News & Commentary

Change in Portfolio Manager for Harbor Flexible Capital Fund
July 09, 2012

Harbor Funds today announced a change affecting the portfolio manager for Harbor Flexible Capital Fund.

A. Douglas Rao, the portfolio manager for Harbor Flexible Capital Fund since its inception on March 1, 2011, has elected to leave Marsico Capital Management, LLC on July 20, 2012.  Munish Malhotra and Jordon Laycob of Marsico Capital will take over as co-portfolio managers to the Fund effective July 20, 2012.  Mr. Malhotra is a portfolio manager and senior analyst of Marsico Capital and has been with the firm since 2003.  Mr. Laycob joined Marsico Capital shortly after the firm's inception in 1997 and is a portfolio manager and senior analyst.

The departure of Mr. Rao as portfolio manager is not expected to significantly affect the investment philosophy and process used by Marsico Capital in managing the Fund.  Harbor Flexible Capital Fund will remain committed to seeking long-term growth for investors by investing in equity securities and other investments selected primarily for their long-term growth potential.  There will be no change in the Fund's investment policies or guidelines as a result of Mr. Rao's departure.

There is no guarantee that the Fund's investment objective will be achieved.  Equity securities, such as common stocks, are affected by company specific events and by movements in the overall stock markets in which those securities principally trade.  An adverse company specific event, or downturn in those stock markets, can depress the value of a particular company's equity securities.  The Fund's performance may be more volatile because it may invest in smaller cap stocks.  Because the Fund may invest significantly in securities of foreign market issuers, there is a greater risk that the Fund's share price will fluctuate more than if it invested only in domestic securities.  Investing in international markets poses special risks, including potentially greater price volatility due to social, political and economic factors, as well as currency exchange rate fluctuations.  The Fund charges a redemption fee of 2.00% on redemptions of shares that are held for less than 60 days.

The Harbor Funds lineup of actively managed, no-load mutual funds had combined net assets of approximately $63 billion as of June 30, 2012.  Each Harbor fund is managed by an institutional investment firm chosen by Harbor Capital Advisors, Inc. based on the firm's experience in a specific asset class.