<Page>
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: 10/31/2004
--------------------------
Date of reporting period: 11/01/2003-4/30/2004
-------------------------
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
The semi-annual report for the period November 1, 2003 through April 30,
2004 is filed herewith.
<Page>
[HARDING, LOEVNER LOGO]
HARDING, LOEVNER FUNDS, INC.
SEMI-ANNUAL REPORT
APRIL 30, 2004
Portfolios managed by
Harding, Loevner Management, L.P.
INTERNATIONAL EQUITY PORTFOLIO
EMERGING MARKETS PORTFOLIO
GLOBAL EQUITY PORTFOLIO
P.O. Box 9130
Boston, MA 02117-9130
Telephone: 877-435-8105
Fax: 617-927-8400
<Page>
HARDING, LOEVNER FUNDS, INC.
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
June 28, 2004
Dear Shareholder:
Enclosed is the Semi-Annual Report to Shareholders for the period ended
April 30, 2004.
Our regular quarterly narrative discussing developments in the calendar
quarter ended June 30, 2004 will be sent to you shortly.
Sincerely,
/s/ David R. Loevner
David R. Loevner
President
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<Table>
Statements of Net Assets
International Equity Portfolio........................ 3
Emerging Markets Portfolio............................ 7
Global Equity Portfolio............................... 12
Statements of Operations.................................. 16
Statements of Changes in Net Assets....................... 17
Financial Highlights...................................... 20
Notes to Financial Statements............................. 23
Results of Special Meeting of Shareholders................ 28
</Table>
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS - 98.5%
- ---------------------------
COMMON STOCKS - 97.6%
- ---------------------
BRAZIL - 0.7%
- -----------
Companhia Vale do Rio Doce - ADR (Metals & Mining) 64,356 $ 2,515,676
------------
CANADA - 5.0%
- ------------
EnCana Corp. (Oil & Gas) 239,566 9,395,779
Imperial Oil Ltd. (Integrated International Oil Producers) 213,480 9,369,637
------------
18,765,416
------------
CHINA - 1.0%
- -----------
Yanzhou Coal Mining Co., Ltd., Class H (Metals & Mining) 3,858,000 3,610,785
------------
DENMARK - 1.4%
- --------------
ISS A/S (Service Organizations) 102,493 5,118,211
------------
FRANCE - 7.4%
- ------------
Air Liquide (Industrial Chemicals & Gases Manufacturers) 64,550 11,305,118
Carrefour SA (Miscellaneous Retailers) 101,760 4,722,032
Dassault Systemes SA (Software) 93,300 3,809,385
Schneider Electric SA (Electrical Equipment) 115,810 7,781,267
------------
27,617,802
------------
GERMANY - 3.2%
- --------------
Metro AG (Food & Drug Retailing) 269,470 11,948,775
------------
HONG KONG - 2.3%
- ---------------
Denway Motors Ltd. (Automobiles) 7,924,000 3,784,315
Yue Yuen Industrial Holdings Ltd. (Textiles & Apparel) 1,815,500 4,899,648
------------
8,683,963
------------
INDIA - 3.7%
- ----------
HDFC Bank Ltd. (Banks) 796,400 6,731,881
Reliance Industries Ltd. (Oil & Gas) 582,000 6,889,247
------------
13,621,128
------------
IRELAND - 1.6%
- ------------
CRH plc (Construction Materials) 288,152 6,120,882
------------
JAPAN - 21.2%
- ------------
Asatsu-DK Inc. (Advertising Agencies) 283,700 8,072,294
Canon Inc. (Business Machines & Office Equipment) 186,000 9,758,869
Kao Corp. (Cosmetics & Personal Care) 295,000 7,043,859
Keyence Corp. (Electronic Equipment & Instruments) 16,950 4,070,273
</Table>
See Notes to Financial Statements
3
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Matsushita Electric Industrial Co., Ltd. (Home Construction,
Furnishings & Appliances) 415,000 $ 6,095,918
Mitsubishi Corp. (General Diversified) 904,000 8,617,716
Nissan Motor Co., Ltd. (Automobiles) 621,900 6,925,967
Nomura Holdings Inc. (Financial Services) 334,000 5,423,660
Rohm Co., Ltd. (Electronics) 84,200 10,506,402
Sharp Corp. (Electronics) 479,000 8,637,669
Sumitomo Mitsui Financial Group Inc. (Banks) 525 3,967,650
------------
79,120,277
------------
MEXICO - 1.3%
- ------------
Wal-Mart de Mexico SA de CV - ADR (Discount Stores) 161,790 4,731,516
------------
NETHERLANDS - 3.8%
- ----------------
Heineken NV (Beverages, Food & Tobacco)* 126,990 5,358,470
IHC Caland NV (Shipbuilding) 190,378 8,966,592
------------
14,325,062
------------
RUSSIA - 0.8%
- -----------
Yukos - ADR (Oil & Gas) 66,520 2,980,096
------------
SINGAPORE - 1.2%
- --------------
DBS Group Holdings Ltd. (Commercial Banks) 531,083 4,463,538
------------
SOUTH AFRICA - 1.5%
- -----------------
Sasol Ltd. (Oil & Gas) 359,400 5,393,906
------------
SOUTH KOREA - 2.3%
- ----------------
Samsung Electronics Co., Ltd. - GDR (Diversified
Electronics) 35,800 8,421,950
------------
SPAIN - 3.2%
- -----------
Bankinter SA (Commercial Banks) 107,000 4,042,952
Santander Central Hispano SA (Banks) 739,200 7,939,599
------------
11,982,551
------------
SWEDEN - 3.1%
- ------------
Atlas Copco AB, Class A (Heavy Machinery) 156,900 5,504,218
Skandinaviska Enskilda Banken AB, Class A (Banks) 417,900 6,072,021
------------
11,576,239
------------
SWITZERLAND - 15.3%
- -----------------
ABB Ltd. (Power Transmission Equipment)* 1,508,000 8,490,205
Actelion Ltd. (Pharmaceuticals)* 36,000 3,949,560
Nestle SA - ADR (Diversified Food) 149,820 9,474,961
Novartis AG - Registered (Pharmaceuticals) 180,700 8,055,268
Roche Holding AG - Genusschein (Pharmaceuticals) 100,430 10,534,074
Swiss Re - Registered (Insurance) 117,200 7,710,289
</Table>
See Notes to Financial Statements
4
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
SWITZERLAND (CONTINUED)
UBS AG - Registered (Banks) 120,710 $ 8,578,919
------------
56,793,276
------------
TAIWAN - 1.2%
- ------------
Taiwan Semiconductor (Parts & Components)* 2,639,989 4,569,517
------------
THAILAND - 2.5%
- -------------
Advanced Information Service plc (Telecommunications) 2,223,800 4,891,137
Bangkok Bank Co., Ltd. (Banks)* 1,859,900 4,555,616
------------
9,446,753
------------
UNITED KINGDOM - 13.9%
- ---------------------
BP plc - ADR (Oil & Gas) 144,500 7,644,050
Close Brothers Group plc (Diversified Financials) 418,713 6,081,277
Signet Group plc (Retailers) 1,362,010 2,795,733
Standard Chartered plc (Other Financial Services) 380,340 5,827,472
Unilever plc (Diversified Food) 676,800 6,385,082
Vodafone Group plc - Sponsored ADR (Telephone Systems) 444,741 10,913,944
WPP Group plc (Advertising Agencies) 1,211,930 11,949,419
------------
51,596,977
------------
Total Common Stocks (Cost $293,071,522) 363,404,296
------------
PREFERRED STOCK - 0.9%
- -------------------
BERMUDA - 0.9%
- --------------
Taiwan Semi Flemings - 144A (Cost $2,357,322)* 407,931 3,530,408
TOTAL LONG TERM INVESTMENTS (COST $295,428,844) 366,934,704
------------
</Table>
<Table>
<Caption>
FACE
REPURCHASE AGREEMENT - 1.3% AMOUNT
- --------------------------- ------------
Investors Bank & Trust Repurchase Agreement, 0.71% due
05/03/04 in the amount of $4,833,527; issued 04/30/04
(collateralized by $4,900,876 par of FHLMC ARM #846062,
3.436%, due 05/01/28 with a market value of $5,075,005)
(Cost $4,833,241) $ 4,833,241 4,833,241
------------
TOTAL INVESTMENTS - 99.8% (COST $300,262,085) $371,767,945
------------
</Table>
See Notes to Financial Statements
5
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) VALUE (1)
- ---------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, NET OF LIABILITIES - 0.2%
- --------------------------------------------------------------------------------
Receivable for securities sold $ 1,192,599
Receivable for Fund shares sold 29,784
Dividends receivable 1,047,799
Tax reclaim receivable 383,388
Other assets 95
Prepaid expenses 12,058
Payable for securities purchased (1,357,033)
Payable for Fund shares redeemed (3,853)
Payable to Investment Advisor (91,701)
Other liabilities (469,796)
------------
743,340
------------
NET ASSETS - 100%
- --------------------------------------------------------------------------------
Applicable to 30,582,938 outstanding $.001 par value shares (authorized
500,000,000 shares) $372,511,285
============
Net Asset Value, Offering and Redemption Price Per Share $ 12.18
============
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2004 WERE AS FOLLOWS:
- --------------------------------------------------------------------------------
Paid-in capital $354,897,122
Accumulated undistributed net investment income 1,134,344
Accumulated distributions in excess of net realized gain on investments and
foreign currency-related transactions (55,036,911)
Net unrealized appreciation on investments and on assets and liabilities
denominated in foreign currencies (Note 4) 71,516,730
------------
$372,511,285
============
</Table>
Summary of Abbreviations
144A Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from
registration, normally to qualified buyers.
ADR American Depository Receipt
ARM Adjustable Rate Mortgage
FHLMC Federal Home Loan Mortgage Association
GDR Global Depositary Receipt
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
6
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS - 96.4%
- ---------------------------
COMMON STOCKS - 92.2%
- ---------------------
AUSTRIA - 1.4%
- ------------
Erste Bank der oesterreichischen Sparkassen AG (Banks) 4,000 $ 598,656
------------
BRAZIL - 5.7%
- -----------
Aracruz Celulose SA - Sponsored ADR (Forest Products &
Paper) 27,833 866,720
Companhia Vale do Rio Doce - ADR (Metals & Mining) 16,000 625,440
Compania Brasileira de Distribuicao Grupo Pao de Acurcar
(National & Regional Food Chains)* 23,900 425,420
Embratel Participacoes SA - ADR (Telephone Systems) 35,000 524,650
------------
2,442,230
------------
CHILE - 1.1%
- ----------
Banco Santander - ADR (Banks) 18,500 461,760
------------
CHINA - 1.1%
- -----------
Yanzhou Coal Mining Co., Ltd., Class H (Metals & Mining) 520,000 486,679
------------
ESTONIA - 0.9%
- ------------
Hansabank Ltd. (Banks) 52,000 398,321
------------
HONG KONG - 1.8%
- ---------------
Denway Motors Ltd. (Automobiles) 1,132,000 540,616
Yue Yuen Industrial Holdings Ltd. (Textiles & Apparel) 75,000 202,409
------------
743,025
------------
HUNGARY - 1.0%
- -------------
Gedeon Richter Rt. (Pharmaceuticals) 4,000 406,825
------------
INDIA - 8.5%
- ----------
Bajaj Auto Ltd. (Automotive) 28,000 579,708
Bharti Tele-Ventures Ltd. (Telephone Systems)* 262,000 1,000,396
Housing Development Finance Corp., Ltd. (Other Financial
Services) 48,000 644,389
ICICI Bank Ltd. (Banks) 66,000 467,803
Reliance Industries Ltd. - Sponsored GDR (Oil & Gas)* 35,500 905,250
------------
3,597,546
------------
INDONESIA - 3.5%
- --------------
PT Bank Danamon Indonesia Tbk (Banks) 1,100,000 410,214
PT Telekomunikasi Indonesia - ADR (Telecommunications) 36,000 651,600
PT Unilever Indonesia Tbk (Cosmetics & Personal Care) 1,050,000 439,393
------------
1,501,207
------------
</Table>
See Notes to Financial Statements
7
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
ISRAEL - 3.5%
- -----------
Orbotech Ltd. (Electronic Equipment & Instruments)* 22,000 $ 464,640
Taro Pharmaceutical Industries Ltd. (Pharmaceuticals)* 8,500 367,625
Teva Pharmaceutical Industries Ltd. - ADR (Ethical Drug
Manufacturers) 10,600 652,536
------------
1,484,801
------------
LUXEMBOURG - 0.8%
- -----------------
Tenaris SA - ADR (Metals & Mining) 12,000 359,880
------------
MALAYSIA - 0.8%
- -------------
Resorts World Berhad (Entertainment & Leisure) 125,000 328,947
------------
MEXICO - 8.4%
- ------------
America Movil SA de CV Series L - ADR (Telephone Systems) 25,200 851,760
Consorcio ARA SA de CV Series (Real Estate)* 173,000 472,408
Corporacion GEO SA de CV Series B (Real Estate)* 62,000 355,078
Grupo Aeroportuario del Sureste SA de CV - ADR (Commercial
Services & Supplies) 28,000 547,400
Grupo Televisa SA (Radio & TV Broadcasters) 18,000 784,620
Wal-Mart de Mexico SA de CV - ADR (Discount Stores) 19,400 567,349
------------
3,578,615
------------
PHILIPPINES - 2.3%
- ---------------
Globe Telecom Inc. (Communications) 32,000 485,714
Philippine Long Distance Telephone Co. - Sponsored ADR
(Telephone Systems)* 26,000 511,160
------------
996,874
------------
POLAND - 0.7%
- ------------
Grupa Kety SA (Metals & Mining) 8,800 287,972
------------
RUSSIA - 4.7%
- -----------
Sberbank of Russia (Banks) 1,525 584,075
VimpelCom - Sponsored ADR (Telephone Systems)* 10,800 969,408
Yukos - ADR (Oil & Gas) 9,653 432,454
------------
1,985,937
------------
SOUTH AFRICA - 10.0%
- ------------------
Bidvest Group Ltd. (Industrial Conglomerates) 77,589 605,654
Impala Platinum Holdings Ltd. (Metals & Mining) 9,300 633,035
JD Group Ltd. (Home Construction, Furnishings & Appliances) 75,000 444,205
MTN Group Ltd. (Telephone Systems)* 125,000 522,911
Sasol Ltd. (Oil & Gas) 57,400 861,464
Standard Bank Investment Corp., Ltd. (Banks) 108,500 625,927
Steinhoff International Holdings Ltd. (Home Construction,
Furnishings & Appliances) 435,000 540,916
------------
4,234,112
------------
</Table>
See Notes to Financial Statements
8
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
SOUTH KOREA - 16.3%
- -----------------
Hankook Tire Co., Ltd. (Automotive) 60,000 $ 486,811
Hite Brewery Co., Ltd. (Brewers) 7,600 557,038
Hyundai Mobis (Automotive) 13,000 558,401
Hyundai Motor Co., Ltd. (Automobiles) 13,500 514,872
LG Electronics Inc. (Electronics) 13,400 813,125
LG Petrochemical Co., Ltd. (Oil & Gas) 23,000 461,627
S1 Corp. (Securities Brokerage) 16,600 403,204
Samsung Electronics Co., Ltd. - GDR (Diversified
Electronics) 4,350 1,023,337
Samsung SDI Co., Ltd. (Diversified Electronics) 7,100 907,658
Shinsegae Co., Ltd. (Retailers) 3,000 677,547
SK Telecom Co. (Telecommunications) 3,200 545,447
------------
6,949,067
------------
TAIWAN - 9.7%
- ------------
Advantech Co., Ltd. (Computers & Information) 289,508 610,041
Delta Electronics (Electrical Equipment) 302,500 372,434
Formosa Chemicals & Fibre Corp. (Textiles & Apparel) 325,000 469,597
Premier Image Technology (Electronic Equipment &
Instruments) 336,500 536,860
Quanta Computer Inc. (Computers & Peripherals) 185,655 391,206
Synnex Technology International Corp. (Systems & Subsystems) 210,000 325,557
Synnex Technology International Corp. - GDR (Systems &
Subsystems) 68,387 424,075
Taiwan Semiconductor (Parts & Components)* 307,374 532,029
Tong Yang Industry Co., Ltd. (Automotive) 300,000 483,143
------------
4,144,942
------------
THAILAND - 2.7%
- -------------
Advanced Information Service plc (Telecommunications) 275,000 604,849
Siam Cement Public Co., Ltd. (Cement Producers) 102,000 550,662
------------
1,155,511
------------
TURKEY - 3.3%
- ------------
Akbank TAS (Banks) 100,000,000 465,280
Anadolu Efes Biracilik ve Malt Sanayii AS (Beverages, Food &
Tobacco) 33,722,000 473,083
Arcelik AS (Industrial - Diversified) 88,000,000 471,484
------------
1,409,847
------------
UNITED KINGDOM - 4.0%
- --------------------
Anglo American plc - ADR (Metals & Mining) 46,927 955,903
SABMiller plc (Brewers) 70,350 761,524
------------
1,717,427
------------
Total Common Stocks (Cost $32,480,278) 39,270,181
------------
</Table>
See Notes to Financial Statements
9
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
PREFERRED STOCK - 4.2%
- -------------------
BERMUDA - 0.5%
- --------------
Taiwan Semi Flemings - 144A (Financial Services)* 24,818 $ 214,786
------------
BRAZIL - 1.2%
- -----------
Banco Itau SA - ADR (Commercial Banks) 13,096 519,125
------------
SOUTH KOREA - 2.5%
- ----------------
Samsung Electronics Co., Ltd. - GDR (Diversified
Electronics) 7,500 1,035,497
------------
Total Preferred Stock (Cost $1,216,436) 1,769,408
------------
TOTAL LONG TERM INVESTMENTS (COST $33,696,714) 41,039,589
------------
</Table>
<Table>
<Caption>
FACE
REPURCHASE AGREEMENT - 3.5% AMOUNT
- --------------------------- ------------
Investors Bank & Trust Repurchase Agreement, 0.71% due
05/03/04 in the amount of $1,500,153; issued 04/30/04
(collateralized by $1,544,828 par of FHLMC #846782, due
08/01/31 with a market value of $1,575,359) (Cost
$1,500,064) $ 1,500,064 1,500,064
------------
TOTAL INVESTMENTS - 99.9% (COST $35,196,778) $ 42,539,653
------------
</Table>
See Notes to Financial Statements
10
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) VALUE (1)
- ---------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, NET OF LIABILITIES - 0.1%
- --------------------------------
Dividends receivable $ 139,340
Tax reclaim receivable 767
Foreign Currency (Cost $687) 687
Other assets 30
Prepaid expenses 665
Payable to Investment Advisor (44,811)
Other liabilities (67,038)
------------
29,640
------------
NET ASSETS - 100%
- ---------------
Applicable to 2,135,741 outstanding $.001 par value shares (authorized
500,000,000 shares) $ 42,569,293
============
Net Asset Value, Offering and Redemption Price Per Share $ 19.93
============
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2004 WERE AS FOLLOWS:
- -----------------------------------------------------
Paid-in capital $ 34,902,664
Accumulated undistributed net investment income 37,936
Accumulated undistributed net realized gain on investments and
foreign currency-related transactions 286,122
Net unrealized appreciation on investments and on assets and
liabilities denominated in foreign currencies (Note 4) 7,342,571
------------
$ 42,569,293
============
</Table>
Summary of Abbreviations
144A Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from
registration, normally to qualified buyers.
ADR American Depository Receipt
FHLMC Federal Home Loan Mortgage Association
GDR Global Depositary Receipt
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
11
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS - 99.1%
- ---------------------------
COMMON STOCKS - 97.6%
- ---------------------
AUSTRALIA - 1.9%
- --------------
Rio Tinto Ltd. (Diversified Metal Producers) 22,100 $ 519,199
------------
AUSTRIA - 1.3%
- ------------
Erste Bank der oesterreichischen Sparkassen AG (Banks) 2,250 336,744
------------
CANADA - 2.4%
- ------------
EnCana Corp. (Oil & Gas) 16,300 639,286
------------
CHINA - 0.7%
- -----------
Anhui Conch Cement Co., Ltd., Class H (Building Materials) 180,000 191,543
------------
FRANCE - 7.6%
- ------------
Air Liquide (Industrial Chemicals & Gases Manufacturers) 1,666 291,779
Dassault Systemes SA (Software) 16,100 657,354
L'Oreal SA (Cosmetics & Personal Care) 6,620 499,157
Schlumberger Ltd. (Exploration, Drilling Service &
Equipment) 5,400 316,062
Television Francaise (Media) 8,700 268,759
------------
2,033,111
------------
GERMANY - 3.8%
- --------------
Bayerische Motoren Werke AG (Automobiles) 6,500 280,274
Deutsche Bank AG (Commercial Banks) 8,900 733,485
------------
1,013,759
------------
HONG KONG - 1.8%
- ---------------
Denway Motors Ltd. (Automobiles) 1,012,000 483,307
------------
JAPAN - 14.8%
- ------------
Canon Inc. (Business Machines & Office Equipment) 6,000 314,802
Hirose Electronics Co., Ltd. (Electrical Equipment) 3,000 343,890
JSR Corp. (Automotive) 21,000 442,436
Keyence Corp. (Electronic Equipment & Instruments) 2,600 624,349
Mitsubishi Corp. (General Diversified) 50,600 482,363
Nomura Holdings Inc. (Financial Services) 20,700 336,137
Rohm Co., Ltd. (Electronics) 4,400 549,028
Sharp Corp. (Electronics) 16,700 301,146
Sony Corp. - ADR (Radio, TV, & Phonograph Manufacturers) 7,300 280,320
Sumitomo Mitsui Financial Group Inc. (Banks) 40 302,297
------------
3,976,768
------------
MEXICO - 2.5%
- ------------
Coca-Cola Femsa SA de CV - ADR (Beverages, Food & Tobacco)* 13,200 280,632
</Table>
See Notes to Financial Statements
12
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
MEXICO (CONTINUED)
Wal-Mart de Mexico SA de CV - ADR (Discount Stores) 13,300 $ 388,956
------------
669,588
------------
NETHERLANDS - 2.8%
- ----------------
Heineken NV (Beverages, Food & Tobacco)* 11,400 481,034
Qiagen NV (Health Care Equipment & Supplies)* 21,500 260,824
------------
741,858
------------
SOUTH AFRICA - 1.5%
- -----------------
Sasol Ltd. (Oil & Gas) 27,440 411,822
------------
SOUTH KOREA - 3.8%
- ----------------
Kookmin Bank - ADR (Banks)* 6,900 255,990
Samsung Electronics Co., Ltd. - GDR (Diversified
Electronics) 3,270 769,267
------------
1,025,257
------------
SPAIN - 0.9%
- -----------
Bankinter SA (Commercial Banks) 6,700 253,157
------------
SWITZERLAND - 5.6%
- ----------------
ABB Ltd. (Power Transmission Equipment)* 65,100 366,520
Nestle SA - ADR (Diversified Food) 8,420 532,500
Novartis AG - Registered (Pharmaceuticals) 8,220 366,432
Swiss Re - Registered (Insurance) 3,700 243,414
------------
1,508,866
------------
TAIWAN - 0.0%
- ------------
Taiwan Semiconductor (Parts & Components)* 345 597
------------
THAILAND - 1.3%
- -------------
Bangkok Bank Co., Ltd. (Banks)* 146,700 359,325
------------
UNITED KINGDOM - 7.8%
- --------------------
Pearson plc (Miscellaneous Printing & Publishing) 45,900 535,591
Standard Chartered plc (Other Financial Services) 17,700 271,195
Vodafone Group plc - Sponsored ADR (Telephone Systems) 35,900 880,986
WPP Group plc (Advertising Agencies) 40,600 400,309
------------
2,088,081
------------
UNITED STATES - 37.1%
- ------------------
Abbott Laboratories (Pharmaceuticals) 8,000 352,160
Air Products & Chemicals Inc. (Industrial Chemicals & Gases
Manufacturers) 5,900 293,879
Allied Capital Corp. (Commercial Finance Companies) 10,100 239,572
American International Group (Insurance Companies) 9,200 659,180
Analog Devices (Semiconductor Equipment & Products) 13,800 587,880
BEA Systems Inc. (Computer Software & Processing)* 18,400 209,944
Berkshire Hathaway Inc., Class A (Insurance Companies)* 6 560,340
Caterpillar Inc. (Heavy Machinery) 8,950 695,683
</Table>
See Notes to Financial Statements
13
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) SHARES VALUE (1)
- -------------------------------------------------------------------------------------------------
UNITED STATES (CONTINUED)
Colgate-Palmolive Co. (Cosmetics & Toiletries) 5,400 $ 312,552
Comcast Corp., Class A (Media)* 11,300 340,130
Emerson Electric Co. (Electrical Equipment) 6,850 412,507
Estee Lauder Companies Inc., Class A (Cosmetics & Personal
Care) 7,600 347,396
Exxon Mobil Corp. (Integrated International Oil Producers) 6,700 285,085
J.P. Morgan Chase & Co. (Banks) 10,160 382,016
Kinder Morgan Inc. (Oil & Gas) 10,170 612,336
Medco Health Solutions Inc. (Insurance)* 7,389 261,571
Merck & Co., Inc. (Pharmaceuticals) 9,560 449,320
Oracle Corp. (Computer Software & Processing)* 34,000 381,480
Praxair Inc. (Chemicals) 7,900 288,745
Qualcomm Inc. (Communications) 8,900 555,894
The Coca-Cola Company (Beverages, Food & Tobacco) 7,580 383,321
TJX Companies Inc. (Retailers) 33,700 828,009
Viacom Inc., Class B (Media) 13,350 515,978
------------
9,954,978
------------
Total Common Stocks (Cost $20,897,575) 26,207,246
------------
PREFERRED STOCK - 1.5%
- -------------------
BERMUDA - 1.5%
- --------------
Taiwan Semi Flemings - 144A (Cost $385,107)* 46,939 406,230
TOTAL LONG TERM INVESTMENTS (COST $21,282,682) 26,613,476
------------
</Table>
<Table>
<Caption>
FACE
REPURCHASE AGREEMENT - 0.4% AMOUNT
- --------------------------- ------------
Investors Bank & Trust Repurchase Agreement, 0.71% due
05/03/04 in the amount of $117,393; issued 04/30/04
(collateralized by $113,160 par of SBA #506294, due 11/25/22
with a market value of $123,256) (Cost $117,386) $ 117,386 117,386
------------
TOTAL INVESTMENTS - 99.5% (COST $21,400,068) $ 26,730,862
------------
</Table>
See Notes to Financial Statements
14
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
<Table>
<Caption>
APRIL 30, 2004 (UNAUDITED) (CONTINUED) VALUE (1)
- ---------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, NET OF LIABILITIES - 0.5%
- --------------------------------------------------------------------------------
Receivable for securities sold $ 97,624
Dividends receivable 70,839
Tax reclaim receivable 12,253
Domestic Cash 47,540
Prepaid expenses 848
Due to custodian (36,403)
Payable to Investment Advisor (18,617)
Other liabilities (42,886)
------------
131,198
------------
NET ASSETS - 100%
- --------------------------------------------------------------------------------
Applicable to 1,554,815 outstanding $.001 par value shares (authorized
500,000,000 shares) $ 26,862,060
============
Net Asset Value, Offering and Redemption Price Per Share $ 17.28
============
COMPONENTS OF NET ASSETS AS OF APRIL 30, 2004 WERE AS FOLLOWS:
- --------------------------------------------------------------------------------
Paid-in capital $ 23,887,056
Accumulated undistributed net investment income 22,147
Accumulated distributions in excess of net realized gain on investments and
foreign currency-related transactions (2,377,997)
Net unrealized appreciation on investments and on assets and liabilities
denominated in foreign currencies (Note 4) 5,330,854
------------
$ 26,862,060
============
</Table>
Summary of Abbreviations
144A Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from
registration, normally to qualified buyers.
ADR American Depository Receipt
GDR Global Depositary Receipt
SBA Small Business Administration
(1) See Note 2 to Financial Statements
* Non-income producing security
See Notes to Financial Statements
15
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL EMERGING GLOBAL
EQUITY MARKETS EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- ----------
INVESTMENT INCOME
Interest $ 4,849 $ 1,343 $ 426
Dividends (Net of foreign withholding
taxes of $338,745, $32,592, and
$8,615, respectively) 3,023,782 344,923 196,126
----------- ---------- ----------
Total investment income 3,028,631 346,266 196,552
----------- ---------- ----------
EXPENSES
Investment advisory fees (Note 3) 1,426,132 226,674 139,445
Administration fees (Note 3) 173,836 15,613 15,225
Custodian and fund accounting fees 289,518 42,240 20,411
Directors' fees and expenses (Note 3) 29,408 2,259 2,278
Shareholder record keeping fees 48,730 5,429 2,612
Printing and postage fees 5,586 342 380
State registration filing fees 19,983 958 -
Insurance expense 6,053 276 404
Professional fees 61,759 16,068 15,848
Other fees and expenses 32,199 604 87
----------- ---------- ----------
Total Expenses 2,093,204 310,463 196,690
Waiver of investment advisory fee (Note
3) (191,694) - (22,382)
----------- ---------- ----------
Net expenses 1,901,510 310,463 174,308
----------- ---------- ----------
Net investment income 1,127,121 35,803 22,244
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTE 4)
Net realized gain (loss) --
Investment transactions (net of
foreign tax expense $275,375,
$54,172, and $4,904, respectively) 16,296,210 1,357,969 1,161,410
Foreign currency transactions (720,516) (35,731) (28,665)
----------- ---------- ----------
Net realized gain 15,575,694 1,322,238 1,132,745
----------- ---------- ----------
Change in unrealized appreciation
(depreciation) --
Investments 13,279,483 943,024 307,103
Translation of assets and liabilities
denominated in foreign currency (15,721) (312) 212
----------- ---------- ----------
Net change in unrealized appreciation 13,263,762 942,712 307,315
----------- ---------- ----------
Net realized and unrealized gain 28,839,456 2,264,950 1,440,060
----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $29,966,577 $2,300,753 $1,462,304
=========== ========== ==========
</Table>
See Notes to Financial Statements
16
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL EQUITY PORTFOLIO
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2004 OCTOBER 31,
(UNAUDITED) 2003
---------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 1,127,121 $ 3,492,175
Net realized gain (loss) on
investments and foreign currency
transactions 15,575,694 (35,308,704)
Net change in unrealized appreciation
on investments and translation of
assets and liabilities denominated
in foreign currency 13,263,762 87,945,701
------------ ------------
Net increase in net assets resulting
from operations 29,966,577 56,129,172
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (2,167,605) (1,406,053)
------------ ------------
Total distributions to shareholders (2,167,605) (1,406,053)
------------ ------------
TRANSACTIONS IN SHARES OF COMMON STOCK
Proceeds from sale of shares 32,403,090 46,271,780
Net Asset Value of shares issued to
shareholders in payment of
distributions declared 1,833,540 1,167,410
Cost of shares redeemed (39,544,268) (41,142,391)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (5,307,638) 6,296,799
------------ ------------
NET INCREASE IN NET ASSETS 22,491,334 61,019,918
NET ASSETS
At beginning of period 350,019,951 289,000,033
------------ ------------
At end of period $372,511,285 $350,019,951
============ ============
ACCUMULATED UNDISTRIBUTED NET INVESTMENT
INCOME INCLUDED IN NET ASSETS $ 1,134,344 $ 2,174,828
============ ============
</Table>
See Notes to Financial Statements
17
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
EMERGING MARKETS PORTFOLIO
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2004 OCTOBER 31,
(UNAUDITED) 2003
---------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 35,803 $ 116,051
Net realized gain (loss) on
investments and foreign currency
transactions 1,322,238 (289,103)
Net change in unrealized appreciation
on investments and translation of
assets and liabilities denominated
in foreign currency 942,712 6,916,109
----------- -----------
Net increase in net assets resulting
from operations 2,300,753 6,743,057
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (62,351) -
----------- -----------
Total distributions to shareholders (62,351) -
----------- -----------
TRANSACTIONS IN SHARES OF COMMON STOCK
Proceeds from sale of shares 11,840,092 14,391,098
Net Asset Value of shares issued to
shareholders in payment of
distributions declared 58,908 -
Cost of shares redeemed (1,224,909) (1,593,501)
----------- -----------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 10,674,091 12,797,597
----------- -----------
NET INCREASE IN NET ASSETS 12,912,493 19,540,654
NET ASSETS
At beginning of period 29,656,800 10,116,146
----------- -----------
At end of period $42,569,293 $29,656,800
=========== ===========
ACCUMULATED UNDISTRIBUTED NET INVESTMENT
INCOME INCLUDED IN NET ASSETS $ 37,936 $ 64,484
=========== ===========
</Table>
See Notes to Financial Statements
18
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL EQUITY PORTFOLIO
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2004 OCTOBER 31,
(UNAUDITED) 2003
---------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 22,244 $ 154,776
Net realized gain (loss) on
investments and foreign currency
transactions 1,132,745 (1,451,078)
Net change in unrealized appreciation
on investments and translation of
assets and liabilities denominated
in foreign currency 307,315 6,524,918
----------- -----------
Net increase in net assets resulting
from operations 1,462,304 5,228,616
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (105,080) (50,332)
----------- -----------
Total distributions to shareholders (105,080) (50,332)
----------- -----------
TRANSACTIONS IN SHARES OF COMMON STOCK
Proceeds from sale of shares 1,189,972 3,911,357
Net Asset Value of shares issued to
shareholders in payment of
distributions declared 66,670 30,865
Cost of shares redeemed (2,319,358) (2,284,852)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (1,062,716) 1,657,370
----------- -----------
NET INCREASE IN NET ASSETS 294,508 6,835,654
NET ASSETS
At beginning of period 26,567,552 19,731,898
----------- -----------
At end of period $26,862,060 $26,567,552
=========== ===========
ACCUMULATED UNDISTRIBUTED NET INVESTMENT
INCOME INCLUDED IN NET ASSETS $ 22,147 $ 104,983
=========== ===========
</Table>
See Notes to Financial Statements
19
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
APRIL 30, 2004 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) OCT. 31, 2003 OCT. 31, 2002 OCT. 31, 2001 OCT. 31, 2000 OCT. 31, 1999
-------------- ------------- ------------- ------------- ------------- -------------
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $11.30 $9.58 $10.55 $15.22 $15.50 $11.62
---------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income 0.04 0.11 0.07 0.09 0.09 0.10
Net realized and unrealized gain
(loss) on investments and
foreign currency-related
transactions 0.91 1.65 (1.01) (3.61) 0.36 3.97
---------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
investment operations 0.95 1.76 (0.94) (3.52) 0.45 4.07
---------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:+
Net investment income (0.07) (0.04) (0.03) - (0.23) (0.18)
Net realized gain from investments
and foreign currency-related
transactions - - - (1.15) (0.50) (0.01)
---------- ----------- ----------- ----------- ----------- -----------
Total distributions (0.07) (0.04) (0.03) (1.15) (0.73) (0.19)
---------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $12.18 $11.30 $9.58 $10.55 $15.22 $15.50
========== =========== =========== =========== =========== ===========
TOTAL RETURN 8.42%(a) 18.49% (8.92)% (24.99)% 2.18% 35.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $372,511 $350,020 $289,000 $283,721 $349,046 $328,473
Ratio of net operating expenses to
average net assets 1.00%(b) 1.00% 1.00% 1.00% 0.99% 1.00%
Ratio of net investment income, to
average net assets 0.59%(b) 1.10% 0.70% 0.63% 0.45% 0.75%
Decrease reflected in above
expense ratios due to waiver of
investment advisory and
administration fees, and
reimbursement of other expenses 0.10%(b) 0.06% 0.06% 0.05% - * 0.04%
Portfolio turnover rate 23%(a) 58% 45% 46% 49% 35%
</Table>
+ Certain prior year amounts have been reclassified to conform to the current
year presentation.
* Rounds to less than 0.01%.
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements
20
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
EMERGING MARKETS PORTFOLIO
------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) OCT. 31, 2003 OCT. 31, 2002 OCT. 31, 2001 OCT. 31, 2000 OCT. 31, 1999*
-------------- ------------- ------------- ------------- ------------- --------------
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $18.16 $12.49 $11.88 $14.89 $13.68 $10.00
--------- ----------- ----------- ----------- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) 0.02 0.07 0.04 0.01 (0.05) 0.03
Net realized and unrealized gain
(loss) on investments and
foreign currency-related
transactions 1.79 5.60 0.58 (1.89) 1.79 3.65
--------- ----------- ----------- ----------- ----------- ------------
Net increase (decrease) from
investment operations 1.81 5.67 0.62 (1.88) 1.74 3.68
--------- ----------- ----------- ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:+
Net investment income (0.04) - (0.01) - (0.02) -
Net realized gain from
investments and foreign
currency-related transactions - - - (1.13) (0.51) -
--------- ----------- ----------- ----------- ----------- ------------
Total distributions (0.04) - (0.01) (1.13) (0.53) -
--------- ----------- ----------- ----------- ----------- ------------
NET ASSET VALUE, END OF PERIOD $19.93 $18.16 $12.49 $11.88 $14.89 $13.68
========= =========== =========== =========== =========== ============
TOTAL RETURN 9.96%(a) 45.40% 5.22% (13.48)% 12.18% 36.80%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $42,569 $29,657 $10,116 $2,731 $2,575 $1,534
Ratio of net operating expenses
to average net assets 1.71%(b) 1.75% 1.75% 1.75% 1.75% 1.75%(b)
Ratio of net investment income
(loss), to average net assets 0.20%(b) 0.76% 0.19% 0.08% (0.39)% 0.24%(b)
Decrease reflected in above
expense ratios due to waiver of
investment advisory and
administration fees, and
reimbursement of other expenses - 0.08% 0.39% 1.15% 1.08% 4.14%(b)
Portfolio turnover rate 19%(a) 58% 43% 38% 28% 53%(a)
</Table>
* Commencement of Operations was November 9, 1998.
+ Certain prior year amounts have been reclassified to conform to the current
year presentation.
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements
21
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
APRIL 30, 2004 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) OCT. 31, 2003 OCT. 31, 2002 OCT. 31, 2001 OCT. 31, 2000 OCT. 31, 1999
-------------- ------------- ------------- ------------- ------------- -------------
PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $16.45 $13.28 $15.08 $21.81 $20.00 $16.16
--------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income 0.02 0.09 0.05 0.04 0.03 0.05
Net realized and unrealized gain
(loss) on investments and
foreign currency-related
transactions 0.88 3.11 (1.79) (4.49) 3.89 3.79
--------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
investment operations 0.90 3.20 (1.74) (4.45) 3.92 3.84
--------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:+
Net investment income (0.07) (0.03) (0.00)* - (0.16) -
Net realized gain from investments
and foreign currency-related
transactions - - (0.06) (2.28) (1.95) -
--------- ----------- ----------- ----------- ----------- -----------
Total distributions (0.07) (0.03) (0.06) (2.28) (2.11) -
--------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $17.28 $16.45 $13.28 $15.08 $21.81 $20.00
========= =========== =========== =========== =========== ===========
TOTAL RETURN 5.45%(a) 24.19% (11.59)% (22.77)% 19.66% 23.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $26,862 $26,568 $19,732 $18,524 $25,089 $21,087
Ratio of net operating expenses to
average net assets 1.25%(b) 1.25% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income, to
average net assets 0.16%(b) 0.70% 0.38% 0.24% 0.10% 0.65%
Decrease reflected in above
expense ratios due to waiver of
investment advisory and
administration fees, and
reimbursement of other expenses 0.16%(b) 0.12% 0.19% 0.22% 0.23% 0.32%
Portfolio turnover rate 21%(a) 68% 55% 50% 57% 44%
</Table>
+ Certain prior year amounts have been reclassified to conform to the current
year presentation.
* Rounds to less than $0.01.
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements
22
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2004 (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, as an open-end diversified management investment company.
The Fund currently has three Portfolios (individually, "Portfolio"), all of
which were active as of April 30, 2004: International Equity Portfolio
("International Equity"); Global Equity Portfolio ("Global Equity")
(collectively, the "Initial Portfolios"); and Emerging Markets Portfolio
("Emerging Markets"). The investment objective of each portfolio is as follows:
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 in and outside the United States; Emerging
Markets Portfolio--to seek long-term capital appreciation through investments in
equity securities of companies based in developing markets outside the United
States.
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.
("GELP"), a limited partnership, in a tax-free reorganization. Emerging Markets
commenced operations on November 9, 1998. The Fund is managed by Harding,
Loevner Management, L.P. (the "Investment Adviser").
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:
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 of Directors (the "Board") of the Fund has adopted procedures
("Procedures") to govern the valuation of the portfolio securities held by each
series of the Fund in accordance with the Investment Company Act of 1940, as
amended ("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 funds and their Directors to
determine, in good faith, the fair value of the fund's portfolio securities when
market quotations are not readily available.
All investments in the Fund are valued daily at their market price, 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. If a significant event occurs after
the close of trading in a security but before the calculation of the Fund's net
asset value and such significant event has a material impact on the Fund'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, 2004, there
were no securities in the Fund which required valuation by the Board of
Directors or its delegate.
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 fund is informed of such dividends). The Fund accretes discount
or amortizes premium on a daily basis to interest income. The Fund uses the
specific identification method for determining gain or loss on sales of
securities.
23
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INCOME TAX
It is the policy of each Portfolio of the Fund to qualify as a regulated
investment company, if such qualification is in the best interest of its
shareholders, 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.
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 the Portfolios either equitably or based on their
average daily net assets.
DIVIDENDS TO SHAREHOLDERS
It is the policy of the Fund 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. To the
extent that any differences which are permanent in nature result in
overdistributions to shareholders, the amount of the overdistribution is
reclassified within the capital accounts based on its federal tax basis
treatment. Temporary differences do not require reclassification. To the extent
that they exceed net investment income and net realized gains for tax purposes,
they are reported as returns of capital.
CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency 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 portfolio 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 Fund does
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 Portfolio's 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 rate.
3. SIGNIFICANT AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
The Fund's Board of Directors has approved investment advisory agreements (the
"Agreements") with the Investment Adviser. The advisory fees are computed daily
at an annual rate of 0.75%, 1.25% and 1.00% of the average daily net assets of
International Equity, Emerging Markets and Global Equity, respectively.
In addition, the Fund has an administration agreement with Investors Bank &
Trust Company, which provides certain accounting, clerical and bookkeeping
services, corporate secretarial services and assistance in the preparation and
filing of tax returns and reports to shareholders and the Securities and
Exchange Commission. Under this agreement, International Equity, Emerging
Markets and Global Equity incurred $173,836, $15,613 and $15,225, respectively,
in administration fees for the period ended April 30, 2004.
24
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
3. SIGNIFICANT AGREEMENTS AND TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Investment Adviser has voluntarily agreed to reduce its fee to the extent
that aggregate expenses (exclusive of brokerage commissions, other investment
expenses, interest on borrowings, taxes and extraordinary expenses) exceed an
annual rate of 1.00%, 1.75% and 1.25%, respectively, of the average daily net
assets of International Equity, Emerging Markets and Global Equity. For the
period ended April 30, 2004, the Investment Advisor voluntarily waived $191,694
and $22,382, respectively, in investment advisory fees from International Equity
and Global Equity.
Directors' fees and related expenses for International Equity, Emerging Markets
and Global Equity amounted to $29,408, $2,259 and $2,278 respectively, for the
period ended April 30, 2004.
The Fund has approved a Portfolio Advisory Service Services Agreement (the
"Agreement") between the Fund, on behalf of the Portfolios and Oppenheimer Asset
Management ("Oppenheimer"). Under the Agreement, the Fund pays Oppenheimer 0.25%
of the average daily net assets of each Portfolio held by Oppenheimer for the
benefit of clients participating in certain wealth management programs in
consideration for certain record keeping and transactional services. Because of
the Investment Adviser's voluntary cap on the Fund's fees and expenses, the
Investment Adviser paid the 0.25% fee during the period ended April 30, 2004.
Under an Operating Agreement with Charles Schwab & Co. ("Schwab"), Schwab
charges an account establishment and maintenance fee of $7,500 per calendar
quarter to compensate Schwab for its costs in maintaining accounts of the
International Equity Portfolio serviced by Schwab through its fund supermarket
program. Because of the Investment Adviser's voluntary cap on the Fund's fees
and expenses, the Investment Adviser paid the fee during the period ended
April 30, 2004.
4. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities, other than
short-term investments, for the period ended April 30, 2004, were as follows for
each Portfolio:
<Table>
- -----------------------------------------------------------------------------
PURCHASE COST OF PROCEEDS FROM SALES OF
PORTFOLIO INVESTMENT SECURITIES INVESTMENT SECURITIES
- -----------------------------------------------------------------------------
International Equity $84,026,875 $88,460,555
Emerging Markets 16,706,766 6,767,624
Global Equity 5,778,566 6,628,432
</Table>
The cost of investments for Federal income tax purposes and the components of
net unrealized appreciation on investments at April 30, 2004, for each of the
Portfolios were as follows:
<Table>
- -------------------------------------------------------------------------------------
UNREALIZED UNREALIZED
PORTFOLIO APPRECIATION DEPRECIATION NET COST
- -------------------------------------------------------------------------------------
International Equity $73,573,814 $2,791,816 $70,781,998 $300,985,947
Emerging Markets 8,468,280 1,185,886 7,282,394 35,257,259
Global Equity 5,593,911 360,294 5,233,617 21,497,245
</Table>
The unrealized appreciation (deprecation) on foreign currency for International
Equity, Emerging Markets and Global Equity was $10,870, $(304) and $60,
respectively, for the period ended April 30, 2004.
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
25
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
5. FOREIGN EXCHANGE CONTRACTS (CONTINUED)
appreciation or depreciation on assets and liabilities denominated in foreign
currencies by the Portfolio. The Portfolios are also exposed to credit risk
associated with counter party nonperformance on these forward foreign exchange
contracts which is typically limited to the unrealized gain on each open
contract.
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 did not have open foreign currency transactions to buy or sell
currency on the spot markets as of April 30, 2004.
6. CAPITAL SHARE TRANSACTIONS
Transactions in capital stock for International Equity were as follows for the
periods indicated:
<Table>
- ----------------------------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2004 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2003
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------
Shares sold 2,662,821 $ 32,403,090 4,743,141 $ 46,271,780
Shares issued upon
reinvestment of dividends 153,692 1,833,540 121,352 1,167,410
---------- ------------ ---------- ------------
2,816,513 34,236,630 4,864,493 47,439,190
Shares redeemed (3,216,673) (39,544,268) (4,039,579) (41,142,391)
---------- ------------ ---------- ------------
Net increase (decrease) (400,160) $ (5,307,638) 824,914 $ 6,296,799
========== ============ ========== ============
</Table>
Transactions in capital stock for Emerging Markets were as follows for the
periods indicated:
<Table>
- ---------------------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2004 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2003
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------
Shares sold 558,370 $11,840,092 936,359 $14,391,098
Shares issued upon
reinvestment of dividends 3,013 58,908 - -
------- ----------- -------- -----------
561,383 11,899,000 936,359 14,391,098
Shares redeemed (58,445) (1,224,909) (113,515) (1,593,501)
------- ----------- -------- -----------
Net increase 502,938 $10,674,091 822,844 $12,797,597
======= =========== ======== ===========
</Table>
Transactions in capital stock for Global Equity were as follows for the periods
indicated:
<Table>
- ----------------------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2004 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2003
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------
Shares sold 69,859 $ 1,189,972 294,445 $ 3,911,357
Shares issued upon
reinvestment of dividends 3,913 66,670 2,312 30,865
-------- ----------- -------- -----------
73,772 1,256,642 296,757 3,942,222
Shares redeemed (134,141) (2,319,358) (167,676) (2,284,852)
-------- ----------- -------- -----------
Net increase (decrease) (60,369) $(1,062,716) 129,081 $ 1,657,370
======== =========== ======== ===========
</Table>
26
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS (CONTINUED)
Redemptions made within 90 days of purchase are subject to a redemption fee
equal to 2% of the amount redeemed. For the period ended April 30, 2004, the
International Equity Portfolio and Emerging Markets Portfolio received $3 and
$7,670, respectively, in redemption fees related to transactions in shares of
common stock on the Statement of Changes in Net Assets.
7. REPURCHASE AND REVERSE 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 also is permitted to enter into reverse repurchase agreements
under which a primary or reporting dealer in U.S. Government securities
purchases securities from a Portfolio and such Portfolio agrees to repurchase
the securities at an agreed upon price and date.
Each Portfolio may engage in repurchase and reverse 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. When a
Portfolio engages in reverse repurchase agreement transactions, such Portfolio
will maintain, in a segregated account with its custodian, liquid securities
equal in value to those subject to the agreement.
8. CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency transactions may involve
certain considerations and risks not typically associated with investments in
the United States. 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 the International Equity,
Emerging Markets and Global Equity are authorized to invest.
27
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
- --------------------------------------------------------------------------------
On January 26, 2004, Harding, Loevner Funds, Inc. held a Special Meeting of
Shareholders to elect the Board of Directors of the Fund. The following
Directors were elected to serve or continue to serve as Directors of the Fund:
<Table>
Jane A. Freeman: 198,103,396 votes in favor
669,130 withheld
Samuel R. Karetsky: 198,394,059 votes in favor
378,467 withheld
Carl W. Schafer 198,361,852 votes in favor
410,673 withheld
David R. Loevner 195,290,013 votes in favor
3,482,513 withheld
R. Kelly Doherty 198,394,059 votes in favor
378,467 withheld
Raymond J. Clark 198,394,059 votes in favor
378,467 withheld
</Table>
A description of the Fund's 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 Commission's website at
www.sec.gov.
28
<Page>
HARDING, LOEVNER FUNDS, INC.
- --------------------------------------------------------------------------------
OFFICERS & DIRECTORS AND OTHER PERTINENT INFORMATION
- --------------------------------------------------------------------------------
OFFICERS AND DIRECTORS
Jane A. Freeman
DIRECTOR OF THE FUND
Samuel R. Karetsky
DIRECTOR OF THE FUND
Carl W. Schafer
DIRECTOR OF THE FUND
R. Kelly Doherty
DIRECTOR OF THE FUND
Raymond J. Clark
DIRECTOR OF THE FUND
David R. Loevner
DIRECTOR, PRESIDENT AND CHAIRMAN
OF THE BOARD OF THE FUND
Patrice Singleton
VICE PRESIDENT OF THE FUND
Susan C. Mosher
SECRETARY OF THE FUND
Richard Reiter
CHIEF FINANCIAL OFFICER AND
TREASURER OF THE FUND
Annellen McNamara
ASSISTANT TREASURER
OF THE FUND
John M. DelPrete
ASSISTANT SECRETARY
OF THE FUND
INVESTMENT ADVISER
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
Investors Bank & Trust Company
P.O. Box 9130
Boston, MA 02117
TRANSFER AND DIVIDEND
DISBURSING AGENT
Investors Bank & Trust Company
P.O. Box 9130
Boston, MA 02117
LEGAL COUNSEL
Dechert
1775 Eye Street, N.W
Washington, D.C. 20006-2401
INDEPENDENT AUDITORS
Ernst & Young LLP
5 Times Square
New York, NY 10036
<Page>
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to this registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable to this filing.
ITEM 10. 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) 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 changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal
half-year (the Registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 11. EXHIBITS.
(a) Section 302 Certification letters are attached.
(b) Section 906 Certifications are attached.
<Page>
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: June 18, 2004
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: June 18, 2004
By: /S/ Richard Reiter
-------------------------------------------------------
Richard Reiter, Treasurer and Chief Financial Officer
Date: June 18, 2004