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 2013. The application of these capital loss carryforwards to each fund's net realized gain, if any, resulted in reduced taxable distributions to shareholders. In 2013, the following Harbor Funds reduced distributions to shareholders by the amount of capital loss carryforwards able to be used:
|Domestic Equity Funds||International & Global Funds||Strategic Markets||Fixed Income Funds|
|Large Cap Value||International||Unconstrained
|Mid Cap Value||International
Information on the size and expiration date of these capital loss carryforwards is available in the Harbor Equity Funds Annual Report page 68, Harbor International & Global Funds Annual Report page 50, Harbor Fixed Income Funds Annual Report page 92, and Harbor Strategic Markets Funds Annual Report page 53.