Harbor Target Retirement 2055 Fund Institutional Class (HATRX)

Investment Strategy

The Fund invests in the Institutional Class shares of other Harbor mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2055 (the target year) and assumes a retirement age of 65. The Fund is designed for an investor who plans to withdraw the value of an account in the Fund gradually over a period of many years during retirement. This Fund may not be appropriate for an investor who plans to retire in or within a few years of the target year, but at an age well before or after age 65.  The Fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income securities will increase. Within 5 years after 2055, the Fund's asset allocation should become similar to that of the Harbor Target Retirement Income Fund. The Fund's current target allocations are:

 

Asset Class Allocation
Equity 93%
Fixed Income 7%
Short-Term 0%

 

See Descriptions of the Underlying Harbor Funds section of this prospectus for further details regarding the underlying Harbor funds in which the Fund invests.

While the Fund gradually decreases its equity holdings and becomes increasingly conservative over time, the Fund's actual asset allocation may differ from the current target asset allocation, at times significantly, over the course of the year. The Adviser regularly reviews the Fund's allocations to determine whether rebalancing is appropriate. The Adviser may adjust the selection and weightings of the underlying Harbor funds due to a variety of factors, such as whether the underlying Harbor funds are accepting additional investments, whether a particular underlying Harbor fund is closed, merged or liquidated, or whether the Adviser launches a new underlying Harbor fund. Although the Adviser does not intend to trade actively among the underlying Harbor funds or seek to capture short-term market opportunities, the Adviser may also adjust the Fund's asset allocation in response to changing market conditions or for other reasons determined by the Adviser to be in the best interests of the Fund's shareholders. See the Asset Allocation Framework section of this prospectus for further details on the Fund's asset allocation.

The Fund's indirect stock holdings (approximately 93% of the Fund's assets) consist of a diversified mix of large-, mid-, and small-cap U.S. stocks, as well as foreign stocks, including those of companies located in emerging market countries.

The Fund's indirect bond holdings (approximately 7% of the Fund's assets) are a diversified mix of short-, intermediate-, and long-term investment-grade, taxable U.S. government, U.S. agency, and corporate bonds; inflation-indexed bonds issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations; below investment-grade, high-risk, corporate bonds, (commonly referred to as "junk bonds"); mortgage- and asset-backed securities; emerging markets debt; and derivative instruments that provide exposure to such securities.

 

Risks

The principal value of the Fund is not guaranteed at any time, including the target date. The performance and risks of the Fund correspond directly to the performance and risks of the underlying Harbor funds in which the Fund invests. The Fund has partial exposure to the risks of many different market sectors and asset classes, any of which could cause an investor to lose money.

The principal risk of the Fund is asset allocation risk, or the risk that the selection of the underlying Harbor funds and the allocation of the Fund's assets to those underlying Harbor funds will cause the Fund to underperform other similar target retirement funds. Other principal risks include selection risk (a subadviser of one of the underlying Harbor funds is incorrect in its judgment regarding the attractiveness, value and potential appreciation of a particular security) and market risk. A fund with significant exposure to equity securities is also subject to risks associated with investing in stocks which may fluctuate in price if affected by issuer-specific events and movements in the overall stock market in which those securities trade. A fund with significant exposure to fixed income securities is also subject to risks associated with investing in fixed income securities which may fluctuate in price in response to changes in interest rates, market conditions and issuer-specific events. A fund with significant exposure to international markets poses special risks including potentially greater price volatility due to social, political and economic factors, as well as currency exchange rate fluctuations.