News & Commentary

Fund Manager Commentary
Harbor Capital Appreciation Fund
  • Jennison Associates LLC - 1st Quarter, 2016
  • Stocks bounce back from difficult start in first quarter
  • In a volatile first quarter of 2016, equities fell sharply before rebounding to end the period with a slight advance.
Harbor Mid Cap Growth Fund
  • Wellington Management Company LLP - 1st Quarter, 2016
  • U.S. equity markets fall early before rebounding in March
  • Amid concerns about China's slowing growth, as well as fears about a potential U.S. recession, equity markets fell significantly in the first half of the quarter before rebounding to finish the quarter up slightly.
Harbor Small Cap Growth Fund
  • Westfield Capital Management Company, L.P. - 1st Quarter, 2016
  • A quarter of underperformance for small caps and growth stocks
  • During the first quarter of 2016, U.S. equity markets declined early before rebounding in the second half of the quarter.
Harbor Small Cap Growth Opportunities Fund
  • Elk Creek Partners, LLC - 1st Quarter, 2016
  • Equity markets fall early before rebounding in March
  • Small cap growth stocks declined in the first quarter of 2016 amid concerns about China's slowing economic growth and stock market volatility, as well as fears of a potential recession.
Harbor Large Cap Value Fund
  • Aristotle Capital Management, LLC - 1st Quarter, 2016
  • Stocks bounce back from slow start to first quarter
  • Large value stocks struggled through the first half of the first quarter of 2016 before rallying to advance for the period.
Harbor Mid Cap Value Fund
  • LSV Asset Management - 1st Quarter, 2016
  • Value stocks outperformed growth in the first quarter
  • Driven by concerns over global growth and continued pressure on oil prices, U.S. equities posted double-digit declines through mid-February, before reversing and recovering all or most of the losses by the end of the first quarter of 2016.
Harbor Small Cap Value Fund
  • EARNEST Partners LLC - 1st Quarter, 2016
  • Fund outperforms in v-shaped market
  • Stocks of smaller, value-oriented U.S. companies overcame a broad market malaise early in the first quarter of 2016, brought on by concerns over global growth and falling oil prices, to rally over the last month and advance for the period.
Harbor International Fund
  • Northern Cross, LLC - 1st Quarter, 2016
  • Fund advanced despite a backdrop of losses for developed international stocks
  • International markets fell in the first quarter of 2016 after bouncing back in the previous quarter from earlier steep declines.
Harbor Diversified International All Cap Fund
  • Marathon Asset Management LLP (Marathon-London) - 1st Quarter, 2016
  • International equity markets fell early before rebounding in March
  • Non-U.S. equity markets declined slightly in the first quarter of 2016.
Harbor International Small Cap Fund
  • Baring International Investment Limited (Barings) - 1st Quarter, 2016
  • A bottom-up strategy emphasizing quality growth
  • The Harbor International Small Cap Fund began operations on February 1, 2016.
Harbor International Growth Fund
  • Baillie Gifford Overseas Limited - 1st Quarter, 2016
  • Deft stock selection drove the Fund’s outperformance
  • After a small recovery in the fourth quarter of 2015, international equity performance was lackluster in the first quarter of 2016, turning in slightly negative returns for the period.
Harbor Global Growth Fund
  • Marsico Capital Management, LLC - 1st Quarter, 2016
  • Equity markets dipped, then recovered losses by quarter end
  • The first quarter of 2016 saw global equities fall sharply before rebounding to end the period essentially flat.
Harbor Emerging Markets Equity Fund
  • Oaktree Capital Management, L.P. - 1st Quarter, 2016
  • Volatile first quarter for emerging markets
  • The first quarter of 2016 was volatile for emerging markets.
Harbor Commodity Real Return Strategy Fund
  • Pacific Investment Management Company LLC - 1st Quarter, 2016
  • An improved environment for commodities in the first quarter
  • Commodity indexes advanced in the first quarter of 2016, led upward by positive returns for base metals and precious metals.
Harbor Unconstrained Bond Fund
  • Pacific Investment Management Company LLC - 1st Quarter, 2016
  • The Fund’s currency and non-agency mortgage positions faced headwinds in the quarter
  • The Harbor Unconstrained Bond Fund saw mixed results in the first quarter of 2016, with some of its strategic allocations contributing and others detracting.
Harbor Convertible Securities Fund
  • Shenkman Capital Management, Inc. - 1st Quarter, 2016
  • The convertible market remained volatile during the first quarter of 2016
  • After barely breaking even in the fourth quarter of 2015, the convertible market first dropped and then rebounded during the first quarter of 2016.
Harbor High-Yield Bond Fund
  • Shenkman Capital Management, Inc. - 1st Quarter, 2016
  • High yield bounced back to end the first quarter in positive territory
  • High yield bonds advanced 2.80% for the first quarter of 2016, according to the BofA Merrill Lynch US Non-Distressed High Yield Index, after a very difficult finish to 2015.
Harbor Bond Fund
  • Pacific Investment Management Company LLC - 1st Quarter, 2016
  • Bonds advanced in the first quarter of 2016
  • Investment grade bonds gained during the first quarter of 2016, with the Barclays U.S. Aggregate Bond Index ending at 3.03%.
Harbor Real Return Fund
  • Pacific Investment Management Company LLC - 1st Quarter, 2016
  • U.S. TIPS had robust gains, faring better than other inflation-linked bonds
  • Global inflation-linked bond (ILB) markets benefited from rallying rates at the beginning of the year. Support for U.S.
Harbor Money Market Fund
  • Fischer Francis Trees & Watts, Inc. - 1st Quarter, 2016
  • Money market returns remained stable, susceptible to Federal Reserve’s accommodation policy
  • Short-term interest rates stabilized in the first quarter of 2016 after rising significantly at prior year end.

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.