Harding Loevner Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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:	10/31/2008
Date of reporting period:		04/30/2008

Item 1. Reports to Stockholders.

Semi-Annual Report  April 30, 2008

Family of Mutual Funds

Investor Class

n  Emerging Markets Portfolio

n  International Equity Portfolio

n  International Small Companies Portfolio

n  Global Equity Portfolio

Harding, Loevner Funds, Inc.
P.O. Box 642, OPS 22
Boston, MA 02117-0642

1.877.435.8105 • www.hardingloevner.com

Harding, Loevner Funds, Inc.

Table of Contents

Expense Example	3
Performance Information and Statements of Net Assets
Emerging Market Portfolio	4
International Equity Portfolio	9
International Small Companies Portfolio	14
Global Equity Portfolio	19
Statements of Operations	23
Statements of Changes in Net Assets	25
Financial Highlights	29
Notes to Financial Statements	33
Approval of Investment Adviser Agreement for International Small Companies Portfolio	40
Supplemental Information	42

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

April 30, 2008 (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 November 1, 2007 and held for the entire six month period from November 1, 2007 to April 30, 2008 for the Emerging Markets Portfolio, International Equity Portfolio, Investor Class and International Small Companies from November 1, 2007 to April 30, 2008.

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 November 1, 2007		Ending Account Value April 30, 2008		Annualized Expense Ratio			Expenses Paid During Period* (November 1, 2007 to April 30, 2008)
Emerging Markets Portfolio
Actual	$	1,000.00	$	922.80		1.58	%	$	7.54
Hypothetical (5% annual return before expenses)		1,000.00		1,017.02		1.58	%		7.91
International Equity Portfolio, Investor Class
Actual		1,000.00		964.30		1.22	%		5.97
Hypothetical (5% annual return before expenses)		1,000.00		1,018.78		1.22	%		6.14
International Small Companies Portfolio
Actual		1,000.00		844.20		1.75	%		8.02
Hypothetical (5% annual return before expenses)		1,000.00		1,016.16		1.75	%		8.77
Global Equity Portfolio
Actual		1,000.00		942.80		1.25	%		6.04
Hypothetical (5% annual return before expenses)		1,000.00		1,018.65		1.25	%		6.27

*  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 (182 days), and divided by the number of days in the year (366 days).

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Airlines		0.6	%
Automotive		0.8
Banks		12.4
Beverages, Food & Tobacco		3.7
Chemicals		4.5
Commercial Services & Supplies		6.7
Communications		10.4
Electric Utilities		2.5
Electrical Equipment		7.8
Energy Equipment & Services		2.7
Engineering & Construction		1.0
Financial Services		3.3
Food Retailers		2.0
Forest Products & Paper		1.4
Home Construction, Furnishings & Appliances		2.8
Insurance		1.7
Media		0.8
Metals & Mining		9.3
Oil & Gas		13.6
Pharmaceuticals		1.9
Real Estate		1.2
Retailers		1.1
Semiconductors		1.0
Textiles & Apparel		1.1
Transportation		3.9
Total Investments		98.2
Other Assets Less Liabilities		1.8
Net Assets		100.0	%

See Notes to Financial Statements
4

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 97.6%
Brazil - 16.1%
All America Latina Logistica SA (Transportation)		1,813,300	$	23,672,608
Anhanguera Educacional Participacoes SA (Commercial Services & Supplies)		581,353		9,688,051
Aracruz Celulose SA - Sponsored ADR (Forest Products & Paper)†		403,971		32,560,063
Banco Itau Holding Financeira SA - ADR (Banks)†		1,613,752		45,265,744
Companhia de Bebidas das Americas - Preferred ADR (Beverages, Food & Tobacco)		270,700		19,842,310
Companhia Vale do Rio Doce - ADR (Metals & Mining)†		2,287,100		89,379,868
Cyrela Brazil Realty SA (Real Estate)		1,735,092		28,946,036
Petroleo Brasileiro SA - ADR (Oil & Gas)†		759,342		92,199,306
Usinas Siderurgicas de Minas Gerais SA (Metals & Mining)		401,550		20,534,081
Wilson Sons Ltd. - ADR (Commercial Services & Supplies)*		872,606		10,499,410
				372,587,477
Chile - 1.4%
Banco Santander - ADR (Banks)†		363,744		19,103,835
Lan Airlines SA - Sponsored ADR (Airlines)†		973,000		12,872,790
				31,976,625
China - 12.1%
ASM Pacific Technology Ltd. (Electrical Equipment)†		2,990,500		20,386,201
China Communications Construction Co., Ltd. - Class H (Engineering & Construction)		9,748,000		23,202,359
China Mengniu Dairy Co., Ltd. (Food Retailers)		5,732,000		17,232,112
China Merchants Holdings International Co., Ltd. (Transportation)		7,343,600		37,479,174
China Mobile Ltd. - Sponsored ADR (Communications)†		722,461		62,362,833
China Petroleum & Chemical Corp. - ADR (Oil & Gas)†		199,647		21,464,049
China Resources Enterprise (Financial Services)		7,226,000		26,381,494
China Shenhua Energy Co., Ltd. - Class H (Energy Equipment & Services)		10,098,000		46,627,563
Jiangsu Expressway Co., Ltd. - Class H (Commercial Services & Supplies)		26,454,000		24,665,085
				279,800,870
Colombia - 0.8%
BanColombia SA - Sponsored ADR (Banks)†		484,000		19,321,280
Czech Republic - 1.6%
CEZ (Electric Utilities)*		493,100		36,613,102
Egypt - 2.0%
Orascom Construction Industries (Commercial Services & Supplies)		292,890		47,140,956
India - 7.5%
Bharti Airtel-Ventures Ltd. (Communications)*		2,387,608		53,072,337
Container Corp. of India Ltd. (Transportation)		553,232		11,751,980
HDFC Bank Ltd. - ADR (Banks)†		277,797		31,335,502
ICICI Bank Ltd. (Banks)		869,700		18,825,977
ICICI Bank Ltd. - Sponsored ADR (Banks)		140,000		6,242,600
Larsen & Toubro Ltd. (Commercial Services & Supplies)		294,000		21,747,576
NTPC Ltd. (Electric Utilities)		4,592,500		22,256,343
Power Finance Corp. (Financial Services)		1,793,600		7,203,086
				172,435,401
Indonesia - 3.3%
PT Bank Danamon Indonesia Tbk (Banks)		27,284,000		16,801,208
PT Bank Rakyat Indonesia (Banks)		28,342,500		18,219,638

See Notes to Financial Statements
5

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Indonesia (continued)
PT Bumi Resources Tbk (Energy Equipment & Services)		22,588,000	$	16,214,785
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		637,750		24,757,455
				75,993,086
Israel - 4.5%
Israel Chemicals Ltd. (Chemicals)		4,354,900		79,879,372
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		534,100		24,985,198
				104,864,570
Luxembourg - 0.8%
Millicom International Cellular SA (Communications)†,*		177,600		19,182,576
Malaysia - 3.1%
IOI Corp. Berhad (Chemicals)		10,186,000		23,557,745
MISC Berhad (Transportation)		6,017,900		17,510,538
Sime Darby Berhad (Commercial Services & Supplies)*		10,221,139		31,108,323
				72,176,606
Mexico - 4.6%
America Movil SA de CV, Series L - ADR (Communications)		555,200		32,179,392
Grupo Financiero Banorte SA de CV, Class O (Financial Services)†		6,449,540		28,476,053
Urbi Desarrollos Urbanos SA de CV (Home Construction, Furnishings & Appliances)†,*		6,935,700		22,251,107
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		597,307		24,489,587
				107,396,139
Philippines - 0.4%
Philippine Long Distance Telephone Co. - Sponsored ADR (Communications)†		137,115		8,377,727
Poland - 3.3%
Bank Pekao SA (Banks)#		133,300		11,625,294
Central European Distribution Corp. (Beverages, Food & Tobacco)†,*		746,900		45,501,148
TVN SA (Media)		1,753,507		17,948,283
				75,074,725
Russia - 10.8%
Evraz Group SA - GDR, Reg. S (Metals & Mining)		575,300		59,341,606
Lukoil - Sponsored ADR (Oil & Gas)†		513,502		46,369,231
OAO Gazprom - Sponsored ADR, Reg S (Oil & Gas)		1,440,595		76,483,692
Sberbank of Russia (Banks)		7,033,900		22,779,721
Vimpel-Communications - Sponsored ADR (Communications)†		537,000		16,195,920
Wimm-Bill-Dann Foods - ADR (Food Retailers)		137,149		16,691,033
X 5 Retail Group NV - GDR (Food Retailers)*		361,800		12,570,852
				250,432,055
South Africa - 8.0%
Barloworld Ltd. (Home Construction, Furnishings & Appliances)		1,674,000		24,428,828
Impala Platinum Holdings Ltd. (Metals & Mining)		1,109,416		45,417,479
MTN Group Ltd. (Communications)		1,317,500		25,016,298
SABMiller plc (Beverages, Food & Tobacco)†		836,700		19,353,642
Sasol Ltd. (Oil & Gas)		790,820		44,879,658
Standard Bank Group Ltd. (Banks)		672,757		7,967,763
Steinhoff International Holdings Ltd. (Home Construction, Furnishings & Appliances)		7,686,463		18,823,506
				185,887,174
South Korea - 7.0%
Hankook Tire Co., Ltd. (Automotive)		1,180,000		18,076,505
Kookmin Bank - Sponsored ADR (Banks)		284,528		19,845,828

See Notes to Financial Statements
6

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
South Korea (continued)
MegaStudy Co., Ltd. (Commercial Services & Supplies)		33,100	$	10,877,599
Samsung Electronics Co., Ltd., GDR, Reg S (Electrical Equipment)		162,311		57,285,900
Samsung Electronics Co., Ltd., GDR, Reg S (Electrical Equipment)		56,559		14,305,352
Samsung Fire & Marine Insurance Co., Ltd. (Insurance)		185,700		40,433,494
				160,824,678
Taiwan - 6.0%
Delta Electronics (Electrical Equipment)		8,710,929		26,031,565
Far Eastern Textile Ltd. (Textiles & Apparel)		15,125,000		25,324,451
MediaTek Inc. (Semiconductors)		1,815,000		23,462,750
Synnex Technology International Corp. (Electrical Equipment)		12,185,000		32,511,493
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		13,908,158		30,307,789
				137,638,048
Thailand - 2.1%
PTT Exploration & Production PCL (Oil & Gas)		3,548,200		18,574,620
Siam Commercial Bank-Alien (Banks)†		11,005,500		30,888,978
				49,463,598
Turkey - 1.4%
Haci Omer Sabanci Holding AS (Financial Services)		3,824,700		14,258,413
Turkiye Is Bankasi (Banks)		3,953,698		18,107,289
				32,365,702
United Kingdom - 0.8%
Hikma Pharmaceuticals plc (Pharmaceuticals)		1,977,200		18,307,654
Total Common Stocks (Cost $1,424,420,142)				2,257,860,049
Preferred Stocks - 0.6%
Russia - 0.6%
Oil & Gas - 0.6%
Transneft (Oil & Gas)		12,210		15,003,702
Total Preferred Stocks (Cost $16,643,081)				15,003,702
Total Investments - 98.2% (Cost $1,441,063,223)			$	2,272,863,751

See Notes to Financial Statements
7

Harding, Loevner Funds, Inc.

Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets - 1.76%
Cash	$	47,920,834
Receivable for securities sold		1,302,602
Dividends and interest receivable		5,934,241
Foreign currency (cost $870,011)		871,033
Receivable for Fund shares sold		3,890,235
Tax reclaim receivable		32,746
Prepaid expenses		14,201
Payable to Investment Advisor		(1,912,310	)
Payable for securities purchased		(11,757,290	)
Payable for Fund shares redeemed		(1,603,212	)
Other liabilities		(3,918,413	)
		40,774,667
Net Assets - 100%
Applicable to 41,437,832 outstanding $.001 par value shares (authorized 500,000,000 shares)	$	2,313,638,418
Net Asset Value, Offering Price and Redemption Price Per Share	$	55.83
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	1,391,329,030
Accumulated undistributed net investment income		34,720,008
Accumulated undistributed net realized gain on investments and foreign currency-related transactions		58,749,280
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies (Note 4)		828,840,100
	$	2,313,638,418

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.

†  All or a portion of this security was out on loan at April 30, 2008; the value of the securities loaned amounted to $281,645,339. The value of collateral amounted to $292,055,625 which consisted of cash and cash equivalents.

#  Security valued at fair value as determined in good faith by or under the direction of the Board of Directors.

See Notes to Financial Statements
8

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Banks		10.6	%
Beverages, Food & Tobacco		14.0
Chemicals		5.3
Commercial Services & Supplies		9.9
Communications		3.8
Computer Software & Processing		2.7
Computers & Information		0.6
Electrical Equipment		13.3
Financial Services		2.8
Health Care Providers & Services		2.2
Heavy Machinery		4.2
Insurance		1.4
Medical Supplies		6.8
Oil & Gas		14.9
Pharmaceuticals		2.4
Real Estate		1.3
Retailers		1.9
Total Investments		98.1
Other Assets Less Liabilities		1.9
Net Assets		100.0	%

See Notes to Financial Statements
9

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 97.3%
Australia - 2.0%
Cochlear Ltd. (Medical Supplies)		129,710	$	6,954,328
Austria - 1.8%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		84,820		6,315,190
Bermuda - 3.8%
Bunge Ltd. (Beverages, Food & Tobacco)†		113,180		12,912,706
Canada - 6.1%
EnCana Corp. (Oil & Gas)		127,932		10,338,185
Imperial Oil Ltd. (Oil & Gas)		181,040		10,598,082
				20,936,267
France - 12.4%
Air Liquide (Chemicals)†		78,184		11,724,262
Dassault Systemes SA (Computer Software & Processing)		149,100		9,361,553
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		56,830		6,493,870
Schlumberger Ltd. (Oil & Gas)		76,100		7,651,855
Schneider Electric SA (Electrical Equipment)†		57,950		7,088,250
				42,319,790
Germany - 4.0%
Fresenius AG (Health Care Providers & Services)		54,370		4,606,352
Qiagen NV (Commercial Services & Supplies)†,*		397,820		8,930,626
				13,536,978
Hong Kong - 3.0%
Hutchison Whampoa Ltd. (Commercial Services & Supplies)		459,000		4,495,436
Li & Fung Ltd. (Commercial Services & Supplies)		1,408,200		5,792,320
				10,287,756
Indonesia - 1.6%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		141,040		5,475,173
Japan - 15.0%
Fanuc Ltd. (Electrical Equipment)		59,400		6,291,307
Hirose Electric Co., Ltd. (Electrical Equipment)†		32,000		3,810,288
Hoya Corp. (Electrical Equipment)		155,100		4,315,306
JSR Corp. (Chemicals)		284,000		6,372,997
Keyence Corp. (Electrical Equipment)		28,765		7,363,680
Kubota Corp. (Heavy Machinery)		977,300		6,885,561
Monex Beans Holdings Inc. (Computers & Information)†		3,410		1,984,239
Nomura Holdings Inc. (Financial Services)		305,000		5,310,460
Sumitomo Realty & Development Co., Ltd. (Real Estate)		182,000		4,513,659
Yokogawa Electric Corp. (Electrical Equipment)†		405,700		4,440,525
				51,288,022
Malaysia - 2.1%
Sime Darby Berhad (Commercial Services & Supplies)*		2,337,710		7,114,886

See Notes to Financial Statements
10

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Mexico - 4.1%
America Movil SA de CV, Series L - ADR (Communications)		126,600	$	7,337,736
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		162,020		6,642,820
				13,980,556
Poland - 1.2%
Bank Pekao SA (Banks)#		47,560		4,151,457
Russia - 1.7%
OAO Gazprom - Sponsored ADR, Reg S (Oil & Gas)		110,170		5,849,117
Singapore - 2.4%
DBS Group Holdings Ltd. (Banks)†		267,083		3,899,409
Olam International Ltd. (Beverages, Food & Tobacco)		2,162,900		4,251,918
				8,151,327
South Africa - 2.5%
Sasol Ltd. (Oil & Gas)		153,420		8,706,706
South Korea - 1.8%
Samsung Electronics Co., Ltd., GDR, Reg S (Electrical Equipment)		17,920		6,324,669
Spain - 2.9%
Banco Santander Central Hispano SA (Banks)		458,610		9,923,368
Sweden - 3.7%
Atlas Copco AB - Class A (Heavy Machinery)†		464,200		7,466,462
Skandinaviska Enskilda Banken AB, Class A (Banks)		209,200		5,071,922
				12,538,384
Switzerland - 12.6%
Alcon Inc. (Medical Supplies)†		47,820		7,555,560
Nestle SA - ADR (Beverages, Food & Tobacco)		76,820		9,103,170
Nobel Biocare Holding AG (Medical Supplies)†		102,600		3,707,860
Roche Holding AG - Genusschein (Pharmaceuticals)		50,050		8,334,296
Swiss Re - Registered (Insurance)		58,650		4,877,577
Synthes Inc. (Medical Supplies)		36,920		5,061,182
UBS AG - Registered (Financial Services)		121,630		205,426
UBS AG - Registered (Financial Services)		121,630		4,089,286
				42,934,357
Taiwan - 1.7%
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		2,666,271		5,810,171
United Kingdom - 10.9%
BG Group plc (Oil & Gas)		326,180		7,931,307
Standard Chartered plc (Banks)		190,310		6,743,088
Tesco plc (Beverages, Food & Tobacco)		1,187,180		10,034,227
Unilever plc (Beverages, Food & Tobacco)		152,425		5,131,776
WPP Group plc (Commercial Services & Supplies)		606,720		7,399,804
				37,240,202
Total Common Stocks (Cost $201,317,585)				332,751,410

See Notes to Financial Statements
11

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Preferred Stocks - 0.9%
Germany - 0.9%
Fresenius AG (Health Care Providers & Services)		35,080	$	2,909,498
Total Preferred Stocks (Cost $2,528,985)				2,909,498
Total Investments - 98.2% (Cost $203,846,570)			$	335,660,908

See Notes to Financial Statements
12

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets 1.85%
Cash	$	4,808,771
Dividends and interest receivable		1,586,129
Foreign currency (cost $53,481)		54,938
Receivable for Fund shares sold		58,502
Tax reclaim receivable		208,479
Prepaid expenses		4,482
Payable to Investment Advisor		(205,258	)
Payable for Fund shares redeemed		(26,206	)
Payable for distribution fees		(9,632	)
Other liabilities		(153,568	)
		6,326,637
Net Assets - 100%
Investor Class
Applicable to 898,682 outstanding $.001 par value shares (authorized 250,000,000 shares)	$	17,184,255
Net Asset Value, Offering Price and Redemption Price Per Share	$	19.12
Institutional Class
Applicable to 16,962,700 outstanding $.001 par value shares (authorized 250,000,000 shares)	$	324,803,290
Net Asset Value, Offering Price and Redemption Price Per Share	$	19.15
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	178,306,499
Accumulated undistributed net investment income		1,318,914
Accumulated undistributed net realized gain on investments and foreign currency-related transactions		30,536,917
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies (Note 4)		131,825,215
	$	341,987,545

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 by or under the direction of the Board of Directors.

*  Non-income producing security.

†  All or a portion of this security was out on loan at April 30, 2008; the value of the securities loaned amounted to $53,947,889. The value of collateral amounted to $62,566,010 which consisted of cash and cash equivalents.

See Notes to Financial Statements
13

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Aerospace & Defense		0.9	%
Automotive		3.5
Banks		1.3
Beverages, Food & Tobacco		10.6
Building Materials		0.9
Chemicals		8.9
Commercial Services & Supplies		10.5
Communications		1.2
Computers & Information		1.2
Cosmetics & Personal Care		2.3
Electrical Equipment		12.8
Environmental Controls		1.7
Financial Services		3.1
Forest Products & Paper		1.1
Heavy Machinery		7.4
Household Products		1.1
Industrial - Diversified		6.1
Insurance		1.5
Media		1.4
Medical Supplies		5.9
Metals & Mining		0.7
Oil & Gas		1.4
Packaging & Containers		1.6
Pharmaceuticals		4.3
Retailers		2.8
Textiles & Apparel		4.1
Total Investments		98.3
Other Assets Less Liabilities		1.7
Net Assets		100.0	%

See Notes to Financial Statements
14

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 97.1%
Australia - 4.1%
Bradken Ltd. (Heavy Machinery)		10,700	$	83,023
Great Southern Ltd. (Forest Products & Paper)		36,927		53,864
SAI Global Ltd. (Media)		26,800		73,336
				210,223
Austria - 3.1%
BWT AG (Environmental Controls)		1,986		86,482
Semperit AG Holding (Industrial - Diversified)		1,760		72,455
				158,937
Belgium - 1.4%
Sioen Industries NV (Textiles & Apparel)		4,760		72,150
Canada - 2.8%
GLV, Inc. - Class A (Heavy Machinery) (1)		5,400		75,067
Laurentian Bank of Canada (Banks)		1,600		67,060
				142,127
China - 4.5%
Changmao Biochemical Engineering Co., Ltd. - Class H (Chemicals)		456,000		70,224
Chen Hsong Holdings Ltd. (Heavy Machinery)		112,000		51,469
CHT Holdings Ltd. (Household Products)		249,000		56,923
Dalian Refrigeration Co., Ltd. (Heavy Machinery)		76,000		50,321
				228,937
Denmark - 2.8%
NKT Holding A/S (Industrial - Diversified)		725		58,643
Topsil Semiconductor Materials (Electrical Equipment)†,(1)		280,000		81,789
				140,432
Finland - 2.4%
Vacon Oyj (Electrical Equipment)		1,437		65,985
Vaisala Oyj, Class A (Electrical Equipment)		1,273		57,551
				123,536
France - 5.9%
Boiron SA (Pharmaceuticals)		2,628		77,767
Robertet SA (Cosmetics & Personal Care)		340		44,902
Societe Industrielle D'Aviations Latecoere SA (Aerospace & Defense)		2,010		43,808
Toupargel-Agrigel (Beverages, Food & Tobacco)		1,896		56,034
Vilmorin & Cie (Beverages, Food & Tobacco)		410		76,197
				298,708
Germany - 5.2%
Bijou Brigitte Modische Accessoires AG (Retailers)		482		69,796
Carl Zeiss Meditec AG (Medical Supplies)		3,570		51,967
Drillisch AG (Communications) (1)		10,510		63,694
Gerresheimer AG (Packaging & Containers) (1)		1,420		79,345
				264,802
Hong Kong - 4.7%
Mainland Headwear Holdings Ltd. (Textiles & Apparel)		252,800		37,651
Pico Far East Holdings Ltd. (Commercial Services & Supplies)		224,000		31,747
Top Form International Ltd. (Textiles & Apparel)		540,000		42,281
Wasion Meters Group Ltd. (Electrical Equipment)		116,000		59,565
Yip's Chemical Holdings Ltd. (Chemicals)		100,000		70,319
				241,563

See Notes to Financial Statements
15

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Italy - 6.0%
Cembre S.p.A (Electrical Equipment)		7,580	$	67,883
Marazzi Group S.p.A (Building Materials)		6,000		48,053
Marr S.p.A (Commercial Services & Supplies)		6,163		65,046
SABAF S.p.A (Electrical Equipment)		1,966		61,177
Sol S.p.A (Chemicals)		9,141		65,060
				307,219
Japan - 17.5%
AISAN INDUSTRY Co., Ltd. (Automotive)		5,400		52,494
Asahi Diamond Industrial Co., Ltd. (Electrical Equipment)		9,000		62,397
ASKUL Corp. (Retailers)		3,000		70,775
C. Uyemura & Co., Ltd. (Chemicals)		1,300		49,810
Daiseki Co., Ltd. (Commercial Services & Supplies)		2,480		74,692
Fidec Corp. (Financial Services)		50		28,616
LINTEC Corp. (Chemicals)		4,100		53,298
MIURA Co., Ltd. (Heavy Machinery)		2,700		69,403
NAKANISHI Inc. (Medical Supplies)		600		60,651
Pasona Inc. (Commercial Services & Supplies)		53		37,918
PIGEON Corp. (Cosmetics & Personal Care)		3,900		71,545
Stella Chemifa Corp. (Chemicals)†		2,800		61,945
TSUMURA & Co. (Pharmaceuticals)		3,000		72,780
VIC TOKAI Corp. (Computers & Information)		12,400		63,257
Yamatake Corp. (Electrical Equipment)		2,200		63,897
				893,478
Malaysia - 6.4%
Kotra Industries Berhad (Pharmaceuticals)		328,300		67,551
MNRB Holdings Berhad (Insurance)		50,000		77,208
Supermax Corp. Berhad (Industrial - Diversified)		104,200		57,374
United Plantations Berhad (Beverages, Food & Tobacco)		20,700		91,191
YLI Holdings Berhad (Metals & Mining)		74,500		33,930
				327,254
Mexico - 1.4%
Gruma SA de CV, Class B (Beverages, Food & Tobacco)		25,279		69,893
Netherlands - 2.8%
Brunel International (Commercial Services & Supplies)		2,527		60,508
Kas Bank NV (Financial Services)		1,978		83,606
				144,114
New Zealand - 1.5%
Sanford Ltd. (Beverages, Food & Tobacco)		21,153		75,492
Singapore - 4.0%
Goodpack Ltd. (Commercial Services & Supplies)		55,000		71,125
KS Energy Services Ltd. (Oil & Gas)		58,000		73,318
Tat Hong Holdings Ltd. (Commercial Services & Supplies)		36,000		56,902
				201,345
South Korea - 1.6%
Han Kuk Carbon Co., Ltd. (Chemicals) (1)		13,100		80,508
Spain - 0.9%
Construcciones y Auxiliar de Ferrocarriles SA (Heavy Machinery)		106		46,557

See Notes to Financial Statements
16

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Sweden - 3.6%
Cloetta Fazer AB, Class B (Beverages, Food & Tobacco)		1,850	$	69,406
KABE Husvagnar AB, Class B (Industrial - Diversified)		4,200		63,270
Mekonomen AB (Automotive)		3,200		51,722
				184,398
Switzerland - 1.4%
Lem Holding SA (Electrical Equipment)		246		70,327
Taiwan - 3.8%
K Laser Technology, Inc. (Electrical Equipment)		70,000		62,491
Nak Sealing Technologies Corp. (Automotive)		56,000		73,870
Taiwan Paiho Ltd. (Industrial - Diversified)		54,900		59,285
				195,646
Thailand - 1.0%
Khon Kaen Sugar Industry plc (Beverages, Food & Tobacco)		102,300		48,069
United Kingdom - 8.3%
Alexandra plc (Textiles & Apparel)		41,445		55,623
Corin Group plc (Medical Supplies)		4,787		45,698
Hamworthy KSE (Commercial Services & Supplies)		6,652		64,811
PayPoint plc (Financial Services)		4,397		47,472
Robert Wiseman Dairies plc (Beverages, Food & Tobacco)		5,551		55,296
RPS Group plc (Commercial Services & Supplies)		11,326		71,843
Synergy Healthcare plc (Medical Supplies)		6,313		80,348
				421,091
Total Common Stocks (Cost $5,512,077)				4,946,806
Preferred Stocks - 1.2%
Germany - 1.2%
Draegerwerk AG (Medical Supplies)		902		60,840
Total Preferred Stocks (Cost $77,783)				60,840
Total Investments - 98.3% (Cost $5,589,860)			$	5,007,646

See Notes to Financial Statements
17

Harding, Loevner Funds, Inc.

International Small Companies Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets 1.75%
Cash	$	101,100
Dividends and interest receivable		21,017
Foreign currency (cost $2,507)		2,658
Tax reclaim receivable		772
Prepaid expenses		61
Payable to Investment Advisor		(3,886	)
Payable for distribution fees		(7,201	)
Other liabilities		(25,510	)
		89,011
Net Assets - 100%
Investor Class
Applicable to 521,783 outstanding $.001 par value shares (authorized 250,000,000 shares)	$	5,096,657
Net Asset Value, Offering Price and Redemption Price Per Share	$	9.77
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	5,656,500
Accumulated undistributed net investment income		2,616
Accumulated undistributed net realized gain on investments and foreign currency-related transactions		21,858
Net unrealized appreciation (depreciation) on assets and liabilities denominated in foreign currencies (Note 4)		(584,317	)
	$	5,096,657

Summary of Abbreviations

(1)  Non-income producing security.

†  All or a portion of this security was out on loan at April 30, 2008 the value of the securities loaned amounted to $84,549. The value of collateral amounted to $93,125 which consisted of cash equivalents.

See Notes to Financial Statements
18

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Banks		5.1	%
Beverages, Food & Tobacco		6.2
Chemicals		6.2
Commercial Services & Supplies		6.2
Communications		7.2
Computer Software & Processing		5.8
Computers & Information		2.4
Cosmetics & Personal Care		3.6
Electrical Equipment		7.4
Financial Services		2.3
Heavy Machinery		2.6
Industrial - Diversified		4.4
Insurance		2.6
Internet		1.3
Media		1.0
Medical Supplies		5.8
Metals & Mining		2.1
Oil & Gas		13.4
Pharmaceuticals		6.8
Real Estate		1.3
Retailers		1.7
Semiconductors		1.2
Transportation		2.5
Total Investments		99.1
Other Assets Less Liabilities		0.9
Net Assets		100.0	%

See Notes to Financial Statements
19

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 99.1%
Australia - 3.4%
Cochlear Ltd. (Medical Supplies)		10,230	$	548,475
Rio Tinto Ltd. (Metals & Mining)†		6,600		847,098
				1,395,573
Austria - 1.3%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		7,220		537,558
Canada - 2.7%
EnCana Corp. (Oil & Gas)		13,970		1,128,916
China - 2.5%
China Merchants Holdings International Co., Ltd. (Transportation)		198,000		1,010,523
France - 10.4%
Air Liquide (Chemicals)		4,345		651,564
Dassault Systemes SA (Computer Software & Processing)		11,650		731,469
L'Oreal SA (Cosmetics & Personal Care)†		7,760		920,898
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		3,584		409,538
Schlumberger Ltd. (Oil & Gas)		15,450		1,553,498
				4,266,967
Germany - 2.6%
Qiagen NV (Commercial Services & Supplies)*		47,550		1,067,446
Hong Kong - 2.3%
Li & Fung Ltd. (Commercial Services & Supplies)		229,800		945,232
Indonesia - 1.2%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		12,980		503,884
Japan - 10.1%
Fanuc Ltd. (Electrical Equipment)		3,400		360,108
JSR Corp. (Chemicals)		33,400		749,500
Keyence Corp. (Electrical Equipment)		4,560		1,167,335
Monex Beans Holdings Inc. (Computers & Information)†		676		393,356
Nomura Holdings Inc. (Financial Services)		36,200		630,291
Sumitomo Realty & Development Co., Ltd. (Real Estate)		22,000		545,607
Yokogawa Electric Corp. (Electrical Equipment)		26,000		284,579
				4,130,776
Malaysia - 1.3%
Sime Darby Berhad (Commercial Services & Supplies)*		169,457		515,747
Mexico - 1.6%
America Movil SA de CV, Series L - ADR (Communications)		11,400		660,744
Russia - 2.0%
OAO Gazprom - Sponsored ADR (Oil & Gas)		15,300		812,303
Singapore - 1.7%
Olam International Ltd. (Beverages, Food & Tobacco)†		362,100		711,831

See Notes to Financial Statements
20

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
South Africa - 1.9%
Sasol Ltd. (Oil & Gas)		13,580	$	770,676
Switzerland - 7.6%
Alcon Inc. (Medical Supplies)		4,330		684,140
Nestle SA - Sponsored ADR (Beverages, Food & Tobacco)		7,390		875,715
Novartis AG - Registered (Pharmaceuticals)		7,620		386,964
Roche Holding AG - Genusschein (Pharmaceuticals)		2,350		391,321
Swiss Re - Registered (Insurance)		5,100		424,137
Synthes Inc. (Medical Supplies)		2,750		376,984
				3,139,261
Taiwan - 1.2%
MediaTek Inc. (Semiconductors)		38,000		491,231
United Kingdom - 3.6%
Pearson plc (Media)		31,000		399,720
Standard Chartered plc (Banks)		30,100		1,066,507
				1,466,227
United States - 41.7%
3M Co. (Industrial - Diversified)		12,960		996,624
Abbott Laboratories (Pharmaceuticals)		15,100		796,525
Air Products & Chemicals Inc. (Chemicals)		5,050		497,072
American International Group (Insurance)		14,100		651,420
Automatic Data Processing Inc. (Computer Software & Processing)		8,370		369,954
Caterpillar Inc. (Heavy Machinery)		13,190		1,079,997
Cisco Systems Inc. (Communications)†,*		47,215		1,210,593
Colgate-Palmolive Co. (Cosmetics & Personal Care)		7,750		547,925
eBay Inc. (Computers & Information)*		18,250		571,042
Electronic Arts Inc. (Computer Software & Processing)*		14,260		733,962
Emerson Electric Co. (Electrical Equipment)		23,520		1,229,155
Exxon Mobil Corp. (Oil & Gas)		13,160		1,224,801
Fortress Investment Group LLC - Class A (Financial Services)†		20,800		303,680
Genentech Inc. (Pharmaceuticals)*		3,960		270,072
General Electric Co. (Industrial - Diversified)		25,340		828,618
Google Inc. - Class A (Internet)*		927		532,367
Medco Health Solutions Inc. (Pharmaceuticals)*		18,768		929,767
Medtronic Inc. (Medical Supplies)		16,120		784,722
Oracle Corp. (Computer Software & Processing)*		27,110		565,244
Praxair Inc. (Chemicals)		7,220		659,258
Qualcomm Inc. (Communications)		13,250		572,267
The Coca-Cola Company (Beverages, Food & Tobacco)		9,330		549,257
Walgreen Co. (Retailers)		20,150		702,227
Wells Fargo & Co. (Banks)		16,750		498,313
				17,104,862
Total Common Stocks (Cost $28,810,431)				40,659,757
Total Investments - 99.1% (Cost $28,810,431)			$	40,659,757

See Notes to Financial Statements
21

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets - 0.92%
Cash	$	484,248
Dividends and interest receivable		100,624
Foreign currency (cost $11,865)		12,333
Receivable for Fund shares sold		65,290
Tax reclaim receivable		12,266
Prepaid expenses		436
Payable to Investment Advisor		(29,590	)
Payable for securities purchased		(172,278	)
Payable for Fund shares redeemed		(50,000	)
Other liabilities		(46,586	)
		376,743
Net Assets - 100%
Institutional Class
Applicable to 1,680,126 outstanding $.001 par value shares (authorized 500,000 shares)	$	41,036,500
Net Asset Value, Offering Price and Redemption Price Per Share	$	24.42
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	28,434,111
Accumulated undistributed net investment income		82,787
Accumulated undistributed net realized gain on investments and foreign currency-related transactions		669,898
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies (Note 4)		11,849,704
��	$	41,036,500

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

†  All or a portion of this security was out on loan at April 30, 2008 the value of the securities loaned amounted to $1,926,151. The value of collateral amounted to $2,019,431 which consisted of cash equivalents.

See Notes to Financial Statements
22

Harding, Loevner Funds, Inc.

Statements of Operations

Six Months Ended April 30, 2008 (unaudited)

	Emerging Markets Portfolio			International Equity Portfolio			International Small Companies Portfolio
Investment Income
Interest	$	425,529		$	78,751		$	1,928
Dividends (Net of foreign withholding taxes of $1,783,145, $341,153 and $6,957, respectively)		51,196,645			3,109,778			56,643
Securities lending income, net		574,571			120,234			2,062
Total investment income		52,196,745			3,308,763			60,633
Expenses
Investment advisory fees (Note 3)		14,030,061			1,287,080			32,477
Administration fees (Note 3)		615,134			97,260			3,953
Distribution fees, Investor Class		—			20,003			6,495
Custodian and accounting fees		1,149,136			125,834			26,770
Directors' fees and expenses		43,903			6,887			96
Shareholder record keeping fees		44,920			32,539			15,262
Printing and postage fees		102,745			16,983			259
State registration filing fees		16,051			16,446			5,242
Professional fees		104,043			30,851			10,750
Sub Transfer Agent fees		1,484,197			30,924			1,031
Other fees and expenses		122,364			20,518			672
Total Expenses		17,712,554			1,685,325			103,007
Less waiver of investment advisory fee (Note 3)		—			—			(57,541	)
Net expenses		17,712,554			1,685,325			45,466
Net investment income		34,484,191			1,623,438			15,167
Realized and Unrealized Gain (Loss) (Note 4)
Net realized gain (loss) —
Investment transactions		68,098,553			30,898,109			30,549
Foreign currency transactions		(1,966,398	)		(180,971	)		(8,590	)
Net realized gain		66,132,155			30,717,138			21,959
Change in unrealized appreciation (depreciation) —
Investments		(296,957,606	)		(49,063,603	)		(940,632	)
Translation of assets and liabilities denominated in foreign currencies		(2,800,048	)		(2,882	)		(2,211	)
Net change in unrealized depreciation		(299,757,654	)		(49,066,485	)		(942,843	)
Net realized and unrealized loss		(233,625,499	)		(18,349,347	)		(920,884	)
Net decrease in net assets resulting from operations	$	(199,141,308	)	$	(16,725,909	)	$	(905,717	)

See Notes to Financial Statements
23

Harding, Loevner Funds, Inc.

Statements of Operations (continued)

Six Months Ended April 30, 2008 (unaudited)

	Global Equity Portfolio
Investment Income
Interest	$	5,968
Dividends (Net of foreign withholding taxes of $16,204)		315,814
Securities lending income, net		8,331
Total investment income		330,113
Expenses
Investment advisory fees (Note 3)		187,536
Administration fees (Note 3)		12,345
Custodian and accounting fees		20,631
Directors' fees and expenses		687
Shareholder record keeping fees		15,387
Printing and postage fees		1,665
State registration filing fees		5,651
Professional fees		13,858
Sub Transfer Agent fees		595
Other fees and expenses		1,984
Total Expenses		260,339
Less waiver of investment advisory fee (Note 3)		(25,921	)
Net expenses		234,418
Net investment income		95,695
Realized and Unrealized Gain (Loss) (Note 4)
Net realized gain (loss) —
Investment transactions		731,623
Foreign currency transactions		(15,668	)
Net realized gain		715,955
Change in unrealized appreciation (depreciation) —
Investments		(2,827,832	)
Translation of assets and liabilities denominated in foreign currencies		49
Net change in unrealized depreciation		(2,827,783	)
Net realized and unrealized loss		(2,111,828	)
Net decrease in net assets resulting from operations	$	(2,016,133	)

See Notes to Financial Statements
24

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets

	Emerging Markets Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			Year Ended October 31, 2007
Increase in Net Assets From Operations
Net investment income	$	34,484,191		$	6,706,600
Net realized gain on investments and foreign currency transactions		66,132,155			137,467,785
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(299,757,654	)		760,387,338
Net increase (decrease) in net assets resulting from operations		(199,141,308	)		904,561,723
Distributions to Shareholders from:
Net investment income		(4,690,474	)		(861,705	)
Net realized gain from investments and foreign-currency related transactions		(129,872,683	)		—
Total distributions to shareholders		(134,563,157	)		(861,705	)
Transactions in shares of Common Stock
Proceeds from sale of shares		306,518,449			674,123,901
Net Asset Value of shares issued to shareholders upon reinvestment of dividends		120,546,841			788,488
Cost of shares redeemed		(342,911,772	)		(468,511,465	)
Redemption fees		232,029			388,257
Net increase in net assets from Fund share transactions		84,385,547			206,789,181
Net increase (decrease) in net assets		(249,318,918	)		1,110,489,199
Net Assets
At beginning of period		2,562,957,336			1,452,468,137
At end of period	$	2,313,638,418		$	2,562,957,336
Accumulated undistributed net investment income included in net assets	$	34,720,008		$	4,926,291

See Notes to Financial Statements
25

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets (continued)

	International Equity Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			Year Ended October 31, 2007
Increase in Net Assets From Operations
Net investment income	$	1,623,438		$	2,631,477
Net realized gain on investments and foreign currency transactions		30,717,138			33,569,544
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(49,066,485	)		50,259,776
Net increase (decrease) in net assets resulting from operations		(16,725,909	)		86,460,797
Distributions to Shareholders from:
Net investment income
Investor Class		(85,867	)		(35,003	)
Institutional Class		(2,611,777	)		(177,831	)
Net realized gain from investments and foreign-currency related transactions
Investor Class		(1,359,303	)		(740,612	)
Institutional Class		(29,187,907	)		(24,669,178	)
Total distributions to shareholders		(33,244,854	)		(27,218,624	)
Transactions in shares of Common Stock
Proceeds from sale of shares
Investor Class		3,131,906			7,304,858
Institutional Class		5,015,492			21,697,361
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Investor Class		1,330,261			723,002
Institutional Class		30,928,420			25,144,499
Cost of shares redeemed
Investor Class		(1,881,891	)		(3,504,036	)
Institutional Class		(53,862,220	)		(57,161,618	)
Redemption fees
Investor Class		—			482
Institutional Class		—			265
Net decrease in net assets from Fund share transactions		(15,338,032	)		(5,795,187	)
Net increase (decrease) in net assets		(65,308,795	)		53,446,986
Net Assets
At beginning of period		407,296,340			353,849,354
At end of period	$	341,987,545		$	407,296,340
Accumulated undistributed net investment income included in net assets	$	1,318,914		$	2,393,120

See Notes to Financial Statements
26

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets (continued)

	International Small Companies Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			For the Period from March 26, 2007 to October 31, 2007(A)
Increase in Net Assets From Operations
Net investment income	$	15,167		$	8,197
Net realized gain on investments and foreign currency transactions		21,959			33,909
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(942,843	)		358,526
Net increase (decrease) in net assets resulting from operations		(905,717	)		400,632
Distributions to Shareholders from:
Net investment income
Investor Class		(15,014	)		—
Net realized gain from investments and foreign-currency related transactions
Investor Class		(39,693	)		—
Total distributions to shareholders		(54,707	)
Transactions in shares of Common Stock
Proceeds from sale of shares
Investor Class		1,819,623			4,815,231
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Investor Class		54,706			—
Cost of shares redeemed
Investor Class		(1,021,647	)		(11,464	)
Net increase in net assets from Fund share transactions		852,682			4,803,767
Net increase (decrease) in net assets		(107,742	)		5,204,399
Net Assets
At beginning of period		5,204,399			—
At end of period	$	5,096,657		$	5,204,399
Accumulated undistributed net investment income included in net assets	$	2,616		$	2,463

(A)  The Investor Class shares commenced operations on March 26, 2007.

See Notes to Financial Statements
27

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets (continued)

	Global Equity Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			Year Ended October 31, 2007
Increase in Net Assets From Operations
Net investment income	$	95,695		$	117,249
Net realized gain on investments and foreign currency transactions		715,955			2,815,402
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(2,827,783	)		5,174,049
Net increase (decrease) in net assets resulting from operations		(2,016,133	)		8,106,700
Distributions to Shareholders from:
Net investment income
Institutional Class		(117,879	)		(99,025	)
Net realized gain from investments and foreign-currency related transactions
Institutional Class		(2,820,181	)		(2,322,308	)
Total distributions to shareholders		(2,938,060	)		(2,421,333	)
Transactions in shares of Common Stock
Proceeds from sale of shares
Institutional Class		4,522,303			929,416
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Institutional Class		2,881,495			2,374,390
Cost of shares redeemed
Institutional Class		(1,215,241	)		(292,946	)
Redemption fees
Institutional Class		285			—
Net increase in net assets from Fund share transactions		6,188,842			3,010,860
Net increase in net assets		1,234,649			8,696,227
Net Assets
At beginning of period		39,801,851			31,105,624
At end of period	$	41,036,500		$	39,801,851
Accumulated undistributed net investment income included in net assets	$	82,787		$	104,971

See Notes to Financial Statements
28

Harding, Loevner Funds, Inc.

Financial Highlights

	Emerging Markets Portfolio
	For the Six Months Ended Apr. 30, 2008 (unaudited)			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005			For the Year Ended Oct. 31, 2004			For the Year Ended Oct. 31, 2003
Per Share Data
Net Asset Value, Beginning of Period	$	64.07		$	40.67		$	30.41		$	22.31		$	18.16		$	12.49
Increase (Decrease) in Net Assets from Operations
Net investment income		0.16			0.16			0.22			0.11			0.07			0.07
Net realized and unrealized gain (loss) on investments and foreign currency- related transactions		(5.00	)		23.26			10.19			8.43			4.12			5.60
Net increase (decrease) from investment operations		(4.84	)		23.42			10.41			8.54			4.19			5.67
Distributions to Shareholders from:
Net investment income		(0.12	)		(0.02	)		(0.09	)		(0.02	)		(0.04	)		—
Net realized gain from investments and foreign currency-related transactions		(3.28	)		—			(0.06	)		(0.42	)		—			—
Total distributions		(3.40	)		(0.02	)		(0.15	)		(0.44	)		(0.04	)		—
Net Asset Value, End of Period	$	55.83		$	64.07		$	40.67		$	30.41		$	22.31		$	18.16
Total Return		(7.72	)%(B)		57.62	%		34.29	%		38.76	%		23.09	%		45.40	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,313,638	(B)	$	2,562,957		$	1,452,468		$	690,968		$	66,805		$	29,657
Net expenses to average net assets		1.58	%(A)		1.60	%		1.63	%		1.68	%		1.75	%		1.75	%
Net investment income to average net assets		3.07	%(B)		0.36	%		0.61	%		0.87	%		0.51	%		0.76	%
Decrease reflected in above expense ratios due to expense reductions		—			—			—			—			0.02	%		0.08	%
Portfolio turnover rate		18	%(B)		29	%		59	%		36	%		40	%		58	%

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
29

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	International Equity Portfolio - Investor Class
	For the Six Months Ended Apr. 30, 2008 (unaudited)			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 Period	$	21.66		$	18.65		$	14.91		$	15.63
Increase (Decrease) in Net Assets from Operations
Net investment income		0.08			0.09			0.11	(2)		0.00
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		(0.82	)		4.32			3.71			(0.72	)
Net increase (decrease) from investment operations		(0.74	)		4.41			3.82			(0.72	)
Distributions to Shareholders from:
Net investment income		(0.11	)		(0.06	)		(0.07	)		—
Net realized gain from investments and foreign currency-related transactions		(1.69	)		(1.34	)		(0.01	)		—
Total distributions		(1.80	)		(1.40	)		(0.08	)		—
Net Asset Value, End of Period	$	19.12		$	21.66		$	18.65		$	14.91
Total Return		(3.57	)%(B)		24.95	%		25.74	%		(4.61	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	17,184		$	16,637		$	9,884		$	510
Net expenses to average net assets		1.22	%(A)		1.23	%		1.25	%		1.25	%
Net investment income (loss) to average net assets		0.81	%(A)		0.48	%		0.61	%		(1.25	)%
Decrease reflected in above expense ratios due to expense reductions		—			—			0.01	%		0.08	%
Portfolio turnover rate		6	%(B)		19	%		35	%		38	%

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

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
30

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	International Small Companies Portfolio
	For the Six Months Ended Apr. 30, 2008 (unaudited)			For the Year Ended Oct. 31, 2007(1)
Per Share Data
Net Asset Value, Beginning of Period	$	11.67		$	10.00
Increase (Decrease) in Net Assets from Operations
Net investment income		0.03			0.02
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		(1.83	)		1.65
Net increase (decrease) from investment operations		(1.80	)		1.67
Distributions to Shareholders from:
Net investment income		(0.03	)		—
Net realized gain from investments and foreign currency-related transactions		(0.07	)		—
Total distributions		(0.10	)		—
Net Asset Value, End of Period	$	9.77		$	11.67
Total Return		(15.58	)%(B)		16.70	%(B)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	5,097		$	5,204
Net expenses to average net assets		1.75	%(A)		1.75	%(A)
Net investment income to average net assets		0.58	%(A)		0.56	%(A)
Decrease reflected in above expense ratios due to expense reductions		2.21	%(A)		8.19	%(A)
Portfolio turnover rate		14	%(B)		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
31

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	Global Equity Portfolio - Institutional Class
	For the Six Months Ended Apr. 30, 2008 (unaudited)			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005			For the Year Ended Oct. 31, 2004			For the Year Ended Oct. 31, 2003
Per Share Data
Net Asset Value, Beginning of Period	$	28.03		$	24.04		$	20.36		$	17.17		$	16.45		$	13.28
Increase (Decrease) in Net Assets from Operations
Net investment income		0.06			0.09			0.08			0.09			0.05			0.09
Net realized and unrealized gain (loss) on investments and foreign currency- related transactions		(1.59	)		5.78			4.14			3.12			0.74			3.11
Net increase (decrease) from investment operations		(1.53	)		5.87			4.22			3.21			0.79			3.20
Distributions to Shareholders from:
Net investment income		(0.08	)		(0.08	)		(0.06	)		(0.02	)		(0.07	)		(0.03	)
Net realized gain from investments and foreign currency-related transactions		(2.00	)		(1.80	)		(0.48	)		—			—			—
Total distributions		(2.08	)		(1.88	)		(0.54	)		(0.02	)		(0.07	)		(0.03	)
Net Asset Value, End of Period	$	24.42		$	28.03		$	24.04		$	20.36		$	17.17		$	16.45
Total Return		(5.72	)%(B)		26.01	%		21.08	%		18.72	%		4.78	%		24.19	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	41,037		$	39,802		$	31,106		$	25,317		$	25,770		$	26,568
Net expenses to average net assets		1.25	%(A)		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Net investment income to average net assets		0.51	%(A)		0.34	%		0.37	%		0.44	%		0.27	%		0.70	%
Decrease reflected in above expense ratios due to expense reductions		0.14	%(A)		0.18	%		0.35	%		0.36	%		0.18	%		0.12	%
Portfolio turnover rate		9	%(B)		16	%		27	%		35	%		29	%		68	%

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
32

Harding, Loevner Funds, Inc.

Notes to Financial Statements

April 30, 2008 (unaudited)

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 five Portfolios all of which were active as of April 30, 2008: International Equity Portfolio ("International Equity"); Global Equity Portfolio; Institutional Emerging Markets Portfolio, Emerging Markets Portfolio ("Emerging Markets") and International Small Companies Portfolio ("International Small Companies"). Information presented in these financial statements pertains to Emerging Markets, Investor Class shares of International Equity, International Small Companies and Global Equity Portfolio (individually, "Portfolio"; collectively, "Portfolios"). Information pertaining to Institutional Class shares of International Equity, Institutional Emerging Markets Portfolio and the Glob al Equity Portfolio are 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 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 Management, L.P.'s AMT Capital Fund, Inc. Effective August 5, 2005, International Equity converted existing shareholders to the Institutional Class. Investor Class of International Small Companies commenced operations on March 26, 2007. Global Equity commenced operations on December 1, 1996 following the acquisition of net assets of Harding, Loevner Management, L.P.'s Global Equity L.P., a limited partnership, in a tax-free reorganization. Effective August 5, 2005, Global Equity launched the Investor Class shares and converted existing shareholders to the Institutional Class.

The Fund is managed by Harding, Loevner Management, L.P. (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 of Directors ("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 Portfolios and their Directors to determine, in good faith, the fair value of the Portfolios' securities when market quotations are not readily available.

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

33

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

2. Summary of Significant Accounting Policies (continued)

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 April 30, 2008, there was one security in the Portfolios 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.

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.

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Fund determined that the adoption of FIN 48 did not have an impact on the financial statements.

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.

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 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.

34

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

2. Summary of Significant Accounting Policies (continued)

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.

Security 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 the loaned domestic securities (including ADRs) and 105% of loaned foreign securities. The loans will be terminable at any time by the Fund and the relevant Portfolio will then receive the loaned securities within three days. 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 rat her 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 UBS, which acts as the 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 which are approved by the Board and are deemed by the Investment Advisor to be of good financial standing. The Portfolio may invest cash collateral it receives in connection with a loan of securities in 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. Net amounts earned from security lending activities are disclosed on the Statement of Operations. Amounts loaned and held as collateral are disclosed on the Statement of Net Assets.

3. Significant Agreements and Transactions with Affiliates

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

The Investment Advisor has voluntarily agreed to cap the total annual class operating expenses at 1.75%, 1.25%, 1.75%, and 1.25%, respectively, of the average daily net assets of Investor Class shares of Emerging Market, International Equity, International Small Companies and Institutional Class shares of Global Equity. This expense cap may be terminated at any time. For the period ended April 30, 2008, the Investment Advisor voluntarily waived $57,541 and 25,291, respectively, of the International Small Companies and Global Equity in investment advisory fees from the Portfolios.

In addition, the Fund has an administration agreement with State Street Bank and Trust Company ("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, transfer agency services, custodial services, chief compliance officer services, and the service of some State Street Bank and Trust employees as officers serving the board of directors. Under this agreement, the Emerging Markets, International Equity, International Small Companies and Global Equity incurred $1,893,583, $268,680, $46,186, and $49,719, respectively, for the period ended April 30, 2008.

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

The Fund has agreements with various financial intermediaries and "mutual fund supermarkets", under which customers of these intermediaries may purchase and hold Funds' 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 is authorized 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 Portfolio's fees and expenses, the Investment Advisor paid all or a portion of the Portfolio's share of these fees during the pe riod ended April 30, 2008.

35

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

4. Investment Transactions

Cost of purchases and proceeds from sales of investment securities, other than short-term investments, for the period ended April 30, 2008, were as follows for each Portfolio:

Portfolio	Purchase Cost of Investment Securities		Proceeds from Sales of Investment Securities
Emerging Markets	$	395,394,800	$	422,699,885
International Equity		20,314,067		66,851,690
International Small Companies		1,648,604		702,124
Global Equity		7,039,042		3,399,881

The Portfolios are permitted to purchase or sell securities from or to certain other HLM Portfolios under specified conditions outlined in procedures adopted by the Board. 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 six months ended April 30, 2008, the Emerging Markets Portfolio engaged in securities sales of $2,934,643, and securities purchases of $3,601,396.

The cost of investments for federal income tax purposes and the components of net unrealized appreciation on investments at April 30, 2008, for each of the Portfolios were as follows:

Portfolio	Unrealized Appreciation		Unrealized Depreciation		Net			Cost
Emerging Markets	$	871,658,641	$	44,626,217	$	827,032,424		$	1,445,831,327
International Equity		140,789,165		9,354,341		131,434,824			204,226,084
International Small Companies		285,031		867,244		(582,214	)		5,589,859
Global Equity		12,869,183		1,065,825		11,803,358			28,856,399

The unrealized appreciation (depreciation) on foreign currency for Emerging Markets, International Equity, International Small Companies and Global Equity was $1,022, $1,457, $151 and $468 respectively, for the period ended April 30, 2008.

5. 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 April 30, 2008.

36

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

6. Capital Share Transactions

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		5,582,697		$	306,518,449			14,052,683		$	674,123,901
Shares issued upon reinvestment of dividends		2,090,569			120,546,841			17,994			788,488
		7,673,266			427,065,290			14,070,677			694,912,389
Shares redeemed		(6,237,585	)		(342,679,743	)		(9,781,911	)		(468,511,465	)
Net increase		1,435,681		$	84,385,547			4,288,766		$	206,400,924

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		164,744		$	3,131,906			377,652		$	7,304,858
Shares issued upon reinvestment of dividends		68,854			1,330,261			39,229			723,002
		233,598			4,462,167			416,881			8,027,860
Shares redeemed		(103,031	)		(1,881,891	)		(178,817	)		(3,504,036	)
Net increase		130,567		$	2,580,276			238,064		$	4,523,824

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		267,662		$	5,015,492			1,121,101		$	21,697,361
Shares issued upon reinvestment of dividends		1,599,857			30,928,420			1,363,585			25,144,499
		1,867,519			35,943,912			2,484,686			46,841,860
Shares redeemed		(2,899,101	)		(53,862,220	)		(2,901,139	)		(57,161,618	)
Net decrease		(1,031,582	)	$	(17,918,308	)		(416,453	)	$	(10,319,758	)

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

	Six Months Ended April 30, 2008						Period From March 26, 2007 to October 31, 2007(A)
	Shares			Amount			Shares			Amount
Shares sold		172,009		$	1,819,623			446,970		$	4,815,231
Shares issued upon reinvestment of dividends		5,152			54,706			—			—
		177,161			1,874,329			446,970			4,815,231
Shares redeemed		(101,339	)		(1,021,647	)		(1,009	)		(11,464	)
Net increase		75,822		$	852,682			445,961		$	4,803,767

37

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

6. Capital Share Transactions (continued)

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		196,456		$	4,522,303			35,387		$	929,416
Shares issued upon reinvestment of dividends		113,938			2,881,495			102,344			2,374,390
		310,394			7,403,798			137,731			3,303,806
Shares redeemed		(50,367	)		(1,215,241	)		(11,604	)		(292,946	)
Net increase		260,027		$	6,188,557			126,127		$	3,010,860

(A) Investor Class shares commenced operations on March 26, 2007.

Redemptions made within 90 days of purchase may be subject to a redemption fee equal to 2% of the amount redeemed. For the period ended April 30, 2008, Emerging Markets and Global Equity received $232,029 and $285, respectively, in redemption fees. For the period ended April 30, 2008, International Equity and International Small Companies Investor Class did not received any redemption fees.

7. Concentration of Ownership

At April 30, 2008, 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 Portfolio		1		70	%*
International Equity Portfolio, Institutional Class		3		50	%**
International Small Companies Portfolio, Investor Class		3		78	%**
Global Equity, Institutional Class		3		57	%**

*  Represents percentage ownership of Institutional Class only; these two shareholders owned approximately 50% of the Portfolio's net assets as a whole.

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

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

8. 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.

9. 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

38

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

9. Concentration of Risk (continued)

International Small Companies Portfolio, International Equity Portfolio, Emerging Markets Portfolio, Global Equity, and International Small Companies are authorized to invest.

10. 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 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 period ended April 30, 2008, International Equity Portfolio and International Small Companies had borrowings on three days and two days, the maximum balance $3,344,647 and $96,332, at an average weighted interest rate of 5.10% and 2.85%, respectively.

11. Recently Issued Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of April 30, 2008, the Fund does not believe the adoption of SFAS No. 157 will significantly impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

39

Harding, Loevner Funds, Inc.

Approval of Investment Management Agreement

April 30, 2008 (unaudited)

At a meeting held on December 7, 2006, the Board of Directors (the "Board"), including each of the Independent Directors, unanimously voted to approve the investment management agreement between the Harding, Loevner Funds, Inc. (the "Fund") on behalf of its series, the International Small Companies Portfolio (the "Portfolio") and Harding, Loevner Management, L.P. (the "Adviser") (the "Agreement"). In advance of the December meeting, the Board received and reviewed various reports and presentations from the Adviser relating to its proposed management of the Portfolio (the "Adviser Materials"). In addition, the Board received in-person presentations from representatives of the Adviser regarding the Portfolio and the proposed investment strategy.

The Board determined that the Agreement was fair and reasonable and in the best interests of the Portfolio and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreement.

Nature, Extent and Quality of Services

The Board considered information and data concerning the nature, extent and quality of the services to be provided to the Portfolio by the Adviser. The Board considered, among other things, the terms of the Agreement, the range of services to be provided, and the Adviser's organizational structure, systems and personnel. The Board considered the Adviser's reputation and past performance with respect to existing portfolios of the Fund.

With respect to the day-to-day portfolio management services to be provided by the Adviser, the Board met with the proposed portfolio manager of the Portfolio. The Board reviewed information concerning the Portfolio's investment strategy, mechanics and risks. The Board considered the quality of the Adviser's investment personnel; its investment philosophy and process (and adherence to that philosophy and process); and its investment research capabilities and resources, performance record, and trade execution capabilities and experience. The Board noted the quality of the presentations to and communications with the Board, and responsiveness to Board inquiries, of the Adviser and senior management of the Adviser in their in-person discussions with the Board.

In considering this information, the Board evaluated not only the information presented to the Board in connection with its consideration of the Agreement, but also the Board's experience through past interactions with the Adviser. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Portfolio by the Adviser.

Performance of the Adviser

The Board considered the investment performance of the Adviser and its portfolio management team. As the Adviser did not have a performance track record with respect to an investment strategy substantially similar to the strategy of the Portfolio, the Board considered information regarding the performance record of portfolios managed by the proposed portfolio manager for his previous employer. The Adviser also provided additional information about the broad range of the portfolio manager's investment experience and his investment philosophy and process.

Based on these considerations, the Board concluded that while there could be no guarantee of future results, the Board was satisfied that the Adviser has the capability of providing satisfactory investment performance for the Portfolio.

Costs of the Services and Profitability of the Adviser

The Board reviewed information regarding the Adviser's costs to provide investment management to the Portfolio and the profitability to the Adviser from managing the Portfolio. The Board considered the proposed advisory fee schedules and considered information about the profitability to the Adviser from all services to be provided to the Portfolio and all aspects of its relationship with the Portfolio. In evaluating the Adviser's profitability, the Board considered that the Adviser will provide subsidies to the Portfolio in the form of caps on operating expenses of the Portfolio, and that future profitability to the Adviser would depend on the growth of assets under management. The Board concluded that the profits anticipated to be realized by the Adviser and from its relationship with the Portfolio would not be excessive.

Comparison of Fees and Services Provided by the Adviser

The Board considered comparative information with respect to the investment management fees to be paid by the Portfolio to the Adviser. In this regard, the Board received information from the Adviser relating to the management fees and total operating expenses for the Portfolio. The Board considered information comparing the Portfolio's management fees and total operating expenses relative to those of a peer group of funds. Based on these considerations, the Board concluded that the Portfolio's management fee, in conjunction with the information about quality of services, profitability, and other matters discussed, supports the conclusion that these fees are reasonable.

40

Harding, Loevner Funds, Inc.

Approval of Investment Management Agreement (continued)

April 30, 2008 (unaudited)

Economies of Scale

The Board considered the extent to which economies of scale would be realized as the Portfolio grows and whether fee levels reflect these economies of scale for the benefit of Portfolio investors. The Board reviewed the breakpoints in the Adviser's management fee schedule. The Board considered that the Portfolio could be expected to achieve some economies of scale as assets in the Portfolio grow. The Board reviewed relevant information included in the Adviser Materials regarding comparative fee information for other funds in the Portfolio's peer group. Based on these considerations, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Portfolio's investors.

* * * *

Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Portfolio and its shareholders for the Board to approve the Agreement. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. In connection with their deliberations, the Independent Directors met separately in executive session to review the relevant materials and consider their responsibilities under relevant laws and regulations.

41

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.hardingloevner.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.

42

Harding, Loevner Funds, Inc.

Officers & Directors and Other Pertinent Information

OFFICERS AND DIRECTORS

Jane A. Freeman

Director of the Funds

Samuel R. Karetsky

Director of the Funds

R. Kelly Doherty

Director of the Funds

Raymond J. Clark

Director of the Funds

David R. Loevner

Director, President and Chairman
of the Board 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 of 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

Brian C. Poole

Assistant Secretary
of the Funds

INVESTMENT ADVISOR

Harding, Loevner Management, L.P.

50 Division Street, Suite 401

Somerville, NJ 08876

DISTRIBUTOR

Quasar Distributors, LLC

615 East Michigan Street

Milwaukee, WI 53202

ADMINISTRATOR, CUSTODIAN AND
FUND ACCOUNTING AGENT, AND TRANSFER A ND DIVIDEND DISBURSING AGENT

State Street Bank and Trust Company

P.O. Box 9130

Boston, MA 02117

LEGAL COUNSEL

Dechert LLC

1095 Avenue of the Americas

New York, NY 10036-6797

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

1601 Market Street

Philadelphia, PA 19103-2499

This report is intended for shareholders of Harding Loevner Funds. 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 04/08

43

Semi-Annual Report  April 30, 2008

Family of Mutual Funds

Institutional Class

n  Institutional Emerging Markets Portfolio

n  International Equity Portfolio

n  Global Equity Portfolio

Harding, Loevner Funds, Inc.
P.O. Box 642, OPS 22
Boston, MA 02117-0642

1.877.435.8105 • www.hardingloevner.com

Harding, Loevner Funds, Inc.

Table of Contents

Expense Example	3
Performance Information and Statements of Net Assets
Institutional Emerging Market Portfolio	4
International Equity Portfolio	9
Global Equity Portfolio	14
Statements of Operations	18
Statements of Changes in Net Assets	19
Financial Highlights	22
Notes to Financial Statements	25
Supplemental Information	32

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

April 30, 2008 (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 November 1, 2007 and held for the entire six month period from November 1, 2007 to April 30, 2008 for the International Equity Portfolio, Institutional Class, Institutional Emerging Markets Portfolio and Global Equity 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 November 1, 2007		Ending Account Value April 30, 2008		Annualized Expense Ratio			Expenses Paid During Period* (November 1, 2007 to April 30, 2008)
Institutional Emerging Markets Portfolio
Actual	$	1,000.00	$	922.20		1.30	%	$	6.21
Hypothetical (5% annual return before expenses)		1,000.00		1,018.40		1.30	%		6.52
International Equity Portfolio, Institutional Class
Actual		1,000.00		965.30		0.97	%		4.74
Hypothetical (5% annual return before expenses)		1,000.00		1,020.04		0.97	%		4.87
Global Equity Portfolio, Institutional Class
Actual		1,000.00		942.80		1.25	%		6.04
Hypothetical (5% annual return before expenses)		1,000.00		1,018.65		1.25	%		6.27

*  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 (182 days), and divided by the number of days in the year (366 days).

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Airlines		0.5	%
Automotive		0.8
Banks		12.4
Beverages, Food & Tobacco		3.6
Chemicals		4.5
Commercial Services & Supplies		6.7
Communications		10.4
Electric Utilities		2.5
Electrical Equipment		7.9
Energy Equipment & Services		2.7
Engineering & Construction		1.0
Financial Services		3.3
Food Retailers		2.0
Forest Products & Paper		1.3
Home Construction, Furnishings & Appliances		2.8
Insurance		1.7
Media		0.8
Metals & Mining		9.4
Oil & Gas		13.7
Pharmaceuticals		1.9
Real Estate		1.2
Retailers		1.1
Semiconductors		1.0
Textiles & Apparel		1.1
Transportation		3.9
Total Investments		98.2
Other Assets Less Liabilities		1.8
Net Assets		100.0	%

See Notes to Financial Statements
4

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 97.6%
Brazil - 16.1%
All America Latina Logistica SA (Transportation)		224,100	$	2,925,623
Anhanguera Educacional Participacoes SA (Commercial Services & Supplies)		71,756		1,195,789
Aracruz Celulose SA - Sponsored ADR (Forest Products & Paper)†		45,867		3,696,880
Banco Itau Holding Financeira SA - ADR (Banks)†		198,488		5,567,588
Companhia de Bebidas das Americas - ADR (Beverages, Food & Tobacco)†		34,100		2,499,530
Companhia Vale do Rio Doce - ADR (Metals & Mining)		286,540		11,197,983
Cyrela Brazil Realty SA (Real Estate)		214,198		3,573,403
Petroleo Brasileiro SA - ADR (Oil & Gas)†		94,768		11,506,731
Usinas Siderurgicas de Minas Gerais SA (Metals & Mining)		49,500		2,531,284
Wilson Sons Ltd. - ADR (Commercial Services & Supplies)*		105,348		1,267,573
				45,962,384
Chile - 1.4%
Banco Santander - ADR (Banks)		44,336		2,328,527
Lan Airlines SA - Sponsored ADR (Airlines)†		118,300		1,565,109
				3,893,636
China - 12.2%
ASM Pacific Technology Ltd. (Electrical Equipment)		382,000		2,604,089
China Communications Construction Co., Ltd. - Class H (Engineering & Construction)		1,206,000		2,870,542
China Mengniu Dairy Co., Ltd. (Food Retailers)		708,000		2,128,461
China Merchants Holdings International Co., Ltd. (Transportation)		917,000		4,680,048
China Mobile Ltd. - Sponsored ADR (Communications)		89,309		7,709,153
China Petroleum & Chemical Corp. - ADR (Oil & Gas)†		23,974		2,577,445
China Resources Enterprise (Financial Services)		904,000		3,300,425
China Shenhua Energy Co., Ltd. - Class H (Energy Equipment & Services)		1,241,000		5,730,323
Jiangsu Expressway Co., Ltd. - Class H (Commercial Services & Supplies)		3,286,000		3,063,789
				34,664,275
Colombia - 0.8%
BanColombia SA - Sponsored ADR (Banks)		58,870		2,350,090
Czech Republic - 1.6%
CEZ (Electric Utilities)*		61,150		4,540,440
Egypt - 2.0%
Orascom Construction Industries - GDR, Reg. S (Commercial Services & Supplies)		35,810		5,763,657
India - 7.4%
Bharti Airtel-Ventures Ltd. (Communications)*		291,850		6,487,314
Container Corp. of India Ltd. (Transportation)		68,370		1,452,344
HDFC Bank Ltd. - ADR (Banks)		35,003		3,948,338
ICICI Bank Ltd. (Banks)		143,650		3,109,522
Larsen & Toubro Ltd. (Commercial Services & Supplies)		36,150		2,674,064
NTPC Ltd. (Electric Utilities)		548,900		2,660,099
Power Finance Corp. (Financial Services)		213,400		857,013
				21,188,694
Indonesia - 3.2%
PT Bank Danamon Indonesia Tbk (Banks)		3,264,500		2,010,246
PT Bank Rakyat Indonesia (Banks)		3,320,000		2,134,222

See Notes to Financial Statements
5

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Indonesia (continued)
PT Bumi Resources Tbk (Energy Equipment & Services)		2,715,000	$	1,948,961
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		79,730		3,095,119
				9,188,548
Israel - 4.6%
Israel Chemicals Ltd. (Chemicals)		540,730		9,918,293
Teva Pharmaceutical Industries Ltd. - Sponsored ADR (Pharmaceuticals)		66,800		3,124,904
				13,043,197
Luxembourg - 0.8%
Millicom International Cellular SA (Communications)†,*		22,000		2,376,220
Malaysia - 3.1%
IOI Corp. Berhad (Chemicals)		1,259,815		2,913,646
MISC Berhad (Transportation)		724,400		2,107,817
Sime Darby Berhad (Commercial Services & Supplies)*		1,259,477		3,833,254
				8,854,717
Mexico - 4.6%
America Movil SA de CV, Series L - ADR (Communications)		68,550		3,973,158
Grupo Financiero Banorte SA de CV, Class O (Financial Services)†		780,280		3,445,097
Urbi Desarrollos Urbanos SA de CV (Home Construction, Furnishings & Appliances)†,*		847,600		2,719,270
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		73,415		3,010,015
				13,147,540
Philippines - 0.4%
Philippine Long Distance Telephone Co. - Sponsored ADR (Communications)		17,155		1,048,171
Poland - 3.3%
Bank Pekao SA (Banks)#		17,110		1,492,189
Central European Distribution Corp. (Beverages, Food & Tobacco)†,*		92,350		5,625,962
TVN SA (Media)		210,254		2,152,086
				9,270,237
Russia - 10.8%
Evraz Group SA - GDR, Reg. S (Metals & Mining)		72,350		7,462,829
Lukoil - Sponsored ADR (Oil & Gas)		63,228		5,709,489
OAO Gazprom - Sponsored ADR (Oil & Gas)		177,640		9,431,216
Sberbank of Russia (Banks)		865,000		2,801,356
Vimpel-Communications - Sponsored ADR (Communications)†		66,100		1,993,576
Wimm-Bill-Dann Foods - ADR (Food Retailers)		16,963		2,064,397
X 5 Retail Group NV - GDR, Reg. S (Food Retailers)*		40,220		1,397,456
				30,860,319
South Africa - 8.0%
Barloworld Ltd. (Home Construction, Furnishings & Appliances)		207,000		3,020,769
Impala Platinum Holdings Ltd. (Metals & Mining)		137,024		5,609,514
MTN Group Ltd. (Communications)		163,450		3,103,540
SABMiller plc (Beverages, Food & Tobacco)		98,800		2,285,335
Sasol Ltd. (Oil & Gas)		99,437		5,643,128
Standard Bank Group Ltd. (Banks)		72,630		860,190
Steinhoff International Holdings Ltd. (Home Construction, Furnishings & Appliances)		953,767		2,335,696
				22,858,172
South Korea - 6.9%
Hankook Tire Co., Ltd. (Automotive)		141,700		2,170,713
Kookmin Bank - Sponsored ADR (Banks)†		36,323		2,533,529

See Notes to Financial Statements
6

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
South Korea (continued)
MegaStudy Co., Ltd. (Commercial Services & Supplies)		4,080	$	1,340,804
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Electrical Equipment)144A		20,270		7,154,076
Samsung Electronics Co., Ltd., GDR, Reg S - GDR (Electrical Equipment)		6,591		1,667,048
Samsung Fire & Marine Insurance Co., Ltd. (Insurance)		22,110		4,814,133
				19,680,303
Taiwan - 6.0%
Delta Electronics (Electrical Equipment)		1,073,280		3,207,369
Far Eastern Textile Ltd. (Textiles & Apparel)		1,830,000		3,064,049
MediaTek Inc. (Semiconductors)		225,000		2,908,605
Synnex Technology International Corp. (Electrical Equipment)		1,509,000		4,026,249
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		1,739,086		3,789,708
				16,995,980
Thailand - 2.2%
PTT Exploration & Production PCL (Oil & Gas)		442,500		2,316,462
Siam Commercial Bank-Alien (Banks)		1,385,070		3,887,456
				6,203,918
Turkey - 1.4%
Haci Omer Sabanci Holding AS (Financial Services)		468,900		1,748,051
Turkiye Is Bankasi (Banks)		491,271		2,249,940
				3,997,991
United Kingdom - 0.8%
Hikma Pharmaceuticals plc (Pharmaceuticals)		248,420		2,300,216
Total Common Stocks (Cost $214,472,437)				278,188,705
Preferred Stocks - 0.6%
Russia - 0.6%
Transneft (Oil & Gas)		1,529		1,878,842
Total Preferred Stocks (Cost $2,753,613)				1,878,842
Total Investments - 98.2% (Cost $217,226,050)			$	280,067,547

See Notes to Financial Statements
7

Harding, Loevner Funds, Inc.

Institutional Emerging Markets Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets - 1.77%
Cash	$	5,458,537
Receivable for securities sold		160,967
Dividends and interest receivable		674,860
Foreign currency (cost $165,086)		166,868
Tax reclaim receivable		1,605
Prepaid expenses		1,380
Payable to Investment Advisor		(255,440	)
Payable for securities purchased		(782,124	)
Other liabilities		(371,918	)
		5,054,735
Net Assets - 100%
Applicable to 15,196,446 outstanding $.001 par value shares (authorized 500,000 shares)	$	285,122,282
Net Asset Value, Offering Price and Redemption Price Per Share	$	18.76
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	218,317,549
Accumulated undistributed net investment income		4,595,641
Accumulated net realized gain (loss) from investment transactions		(371,278	)
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies (Note 4)		62,580,370
	$	285,122,282

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 by or under the direction of the Board of Directors.

*  Non-income producing security.

†  All or a portion of this security was out on loan at April 30, 2008 the value of the securities loaned amounted to $16,425,441. The value of collateral amounted to $16,969,080 which consisted of cash equivalents.

144A  Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. This security, which represents 2.5% of net assets as of April 30, 2008, is considered liquid and may be resold in transactions exempt form registration, normally to qualified buyers.

See Notes to Financial Statements
8

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Banks		10.6	%
Beverages, Food & Tobacco		14.0
Chemicals		5.3
Commercial Services & Supplies		9.9
Communications		3.8
Computer Software & Processing		2.7
Computers & Information		0.6
Electrical Equipment		13.3
Financial Services		2.8
Health Care Providers & Services		2.2
Heavy Machinery		4.2
Insurance		1.4
Medical Supplies		6.8
Oil & Gas		14.9
Pharmaceuticals		2.4
Real Estate		1.3
Retailers		1.9
Total Investments		98.1
Other Assets Less Liabilities		1.9
Net Assets		100.0	%

See Notes to Financial Statements
9

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 97.3%
Australia - 2.0%
Cochlear Ltd. (Medical Supplies)		129,710	$	6,954,328
Austria - 1.8%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		84,820		6,315,190
Bermuda - 3.8%
Bunge Ltd. (Beverages, Food & Tobacco)†		113,180		12,912,706
Canada - 6.1%
EnCana Corp. (Oil & Gas)		127,932		10,338,185
Imperial Oil Ltd. (Oil & Gas)		181,040		10,598,082
				20,936,267
France - 12.4%
Air Liquide (Chemicals)†		78,184		11,724,262
Dassault Systemes SA (Computer Software & Processing)		149,100		9,361,553
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		56,830		6,493,870
Schlumberger Ltd. (Oil & Gas)		76,100		7,651,855
Schneider Electric SA (Electrical Equipment)†		57,950		7,088,250
				42,319,790
Germany - 4.0%
Fresenius AG (Health Care Providers & Services)		54,370		4,606,352
Qiagen NV (Commercial Services & Supplies)†,*		397,820		8,930,626
				13,536,978
Hong Kong - 3.0%
Hutchison Whampoa Ltd. (Commercial Services & Supplies)		459,000		4,495,436
Li & Fung Ltd. (Commercial Services & Supplies)		1,408,200		5,792,320
				10,287,756
Indonesia - 1.6%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		141,040		5,475,173
Japan - 15.0%
Fanuc Ltd. (Electrical Equipment)		59,400		6,291,307
Hirose Electric Co., Ltd. (Electrical Equipment)†		32,000		3,810,288
Hoya Corp. (Electrical Equipment)		155,100		4,315,306
JSR Corp. (Chemicals)		284,000		6,372,997
Keyence Corp. (Electrical Equipment)		28,765		7,363,680
Kubota Corp. (Heavy Machinery)		977,300		6,885,561
Monex Beans Holdings Inc. (Computers & Information)†		3,410		1,984,239
Nomura Holdings Inc. (Financial Services)		305,000		5,310,460
Sumitomo Realty & Development Co., Ltd. (Real Estate)		182,000		4,513,659
Yokogawa Electric Corp. (Electrical Equipment)†		405,700		4,440,525
				51,288,022
Malaysia - 2.1%
Sime Darby Berhad (Commercial Services & Supplies)*		2,337,710		7,114,886

See Notes to Financial Statements
10

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Mexico - 4.1%
America Movil SA de CV, Series L - ADR (Communications)		126,600	$	7,337,736
Wal-Mart de Mexico SA de CV - Sponsored ADR (Retailers)		162,020		6,642,820
				13,980,556
Poland - 1.2%
Bank Pekao SA (Banks)#		47,560		4,151,457
Russia - 1.7%
OAO Gazprom - Sponsored ADR, Reg S (Oil & Gas)		110,170		5,849,117
Singapore - 2.4%
DBS Group Holdings Ltd. (Banks)†		267,083		3,899,409
Olam International Ltd. (Beverages, Food & Tobacco)		2,162,900		4,251,918
				8,151,327
South Africa - 2.5%
Sasol Ltd. (Oil & Gas)		153,420		8,706,706
South Korea - 1.8%
Samsung Electronics Co., Ltd., GDR, Reg S (Electrical Equipment)		17,920		6,324,669
Spain - 2.9%
Banco Santander Central Hispano SA (Banks)		458,610		9,923,368
Sweden - 3.7%
Atlas Copco AB - Class A (Heavy Machinery)†		464,200		7,466,462
Skandinaviska Enskilda Banken AB, Class A (Banks)		209,200		5,071,922
				12,538,384
Switzerland - 12.6%
Alcon Inc. (Medical Supplies)†		47,820		7,555,560
Nestle SA - ADR (Beverages, Food & Tobacco)		76,820		9,103,170
Nobel Biocare Holding AG (Medical Supplies)†		102,600		3,707,860
Roche Holding AG - Genusschein (Pharmaceuticals)		50,050		8,334,296
Swiss Re - Registered (Insurance)		58,650		4,877,577
Synthes Inc. (Medical Supplies)		36,920		5,061,182
UBS AG - Registered (Financial Services)		121,630		205,426
UBS AG - Registered (Financial Services)		121,630		4,089,286
				42,934,357
Taiwan - 1.7%
Taiwan Semiconductor Manufacturing Co. (Electrical Equipment)		2,666,271		5,810,171
United Kingdom - 10.9%
BG Group plc (Oil & Gas)		326,180		7,931,307
Standard Chartered plc (Banks)		190,310		6,743,088
Tesco plc (Beverages, Food & Tobacco)		1,187,180		10,034,227
Unilever plc (Beverages, Food & Tobacco)		152,425		5,131,776
WPP Group plc (Commercial Services & Supplies)		606,720		7,399,804
				37,240,202
Total Common Stocks (Cost $201,317,585)				332,751,410

See Notes to Financial Statements
11

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Preferred Stocks - 0.9%
Germany - 0.9%
Fresenius AG (Health Care Providers & Services)		35,080	$	2,909,498
Total Preferred Stocks (Cost $2,528,985)				2,909,498
Total Investments - 98.2% (Cost $203,846,570)			$	335,660,908

See Notes to Financial Statements
12

Harding, Loevner Funds, Inc.

International Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets 1.85%
Cash	$	4,808,771
Dividends and interest receivable		1,586,129
Foreign currency (cost $53,481)		54,938
Receivable for Fund shares sold		58,502
Tax reclaim receivable		208,479
Prepaid expenses		4,482
Payable to Investment Advisor		(205,258	)
Payable for Fund shares redeemed		(26,206	)
Payable for distribution fees		(9,632	)
Other liabilities		(153,568	)
		6,326,637
Net Assets - 100%
Investor Class
Applicable to 898,682 outstanding $.001 par value shares (authorized 250,000,000 shares)	$	17,184,255
Net Asset Value, Offering Price and Redemption Price Per Share	$	19.12
Institutional Class
Applicable to 16,962,700 outstanding $.001 par value shares (authorized 250,000,000 shares)	$	324,803,290
Net Asset Value, Offering Price and Redemption Price Per Share	$	19.15
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	178,306,498
Accumulated undistributed net investment income		1,318,914
Accumulated undistributed net realized gain on investments and foreign currency-related transactions		30,536,917
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies (Note 4)		131,825,216
	$	341,987,545

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 by or under the direction of the Board of Directors.

*  Non-income producing security.

†  All or a portion of this security was out on loan at April 30, 2008; the value of the securities loaned amounted to $53,947,889. The value of collateral amounted to $62,566,010 which consisted of cash and cash equivalents.

See Notes to Financial Statements
13

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited)

Industry	Percentage of Net Assets
Banks		5.1	%
Beverages, Food & Tobacco		6.2
Chemicals		6.2
Commercial Services & Supplies		6.2
Communications		7.2
Computer Software & Processing		5.8
Computers & Information		2.4
Cosmetics & Personal Care		3.6
Electrical Equipment		7.4
Financial Services		2.3
Heavy Machinery		2.6
Industrial - Diversified		4.4
Insurance		2.6
Internet		1.3
Media		1.0
Medical Supplies		5.8
Metals & Mining		2.1
Oil & Gas		13.4
Pharmaceuticals		6.8
Real Estate		1.3
Retailers		1.7
Semiconductors		1.2
Transportation		2.5
Total Investments		99.1
Other Assets Less Liabilities		0.9
Net Assets		100.0	%

See Notes to Financial Statements
14

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
Common Stocks - 99.1%
Australia - 3.4%
Cochlear Ltd. (Medical Supplies)		10,230	$	548,475
Rio Tinto Ltd. (Metals & Mining)†		6,600		847,098
				1,395,573
Austria - 1.3%
Erste Bank der Oesterreichischen Sparkassen AG (Banks)		7,220		537,558
Canada - 2.7%
EnCana Corp. (Oil & Gas)		13,970		1,128,916
China - 2.5%
China Merchants Holdings International Co., Ltd. (Transportation)		198,000		1,010,523
France - 10.4%
Air Liquide (Chemicals)		4,345		651,564
Dassault Systemes SA (Computer Software & Processing)		11,650		731,469
L'Oreal SA (Cosmetics & Personal Care)†		7,760		920,898
LVMH Moet Hennessy Louis Vuitton SA (Beverages, Food & Tobacco)		3,584		409,538
Schlumberger Ltd. (Oil & Gas)		15,450		1,553,498
				4,266,967
Germany - 2.6%
Qiagen NV (Commercial Services & Supplies)*		47,550		1,067,446
Hong Kong - 2.3%
Li & Fung Ltd. (Commercial Services & Supplies)		229,800		945,232
Indonesia - 1.2%
PT Telekomunikasi Indonesia - Sponsored ADR (Communications)		12,980		503,884
Japan - 10.1%
Fanuc Ltd. (Electrical Equipment)		3,400		360,108
JSR Corp. (Chemicals)		33,400		749,500
Keyence Corp. (Electrical Equipment)		4,560		1,167,335
Monex Beans Holdings Inc. (Computers & Information)†		676		393,356
Nomura Holdings Inc. (Financial Services)		36,200		630,291
Sumitomo Realty & Development Co., Ltd. (Real Estate)		22,000		545,607
Yokogawa Electric Corp. (Electrical Equipment)		26,000		284,579
				4,130,776
Malaysia - 1.3%
Sime Darby Berhad (Commercial Services & Supplies)*		169,457		515,747
Mexico - 1.6%
America Movil SA de CV, Series L - ADR (Communications)		11,400		660,744
Russia - 2.0%
OAO Gazprom - Sponsored ADR (Oil & Gas)		15,300		812,303
Singapore - 1.7%
Olam International Ltd. (Beverages, Food & Tobacco)†		362,100		711,831

See Notes to Financial Statements
15

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Shares		Value (1)
South Africa - 1.9%
Sasol Ltd. (Oil & Gas)		13,580	$	770,676
Switzerland - 7.6%
Alcon Inc. (Medical Supplies)		4,330		684,140
Nestle SA - Sponsored ADR (Beverages, Food & Tobacco)		7,390		875,715
Novartis AG - Registered (Pharmaceuticals)		7,620		386,964
Roche Holding AG - Genusschein (Pharmaceuticals)		2,350		391,321
Swiss Re - Registered (Insurance)		5,100		424,137
Synthes Inc. (Medical Supplies)		2,750		376,984
				3,139,261
Taiwan - 1.2%
MediaTek Inc. (Semiconductors)		38,000		491,231
United Kingdom - 3.6%
Pearson plc (Media)		31,000		399,720
Standard Chartered plc (Banks)		30,100		1,066,507
				1,466,227
United States - 41.7%
3M Co. (Industrial - Diversified)		12,960		996,624
Abbott Laboratories (Pharmaceuticals)		15,100		796,525
Air Products & Chemicals Inc. (Chemicals)		5,050		497,072
American International Group (Insurance)		14,100		651,420
Automatic Data Processing Inc. (Computer Software & Processing)		8,370		369,954
Caterpillar Inc. (Heavy Machinery)		13,190		1,079,997
Cisco Systems Inc. (Communications)†,*		47,215		1,210,593
Colgate-Palmolive Co. (Cosmetics & Personal Care)		7,750		547,925
eBay Inc. (Computers & Information)*		18,250		571,042
Electronic Arts Inc. (Computer Software & Processing)*		14,260		733,962
Emerson Electric Co. (Electrical Equipment)		23,520		1,229,155
Exxon Mobil Corp. (Oil & Gas)		13,160		1,224,801
Fortress Investment Group LLC - Class A (Financial Services)†		20,800		303,680
Genentech Inc. (Pharmaceuticals)*		3,960		270,072
General Electric Co. (Industrial - Diversified)		25,340		828,618
Google Inc. - Class A (Internet)*		927		532,367
Medco Health Solutions Inc. (Pharmaceuticals)*		18,768		929,767
Medtronic Inc. (Medical Supplies)		16,120		784,722
Oracle Corp. (Computer Software & Processing)*		27,110		565,244
Praxair Inc. (Chemicals)		7,220		659,258
Qualcomm Inc. (Communications)		13,250		572,267
The Coca-Cola Company (Beverages, Food & Tobacco)		9,330		549,257
Walgreen Co. (Retailers)		20,150		702,227
Wells Fargo & Co. (Banks)		16,750		498,313
				17,104,862
Total Common Stocks (Cost $28,810,431)				40,659,757
Total Investments - 99.1% (Cost $28,810,431)			$	40,659,757

See Notes to Financial Statements
16

Harding, Loevner Funds, Inc.

Global Equity Portfolio
Statement of Net Assets
April 30, 2008 (unaudited) (continued)

	Value (1)
Liabilities, Net of Other Assets - 0.92%
Cash	$	484,248
Dividends and interest receivable		100,624
Foreign currency (cost $11,865)		12,333
Receivable for Fund shares sold		65,290
Tax reclaim receivable		12,266
Prepaid expenses		436
Payable to Investment Advisor		(29,590	)
Payable for securities purchased		(172,278	)
Payable for Fund shares redeemed		(50,000	)
Other liabilities		(46,586	)
		376,743
Net Assets - 100%
Institutional Class
Applicable to 1,680,126 outstanding $.001 par value shares (authorized 500,000 shares)	$	41,036,500
Net Asset Value, Offering Price and Redemption Price Per Share	$	24.42
Components of Net Assets as of April 30, 2008 were as follows:
Paid-in capital	$	28,434,111
Accumulated undistributed net investment income		82,787
Accumulated undistributed net realized gain on investments and foreign currency-related transactions		669,898
Net unrealized appreciation on investments and on assets and liabilities denominated in foreign currencies (Note 4)		11,849,704
	$	41,036,500

Summary of Abbreviations

ADR  American Depository Receipt

GDR  Global Depositary Receipt

(1)  See Note 2 to Financial Statements.

*  Non-income producing security.

†  All or a portion of this security was out on loan at April 30, 2008 the value of the securities loaned amounted to $1,926,151. The value of collateral amounted to $2,019,431 which consisted of cash equivalents.

See Notes to Financial Statements
17

Harding, Loevner Funds, Inc.

Statements of Operations

Six Months Ended April 30, 2008 (unaudited)

	Institutional Emerging Markets Portfolio			International Equity Portfolio			Global Equity Portfolio
Investment Income
Interest	$	61,745		$	78,751		$	5,968
Dividends (Net of foreign withholding taxes of $200,728, $341,153 and $16,204, respectively)		6,181,639			3,109,778			315,814
Securities lending income, net		52,596			120,234			8,331
Other income		54			—			—
Total investment income		6,296,034			3,308,763			330,113
Expenses
Investment advisory fees (Note 3)		1,537,473			1,287,080			187,536
Administration fees (Note 3)		64,194			97,260			12,345
Distribution fees, Investor Class		—			20,003			—
Custodian and accounting fees		138,059			125,834			20,631
Directors' fees and expenses		4,311			6,887			687
Shareholder record keeping fees		15,237			32,539			15,387
Printing and postage fees		10,863			16,983			1,665
State registration filing fees		2,980			16,446			5,651
Professional fees		23,687			30,851			13,858
Sub Transfer Agent Fees		—			30,924			595
Other fees and expenses		12,037			20,518			1,984
Total Expenses		1,808,841			1,685,325			260,339
Less Waiver of investment advisory fee (Note 3)		(209,871	)		—			(25,921	)
Net Expenses		1,598,970			1,685,325			234,418
Net investment income		4,697,064			1,623,438			95,695
Realized and Unrealized Gain (Loss) (Note 4)
Net realized gain (loss) —
Investment transactions		910,130			30,898,109			731,623
Foreign currency transactions		(254,864	)		(180,971	)		(15,668	)
Net realized gain		655,266			30,717,138			715,955
Change in unrealized appreciation (depreciation) —
Investments		(20,278,896	)		(49,063,603	)		(2,827,832	)
Translation of assets and liabilities denominated in foreign currencies		(261,161	)		(2,882	)		49
Net change in unrealized depreciation		(20,540,057	)		(49,066,485	)		(2,827,783	)
Net realized and unrealized loss		(19,884,791	)		(18,349,347	)		(2,111,828	)
Net decrease in net assets resulting from operations	$	(15,187,727	)	$	(16,725,909	)	$	(2,016,133	)

See Notes to Financial Statements
18

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets

	Institutional Emerging Markets Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			Year Ended October 31, 2007
Increase in Net Assets From Operations
Net investment income	$	4,697,064		$	1,209,524
Net realized gain on investments and foreign currency transactions		655,266			7,905,895
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(20,540,057	)		74,297,865
Net increase (decrease) in net assets resulting from operations		(15,187,727	)		83,413,284
Distributions to Shareholders from:
Net investment income		(1,028,938	)		(168,859	)
Net realized gain from investments and foreign-currency related transactions		(8,286,256	)		—
Total distributions to shareholders		(9,315,194	)		(168,859	)
Transactions in shares of Common Stock
Proceeds from sale of shares		65,194,618			80,189,884
Net Asset Value of shares issued to shareholders upon reinvestment of dividends		8,746,851			129,641
Cost of shares redeemed		(9,378,400	)		(4,433,400	)
Redemption fees
Institutional Class		1,600			—
Net increase in net assets from Fund share transactions		64,564,669			75,886,125
Net increase in net assets		40,061,748			159,130,550
Net Assets
At beginning of period		245,060,534			85,929,984
At end of period	$	285,122,282		$	245,060,534
Accumulated undistributed net investment income included in net assets	$	4,595,641		$	927,515

See Notes to Financial Statements
19

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets (continued)

	International Equity Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			Year Ended October 31, 2007
Increase in Net Assets From Operations
Net investment income	$	1,623,438		$	2,631,477
Net realized gain on investments and foreign currency transactions		30,717,138			33,569,544
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(49,066,485	)		50,259,776
Net increase (decrease) in net assets resulting from operations		(16,725,909	)		86,460,797
Distributions to Shareholders from:
Net investment income
Investor Class		(85,867	)		(35,003	)
Institutional Class		(2,611,777	)		(177,831	)
Net realized gain from investments and foreign-currency related transactions
Investor Class		(1,359,303	)		(740,612	)
Institutional Class		(29,187,907	)		(24,669,178	)
Total distributions to shareholders		(33,244,854	)		(27,218,624	)
Transactions in shares of Common Stock
Proceeds from sale of shares
Investor Class		3,131,906			7,304,858
Institutional Class		5,015,492			21,697,361
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Investor Class		1,330,261			723,002
Institutional Class		30,928,420			25,144,499
Cost of shares redeemed
Investor Class		(1,881,891	)		(3,504,036	)
Institutional Class		(53,862,220	)		(57,161,618	)
Redemption fees
Investor Class		—			482
Institutional Class		—			265
Net decrease in net assets from Fund share transactions		(15,338,032	)		(5,795,187	)
Net increase (decrease) in net assets		(65,308,795	)		53,446,986
Net Assets
At beginning of period		407,296,340			353,849,354
At end of period	$	341,987,545		$	407,296,340
Accumulated undistributed net investment income included in net assets	$	1,318,914		$	2,393,120

See Notes to Financial Statements
20

Harding, Loevner Funds, Inc.

Statement of Changes in Net Assets (continued)

	Global Equity Portfolio
	For the Six Months Ended April 30, 2008 (unaudited)			Year Ended October 31, 2007
Increase in Net Assets From Operations
Net investment income	$	95,695		$	117,249
Net realized gain on investments and foreign currency transactions		715,955			2,815,402
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		(2,827,783	)		5,174,049
Net increase (decrease) in net assets resulting from operations		(2,016,133	)		8,106,700
Distributions to Shareholders from:
Net investment income
Institutional Class		(117,879	)		(99,025	)
Net realized gain from investments and foreign-currency related transactions
Institutional Class		(2,820,181	)		(2,322,308	)
Total distributions to shareholders		(2,938,060	)		(2,421,333	)
Transactions in shares of Common Stock
Proceeds from sale of shares
Institutional Class		4,522,303			929,416
Net Asset Value of shares issued to shareholders upon reinvestment of dividends
Institutional Class		2,881,495			2,374,390
Cost of shares redeemed
Institutional Class		(1,215,241	)		(292,946	)
Redemption fees
Institutional Class		285			—
Net increase in net assets from Fund share transactions		6,188,842			3,010,860
Net increase in net assets		1,234,649			8,696,227
Net Assets
At beginning of period		39,801,851			31,105,624
At end of period	$	41,036,500		$	39,801,851
Accumulated undistributed net investment income included in net assets	$	82,787		$	104,971

See Notes to Financial Statements
21

Harding, Loevner Funds, Inc.

Financial Highlights

	Institutional Emerging Markets Portfolio
	For the Six Months Ended Apr. 30, 2008 (unaudited)			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Period Ended Oct. 31, 2005(1)
Per Share Data
Net Asset Value, Beginning of Period	$	21.20		$	13.42		$	9.92		$	10.00
Increase (Decrease) in Net Assets from Operations
Net investment income (loss)		0.31			0.10			0.07			(0.00	)
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		(1.94	)		7.70			3.45			(0.08	)
Net increase (decrease) from investment operations		(1.63	)		7.80			3.52			(0.08	)
Distributions to Shareholders from:
Net investment income		(0.09	)		(0.02	)		(0.02	)		—
Net realized gain from investments and foreign currency-related transactions		(0.72	)		—			—			—
Total distributions		(0.81	)		(0.02	)		(0.02	)		—
Net Asset Value, End of Period	$	18.76		$	21.20		$	13.42		$	9.92
Total Return		(7.78	)%(B)		58.18	%		35.38	%		(0.70	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	285,122		$	245,061		$	85,930		$	4,962
Net expenses to average net assets		1.30	%(A)		1.30	%		1.30	%		1.30	%
Net investment income to average net assets		3.82	%(A)		0.72	%		0.88	%		(0.19	)%
Decrease reflected in above expense ratios due to expense reductions		0.17	%(A)		0.25	%		0.51	%		20.02	%
Portfolio turnover rate		17	%(B)		32	%		38	%		1	%

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

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
22

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	International Equity Portfolio - Institutional Class
	For the Six Months Ended Apr. 30, 2008 (unaudited)			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005			For the Year Ended Oct. 31, 2004			For the Year Ended Oct. 31, 2003
Per Share Data
Net Asset Value, Beginning of Period	$	21.71		$	18.68		$	14.90		$	12.41		$	11.30		$	9.58
Increase (Decrease) in Net Assets from Operations
Net investment income		0.10			0.14			0.12	(1)		0.13			0.11			0.11
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		(0.82	)		4.33			3.75			2.42			1.07			1.65
Net increase (decrease) from investment operations		(0.72	)		4.47			3.87			2.55			1.18			1.76
Distributions to Shareholders from:
Net investment income		(0.15	)		(0.10	)		(0.08	)		(0.06	)		(0.07	)		(0.04	)
Net realized gain from investments and foreign currency-related transactions		(1.69	)		(1.34	)		(0.01	)		—			—			—
Total distributions		(1.84	)		(1.44	)		(0.09	)		(0.06	)		(0.07	)		(0.04	)
Net Asset Value, End of Period	$	19.15		$	21.71		$	18.68		$	14.90		$	12.41		$	11.30
Total Return		(3.47	)%(B)		25.24	%		26.06	%		20.58	%		10.46	%		18.49	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	324,803		$	390,659		$	343,965		$	300,227		$	315,420		$	350,020
Net expenses to average net assets		0.97	%(A)		0.98	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income to average net assets		0.95	%(A)		0.70	%		0.69	%		0.77	%		0.81	%		1.10	%
Decrease reflected in above expense ratios due to expense reductions		—			—			0.01	%		0.05	%		0.09	%		0.06	%
Portfolio turnover rate		6	%(B)		19	%		35	%		38	%		37	%		58	%

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

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
23

Harding, Loevner Funds, Inc.

Financial Highlights (continued)

	Global Equity Portfolio - Institutional Class
	For the Six Months Ended Apr. 30, 2008 (unaudited)			For the Year Ended Oct. 31, 2007			For the Year Ended Oct. 31, 2006			For the Year Ended Oct. 31, 2005			For the Year Ended Oct. 31, 2004			For the Year Ended Oct. 31, 2003
Per Share Data
Net Asset Value, Beginning of Period	$	28.03		$	24.04		$	20.36		$	17.17		$	16.45		$	13.28
Increase (Decrease) in Net Assets from Operations
Net investment income		0.06			0.09			0.08			0.09			0.05			0.09
Net realized and unrealized gain (loss) on investments and foreign currency-related transactions		(1.59	)		5.78			4.14			3.12			0.74			3.11
Net increase (decrease) from investment operations		(1.53	)		5.87			4.22			3.21			0.79			3.20
Distributions to Shareholders from:
Net investment income		(0.08	)		(0.08	)		(0.06	)		(0.02	)		(0.07	)		(0.03	)
Net realized gain from investments and foreign currency-related transactions		(2.00	)		(1.80	)		(0.48	)		—			—			—
Total distributions		(2.08	)		(1.88	)		(0.54	)		(0.02	)		(0.07	)		(0.03	)
Net Asset Value, End of Period	$	24.42		$	28.03		$	24.04		$	20.36		$	17.17		$	16.45
Total Return		(5.72	)%(B)		26.01	%		21.08	%		18.72	%		4.78	%		24.19	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	41,037		$	39,802		$	31,106		$	25,317		$	25,770		$	26,568
Net expenses to average net assets		1.25	%(A)		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Net investment income to average net assets		0.51	%(A)		0.34	%		0.37	%		0.44	%		0.27	%		0.70	%
Decrease reflected in above expense ratios due to expense reductions		0.14	%(A)		0.18	%		0.35	%		0.36	%		0.18	%		0.12	%
Portfolio turnover rate		9	%(B)		16	%		27	%		35	%		29	%		68	%

(A)  Annualized.

(B)  Not Annualized.

See Notes to Financial Statements
24

Harding, Loevner Funds, Inc.

Notes to Financial Statements

April 30, 2008 (unaudited)

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 ("the 1940 Act"), as amended, as an open-end diversified management investment company. The Fund currently has five Portfolios, all of which were active as of April 30, 2008: International Equity Portfolio ("International Equity"); Emerging Markets Portfolio ("Emerging Markets"); Institutional Emerging Markets Portfolio ("Institutional Emerging Markets"); Global Equity Portfolio ("Global Equity") and International Small Companies Portfolio ("International Small Companies"). Information presented in these financial statements pertains to Institutional Class shares of International Equity, Institutional Emerging Markets and Institutional Class Shares of Global Equity (individually, "Portfolio"; collectively, "Portfolios"). Information pertaining to Investor Class Shares of International E quity, Emerging Markets, International Small Companies and the Global Equity Portfolio are 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; Global Equity—to seek long-term capital appreciation through investments in equity securities of companies based both inside and outside the United States.

Institutional Emerging Markets commenced operations on October 17, 2005. International Equity commenced operations on October 31, 1996 after acquiring the net assets of Harding, Loevner Management, L.P.'s AMT Capital Fund, Inc. Effective August 5, 2005, International Equity converted existing shareholders to the Institutional Class. Global Equity commenced operations on December 1, 1996 following the acquisition of net assets of Harding, Loevner Management, L.P.'s Global Equity L.P., a limited partnership, in a tax-free reorganization. Effective August 5, 2005, Global Equity launched the Investor Class shares and converted existing shareholders to the Institutional Class.

The Fund is managed by Harding, Loevner Management, L.P. (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 of Directors ("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 Portfolios and their Directors to determine, in good faith, the fair value of the Portfolios' securities when market quotations are not readily available.

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 April 30, 2008, there

25

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

2. Summary of Significant Accounting Policies (continued)

was one security in the Portfolios 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.

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.

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Fund determined that the adoption of FIN 48 did not have an impact on the financial statements.

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.

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 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.

26

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

2. Summary of Significant Accounting Policies (continued)

Security 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 the loaned domestic securities (including ADRs) and 105% of loaned foreign securities. The loans will be terminable at any time by the Fund and the relevant Portfolio will then receive the loaned securities within three days. 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 rat her 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 UBS, which acts as the 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 which are approved by the Board and are deemed by the Investment Advisor to be of good financial standing. The Portfolio may invest cash collateral it receives in connection with a loan of securities in 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. Net amounts earned from security lending activities are disclosed on the Statement of Operations. Amounts loaned and held as collateral are disclosed on the Statement of Net Assets.

3. Significant Agreements and Transactions with Affiliates

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

The Investment Advisor has voluntarily agreed to cap the total annual class operating expenses at 1.30%, 1.00%, and 1.25%, respectively, of the average daily net assets of Institutional Emerging Markets, Institutional Class shares of International Equity and Institutional Class shares of Global Equity. This expense cap may be terminated at anytime. For the period ended April 30, 2008, the Investment Advisor voluntarily waived $209,871 and $25,921, respectively, of the Institutional Emerging Markets and Global Equity in investment advisory fees from the Portfolios.

In addition, the Fund has an administration agreement with State Street Bank and Trust Company ("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, transfer agency services, custodial services, chief compliance officer services, and the service of some State Street Bank and Trust employees as officers serving the board of directors. Under this agreement, the Institutional Emerging Markets, International Equity and Global Equity incurred $225,995, $268,680, and $49,719, respectively, for the period ended April 30, 2008.

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

The Fund has agreements with various financial intermediaries and "mutual fund supermarkets", under which customers of these intermediaries may purchase and hold Funds' 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, the Institutional Class of International Equity and Global Equity are authorized 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 Portfolio's fees and expenses, the Investment Advisor paid all or a portion of the Portfolio's share of these fees during the period ended April 30, 2008.

27

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

4. Investment Transactions

Cost of purchases and proceeds from sales of investment securities, other than short-term investments, for the period ended April 30, 2008, were as follows for each Portfolio:

Portfolio	Purchase Cost of Investment Securities		Proceeds from Sales of Investment Securities
Institutional Emerging Markets	$	100,244,384	$	42,754,558
International Equity		20,314,067		66,851,690
Global Equity		7,039,042		3,399,881

The Portfolios are permitted to purchase or sell securities from or to certain other HLM Portfolios under specified conditions outlined in procedures adopted by the Board. 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 six months ended April 30, 2008, the Institutional Emerging Markets Portfolio engaged in securities sales of $3,601,396, and securities purchases of $2,934,643.

The cost of investments for federal income tax purposes and the components of net unrealized appreciation on investments at April 30, 2008, for each of the Portfolios were as follows:

Portfolio	Unrealized Appreciation		Unrealized Depreciation		Net		Cost
Institutional Emerging Markets	$	67,082,072	$	5,700,835	$	61,381,237	$	218,686,310
International Equity		140,789,165		9,354,341		131,434,824		204,226,084
Global Equity		12,869,183		1,065,825		11,803,358		28,856,399

The unrealized appreciation (depreciation) on foreign currency for Institutional Emerging Markets, International Equity and Global Equity was $1,782, $1,457 and $468, respectively, for the period ended April 30, 2008.

5. 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 April 30, 2008.

28

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

6. Capital Share Transactions

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		3,693,333		$	65,194,618			5,404,809		$	80,189,884
Shares issued upon reinvestment of dividends		448,651			8,746,851			8,965			129,641
		4,141,984			73,941,469			5,413,774			80,319,525
Shares redeemed		(504,727	)		(9,378,400	)		(255,904	)		(4,433,400	)
Net increase		3,637,257		$	64,563,069			5,157,870		$	75,886,125

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		164,744		$	3,131,906			377,652		$	7,304,858
Shares issued upon reinvestment of dividends		68,854			1,330,261			39,229			723,002
		233,598			4,462,167			416,881			8,027,860
Shares redeemed		(103,031	)		(1,881,891	)		(178,817	)		(3,504,036	)
Net increase		130,567		$	2,580,276			238,064		$	4,523,824

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		267,662		$	5,015,492			1,121,101		$	21,697,361
Shares issued upon reinvestment of dividends		1,599,857			30,928,420			1,363,585			25,144,499
		1,867,519			35,943,912			2,484,686			46,841,860
Shares redeemed		(2,899,101	)		(53,862,220	)		(2,901,139	)		(57,161,618	)
Net increase (decrease)		(1,031,582	)	$	(17,918,308	)		(416,453	)	$	(10,319,758	)

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

	Six Months Ended April 30, 2008						Year Ended October 31, 2007
	Shares			Amount			Shares			Amount
Shares sold		196,456		$	4,522,303			35,387		$	929,416
Shares issued upon reinvestment of dividends		113,938			2,881,495			102,344			2,374,390
		310,394			7,403,798			137,731			3,303,806
Shares redeemed		(50,367	)		(1,215,241	)		(11,604	)		(292,946	)
Net increase (decrease)		260,027		$	6,188,557			126,127		$	3,010,860

Redemptions made within 90 days of purchase may be subject to a redemption fee equal to 2% of the amount redeemed. For the period ended April 30, 2008, Institutional Emerging Markets and Global Equity received $1,600 and $285, 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 period ended April 30, 2008 the International Equity Fund did not receive any redemption fees.

29

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

7. Concentration of Ownership

At April 30, 2008, 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 Portfolio		2		25	%*
International Equity Portfolio		3		50	%**
Global Equity, Institutional Class		3		57	%**

*  Represents percentage ownership of Institutional Class only; these two shareholders owned approximately 50% of the Portfolio's net assets as a whole.

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

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

8. 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.

9. 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 Global Equity are authorized to invest.

10. 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 Institutional 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 period ended April 30, 2008, International Equity Portfolio and Gl obal Equity Portfolio had borrowings on three days and one day, the maximum balance being $3,344,647 and $20,296, at an average weighted interest rate of 5.10% and 2.85%, respectively.

30

Harding, Loevner Funds, Inc.

Notes to Financial Statements (continued)

April 30, 2008 (unaudited)

11. Recently Issued Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of April 30, 2008, the Fund does not believe the adoption of SFAS No. 157 will significantly impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

31

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.hardingloevner.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.

32

Harding, Loevner Funds, Inc.

Officers & Directors and Other Pertinent Information

OFFICERS AND DIRECTORS

Jane A. Freeman

Director of the Funds

Samuel R. Karetsky

Director of the Funds

R. Kelly Doherty

Director of the Funds

Raymond J. Clark

Director of the Funds

David R. Loevner

Director, President and Chairman
of the Board 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 of 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

Brian C. Poole

Assistant Secretary of the Funds

INVESTMENT ADVISOR

Harding, Loevner Management, L.P.
50 Division Street, Suite 401
Somerville, NJ 08876

DISTRIBUTOR

Quasar Distributors, LLC
615 East Michigan Street
Milwaukee, WI 53202

ADMINISTRATOR, CUSTODIAN AND
FUND ACCOUNTING AGENT, AND
TRANSFE R AND DIVIDEND
DISBURSING AGENT

State Street Bank and Trust Company
P.O. Box 9130
Boston, MA 02117

LEGAL COUNSEL

Dechert LLC
1095 Avenue of the Americas
New York, NY 10036-6797

INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM

KPMG LLP
1601 Market Street
Philadelphia, PA 19103-2499

This report is intended for shareholders of Harding Loevner Funds. 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 04/08

33

Item 2.Code of Ethics.

Not applicable to this filing.

Item 3.Audit Committee Financial Expert.

Not applicable to this filing.

Item 4.Principal Accountant Fees and Services.

Not applicable to this filing.

Item 5.Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6.Schedule of Investments

Not applicable to this filing.

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 to this filing.

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) Not applicable to this filing.

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

(b) Section 906 Certifications are attached.

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:	July 9, 2008

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:	July 9, 2008

By:  /s/  Puran Dulani
Puran Dulani, Treasurer and Chief Financial Officer
Date:	July 9, 2008