News & Commentary

Fund Manager Commentary
Harbor Capital Appreciation Fund
  • Jennison Associates LLC - 4th Quarter, 2015
  • Fund outperformed benchmark for Q4, ending year in positive territory
  • Equity markets reported solid gains during the three-month period ended December 31, 2015, rebounding from the negative territory of the previous quarter.
Harbor Mid Cap Growth Fund
  • Wellington Management Company LLP - 4th Quarter, 2015
  • Fund’s strong Q4 helped by favorable environment for growth stocks
  • Growth stocks performed well during the fourth quarter of 2015, with the Russell Midcap® Growth Index experiencing a return of 4.12%.
Harbor Small Cap Growth Fund
  • Westfield Capital Management Company, L.P. - 4th Quarter, 2015
  • Q4 recovery in U.S. small cap stocks led by Health Care and Technology stocks
  • Early in the quarter, U.S. small cap growth stocks rallied off of their prior quarter lows, only to struggle into the finish of the year.
Harbor Small Cap Growth Opportunities Fund
  • Elk Creek Partners, LLC - 4th Quarter, 2015
  • Strong absolute and relative performance in spite of market headwinds
  • After a relatively difficult third quarter, small cap growth stocks ended the year higher due to better domestic macroeconomic data through October and November.
Harbor Large Cap Value Fund
  • Aristotle Capital Management, LLC - 4th Quarter, 2015
  • Fund delivers heady performance during Q4 rally
  • Large value stocks participated in a robust rally in 2015's fourth quarter. The Russell 1000® Value Index gained 5.64% during the year's final three months.
Harbor Mid Cap Value Fund
  • LSV Asset Management - 4th Quarter, 2015
  • Equities rebound in Q4
  • Economic data continued to be generally positive. The final Q3 GDP report came in as expected at 2%, although down from second quarter GDP growth of 3.9%.
Harbor Small Cap Value Fund
  • EARNEST Partners LLC - 4th Quarter, 2015
  • A reversal of the third quarter
  • Value-oriented shares of smaller U.S. companies advanced in the fourth quarter of 2015, with the Russell 2000® Value Index posting a return of 2.88%.
Harbor International Fund
  • Northern Cross, LLC - 4th Quarter, 2015
  • International stocks rebounded in Q4, with all sectors gaining
  • For the fourth quarter of 2015, Fund performance relative to the benchmark was hurt by stock selection in the Financials and Health Care sectors, but the Fund's Information Technology and Consumer Staples stocks outperformed those in the index.
Harbor Diversified International All Cap Fund
  • Marathon Asset Management LLP (Marathon-London) - 4th Quarter, 2015
  • Close observation of capital cycles distinguishes Fund Managers’ approach
  • The Harbor Diversified International All Cap Fund began operations on November 2, 2015.
Harbor International Growth Fund
  • Baillie Gifford Overseas Limited - 4th Quarter, 2015
  • Aided by the rally in foreign equity markets and strong stock selection, the Fund outperformed
  • After a dismal third quarter, international equities staged a recovery early in the fourth quarter and held on to post positive returns for the period.
Harbor Global Growth Fund
  • Marsico Capital Management, LLC - 4th Quarter, 2015
  • Fund outperforms index as equity markets rebound
  • The fourth quarter of 2015 registered a healthy equity market rebound, though some gains were given back during the month of December.
Harbor Emerging Markets Equity Fund
  • Oaktree Capital Management, L.P. - 4th Quarter, 2015
  • Another challenging quarter for emerging markets
  • While 2015 was a tough year for emerging market equities, the MSCI Emerging Markets (ND) Index ended the fourth quarter slightly up at 0.66%, much improved over the previous three quarters.
Harbor Commodity Real Return Strategy Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2015
  • Commodities continued to face headwinds in Q4
  • Commodity indexes declined in the fourth quarter of 2015, led downward by the Energy sector, where persistently higher output and seasonably warm weather weighed on crude and natural gas.
Harbor Unconstrained Bond Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2015
  • The Fund gained for the quarter as strategic positioning boosted performance
  • The Harbor Unconstrained Bond Fund benefited from positions in corporate debt in the fourth quarter of 2015, including both investment grade and high yield issues.
Harbor Convertible Securities Fund
  • Shenkman Capital Management, Inc. - 4th Quarter, 2015
  • Market volatility tempered convertible returns in the fourth quarter
  • For the year 2015, the convertible market return of -2.75%, as measured by the BofA Merrill Lynch All US Convertibles Ex Mandatory Index, has been resilient, with underlying equities returning -7.14%, underperforming both the S&P 500 and the Russell...
Harbor High-Yield Bond Fund
  • Shenkman Capital Management, Inc. - 4th Quarter, 2015
  • High yield feels the effects of global economic uncertainty
  • High yield bonds generated a loss of -2.17% for the fourth quarter of 2015, according to the BofA Merrill Lynch US High Yield Index.
Harbor Bond Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2015
  • Bonds declined against a backdrop of falling commodity prices
  • Investment grade bonds fell during the fourth quarter of 2015, with the Barclays U.S. Aggregate Bond Index ending at -0.57%.
Harbor Real Return Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2015
  • Performance of inflation-linked bonds generally mirrored that of the bond market in Q4
  • Global inflation-linked bonds performed in line with comparable nominal sovereigns during the fourth quarter of 2015.
Harbor Money Market Fund
  • Fischer Francis Trees & Watts, Inc. - 4th Quarter, 2015
  • Money market returns remain low, but are expected to rise
  • The Harbor Money Market Fund returned 0.03% during the fourth quarter of 2015.

Performance data shown represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the past performance data shown. Investment returns and the value of an investment will fluctuate, and an investor's shares, when sold, may be worth more or less than their original cost. You can obtain performance data current to the most recent month-end (available within seven business days after the most recent month-end) by calling 800-422-1050 or visiting www.harborfunds.com.

Performance figures discussed reflect that of the institutional class shares.

The views expressed herein are those of the portfolio manager at the time of the interview and may not be reflective of their current opinions or future actions.  These views are not necessarily those of the fund company and should not be construed as such.

This information should not be considered as a recommendation to purchase or sell a particular security and the holdings or sectors mentioned may change at any time and may not represent current or future investments.