News & Commentary

Harbor Capital Advisors' Parent Company Being Sold
February 20, 2013

On Tuesday, February 19, 2013, Rabobank, Robeco and ORIX Corporation issued a press release announcing that ORIX will purchase 90.01% of Robeco from Rabobank for €1.935 billion (about $2.6 billion). Rabobank will retain a 9.99% ownership in Robeco, and will also receive about 2% of ORIX equity.

Rabobank is a large bank, based in the Netherlands, and Robeco is a prominent asset manager, also based in the Netherlands. Robeco owns Harbor Capital Advisors, the adviser to Harbor Funds.

ORIX is a global leasing and financial services company, based in Japan, with very limited involvement with investment management prior to the planned acquisition of Robeco. ORIX trades publicly on the New York and Tokyo Stock Exchanges.

Based on what we know today, this transaction should not have any effect on Harbor Capital Advisors or Harbor Funds. All Harbor funds will continue with the same subadvisers and be managed just as they are today.

Harbor Capital Advisors has been owned by Robeco for almost twelve years. During Robeco's ownership, Harbor Capital Advisors has operated as an independent subsidiary of Robeco and will continue to do so. ORIX and Robeco have indicated that they expect Harbor Capital Advisors to continue to operate without any changes in governance, people or business activities. Harbor Capital Advisors will continue its focus on acting in the best interests of Harbor Funds shareholders.

The trustees of Harbor Funds will perform due diligence on ORIX and must approve new advisory and subadvisory agreements for Harbor Capital Advisors and Harbor Funds that will take effect if the transaction is completed. The shareholders in Harbor Funds will then be given the opportunity to vote on the new advisory agreements through a proxy solicitation that will describe the transaction in greater detail. These two approval steps are important safeguards for Harbor Funds shareholders.

Harbor Capital Advisors believes the purchase of its direct parent, Robeco, by ORIX, will close around mid-year after all regulatory and shareholder approvals have been received.

If you have any questions about the purchase of Robeco by ORIX, please contact one of our Shareholder Services Representatives at 800-422-1050.

Thank you for your interest in Harbor Funds.