News & Commentary

Harbor Appoints New Subadviser for the Harbor International Small Cap Fund
May 23, 2019

The Harbor Funds Board of Trustees has appointed Cedar Street Asset Management LLC ("Cedar Street") as subadviser to Harbor International Small Cap Fund (the "Fund") effective May 23, 2019. Cedar Street succeeds Baring International Investment Limited ("Barings"), which had served as subadviser since February 1, 2016. The Fund will continue to invest in non-US small cap equities, but will focus on non-US small cap equities which Cedar Street believes capture valuation inefficiencies that possess appealing long-term return potential, best realized through active management.

"We are appreciative to Barings for their service to the Fund and its shareholders," said Harbor Funds Chairman, Charles F. McCain. "At the same time, we welcome Cedar Street as the new portfolio management team of the Harbor International Small Cap Fund."

Cedar Street, founded in April of 2016, is an employee-owned investment management firm with approximately $185 million in assets under management as of April 30, 2019.

Jonathan Brodsky, Founder and Principal, and Waldemar Mozes, Director of Investments, will be the portfolio managers for the Fund. Prior to founding Cedar Street, Mr. Brodsky established the non-U.S. investment practice at Advisory Research, Inc., a Chicago-based asset management firm, in 2004. Prior to joining Cedar Street, Mr. Mozes developed and implemented the international investment capability at TAMRO Capital Partners LLC, an Alexandria, VA-based investment advisor specializing in small cap strategies for institutional investors in 2013.

The Fund invests primarily in equity securities that trade on international exchanges or equities that trade on U.S. exchanges that conduct the majority of their business in international markets.

The Harbor Funds lineup of actively managed, no-load mutual funds had combined net assets of approximately $48 billion as of April 30, 2019. Each Harbor fund is managed by an institutional investment firm selected by Harbor Capital Advisors, Inc. and approved by the Harbor Funds' Board of Trustees based on the firm's experience in a specific asset class. Fees and expenses apply to a continued investment in a Fund and are described in each Fund's current prospectus.

There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Investing in international and emerging markets poses special risks, including potentially greater price volatility due to social, political and economic factors, as well as currency exchange rate fluctuations. These risks are more severe for securities of issuers in emerging market regions. Stocks of small cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.