	$	128,437	$	—	$	—	$	128,437
Bangladesh		310,771		—		—		310,771
Canada		119,126		—		—		119,126
Colombia		328,320		—		443,839		772,159
Croatia		—		267,456		—		267,456
Egypt		—		570,079		—		570,079
Estonia		100,571		—		—		100,571
Ghana		43,152		—		—		43,152
Indonesia		—		213,884		—		213,884
Jordan		—		249,986		—		249,986
Kazakhstan		60,590		245,825		—		306,415
Kenya		—		689,565		—		689,565
Lebanon		105,600		—		—		105,600
Lithuania		—		107,662		—		107,662
Mauritius		263,524		—		—		263,524
Morocco		—		395,111		—		395,111
Nigeria		425,353		—		—		425,353
Pakistan		—		103,840		—		103,840
Peru		336,391		—		—		336,391
Philippines		—		94,325		—		94,325
Poland		—		7,837		—		7,837
Qatar		—		252,554		—		252,554
Romania		—		257,728		—		257,728
Senegal		160,187		—		—		160,187
Serbia		73,493		—		—		73,493
Sri Lanka		—		234,445		—		234,445
Thailand		693,966		—		—		693,966
Trinidad And Tobago		116,337		—		76,719		193,056
Turkey		—		273,649		—		273,649
Ukraine		—		242,951		—		242,951
United Arab Emirates		—		627,009		—		627,009
United Kingdom		—		366,412		—		366,412
Total Common Stocks		3,265,818		5,200,318		520,558		8,986,694
Warrant
Thailand		7,333		—		—		7,333
Total Investments		3,273,151		5,200,318		520,558		8,994,027
Total	$	3,273,151	$	5,200,318	$	520,558	$	8,994,027

38

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining value:

ASSET VALUATION INPUTS

	Investments in Securities
International Equity	Balance as of October 31, 2008		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Net Purchases		Net Sales		Net Transfers in to Level 3		Net Transfers out of Level 3		Balance as of October 31, 2009		Change in Unrealized Appreciation (Depreciation) from Investments Held at October 31, 2009
Common Stocks
Poland	$	2,150,488	$	0	$	0	$	456,787	$	250,550	$	0	$	0	$	0	$	2,857,825	$	456,787
Total	$	2,150,488	$	0	$	0	$	456,787	$	250,550	$	0	$	0	$	0	$	2,857,825	$	456,787
Frontier Emerging Markets
Common Stocks
Colombia	$	0	$	0	$	0	$	158,117	$	285,722	$	0	$	0	$	0	$	443,839	$	0
Trinidad And Tobago		0		0		0		0		0		0		76,719		0		76,719		0
Total	$	0	$	0	$	0	$	158,117	$	285,722	$	0	$	76,719	$	0	$	520,558	$	0

Securities

All securities transactions are recorded on a trade date basis. Interest income and expenses are recorded on an accrual basis. Dividend income is recorded on the ex-dividend date (except for certain foreign dividends that may be recorded as soon as the Portfolio is informed of such dividends). The Portfolios accrete discount or amortize premium using the effective interest method on a daily basis as adjustments to interest income and the cost of investments. The Portfolios use the specific identification method for determining realized gains or losses from sales of securities.

Income Tax

It is the policy of each Portfolio of the Fund to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

Management has performed an analysis of each Portfolios' tax positions for the open tax years as of October 31, 2009 and has concluded that no provisions for income tax are required. The Portfolios' federal tax returns for the prior three fiscal years (open tax years: October 31, 2006; October 31, 2007; October 31, 2008; October 31, 2009) remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Portfolios. However, management's conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

Expenses

Expenses directly attributed to a specific Portfolio of the Fund are charged to that Portfolio's operations; expenses not directly attributable to a specific Portfolio are allocated among all the Portfolios of the Fund either equitably or based on their average daily net assets. As of

39

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

2. Summary of Significant Accounting Policies (continued)

July 1, 2009, pursuant to the Fund's multiple class expense allocation plan, certain expenses are allocated to particular classes of the International Equity Portfolio.

Dividends to Shareholders

It is the policy of the Portfolios to declare dividends from net investment income annually. Net short-term and long-term capital gains distributions for the Portfolios, if any, normally are distributed on an annual basis.

Dividends from net investment income and distributions from net realized gains from investment transactions have been determined in accordance with income tax regulations and may differ from net investment income and realized gains recorded by the Portfolios for financial reporting purposes. Differences result primarily from foreign currency transactions and timing differences related to recognition of income, and gains and losses from investment transactions. In general, to the extent that any differences which are permanent in nature result in over distributions to shareholders, the amount of the over distribution is reclassified within the capital accounts based on its federal tax basis treatment and may be reported as return of capital. Temporary differences do not require reclassification.

Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of the Portfolios' securities are translated at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at exchange rates prevailing when accrued. The Portfolios do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Net realized gains and losses from foreign currency-related transactions arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Portfolios' books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation or depreciation on translation of assets and liabilities denominated in foreign currencies arise from changes in the value of assets and liabilities other than investments in securities at the period end, resulting from changes in the exchange rates.

Securities Lending

Each Portfolio is authorized to lend securities from its investment portfolio to banks, brokers and other financial institutions if it receives collateral in cash, U.S. Government securities or other liquid investments which will be maintained at all times in an amount equal to at least 102% of the current market value of loaned domestic securities (including ADRs) and 105% of loaned foreign securities. The loans will be terminable at any time by the Fund. During the period of such a loan, the Portfolio receives an agreed upon portion of the income on the loaned securities and/or a loan fee and may thereby increase its total return. A Portfolio continues to receive interest or dividends on the securities loaned and simultaneously earns either interest on the investment of the cash collateral or fee income if the loan is collateralized with securities rather than cash. However, the Portfolio normally pays lending fees and related expenses fro m the interest or dividends earned on invested collateral. Although the Fund is indemnified by the securities lending agent, should the borrower of the securities fail financially, there is a risk of delay in recovery of the securities or loss of rights in the collateral. However, loans are made only to borrowers deemed to be in good financial standing by the lending agent based on its ongoing review of such borrowers and are recommended to and approved by the Board. The Portfolios may invest cash collateral they receive in connection with a loan of securities in short-term money market instruments, securities of the U.S. Government and its agencies and other high quality short-term debt instruments. For purposes of complying with the Portfolios' investment policies and restrictions, collateral received in connection with securities loans will not be deemed an asset of the Portfolio unless otherwise required by law. The Board has appointed State Street Bank and Trust Company ("State Street Bank and Trust") a s the lending agent for the Portfolios. However, the Portfolios are not currently lending securities. As of October 31, 2009, there were no securities on loan.

3. Significant Agreements and Transactions with Affiliates

The Board has approved an investment advisory agreement (the "Agreement") with the Investment Advisor. The advisory fees are computed daily at an annual rate of 1.25%, 0.75%, and 1.50% of the average daily net assets of Institutional Emerging Markets, International Equity, and Frontier Emerging Markets, respectively.

40

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

3. Significant Agreements and Transactions with Affiliates (continued)

The Investment Advisor has voluntarily agreed to reduce its fee to the extent that aggregate expenses exceed an annual rate of 1.30%, 1.00%, and 2.00%, respectively, of the average daily net assets of Institutional Emerging Markets, Institutional Class shares of International Equity, and Institutional Class shares of Frontier Emerging Markets, respectively. For the year ended October 31, 2009, the Investment Advisor voluntarily waived and/or reimbursed $398,771, $107,630, and $132,525 respectively, in investment advisory fees from Institutional Emerging Markets, International Equity, and Frontier Emerging Markets, respectively.

In addition, the Fund has an administration agreement with State Street Bank and Trust, which provides certain accounting, clerical and bookkeeping services, corporate secretarial services, assistance in the preparation and filing of tax returns and reports to shareholders and the SEC, and the service of some State Street Bank and Trust employees as officers serving the Board of Directors. Under this agreement, Institutional Emerging Markets, International Equity, and Frontier Emerging Markets incurred $355,225, $388,387, and $72,070, respectively, for the year ended October 31, 2009.

State Street Bank and Trust serves as transfer agent and chief compliance officer, dividend disbursing agent and agent in connection with any accumulation, open-account or similar plans provided to the shareholders of the Portfolios.

The Fund, on behalf of the Portfolios, has agreements with various financial intermediaries and "mutual fund supermarkets", under which customers of these intermediaries may purchase and hold Portfolio shares. These intermediaries assess fees in consideration for providing certain distribution, account maintenance, record keeping and transactional services. In recognition of the savings of expenses to the Fund arising from the intermediaries' assumption of functions that the Fund would otherwise perform, such as providing sub-accounting and related shareholder services, each Portfolio or class is authorized, pursuant to a shareholder services plan, to pay to each intermediary up to 0.15% of its average daily net assets attributable to that intermediary (subject to the voluntary expense cap). The balance of the intermediaries' fees is paid by the Investment Advisor. Because of voluntary caps on the Portfolios' fees and expenses, the Investmen t Advisor paid a portion of the Portfolios' share of these fees during the year ended October 31, 2009.

4. Investment Transactions

Cost of purchases and proceeds from sales of investment securities, other than short-term investments, for the year ended October 31, 2009, were as follows for each Portfolio:

Portfolio	Purchase Cost of Investment Securities		Proceeds from Sales of Investment Securities
Institutional Emerging Markets	$	89,124,366	$	118,082,399
International Equity		64,509,209		48,099,945
Frontier Emerging Markets		4,112,665		3,450,053

The Portfolios are permitted to purchase or sell securities from or to certain other Harding Loevner portfolios under specified conditions outlined in procedures adopted by the Board of Directors of the Fund. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolios from or to another portfolio that is or could be considered an affiliate by virtue of having a common investment advisor complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the year ended October 31, 2009, Institutional Emerging Markets Portfolio engaged in securities sales of $4,909,112.

The cost of investments for federal income tax purposes and the components of net unrealized appreciation on investments at October 31, 2009, for each of the Portfolios were as follows:

Portfolio	Unrealized Appreciation		Unrealized Depreciation			Net			Cost
Institutional Emerging Markets	$	25,884,945	$	(4,596,961	)	$	21,287,984		$	178,192,339
International Equity		74,040,383		(14,931,994	)		59,108,389			233,257,056
Frontier Emerging Markets		1,647,998		(1,880,845	)		(232,847	)		9,226,874

The unrealized appreciation (depreciation) on foreign currency for Institutional Emerging Markets, International Equity, and Frontier Emerging Markets was $(208,273), $11,134, and $(35,328), respectively, for the year ended October 31, 2009.

41

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

5. Distributions to Shareholders

During the year ended October 31, 2009, the tax character of distributions paid from ordinary income was $5,277,778, $3,260,397 and $15,259 for Institutional Emerging Markets, International Equity and Frontier Emerging Markets, respectively. The tax character of distributions paid from long term capital gains was $38,551,418 for International Equity.

During the year ended October 31, 2008, the tax character of distributions paid from ordinary income was $4,814,159 and $9,427,753 for Institutional Emerging Markets and International Equity, respectively. The tax character of distributions paid from long term capital gains was $4,958,355 and 26,554,287 for Institutional Emerging Markets and International Equity, respectively.

As of the components of accumulated earnings/(deficit) on a tax basis were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Capital and Other Losses			Unrealized Appreciation (Depreciation)*			Total Accumulated Earnings/(Deficit)
Institutional Emerging Markets	$	1,100,413	$	—	$	(43,425,611	)	$	21,079,711		$	(21,245,487	)
International Equity		2,365,492		—		(11,703,675	)		59,119,523			49,781,340
Frontier Emerging Markets		127,836		—		(1,577,373	)		(268,175	)		(1,717,712	)

*  The difference between book basis and tax basis net unrealized appreciation of investment is attributable primarily to the tax deferral of losses on certain sales of securities.

At October 31, 2009, Institutional Emerging Markets had $13,631,817 available as capital loss carryforwards which expire in 2016 and $29,793,794 available as capital loss carryforwards which expire in 2017. International Equity had $11,703,675 available as capital loss carryforwards which expire in 2017. Frontier Emerging Markets had $5,978 available as capital loss carryforwards which expire in 2016 and $1,571,395 available as capital loss carryforwards which expire in 2017.

Primarily as a result of differing book/tax treatment of foreign currency transactions and foreign capital gain tax expenses, the Fund made reclassifications among certain capital accounts. The reclassifications have no impact on the net assets of the Portfolios. As of October 31, 2009, the following reclassifications were made to the Statement of Net Assets.

Portfolio	Paid-in-Capital		Accumulated Undistributed Net Realized Gain/Loss on Investment & Foreign Currency Related Transactions		Accumulated Undistributed Net Investment Income
Institutional Emerging Markets	$	—	$	217,193	$	(217,193	)
International Equity		—		71,194		(71,194	)
Frontier Emerging Markets		—		17,724		(17,724	)

6. Foreign Exchange Contracts

The Portfolios, on occasion, enter into forward foreign exchange contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings. A forward foreign exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the cost of the original contracts and the closing of such contracts is included in net realized gains or losses on foreign currency-related transactions. Fluctuations in the value of forward foreign exchange contracts are recorded for book purposes as unrealized appreciation or depreciation on assets and liabilities denominated in foreign currencies by the Portfolios. The Portfolios are also exposed to credit risk associated with counterparty nonperformance on these forward foreign exchange contracts which is typically limited to the unrealized gain on each open con tract.

The Portfolios enter into foreign currency transactions on the spot markets in order to pay for foreign investment purchases or to convert to dollars the proceeds from foreign investment sales or coupon interest receipts. The Portfolios held no open forward foreign currency exchange contracts on October 31, 2009.

42

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

7. Capital Share Transactions

Transactions in capital stock for Institutional Emerging Markets were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		4,770,185		$	45,649,131			5,039,793		$	86,978,082
Shares issued upon reinvestment of dividends		471,426			4,205,119			448,651			8,746,852
		5,241,611			49,854,250			5,488,444			95,724,934
Shares redeemed		(4,136,224	)		(42,223,167	)		(2,833,224	)		(32,362,942	)
Net increase		1,105,387		$	7,631,083			2,655,220		$	63,361,992

Transactions in capital stock for International Equity - Investor Class were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		2,406,941		$	24,524,810			440,350		$	7,489,395
Shares issued upon reinvestment of dividends		256,261			2,337,103			68,854			1,330,261
		2,663,202			26,861,913			509,204			8,819,656
Shares redeemed		(551,993	)		(5,664,340	)		(215,285	)		(3,696,097	)
Net increase		2,111,209		$	21,197,573			293,919		$	5,123,559

Transactions in capital stock for International Equity - Institutional Class were as follows for the periods indicated:

	Year Ended October 31, 2009						Year Ended October 31, 2008
	Shares			Amount			Shares			Amount
Shares sold		3,607,416		$	37,754,041			814,257		$	13,994,514
Shares issued upon reinvestment of dividends		4,274,140			38,985,473			1,599,857			30,928,420
		7,881,556			76,739,514			2,414,114			44,922,934
Shares redeemed		(3,062,169	)		(29,797,831	)		(3,678,345	)		(66,170,127	)
Net increase (decrease)		4,819,387		$	46,941,683			(1,264,231	)	$	(21,247,193	)

Transactions in capital stock for Frontier Emerging Markets - Institutional Class were as follows for the periods indicated:

	Year Ended October 31, 2009						Period From May 27, 2008 to October 31, 2008 (A)
	Shares			Amount			Shares		Amount
Shares sold		553,912		$	2,540,000			978,369	$	8,698,504
Shares issued upon reinvestment of dividends		1,017			4,708			—		—
		554,929			2,544,708			978,369		8,698,504
Shares redeemed		(90,850	)		(454,197	)		—		—
Net increase		464,079		$	2,090,511			978,369	$	8,698,504

(A)  Institutional Class shares commenced operations on May 27, 2008.

Redemptions made within 90 days of purchase may be subject to a redemption fee equal to 2% of the amount redeemed. For the year ended October 31, 2009, Institutional Emerging Markets and International Equity - Institutional Class received $35,508 and $9,202, respectively, in redemption fees related to transactions in shares of common stock as disclosed in the Portfolios' Statements of Changes in Net Assets. For the year ended October 31, 2009, Frontier Emerging Markets did not receive any redemption fees.

43

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

October 31, 2009

8. Concentration of Ownership

At October 31, 2009, the percentage of total shares outstanding held by record shareholders each owning 10% or greater of the aggregate total shares outstanding for each Portfolio or for the share classes listed of each Portfolio was as follows:

	No. of Shareholders		% Ownership
Institutional Emerging Markets		2		21	%
International Equity		2		41	%
Frontier Emerging Markets		3		94	%*

*  Represents omnibus position of broker-dealer representing numerous shareholder accounts.

Investment activities of these shareholders may have a material effect on the Portfolios.

9. Repurchase Agreements

Each Portfolio may enter into repurchase agreements under which a bank or securities firm that is a primary or reporting dealer in U.S. Government securities agrees, upon entering into a contract, to sell such securities to a Portfolio and repurchase such securities from such Portfolio at a mutually agreed upon price and date.

Each Portfolio may engage in repurchase transactions with parties selected on the basis of such party's creditworthiness. Securities purchased subject to repurchase agreements must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Portfolio will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Portfolio maintains the right to sell the underlying securities at market value and may claim any resulting loss against the seller.

10. Concentration of Risk

Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in U.S. issuers. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities. These risks are greater with respect to securities of issuers located in emerging market countries in which Institutional Emerging Markets, International Equity, and Frontier Emerging Markets are authorized to invest.

11. Line of Credit

The Fund participates in a $50 million line of credit agreement with State Street Bank and Trust. Borrowings will be made solely to facilitate the handling of redemptions or unusual or unanticipated short-term cash requirements. Because several Portfolios participate there is no assurance that an individual Portfolio will have access to the entire $50 million at any particular time. Borrowings for International Equity are limited to the lesser of the remaining available credit or 25% of net assets. Borrowings for Institutional Emerging Markets and Frontier Emerging Markets are limited to the lesser of the remaining available credit or 15% of net assets. Interest is charged to each Portfolio based on its borrowings at an amount above the Federal Funds rate. In addition, a commitment fee computed at an annual rate of 0.10% on the line of credit is allocated among the Portfolios. During the year ended October 31, 2009, Institutional Emerging Ma rkets had borrowings on three days, the maximum balance being $4,034,152, at an average weighted interest rate of 1.20%; International Equity Portfolio had borrowings on one day, the maximum balance being $66,185, at an average weighted interest rate of 0.85%; and Frontier Emerging Markets had borrowings on two days, the maximum balance being $115,131, at an average weighted interest rate of 0.85%.

12. Subsequent Event

In accordance with the provisions set forth in FASB Accounting Standards Codification No. 855, "Subsequent Events," adopted by the Fund, Management has evaluated the possibility of subsequent events existing in the Portfolios' financial statements through December 21, 2009, the date the financial statements were issued. Management has determined that there are no subsequent events that would require disclosure in the Portfolios' financial statements through this date.

44

Harding, Loevner Funds, Inc.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
Harding, Loevner Funds, Inc.

We have audited the accompanying statements of net assets of the Harding, Loevner Funds, Inc. (comprising, the Frontier Emerging Markets Portfolio, International Equity Portfolio, and the Institutional Emerging Markets Portfolio), (collectively the "Portfolios") as of October 31, 2009, and the related statements of operations for the year then ended, statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the four-year period then ended. These financial statements and financial highlights are the responsibility of the Portfolios' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Portfolios for the year or period in the year ended October 31, 2005 were audited by other auditors whose report dated December 6, 2005, expre ssed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Portfolios of the Harding, Loevner Funds, Inc. as of October 31, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania
December 21, 2009

45

Harding, Loevner Funds, Inc.

Supplemental Tax Information

(unaudited)

During the year ended October 31, 2009, none of the Portfolios designated a percentage of distributions from net investment income as qualifying for the dividend received deduction for corporations.

Institutional Emerging Markets, International Equity, and Frontier Emerging Markets paid qualifying foreign taxes of $327,744, $456,565, and $16,215, and earned $4,105,529, $5,726,299 and $232,387 from foreign source income during the year ended October 31, 2009, respectively. Pursuant to Section 853 of the Internal Revenue Code, Institutional Emerging Markets, International Equity and Frontier Emerging Markets designated $0.0214, $0.0185 and $0.0112 per share as foreign taxes paid and $0.2680, $0.2316 and $0.1611 per share as income earned from foreign sources for the year ended October 31, 2009, respectively.

Institutional Emerging Markets, International Equity, and Frontier Emerging Markets had qualifying dividend income of $1,964,127, $3,262,669 and $109,313 respectively, during the year ended October 31, 2009.

Pursuant to Section 852 of the Internal Revenue Code, International Equity designated $38,551,418 as long term capital gain dividends for the year ended October 31, 2009.

46

Harding, Loevner Funds, Inc.

Directors and Principal Officers of the Fund

(unaudited)

Disinterested Directors:

Name, Address and Age	Position with the Fund	Term of Office and Length of Time Served*	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen By Director		Other Directorships Held by Director
William E. Chapman, II c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 68	Director	Indefinite; Director since 2008	Longboat Retirement Planning Solutions (Consulting Firm), President and Owner, 1998-present; Hewitt Associates, LLC (consulting firm), part-time provider of retirement and investment education seminars, 2000-present; Bowdoin College, Trustee, 2002-present.		6	Trustee, The Managers Funds, (9 portfolios); Trustee, Managers AMG Funds (6 portfolios), Managers Trust I (10 portfolios) and Managers Trust II (6 portfolios); Trustee, Third Avenue Trust (4 portfolios); Trustee, Third Avenue Variable Trust (1 portfolio).
R. Kelly Doherty c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 51	Director	Indefinite; Director since 2004	Cayman Partners (private investment vehicles), Managing Partner, 1999-present.		6	L.P. Thebault & Co. (commercial printing); The Peck School
Charles Freeman c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 45	Director	Indefinite; Director since 2008	Cayman Partners (private investment vehicles), Managing Partner, 1999-present.		6	National Committee for U.S.-China Relations.
Jane A. Freeman c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 56	Director	Indefinite; Director since 1996; Chairperson of Audit Committee 2005-2008; Lead Non-Interested Director since 2008	Scientific Learning Corporation (Education Software), Executive Vice President and Chief Financial Officer, 2000-present; Finance & Business Development, Treasurer and Vice President, 1999-2000.		6	None
Samuel R. Karetsky c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 64	Director	Indefinite; Director since 1998	The Karetsky Group, LLC (Advisory Firm), Managing Member, 2003-present; Wetherby Asset Management, Principal, 2004-present; European Investors Inc., Managing Director, 1998-2002		6	None

47

Harding, Loevner Funds, Inc.

Directors and Principal Officers of the Fund (continued)

(unaudited)

Name, Address and Age	Position with the Fund	Term of Office and Length of Time Served*	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen By Director		Other Directorships Held by Director
Eric Rakowski c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 51	Director	Indefinite; Director since 2008	University of California at Berkeley School of Law, Professor, 1990-present.		6	Trustee, The Managers Funds, (9 portfolios); Trustee, Managers AMG Funds (6 portfolios), Managers Trust I (10 portfolios) and Managers Trust II (6 portfolios); Trustee, Third Avenue Trust (4 portfolios); Trustee, Third Avenue Variable Trust (1 portfolio).
Raymond J. Clark** c/o Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 73	Director Emeritus	1 year; Director Emeritus since 2009	The Woodrow Wilson National Fellowship Foundation, Treasurer, 08/04-present; Wellesley College, Interim Vice President of Finance and Treasurer, 10/03-6/04; Princeton University, Treasurer, 1987-2001.		6	Princeton Healthcare System

Interested Director:

David R. Loevner*** Harding Loevner LP 50 Division Street, Fourth Floor Somerville, NJ 08876 Age, 55	Director, President and Chairman of the Board	Indefinite; Director, President and Chairman of the Board since 1996	Harding Loevner LP, President, 7/89-present; Parks Tennant Corporation (real estate), President, 1/01-present.	6	Director, Harding, Loevner Funds, plc (4 portfolios)
Jennifer M. Borggaard*** Affiliated Managers, Group, Inc. 600 Hale Street Prides Crossing, MA 01965 Age, 40	Director	Indefinite; Director since 2008	Affiliated Managers Group, Inc. ("AMG") (Asset Management Firm), Senior Vice President, 2007-present, Vice President, 2004-2007, Director and Senior Counsel, 2001-2004.	6	Director, DFD Fund of Funds, plc (4 portfolios)

*  Each director is elected to serve in accordance with the Articles of Incorporation and By-Laws of the Fund until his or her successor is duly elected and qualified.

**  Effective September 9, 2009, Mr. Clark retired as a voting member of the Board and was elected to the position of "Director Emeritus" with a one-year term.

***  David R. Loevner is considered an "interested person" of the Fund as defined in the Investment Company Act of 1940, as amended, because he serves as President of Harding Loevner LP, the Fund's investment advisor. Jennifer M. Borggaard is an interested person of the Fund because she is an officer of AMG.

48

Harding, Loevner Funds, Inc.

Directors and Principal Officers of the Fund (continued)

(unaudited)

Principal Officers of the Fund

Name, Address and Age	Position with the Fund	Term of Office and Length of Time Servedt	Principal Occupation(s) During Past Five Years
Richard Reiter Harding Loevner LP 50 Division Street, Fourth Floor Somerville, NJ 08876 Age, 43	Vice President	1 year ; Vice President since 2007	Harding Loevner LP, Chief Operating Officer 4/96-current.
Puran Dulani Harding Loevner LP 50 Division Street, Fourth Floor Somerville, NJ 08876 Age, 51	Chief Financial Officer and Treasurer	1 year; Chief Financial Officer and Treasurer since 2007	Harding Loevner LP, Chief of Operations and Accounting 3/02-present.
Ellen Blanchard State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 35	Anti-Money Laundering Compliance Officer	1 year; Anti-Money Laundering Compliance Officer since 2007	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Director and Senior Associate Counsel, 1/06-present; Senior Manager and Associate Counsel, 8/04-12/05; Manager and Associate Counsel 8/02-8/04; Product Manager, 8/99-8/02.
Donna M. Rogers State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 43	Chief Compliance Officer of the Funds	1 year; Chief Compliance Officer since 2007	State Street Bank & Trust Company, (formerly, Investors Bank & Trust Company), Senior Director, 2002-present.
Brendan J. O'Neill State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 41	Assistant Treasurer	1 year; Assistant Treasurer since 2004	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Unit Director 11/07-present, Director 1/05-10/07; Senior Manager 11/02-12/04; Manager 7/00-10/02.
Francine S. Hayes State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 41	Secretary	1 year; Secretary since 2008	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Vice President and Senior Counsel, from 2004-present; and Assistant Vice President and Counsel, 2001-2004.
Lori Renzulli Harding Loevner LP 50 Division Street Fourth Floor Somerville, NJ 08876 Age, 41	Assistant Secretary	1 year; Assistant Secretary since 2008	Harding Loevner LP, Chief Counsel and Chief Compliance Officer, 6/06-present; Met Life, Director, Corporate Ethics and Compliance, 1/06-5/06; CitiStreet Retirement Services, Vice President and Counsel, 7/89-12/05.
Brian C. Poole State Street Bank & Trust Company 200 Clarendon Street Boston, MA 02116 Age, 38	Assistant Secretary	1 year; Assistant Secretary since 2008	State Street Bank & Trust Company (formerly, Investors Bank & Trust Company), Vice President and Counsel, 3/08-present and Associate Counsel, 7/04-9/07

t  Officers are elected to hold such office until their successor is elected and qualified to carry out the duties and responsibilities of their office, or until he or she resigns or is removed from office.

The Fund's Statement of Additional Information contains additional information about the Directors of the Fund and is available, without charge, upon request, by calling 1-877-435-8105.

49

Harding, Loevner Funds, Inc.

Results of Written Consent of Shareholders of the Frontier Emerging Markets Portfolio

In April 2009, Harding, Loevner Funds, Inc. (the "Fund") sought approval via written consent from the shareholders of the Frontier Emerging Markets Portfolio (the "Portfolio") to (i) amend the Portfolio's fundamental investment limitation with respect to concentration of investments to permit the Portfolio to invest up to 35% of its assets in the securities of companies in any one industry, if, at the time of investment, that industry represents 20% or more of the Portfolio's benchmark index, currently the MSCI Frontier Markets Index and (ii) that if the Fund seeks the concurrence from the staff of the Division of Investment Management of the Securities and Exchange Commission (the "Staff") to further modify the fundamental investment restriction with respect to the Fund's concentration of investments, and the Staff concurs with the request, the fundamental investment restriction with respect to the Fund's concentration of investments will b e that the Fund may invest up to 50% of its total assets in the securities of companies in any one industry if, at the time of investment, that industry represents 20% or more of the Fund's benchmark index, currently the MSCI Frontier Emerging Markets Index.

Proposal 1

1,278,296.209 votes in favor
0 votes against
0 votes abstained

Proposal 2

1,278,296.209 votes in favor
0 votes against
0 votes abstained

50

Harding, Loevner Funds, Inc.

Supplemental Information

(unaudited)

Quarterly Form N-Q Portfolio Schedule

Each Portfolio will file its complete schedule of investments with the SEC on Form N-Q at the end of the first and third fiscal quarters within 60 days of the end of the quarter to which it relates. The Portfolios' Form N-Q will be available on the SEC's website at www.sec.gov and may also be reviewed and copied at the SEC's Public Reference Room whose telephone number is 1-800-SEC-0330. Additionally, they are available upon request by calling 1-877-435-8105.

Proxy Voting Record

The Fund's proxy voting record relating to the Portfolios' securities during the most recent 12-month period ended June 30 is available on the Fund's website at www.hardingloevnerfunds.com and on the SEC's website at www.sec.gov, on Form N-PX.

Proxy Voting Policies and Procedures

A description of the Fund proxy voting policies and procedures are located in the Statement of Additional Information and is available without charge, upon request, by calling 1-877-435-8105 or on the SEC's website at www.sec.gov.

51

Harding, Loevner Funds, Inc.

Officers & Directors and Other Pertinent Information

OFFICERS AND DIRECTORS

David R. Loevner

Director, President and Chairman of the
Board of the Funds

Jennifer M. Borggaard

Director of the Funds

William E. Chapman II

Director of the Funds

R. Kelly Doherty

Director of the Funds

Charles Freeman

Director of the Funds

Jane A. Freeman

Director of the Funds

Samuel R. Karetsky

Director of the Funds

Eric Rakowski

Director of the Funds

Raymond J. Clark

Director Emeritus of the Funds

Donna Rogers

Chief Compliance Officer of the Funds

Ellen Blanchard

Anti-Money Laundering Compliance
Officer of the Funds

Puran Dulani

Chief Financial Officer and Treasurer
for the Funds

Richard Reiter

Vice President of the Funds

Brendan J. O'Neill

Assistant Treasurer of the Funds

Francine S. Hayes

Secretary of the Funds

Lori Renzulli

Assistant Secretary of the Funds

Brian C. Poole

Assistant Secretary of the Funds

52

HARDING, LOEVNER FUNDS, INC.

INVESTMENT ADVISER	DISTRIBUTOR
Harding Loevner LP	Quasar Distributors, LLC
50 Division Street, Fourth Floor	615 East Michigan Street
Somerville, NJ 08876-2943	Milwaukee, WI 53202-5210
ADMINISTRATOR, CUSTODIAN, FUND	INDEPENDENT REGISTERED PUBLIC
ACCOUNTANT, TRANSFER AGENT AND	ACCOUNTING FIRM
DIVIDEND DISBURSING AGENT
	KPMG LLP
State Street Bank and Trust Company	1601 Market Street
200 Clarendon Street, 16th Floor, JHT 1651	Philadelphia, PA 19103-2499
Boston, MA 02116
LEGAL COUNSEL
Dechert LLP
1095 Avenue of the Americas
New York, New York 10036-6797

This report is intended for shareholders of Harding, Loevner Funds, Inc. It may not be used as sales literature unless preceded or accompanied by the current Prospectus, which gives details about charges, expenses, investment objectives, risks and policies of the Portfolios.

HLFSANINST-G 12/09

Item 2. Code of Ethics.

As of October 31, 2009, the Registrant has adopted a code of ethics that applies to the Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer.  For the year ended October 31, 2009, there were no amendments to a provision of its code of ethics, nor were there any waivers granted from a provision of the code of ethics. A copy of its code of ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that the Registrant has one audit committee financial expert serving on its audit committee.  The audit committee financial expert serving on the Registrant’s audit committee is William Chapman, who is independent.

Item 4. Principal Accountant Fees and Services.

(a) AUDIT FEES:  The aggregate fees billed for each of the last two fiscal years for professional services rendered by KPMG LLP for the audit of the registrant annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $128,225 in 2009 and $124,500 in 2008.

(b) AUDIT-RELATED FEES:  The aggregate fees billed in each of the last two fiscal years for assurance and related services by KPMG LLP that are reasonably related to the performance of the audit of the registrant financial statements and are not reported under paragraph (a) of this Item are NONE.

(c) TAX FEES:  The aggregate fees billed in each of the last two fiscal years for professional services rendered by KPMG LLP for the review of domestic tax returns was $38,100 in 2009 and $25,500 in 2008.  The aggregate fees billed for each of the last two fiscal years for preparation of Indian income-tax returns prepared by Ernst Young LLP was $18,158 in 2009 and 59,844 in 2008.

(d) ALL OTHER FEES: The aggregate fees billed in each of the last two fiscal years for products and services provided by KPMG LLP, other than the services reported in paragraphs (a) through (c) of this Item are NONE.

(e)(1) Disclose the audit committee pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

A copy of the Audit Committee’s Pre-Approval Policies and Procedures is filed with this Form N-CSR under Item 12(c).

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) Not applicable

(c) 100%

(d) Not applicable

(f) Not applicable.

(g) Not applicable.

(h) Not applicable.

Item 5.  Audit Committee of Listed Registrants.

Not applicable.

Item 6.  Schedule of Investments

(a)Included as Part of the Reports to Shareholders filed as Item 1 herewith.

(b)        Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to this registrant.

Item 8. Portfolio Managers of Closed-end Management Investment Companies.

Not applicable to this registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to this registrant.

Item 10.  Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) were effective as of a date within 90 days prior to the filing date of this report, based on their evaluation of the effectiveness of the Registrant’s disclosure controls and procedures as of the Evaluation Date.

(b) There were no significant changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) SOX Code of Ethics is attached.

(a)(2) Section 302 Certification letters are attached.

(b) Section 906 Certifications are attached.

(c) Audit Committee Pre-Approval Policies and Procedures are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Harding, Loevner Funds, Inc.
By:	/s/ David R. Loevner
David R. Loevner, President
Date: January 7, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ David R. Loevner
David R. Loevner, President
Date: January 7, 2010
By:	/s/ Puran Dulani
Puran Dulani, Treasurer and Chief Financial Officer
Date: January 7, 2010

EX-99.CODEETH

Exhibit 99.CODEETH

N-CSR Exhibit for Item 12(a)(1): CODE OF ETHICS

HARDING, LOEVNER FUNDS, INC.

CODE OF ETHICS FOR SENIOR OFFICERS

PURSUANT TO THE SARBANES-OXLEY ACT OF 2002

INTRODUCTION

Section 406 of the Sarbanes-Oxley Act of 2002 directed the Securities and Exchange Commission (the “SEC”) to adopt rules requiring companies to disclose whether or not they have adopted a code of ethics for senior financial officers, and if not, why not.  The SEC has adopted rules requiring registered investment companies to make such disclosures.  These rules extend coverage to chief executive officers as well as senior financial officers, and require disclosure of waivers or substantive changes in any code.  This Code of Ethics (this “Code”) addresses these new requirements, and is different in nature and scope from the code of ethics that was previously adopted as required under Section 17(j) of the Investment Company Act of 1940, as amended (the “Investment Company Act”) and Rule 17j-1 thereunder, which focuses on personal trading activities.

POLICY STATEMENT

It is the policy of Harding, Loevner Funds, Inc. (the “Fund”) to conduct its affairs in accordance with all applicable laws and governmental rules and regulations.  This Code has been adopted by the Fund’s Board of Directors (the “Board”) and applies to the persons appointed by the Board as Chief Executive Officer, President, Chief Financial Officer, Treasurer and any persons performing similar functions, all as identified in Exhibit A, as modified from time to time (“Covered Officers”).  Each Covered Officer is personally responsible for adhering to the standards and restrictions imposed by applicable laws, rules and regulations, including those relating to affiliated transactions, accounting and auditing matters.  This Code is designed to deter wrongdoing and promote:

·honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

·full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund;

·compliance with applicable governmental laws, rules and regulations;

·prompt internal reporting to the appropriate person of violations of this Code; and

·accountability for adherence to this Code.

This Code covers a wide range of business practices and procedures.  It does not cover every issue that may arise, but it sets out basic principles to guide Covered Officers.  In this regard, each Covered Officer must:

·act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Fund’s policies;

·observe both the form and spirit of laws and governmental rules and regulations, and accounting standards;

·adhere to high standards of business ethics; and

·place the interests of the Fund and its shareholders before the Covered Officer’s own personal interests.

All activities of Covered Officers should be guided by and adhere to these fiduciary standards.  Covered Officers should not hesitate to use available resources whenever it is desirable to seek clarification.  Covered Officers are encouraged to consult with the designated senior compliance officer of the Fund’s investment adviser (“Adviser”) or the Fund’s administrator (the “Compliance Officer”), or other appropriate resources, when in doubt about the best course of action in a particular situation.

CONFLICTS OF INTEREST

Covered Officers should handle ethically actual and apparent conflicts of interest.  A “conflict of interest” occurs when an individual’s personal interests actually or potentially interfere with the interests of the Fund or its shareholders.  A conflict of interest can arise when a Covered Officer takes actions or has interests that may make it difficult to perform his duties as a Fund officer objectively and effectively.  Service to the Fund should never be subordinated to either a direct or indirect personal gain or advantage.

Certain conflicts of interests arise out of the relationships between Covered Officers and the Fund that already are subject to conflict of interest provisions in the Investment Company Act and the Investment Advisers Act of 1940.  For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as “affiliated persons” of the Fund.  The compliance programs and procedures of the Fund and the Adviser are designed to prevent, or identify and correct, violations of these provisions.  This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Actual or apparent conflicts may arise from, or as a result of, the contractual relationship between the Fund and the Adviser (or other service provider, e.g., administrator) of which the Covered Officers are also officers or employees.  It is recognized by the Board that the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on the Adviser and the Fund.  The Board recognizes that the participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Adviser, and is consistent with the Board’s

2

understanding of the performance by the Covered Officers of their duties as officers of the Fund. Nonetheless, each Covered Officer recognizes that, as an Officer of the Fund, he or she has a duty to act in the best interests of the Fund and its shareholders.

If a Covered Officer believes that his or her responsibilities as an officer or employee of the Adviser (or other service provider) are likely to materially compromise his or her objectivity or ability to perform the duties of his role as an officer of the Fund, he or she should consult with the Compliance Officer.  A Covered Officer should also consider whether to present the matter to the Board or an appropriate committee thereof.

In addition, each Covered Officer must:

·avoid conflicts of interest wherever possible;

·not use his or her personal influence or personal relationships to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

·not engage in personal, business or professional relationships or dealings which would impair his or her independence of judgment or adversely affect the performance of his or her duties in the best interests of the Fund and its shareholders; and

·not cause the Fund to take action, or fail to take action, for the personal benefit of the Covered Officer rather than the benefit the Fund.

Conflicts of interest may not always be evident and Covered Officers should consult with the Compliance Officer if they are uncertain about any situation.  Examples of possible conflicts of interest include:

Personal Business Transactions.  A Covered Officer may not cause the Fund to engage in any business transaction with his or her immediate family members or utilize the Covered Officer’s relationship with the Fund to cause any third party to engage in any business transaction with his or her immediate family members.  This provision is not intended, however, to restrict Covered Officers and their immediate family members from purchasing or redeeming shares of the Fund as long as such purchases or redemptions are made in accordance with the procedures, limitations and restrictions set forth in the Fund’s registration statement.  For the purposes of this code, the term “immediate family” means a Covered Officer’s spouse, sibling, child, parent, brother or sister in law, or a spouse, sibling, child or parent of any of the foregoing.

Use of Nonpublic or Confidential Information.  A Covered Officer may not use, or disclose to a third party, non-public or confidential information about the Fund or its activities or any of the Fund’s service providers for the purpose of personal gain by the Covered Officer or his or her immediate family members (including, but not limited to, securities transactions based on such information).

Outside Employment or Activities.  A Covered Officer may not engage in any outside employment or activity that interferes with his or her duties and responsibilities with respect to the

3

Fund or is otherwise in conflict with or prejudicial to the Fund.  A Covered Officer must disclose to the Compliance Officer any outside employment or activity that may constitute, or appear to constitute, a conflict of interest and obtain the requisite approval before engaging in such employment or activity.  Any such employment or activity is permissible only if it would not be inconsistent with the best interests of the Fund and its shareholders.

Gifts.  A Covered Officer may not accept any gift, entertainment, favor, or loan from any person or entity that does or seeks to do business with the Fund which goes beyond the courtesies generally associated with accepted business practice.  Non-cash gifts of a de minimis nature are considered to be within accepted business practices.  Cash gifts of any amount are strictly prohibited.  Entertainment (in the form of meals, tickets to events or otherwise) must be reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety.

Corporate Opportunities.  A Covered Officer may not exploit, for his or her own personal gain or the personal gain of immediate family members, opportunities that are discovered through the use of Fund property, information, or the Covered Officer’s position unless the opportunity is fully disclosed, in writing, to the Fund’s Board and the Board declines to pursue such opportunity on behalf of the Fund.

Other Situations.  Because other conflicts of interest may arise, it is not practical to list in this Code all possible situations that could result in a conflict of interest.  If a proposed transaction, interest, personal activity, or investment raises any questions, concerns or doubts, a Covered Officer should consult with the Compliance Officer before engaging in the transaction, making the investment or pursuing the interest or activity.

ACCURACY OF REPORTS, RECORDS AND ACCOUNTS

All Covered Officers are responsible for the accuracy of the records and reports that they are responsible for maintaining to enable the Fund to provide full, fair and accurate financial information and other disclosure to regulators and Fund shareholders.  Accurate information is essential to the Fund’s ability to meet legal and regulatory obligations.  The books and records of the Fund shall accurately reflect the true nature of the transactions they record in accordance with applicable law, generally accepted accounting principles and Fund policies.  The Covered Officers must not create false or misleading documents or accounting, financial or electronic records for any purpose, and must not direct any other person to do so.  If a Covered Officer becomes aware that information filed with the SEC, or state regulatory authority, or made available to the public contains any false or misleading information or omits to disclose necessary information, he shall promptly report it to the Compliance Officer for a determination as to what, if any, corrective action is necessary or appropriate.

No undisclosed or unrecorded account or fund shall be established for any purpose.  No false or misleading entries shall be made in the Fund’s books or records for any reason.  No disbursement of Fund assets shall be made without adequate supporting documentation or for any purpose other than as described in the Fund’s documents or contracts.

4

FUNDS DISCLOSURE CONTROLS AND PROCEDURES

Each Covered Officer is required to be familiar, and comply, with the Fund’s disclosure controls and procedures.  In addition, each Covered Officer having direct or supervisory authority regarding SEC filings or the Fund’s other public communications should, to the extent appropriate within his area of responsibility, consult with other Fund officers and take other appropriate steps regarding these disclosures with the goal of making full, fair, accurate, timely and understandable disclosure.

Each Covered Officer must:

·familiarize himself or herself with the disclosure requirements applicable to the Fund as well as the business and financial operations of the Fund;

·ensure that reasonable steps are taken within his or her areas of responsibility to promote full, fair, accurate, timely and understable disclosure in all regulatory filings, as well as when communicating with the Fund’s shareholders or the general public, in accordance with applicable law;

·consistent with his or her responsibilities, exercise appropriate supervision over and assist relevant Fund service providers in developing financial information and other disclosure that complies with relevant law and presents information in a clear, comprehensible and complete manner; and

·not knowingly misrepresent, conceal or omit required disclosures of, or cause others to do the same, facts about the Fund, whether to persons within or outside the Fund, including to outside counsel, independent auditors and governmental regulators.

CONFIDENTIAL INFORMATION

Covered Officers who have access to confidential information are not permitted to use or share that information for their personal benefit or for any other purpose except the conduct of the Fund’s business.  Covered Officers should maintain the confidentiality of information entrusted to them by the Fund or its shareholders, except when disclosure is authorized or legally mandated.  Confidential information includes all non-public information, including information that might be of use to competitors, or harmful to the Fund or its shareholders if disclosed.

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly by the Fund.  Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and the Fund’s outside counsel.

COMPLIANCE, REPORTING AND RECORDKEEPING

Compliance

Any Covered Officer who violates the provisions of this Code will be subject to disciplinary action and appropriate sanctions, up to and including termination.  Sanctions shall be imposed by the Fund’s Qualified Legal Compliance Committee (“QLCC”), subject to review by

5

the full Board, in their sole discretion.  Depending on the nature and severity of the violation, the Fund may refer such violation to appropriate authorities for civil action or criminal prosecution.

Reporting

Each Covered Officer shall:

·upon receipt of the Code or upon becoming a Covered Officer, sign and submit an Initial Acknowledgement (form attached) confirming that he/she has received, read and understands the Code;

·annually, sign and submit an Annual Acknowledgement (form attached) confirming that he or she has complied with the requirements of the Code;

·not retaliate against any Covered Officer or other person for making reports of violations in good faith; and

·notify the Compliance Officer of any actual or potential violation of this Code, whether the violation or potential violation was committed by the Covered Officer personally or by another Covered Officer.  Failure to do so is itself a violation of this Code.  The Fund will not retaliate against any Covered Officer for making reports of violations in good faith, but will not be precluded from taking appropriate disciplinary action for the violations themselves.

Except as described otherwise below, the Compliance Officer is authorized to apply this Code to situations presented to it and has the authority to interpret this Code in any particular situation.  The Compliance Officer shall take all action it considers appropriate to investigate any actual or potential violations reported to it, and the Compliance Officer is authorized and encouraged to consult, as appropriate, with the QLCC.  The Fund’s QLCC is responsible for granting waivers from the terms and provisions of this Code, as it deems appropriate.

Recordkeeping

The Fund will maintain and preserve for a period of not less than six (6) years from the date such action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the QLCC and/or Board: (i) that provided the basis for any amendment or waiver to this Code, and (ii) relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the QLCC and/or Board.

WAIVERS OF PROVISIONS OF THE CODE

A waiver of any provision of the Code shall be requested whenever there is a reasonable likelihood that a contemplated action will violate the Code.  A “waiver” is defined as the approval by the Fund of a material departure from any provision of the Code.

The process of requesting a waiver shall consist of the following steps:

6

·The Covered Officer shall set forth a request for waiver in writing.  The request shall describe the conduct, activity or transaction for which the Covered Officer seeks a waiver, and shall briefly explain the reason for engaging in the conduct, activity or transaction.

·The determination with respect to the waiver shall be made in a timely fashion by the Compliance Officer, in consultation with the Fund’s outside counsel, and submitted to the Board’s QLCC for review and approval.(1)

·The decision with respect to the waiver requested shall be documented and kept in the Fund’s records for the appropriate period mandated by applicable law or regulation.

To the extent required by applicable law, waivers (including “implicit waivers”) shall be publicly disclosed on a timely basis.  An “implicit waiver” is defined as the Fund’s failure to take action within a reasonable period of time regarding a material departure from a provision of the Code that has been made known to an “executive officer” of the Fund.  For this purpose, an “executive officer” is the Fund’s President or Chief Executive Officer, Vice President (who is in charge of a principal policymaking function), or any other person who performs similar policymaking functions for the Fund.  If a material departure from a provision of this Code is known only by the Covered Person that has caused the material departure from the Code, the material departure from the Code will not be considered to have been made known to an executive officer of the Fund for purposes of deciding whether there has been an implicit waiver.

DISCLOSURE

The Fund must disclose this Code, any substantive amendments and any waivers or implicit waivers by: (i) filing with the SEC a copy of the Code, any such amendments and waivers or implicit waivers in the Fund’s annual report on Form N-CSR; or (ii) posting the text of the Code, any such amendments and waivers or implicit waivers on the Fund’s Internet website and disclosing in each report on Form N-CSR, its Internet address and the fact that it has posted the Code on the website; or (iii) undertaking in each report on Form N-CSR to provide to any person without charge, upon request, a copy of this Code, any such amendments and waivers or implicit waivers and explain the manner in which such request may be made.

(1)If the Covered Officer requesting a waiver is the Compliance Officer, then the determination with respect to the waiver shall be made by the Fund’s Chief Executive Officer, in consultation with the Fund’s outside counsel, and submitted to the QLCC for review and approval.

7

AMENDMENTS TO THE CODE

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board.  The Covered Officers and the Compliance Officer are encouraged to recommend improvements to this Code for the consideration and approval of the Board.

Adopted:  September 11, 2003

8

EXHIBIT A

“Covered Officers” covered by this Code of Ethics for Senior Officers:

David R. Loevner, President and Chairman of the Board

Puran Dulani, Chief Financial Officer and Treasurer

Current as of: March 2007

A-1

INITIAL ACKNOWLEDGEMENT

I acknowledge that I have received and read a copy of the Code of Ethics for Senior Officers (the “Code”) and that I understand it.  I further acknowledge that I am responsible for understanding and complying with the policies set forth in the Code during my tenure as a Covered Officer, as defined in the Code.

I also acknowledge my responsibility to report any violation of the Code to the Compliance Officer, as defined in the Code.

I further acknowledge that the policies contained in the Code are not intended to create any contractual rights or obligations, express or implied.  I also understand that, consistent with applicable law, the Fund has the right to amend, interpret, modify or withdraw any of the provisions of the Code at any time in its sole discretion, with or without notice.

Covered Officer Name and Title:
	(please print)

Signature Date

Please return this completed form to _________________________________ within one week from the date of your receipt of a request to review these documents.

ANNUAL ACKNOWLEDGEMENT

I acknowledge that I have received and read a copy of the Code of Ethics for Senior Officers (the “Code”) and that I understand it.  I further acknowledge that I am responsible for understanding and complying with the policies set forth in the Code during my tenure as a Covered Officer, as defined in the Code.

I also acknowledge that I have fully complied with the terms and provisions of the Code during the period of time since the most recent Initial or Annual Acknowledgement provided by me.

I further acknowledge that the policies contained in the Code are not intended to create any contractual rights or obligations, express or implied.  I also understand that, consistent with applicable law, the Fund has the right to amend, interpret, modify or withdraw any of the provisions of the Code at any time in its sole discretion, with or without notice.

Covered Officer Name and Title:
	(please print)

Signature Date

Please return this completed form to _________________________________ within one week from the date of your receipt of a request to complete and return it.

EX-99.CERT

EXHIBIT 99.CERT

N-CSR Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS

I, David R. Loevner, certify that:

1.I have reviewed this report on Form N-CSR of Harding, Loevner Funds, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covering the report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	January 7, 2010	/s/ David R. Loevner
		David R. Loevner	President

N-CSR Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS

I, Puran Dulani, certify that:

1.I have reviewed this report on Form N-CSR of Harding, Loevner Funds, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	January 7, 2010	/s/ Puran Dulani
		Puran Dulani	Treasurer and Chief Financial Officer

EX-99.906CERT

EXHIBIT 99.906.CERT

N-CSR Exhibit for Item 12(b): SECTION 906 CERTIFICATIONS

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Certified Shareholder Report of Harding, Loevner Funds, Inc. (the “Registrant”) on Form N-CSR for the period ending October 31, 2009, as filed with the Securities and Exchange Commission on the date hereof (“the Report”), the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	January 7, 2010	/s/ David R. Loevner
		David R. Loevner	President
Date:	January 7, 2010	/s/ Puran Dulani
		Puran Dulani	Treasurer and Chief Financial Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the “Commission”) or its staff upon request.

This certification is being furnished to the Commission solely pursuant to Rule 30a.2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.

EX-99.B(C)

Exhibit 99.b(c)

N-CSR Exhibit for Item 12(c): AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES

PRE-APPROVAL POLICIES AND PROCEDURES

as adopted by the

AUDIT COMMITTEE

of

HARDING, LOEVNER FUNDS, INC. (the “Fund”)

The Sarbanes-Oxley Act of 2002 (“Act”)(2) and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”)(3) require that the Fund’s Audit Committee (the “Committee”) pre-approve all audit services and non-audit services provided to the Fund by its independent accountant ( the “Auditor”), as well as all non-audit services provided by the Auditor to (1) the Fund’s investment adviser and (2) affiliates of the adviser that provide ongoing services to the Fund (collectively, the “Service Affiliates”) if the services directly impact the Fund’s operations and financial reporting.

The following policies and procedures govern the ways in which the Committee will pre-approve audit and various categories of non-audit services that the Auditor provides to the Fund and to Service Affiliates.  These policies and procedures do not apply in the case of audit services that the Auditor provides to Service Affiliates, nor do they apply to services that an audit firm other than the Auditor provides to such entities.

These policies and procedures comply with the requirements for pre-approval, but also provide a mechanism by which Fund Management may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.  Pre-approval of non-audit services may be achieved through a combination of the procedures described in Sections C and D below.

A. General

1.The Committee must pre-approve all audit services and non-audit services that the Auditor provides to the Fund.

2.The Committee must pre-approve any engagement of the Auditor to provide non-audit services to any Service Affiliate during the period of the Auditor’s engagement to provide audit services to the Fund, if the non-audit services to the Service Affiliate directly impact the Fund’s operations and financial reporting.

B. Pre-Approval of Audit Services to the Fund

1.The Committee shall approve the engagement of an auditor to certify the Fund’s financial statements for each fiscal year (the “Engagement”).  The approval of the Engagement shall not be delegated to a Designated Member. (See Section D below.)  In approving the Engagement, the Committee shall obtain, review and consider sufficient information concerning the proposed Auditor to enable the Committee to make a reasonable evaluation

(2)Pub. L. 107-204, 116 Stat. 745 (2002).

(3)Sec. Act Rel. No. 8183 (Mar. 20, 2003).

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of the Auditor’s qualifications and independence.  The Committee also shall consider the Auditor’s proposed fees for the engagement, in light of the scope and nature of the audit services that the Fund will receive.

2.The Committee shall report to the Board of Directors (the “Board”) regarding its approval of the Engagement and of the proposed fees for the Engagement, and the basis for such approval.

3.Unless otherwise in accordance with applicable law, the Engagement, in any event, shall require that the Auditor be selected by the vote, cast in person, of a majority of the members of the Fund’s Board who are not interested persons of the Fund (as defined in Section 2(a)(19) of the Investment Company Act of 1940) (“Independent Directors”).

C. Pre-Approval of Non-Audit Services to the Fund and to Service Affiliates — by Types of Services

1.The Committee may pre-approve types of non-audit services to the Fund and its Service Affiliates pursuant to this Section C.

2.Annually, at such time as the Committee considers the Engagement of the Auditor, Fund Management, in consultation with the Auditor, may provide to the Committee, for its consideration and action, the following: (a) a list of those types of non-audit services, if any, that the Fund may request from the Auditor during the fiscal year; and (b) a list of those types of non-audit services directly impacting the Fund’s operations and financial reporting that Service Affiliates may request from the Auditor during the fiscal year.

3.The lists submitted to the Committee shall describe the types of non-audit services in reasonable detail and shall include an estimated budget (or budgeted range) of fees where possible and such other information as the Committee may request.

4.The Committee’s pre-approval of the types of non-audit services submitted pursuant to this Section C shall constitute authorization for Fund Management to utilize the Auditor for the types of non-audit services so pre-approved, if needed or desired during the fiscal year.

5.A list of the types of non-audit services pre-approved by the Committee pursuant to this Section C will be distributed to management of the Service Affiliates and the appropriate partners of the Auditor.  Periodically, the Auditor will discuss with the Committee those non-audit services that have been or are being provided pursuant to this Section C.

D. Pre-Approval of Non-Audit Services to the Fund and to Service Affiliates — Project-by-Project Basis

1.The Committee also may pre-approve non-audit services on a project-by-project basis pursuant to this Section D.

2.Fund Management, in consultation with the Auditor, may submit either to the Committee or to the Designated Member, as provided in this Section D, for their consideration and action, a pre-approval request identifying one or more non-audit service projects.  The request so submitted shall describe the project or projects in reasonable detail and shall include an estimated budget (or budgeted range) of fees and such other information as the Committee or Designated Member shall request.

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3.The Committee, from time to time, may designate one or more of its members who are Independent Directors (each a “Designated Member”) to consider, on the Committee’s behalf, any non-audit services, whether to the Fund or to any Service Affiliate, that have not been pre-approved by the Committee.  The Designated Member also shall review, on the Committee’s behalf, any proposed material change in the nature or extent of any non-audit services previously approved.  Fund Management, in consultation with the Auditor, shall explain why such non-audit services or material change in non-audit services are necessary and appropriate and the anticipated costs thereof.

4.The Designated Member will review the requested non-audit services or proposed material change in such services and will either:

a.pre-approve, pre-approve subject to conditions, or disapprove any such requested services, or any proposed material change in services, whether to the Fund or to a Service Affiliate; or

b.refer such matter to the full Committee for its consideration and action.

In considering any requested non-audit services or proposed material change in such services, the Designated Member shall take into account any restrictions placed by the Committee on his or her pre-approval authority.

5.The Designated Member’s pre-approval (or pre-approval subject to conditions) of the requested non-audit service or proposed material change in service pursuant to this Section D shall constitute authorization for Fund Management or the Service Affiliate, as the case may be, to utilize the Auditor for the non-audit services so pre-approved.  Any action by the Designated Member in approving a requested non-audit service shall be presented for ratification by the Committee not later than at its next scheduled meeting.  If the Designated Member does not approve the Auditor providing the requested non-audit service, the matter may be presented to the full Committee for its consideration and action.

E. Amendment; Annual Review

1.     The Committee may amend these procedures from time to time.

2.     These procedures shall be reviewed annually by the Committee.

F. Recordkeeping

1.The Fund shall maintain a written record of all decisions made by the Committee or by a Designated Member pursuant to these procedures, together with appropriate supporting material.

2.In connection with the approval of any non-audit service pursuant to the de minimis exception(4) provided in the Rules, a record shall be made indicating that each of the conditions for this exception, as set forth in the Rule, have been satisfied.

(4)   This exception applies if: (1) the aggregate amount of the non-audit services is not more than five percent of the total amount of fees paid by the Fund to the Auditors during the fiscal year in which the non-audit services are provided; (2) at the time of the engagement, the Fund did not recognize the services to be non audit services; and (3) the services are approved by the Committee prior to the completion of the audit.

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3.A copy of these Procedures and of any amendments to these Procedures shall be maintained and preserved permanently in an easily accessible place.  The written records referred to in paragraph 1 and 2 of this Section F shall be maintained and preserved for six years from the end of the fiscal year in which the actions recorded were taken, for at least the first two years in an easily accessible location.

Adopted:  December 7, 2006

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