Harbor Unconstrained Bond Fund Administrative Class (HRUBX)

Fund Facts
Price (NAV) (10/20/2014) $10.69
Daily $ Change -$0.03 
Daily % Change -0.28% 
YTD Return (10/20/2014) 2.10%
Current 30-Day Subsidized SEC Yield (10/20/2014) 1.13%
Current 30-Day Unsubsidized SEC Yield (10/20/2014) 0.84%
Effective 30-Day Subsidized SEC Yield (10/20/2014) 1.13%
Effective 30-Day Unsubsidized SEC Yield (10/20/2014) 0.85%
Average Annual Total Returns Since Inception (As of 09/30/2014) 3.00%
Inception Date 04/01/2010
Net Expense Ratio 1.30%
Gross Expense Ratio 1.59%
Portfolio Manager
Pacific Investment Management Company LLC (PIMCO)
Saumil H. Parikh, CFA
Mohsen Fahmi
Dan J. Ivascyn
Total Net Assets (09/30/2014) $1.657 million
Overall Morningstar Rating
(196 Nontraditional Bond funds)
Ticker HRUBX
Fund Number 2232
CUSIP 411512791
WSJ Symbol n/a
Overview
The Harbor Unconstrained Bond Fund is subadvised by Pacific Investment Management Company LLC (PIMCO). The Fund seeks to invest at least 80% of its net assets in a diversified portfolio of fixed income instruments. In order to achieve its investment objectives, the Subadviser will utilize various investment strategies, and the Fund will not be constrained by management against an index. The average portfolio duration of this Fund will normally range from -3 years to 8 years based on the Subadviser's forecast for interest rates.

The Fund may invest up to 40% of its total assets in below investment-grade or high-yield securities or up to 50% in securities and instruments that are economically tied to emerging market countries.

Employing an unconstrained investment approach, the Fund may be exposed to certain types of securities, credit qualities, maturities, countries and regions not reflected in other fixed income indices. For example, high-yield, or below investment-grade, securities carry a higher degree of credit risk, and may be speculative and more volatile. Investing in emerging markets may entail risk due to foreign economic and political developments. Also, foreign currency exposure can entail significant volatility, and this may be amplified with the currencies of developing countries. As a result, investors considering an investment in the Fund should be prepared to accept significant volatility in the Fund's performance, particularly over shorter time periods, due to the unconstrained nature of the Fund's investment approach.

Performance Summary Performance Details >

As of Quarter Ended 09/30/2014
YTD1 Year5 Year10 YearSince Inception
2.48%1.82%N/AN/A3.00%

Growth of a Hypothetical $10,000 Investment

Source: Morningstar, Inc.

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.

The Harbor Funds performance shown assumes the reinvestment of dividend and capital gain distributions and is net of management fees and expenses. Returns for periods less than one year are not annualized.

From time to time, certain fees and/or expenses have been voluntarily or contractually waived or reimbursed, which has resulted in higher returns. Without these waivers or reimbursements, the returns would have been lower. Voluntary waivers or reimbursements may be applied or discontinued at any time without notice. Only the Board of Trustees may modify or terminate contractual fee waivers or expense reimbursements.

The Barclays U.S. Aggregate Bond Index is an unmanaged index of investment-grade fixed-rate debt issues with maturities of at least one year. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

The BofA Merrill Lynch US Dollar 3-Month LIBOR Constant Maturity Index tracks the performance of a synthetic asset paying Libor to a stated maturity. The index is based on the assumed purchase at par of a synthetic instrument having exactly its stated maturity and with a coupon equal to that day's fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument.

The Harbor Unconstrained Bond Fund received a 3-star Overall Morningstar Rating™ as of 09/30/2014 out of 196 Nontraditional Bond funds. Unconstrained Bond Fund was rated 3-star among 196 domestic Nontraditional Bond funds for the three-year period ended 09/30/2014. The Morningstar Rating is for the Administrative share class only; other classes may have different performance characteristics.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar risk-adjusted return measure that accounts for variations in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.

© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.


Represents the average daily dividends for 30 days, assuming all dividends are reinvested, annualized by 365 days and divided by the net asset value per share at the end of the period. Does not reflect reimbursements or fee waivers currently in effect.

Represents the average daily dividends for 30 days, annualized by 365 days and divided by the net asset value per share at the end of the period. Does not reflect reimbursements or fee waivers currently in effect.

The Adviser has contractually agreed to limit the Fund's operating expenses, excluding Interest Expense from Sale-Buyback Transactions, to 1.05% and 1.30% for the Institutional Class and Administrative Class, respectively, through February 28, 2015. Only the Board of Trustees may modify or terminate this agreement.

Contractual expense limitation until February 28, 2015 (excluding interest expense from sale-buyback transactions)

Ex-Date. The date on which a Fund's net asset value (NAV) will fall by an amount equal to the dividend and/or capital gain distribution plus or minus any change in the value of the Fund's holdings.

Represents the average daily dividends for 30 days, assuming all dividends are reinvested, annualized by 365 days and divided by the net asset value per share at the end of the period. Reflects reimbursements or fee waivers currently in effect.

Represents the average daily dividends for 30 days, annualized by 365 days and divided by the net asset value per share at the end of the period. Reflects reimbursements or fee waivers currently in effect.

About Expense Ratios: All mutual funds have expense ratios which represent what shareholders pay for operating expenses and management fees. Expense ratios are expressed as an annualized percentage of a fund's average net assets paid out in expenses. Net expense ratios reflect adjustments due to voluntary or contractual fee waivers or expense reimbursements. Expense ratio information is as of the Fund's current prospectus, as revised and supplemented from time to time.