Harbor Capital Advisors to enter ETF Market with Scientific Fixed Income Strategies
CHICAGO – May 5, 2021 - Harbor Capital Advisors, Inc. (“Harbor”) today announced that it will bring two fixed income strategies to market this year in the form of exchange-traded funds (ETFs), with both products expected to be available in the fall, upon completion of the registration process. These offerings are the first ETF products from Harbor, which currently offers, through its subadvisory relationships, an array of mutual funds and collective investment trusts.
“Harbor is excited to launch its first ever ETFs, providing advisers and investors more ways to access exclusive investment management solutions to achieve their long-term investment goals.”
Kristof Gleich, President and Chief Investment Officer, Harbor.
The two ETF strategies to be launched by Harbor include:
- Harbor Scientific Alpha High-Yield ETF – Seeks total return through a structured investment process that utilizes a proprietary model-based framework in the security selection of below investment-grade (high-yield) bonds. The subadviser’s portfolio optimization process seeks to maximize total returns while minimizing expected risk and transaction costs.
- Harbor Scientific Alpha Income ETF – Seeks total return through a structured investment process that utilizes a proprietary model-based framework in the security selection of both investment-grade and below investment-grade (high-yield) bonds. The subadviser’s optimization process seeks to maximize total returns while minimizing expected risk and transaction costs.
“We are enthusiastic about Harbor’s first two entries into the ETF market and look forward to their launch slated for this September. As we continue to pursue vehicle agnostic solutions to meet our clients’ needs, we are excited to deliver more choice to our investors. Partnering with a world class boutique like BlueCove is an excellent example of how we are moving to provide active, innovative, differentiated and disruptive investment approaches that address growing investor needs.” said Gleich.
The investment strategies for the two ETFs will be subadvised by BlueCove Limited (“BlueCove”). BlueCove is a new scientific asset management firm founded in 2018 that brings together a group of leading fixed income industry investment and engineering professionals, with the specific purpose of researching and developing state-of-the-art scientific investment processes applicable to fixed income investment management.
Harbor offers a diverse family of cost-aware investment solutions managed by institutional-caliber firms. We source talented investment teams to manage portfolios and apply a rigorous fiduciary oversight program to monitor their performance and investment decisions. Harbor had combined assets under management of approximately $59 billion as of March 31, 2021. For more information, visit harborfunds.com.
NOTE: INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. THE REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SEC BUT HAS NOT YET BEEN DECLARED EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS PRESS RELEASE IS NOT AN OFFER TO SELL THESE SECURITIES AND IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED. AN INDICATION OF INTEREST IN RESPONSE TO THIS ADVERTISEMENT WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY KIND.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
All investments involve risk including the possible loss of principal. Fixed income securities fluctuate in price in response to various factors, including changes in interest rates, changes in market conditions and issuer-specific events, and the value of your investment in the Fund may go down. There is a greater risk that the Funds will lose money because they invest in below investment-grade fixed income securities and unrated securities of similar credit quality (commonly referred to as “high-yield securities” or “junk bonds”). These securities are considered speculative because they have a higher risk of issuer default, are subject to greater price volatility and may be illiquid. Because the Funds may invest in securities of foreign issuers, an investment in the Funds is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by government bodies of other countries and less stringent investor protection and disclosure standards of foreign markets.
Foreside Fund Services, LLC is the Distributor of the Harbor ETF Trust and the Scientific Alpha High-Yield ETF and the Harbor Scientific Alpha Income ETF.
BlueCove Limited is a third-party subadviser to the Harbor Scientific Alpha High-Yield ETF and the Harbor Scientific Alpha Income ETF.