Exchanges within an IRA are not reportable. Exchanges between share classes in the same fund are not considered redemptions and are not taxable.
Harbor Funds had several funds with capital loss carryforwards in 2014. The application of these capital loss carryforwards to each fund's net realized gain, if any, resulted in reduced taxable distributions to shareholders. In 2014, the following Harbor Funds reduced distributions to shareholders by the amount of capital loss carryforwards able to be used:
|International & Global Funds||Strategic Markets||Fixed Income Funds|
|International||Commodity Real Return
|Emerging Markets Debt|
|International Growth||Unconstrained Bond||Real Return|
|Emerging Markets Equity|
Information on the size and expiration date of these capital loss carryforwards is available in the Harbor International & Global Funds Annual Report page 49, Harbor Fixed Income Funds Annual Report page 102, and Harbor Strategic Markets Funds Annual Report page 55.