News & Commentary

Fund Manager Commentary
Harbor Capital Appreciation Fund
  • Jennison Associates LLC - 4th Quarter, 2014
  • Most sectors advance as large cap growth stocks gain ground in Q4
  • U.S. equities turned in a solid performance in the fourth quarter of 2014 and posted a double-digit gain for the full year.
Harbor Mid Cap Growth Fund
  • Wellington Management Company LLP - 4th Quarter, 2014
  • Mid cap growth stocks gain ground in Q4 as most sectors advance
  • Despite weakness in the Energy sector, U.S. equities posted positive returns for the fourth quarter of 2014.
Harbor Small Cap Growth Fund
  • Westfield Capital Management Company, L.P. - 4th Quarter, 2014
  • Q4 rebound lifts small cap shares into positive territory for 2014
  • Shares of smaller U.S. companies rebounded in the fourth quarter to finish 2014 in positive territory.
Harbor Small Cap Growth Opportunities Fund
  • Elk Creek Partners, LLC - 4th Quarter, 2014
  • Small cap growth stocks rebound in Q4 as most sectors gain ground
  • After losing ground in the third quarter, small cap growth stocks bounced back with a solid performance for the final three months of 2014.
Harbor Large Cap Value Fund
  • Aristotle Capital Management, LLC - 4th Quarter, 2014
  • U.S. large caps post 13% return for 2014
  • Shares of larger U.S. companies overcame weakness in the Energy sector to move higher in the fourth quarter and post double-digit gains for the 12 months ended December 31, 2014.
Harbor Mid Cap Value Fund
  • LSV Asset Management - 4th Quarter, 2014
  • Stock selection drove Fund outperformance in Q4
  • Shares of mid-sized U.S. companies advanced in the fourth quarter of 2014, with most economic sectors posting positive returns.
Harbor Small Cap Value Fund
  • EARNEST Partners LLC - 4th Quarter, 2014
  • Small cap value shares surge in Q4 despite Energy sector weakness
  • After lagging behind for most of the year, shares of smaller companies outpaced the broad U.S. stock market in the fourth quarter of 2014.
Harbor International Fund
  • Northern Cross, LLC - 4th Quarter, 2014
  • International shares continue downward in Q4, posting negative return for 2014
  • Following a third quarter decline, international equities fell again in the fourth quarter of 2014, ending the year in negative territory.
Harbor International Growth Fund
  • Baillie Gifford Overseas Limited - 4th Quarter, 2014
  • Foreign equities decline in Q4 as most sectors lose ground
  • International stocks declined in the fourth quarter of 2014 and posted a negative return for the full year.
Harbor Global Growth Fund
  • Marsico Capital Management, LLC - 4th Quarter, 2014
  • Global stocks post positive return for 2014 after modest Q4 gain
  • Global equities managed a modest advance in the fourth quarter of 2014 and recorded a positive return for the year.
Harbor Emerging Markets Equity Fund
  • Oaktree Capital Management, L.P. - 4th Quarter, 2014
  • Emerging markets equities post Q4 decline, hurt by weakness in Energy and Materials sectors
  • Worries over weak global growth and falling energy prices took their toll on emerging markets stocks in the fourth quarter of 2014.
Harbor Commodity Real Return Strategy Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2014
  • Commodities fall amid declining energy prices, global growth concerns
  • Downward pressure on commodity prices continued in the fourth quarter of 2014, as the Bloomberg Commodity Index Total ReturnSM posted a return of -12.10%.
Harbor Unconstrained Bond Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2014
  • Investment-grade securities generate gains for Q4 and 2014
  • Investment-grade bonds generated positive results for the fourth quarter of 2014, as the Barclays U.S. Aggregate Bond Index returned 1.79%, reflecting interest payments and price changes.
Harbor Convertible Securities Fund
  • Shenkman Capital Management, Inc. - 4th Quarter, 2014
  • Convertibles conclude 2014 with modest return for Q4
  • Following a third quarter decline, convertible bonds managed a modest advance for the final three months of 2014.
Harbor Emerging Markets Debt Fund
  • Stone Harbor Investment Partners LP - 4th Quarter, 2014
  • EM debt markets post modest advance for 2014 after Q4 decline
  • Emerging markets debt securities lost ground in the fourth quarter of 2014 but managed a modestly positive return for the full year.
Harbor High-Yield Bond Fund
  • Shenkman Capital Management, Inc. - 4th Quarter, 2014
  • High yield market posts gain for 2014 despite Q4 decline
  • Bonds issued by lower-rated U.S. companies declined in the fourth quarter of 2014 but registered a positive return for the full year.
Harbor Bond Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2014
  • Investment-grade bonds up 5.97% for 2014 after Q4 advance
  • Investment-grade bonds gained ground in the fourth quarter of 2014, as the Barclays U.S. Aggregate Bond Index posted a return of 1.79%, reflecting price changes and interest payments.
Harbor Real Return Fund
  • Pacific Investment Management Company LLC - 4th Quarter, 2014
  • Inflation-linked bonds post positive return for 2014
  • Inflation-indexed bonds produced virtually flat results for the final three months of 2014.
Harbor Money Market Fund
  • Fischer Francis Trees & Watts, Inc. - 4th Quarter, 2014
  • Money market returns remain at near-zero levels in 2014
  • Money market investments produced barely positive returns in 2014, as the Federal Reserve continued to hold its federal funds target rate at 0% to 0.25%, the range initially set by the Fed in December 2008.

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.