News & Commentary

Change in Co-Portfolio Managers for Harbor Emerging Markets Debt Fund
December 18, 2012

Harbor Funds today announced a change affecting the team of portfolio managers for Harbor Emerging Markets Debt Fund.

Peter J. Wilby, Pablo Cisilino, James E. Craige and David A. Oliver of Stone Harbor Investment Partners, the Fund's current subadviser, continue to serve as co-portfolio managers. Mr. Wilby is the Chief Investment Officer of Stone Harbor Investment Partners and has been a portfolio manager to the Fund since its inception in 2011.

Effective December 18, 2012, Thomas K. Flanagan and Christopher M. Wilder will no longer serve as co-portfolio managers to the Fund. Angus Halkett and William Perry, both Portfolio Managers of Stone Harbor Investment Partners, are being added as co-portfolio managers to the Fund.

The change in co-portfolio managers is not expected to significantly affect the day-to-day management of the Fund or the investment philosophy and process used by Stone Harbor Investment Partners in managing the Fund. The Fund will remain strongly committed to seeking total return, which consists of investment income and capital appreciation, by investing in emerging markets fixed income securities. There will be no change in the Fund's investment policies or guidelines as a result of the change in portfolio managers.

There is no guarantee that the Fund's investment objective will be achieved. Securities with longer durations tend to be more sensitive to changes in interest rates and are usually more volatile than securities with shorter durations. The issuer of a security or the counterparty to a derivative or other contractual instrument owned by the Fund could default on its obligation to pay principal and/or interest. This risk is higher for below investment-grade bonds. Because the Fund invests primarily in securities of emerging market issuers, there is a greater risk that the Fund's share price will fluctuate more than if it invested only in domestic or developed markets securities. Investing in international markets poses special risks, including potentially greater price volatility due to social, political and economic factors, as well as currency exchange rate fluctuations. Because the Fund is non-diversified and may invest a greater percentage of its assets in securities of a single issuer and/or a relatively small number of issuers, it is more susceptible to these risks. The Fund charges a redemption fee of 2.00% on redemptions of shares that are held for less than 60 days.

The Harbor Funds lineup of actively managed, no-load mutual funds had combined net assets of approximately $69 billion as of November 30, 2012. Each Harbor fund is managed by an institutional investment firm chosen by Harbor Capital Advisors, Inc. based on the firm's experience in a specific asset class.