News & Commentary

Fund Manager Commentary
Harbor Capital Appreciation Fund
  • Jennison Associates LLC - 1st Quarter, 2018
  • Equity market volatility returned during the quarter
  • The January advance in equity markets turned abruptly and turbulently in February on concerns that the expanding U.S. economy could, for the first time in years, trigger a rebound in inflation and accelerate the pace of Federal Reserve interest rate...
Harbor Strategic Growth Fund
  • Mar Vista Investment Partners, LLC - 1st Quarter, 2018
  • Equity returns were more muted amid greater volatility
  • Although economic fundamentals and global growth remain solid in the first quarter of 2018, factors such as inflation uncertainty, social media regulations, a more hawkish Fed, and global trade concerns fueled a surge in market volatility.
Harbor Mid Cap Growth Fund
  • Wellington Management Company LLP - 1st Quarter, 2018
  • Equity market volatility rose substantially during the quarter
  • U.S. equities posted their first quarterly loss since September 2015 in the first quarter of 2018.
Harbor Small Cap Growth Fund
  • Westfield Capital Management Company, L.P. - 1st Quarter, 2018
  • The Fund outperformed amid volatility driven by investor concerns
  • U.S. equity markets started the first quarter of 2018 much like they ended 2017, with strong returns and limited volatility.
Harbor Small Cap Growth Opportunities Fund
  • Elk Creek Partners, LLC - 1st Quarter, 2018
  • Small cap and growth stocks outperform in choppy market
  • The U.S. stock market's long run-up continued into January 2018, but volatility returned in early February, which saw a rather large sell-off across market caps.
Harbor Large Cap Value Fund
  • Aristotle Capital Management, LLC - 1st Quarter, 2018
  • Fund outperforms as volatility returns to market
  • U.S. equity markets recorded their first quarterly loss in more than two years during a turbulent first quarter of 2018.
Harbor Mid Cap Value Fund
  • LSV Asset Management - 1st Quarter, 2018
  • U.S. equities start 2018 strong, then stumble
  • Equities started 2018 right where they left off in 2017.
Harbor Small Cap Value Fund
  • EARNEST Partners LLC - 1st Quarter, 2018
  • The Fund fared better than its small cap value peers in a down quarter
  • During the first quarter of 2018, equity markets initially rallied following the passage of tax reform legislation, which lowered U.S. corporate and individual tax rates.
Harbor Small Cap Value Opportunities Fund
  • Sapience Investments, LLC - 1st Quarter, 2018
  • Markets turn choppy after lengthy run-up
  • Fear and volatility increased in U.S. equity markets over the latter two-thirds of the quarter, creating a two-stage market trajectory during the period.
Harbor International Fund
  • Northern Cross, LLC - 1st Quarter, 2018
  • The Fund fared better than its benchmark in a difficult quarter
  • The first quarter of 2018 was one that saw an initial surge before markets fell quite sharply, in response to fears of higher interest rates, rising inflation and upheaval in the large and influential U.S. Information Technology sector.
Harbor Diversified International All Cap Fund
  • Marathon Asset Management LLP (Marathon-London) - 1st Quarter, 2018
  • An initial surge before markets fell
  • The first quarter of 2018 was one that saw an initial surge before markets fell quite sharply, in response to fears of higher interest rates, rising inflation and upheaval in the large and influential U.S. Technology sector.
Harbor International Growth Fund
  • Baillie Gifford Overseas Limited - 1st Quarter, 2018
  • The year began with fluctuating market sentiment
  • Equity markets started the year brightly, as positive sentiment and momentum carried over from the end of 2017.
Harbor International Small Cap Fund
  • Baring International Investment Limited (Barings) - 1st Quarter, 2018
  • Developments in the U.S. drive global profit taking
  • During the first quarter of 2018, a number of political and macro-level events occurred that might have been anticipated to impact global equity markets; however, the key drivers for global equity markets over the quarter all originated in the United...
Harbor Global Leaders Fund
  • Sands Capital Management, LLC - 1st Quarter, 2018
  • The Fund outperformed in a difficult quarter for global equities
  • Global equity markets, as measured by the MSCI All Country World (ND) Index or MSCI ACWI, were down in the first quarter of 2018.
Harbor Emerging Markets Equity Fund
  • Oaktree Capital Management, L.P. - 1st Quarter, 2018
  • Fund outperforms as emerging markets continue to post gains
  • Although volatility returned to global markets in the first quarter of 2018, emerging markets advanced and continued to outperform developed markets.
Harbor Convertible Securities Fund
  • Shenkman Capital Management, Inc. - 1st Quarter, 2018
  • Markets experienced several bouts of volatility during the quarter
  • The market momentum engendered by the passage of the much-anticipated corporate tax reform legislation failed to carry through from January into the balance of the first quarter of 2018.
Harbor High-Yield Bond Fund
  • Shenkman Capital Management, Inc. - 1st Quarter, 2018
  • The high yield market faced headwinds as the quarter progressed
  • Following a robust opening to 2018, driven by strengthening U.S. and global economies, a solid start to the corporate earnings season, climbing crude oil prices and rising equity markets, the high yield market faced headwinds as the quarter progressed.
Harbor High-Yield Opportunities Fund
  • Crescent Capital Group LP - 1st Quarter, 2018
  • Negative returns for high yield bonds in a volatile quarter
  • Volatility returned to the market in the first quarter of 2018 on the backdrop of global equity weakness, inflation and rate concerns, and an escalating trade war with China.
Harbor Bond Fund
  • Pacific Investment Management Company LLC - 1st Quarter, 2018
  • Bonds declined as volatility rose in the first quarter of 2018
  • After a year of low volatility and strong risk asset returns, the start to 2018 was highlighted by the return of volatility.
Harbor Real Return Fund
  • Pacific Investment Management Company LLC - 1st Quarter, 2018
  • Equity and bond markets suffered in a volatile quarter
  • After a year of low volatility and strong risk asset returns, the start to 2018 was highlighted by the return of volatility.
Harbor Money Market Fund
  • BNP Paribas Asset Management USA, Inc. - 1st Quarter, 2018
  • Central banks weigh tightening policies as economic growth continues
  • Global economic expansion continued during the first quarter of 2018, and developed economies continued to benefit from policy accommodation.

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.

Performance figures discussed reflect that of the institutional class shares.

The views expressed herein are those of the portfolio manager at the time of the interview and may not be reflective of their current opinions or future actions.  These views are not necessarily those of the fund company and should not be construed as such.

This information should not be considered as a recommendation to purchase or sell a particular security and the holdings or sectors mentioned may change at any time and may not represent current or future investments.