Harbor Funds NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-4676

Harbor Funds

(Exact name of Registrant as specified in charter)

111 South Wacker Drive, 34^th Floor
Chicago, Illinois 60606-4302

(Address of principal executive offices) (Zip code)

David G. Van Hooser
HARBOR FUNDS
111 South Wacker Drive, 34^th Floor
Chicago, Illinois 60606-4302

Christopher P. Harvey, Esq.
DECHERT LLP
One International Place – 40^th Floor
100 Oliver Street
Boston, MA 02110-2605

(Name and address of agent for service)

Registrant’s telephone number, including area code: (312) 443-4400

Date of fiscal year end: October 31

Date of reporting period: October 31, 2016

ITEM 1 – REPORTS TO STOCKHOLDERS

The following are copies of reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1):

Annual Report

October 31, 2016

Domestic Equity Funds

	Institutional Class	Administrative Class	Investor Class	Retirement Class
GROWTH FUNDS
Harbor Capital Appreciation Fund	HACAX	HRCAX	HCAIX	HNACX
Harbor Mid Cap Growth Fund	HAMGX	HRMGX	HIMGX	HNMGX
Harbor Small Cap Growth Fund	HASGX	HRSGX	HISGX	HNSGX
Harbor Small Cap Growth Opportunities Fund	HASOX	HRSOX	HISOX	HNSOX
VALUE FUNDS
Harbor Large Cap Value Fund	HAVLX	HRLVX	HILVX	HNLVX
Harbor Mid Cap Value Fund	HAMVX	HRMVX	HIMVX	HNMVX
Harbor Small Cap Value Fund	HASCX	HSVRX	HISVX	HNVRX

Table of Contents

Annual Report Overview	1
Letter from the Chairman	3
Growth Funds
Harbor Capital Appreciation Fund
Managers' Commentary	5
Fund Summary	7
Fund Performance Summary	8
Portfolio of Investments	9
Harbor Mid Cap Growth Fund
Managers' Commentary	12
Fund Summary	14
Fund Performance Summary	15
Portfolio of Investments	16
Harbor Small Cap Growth Fund
Managers' Commentary	20
Fund Summary	22
Fund Performance Summary	23
Portfolio of Investments	24
Harbor Small Cap Growth Opportunities Fund
Managers' Commentary	27
Fund Summary	29
Fund Performance Summary	30
Portfolio of Investments	31
Value Funds
Harbor Large Cap Value Fund
Manager’s Commentary	34
Fund Summary	36
Fund Performance Summary	37
Portfolio of Investments	38
Harbor Mid Cap Value Fund
Managers' Commentary	40
Fund Summary	42
Fund Performance Summary	43
Portfolio of Investments	44
Harbor Small Cap Value Fund
Manager’s Commentary	48
Fund Summary	50
Fund Performance Summary	51
Portfolio of Investments	52
Financial Statements
Statements of Assets and Liabilities	55
Statements of Operations	56
Statements of Changes In Net Assets	57
Financial Highlights	63
Notes to Financial Statements	77

Report of Independent Registered Public Accounting Firm	89
Fees and Expenses Example	90
Additional Information
Additional Tax Information	93
Proxy Voting	93
Householding	93
Quarterly Portfolio Disclosures	94
Trustees and Officers	95
Harbor’s Privacy Statement	97
Glossary	98

This document must be preceded or accompanied by a Prospectus.

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Harbor Domestic Equity Funds
Annual Report Overview (Unaudited)

The Funds' fiscal year ended October 31, 2016. The performance figures for each of the Harbor Funds shown below assume the reinvestment of dividends and capital gains, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of shares of the Funds. From time to time, certain fees and/or expenses have been voluntarily or contractually waived or reimbursed. Without these waivers or reimbursements, the returns would have been lower. Voluntary waivers or reimbursements may be discontinued at any time without notice. For information on the different share classes, please refer to the current prospectus. The returns of the unmanaged indices assume the reinvestment of dividends but do not reflect fees and expenses, and the indices are not available for direct investment.

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 harborfunds.com.

	Total Return Year Ended October 31, 2016
GROWTH FUNDS	Institutional Class	Administrative Class	Investor Class	Retirement Class
Harbor Capital Appreciation Fund	-1.23%	-1.48%	-1.60%	-1.21% ^a
Harbor Mid Cap Growth Fund	-0.60	-0.91	-1.05	-0.60 ^a
Harbor Small Cap Growth Fund	-0.99	-1.29	-1.44	-0.91 ^a
Harbor Small Cap Growth Opportunities Fund	2.62	2.94	2.24	2.72 ^a
VALUE FUNDS
Harbor Large Cap Value Fund	7.14%	6.77%	6.80%	7.17% ^a
Harbor Mid Cap Value Fund	2.81	2.54	2.45	2.81 ^a
Harbor Small Cap Value Fund	8.18	7.93	7.79	8.26 ^a

COMMONLY USED MARKET INDICES	Total Return Year Ended October 31, 2016
S&P 500 (large cap, domestic equity)	4.51%
Russell 1000^® Growth (large cap, domestic equity)	2.28
Russell 1000^® Value (large cap, domestic equity)	6.37
Russell Midcap^® Growth (mid cap, domestic equity)	0.40
Russell Midcap^® Value (mid cap, domestic equity)	7.84
Russell 2000^® Growth (small cap, domestic equity)	-0.49
Russell 2000^® Value (small cap, domestic equity)	8.81

Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

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Harbor Domestic Equity Funds
Annual Report Overview—Continued

	EXPENSE RATIOS¹					Morningstar Average² (Unaudited)
DOMESTIC EQUITY FUNDS	2012	2013	2014	2015	2016	Morningstar Average² (Unaudited)
Harbor Capital Appreciation Fund
Institutional Class	0.66%	0.65%	0.65%	0.64%	0.64%	0.88%
Administrative Class	0.91	0.90	0.90	0.89	0.89	1.17
Investor Class	1.03	1.02	1.02	1.01	1.01	1.25
Retirement Class	N/A	N/A	N/A	N/A	0.59 ^a	0.75
Harbor Mid Cap Growth Fund
Institutional Class	0.85%	0.84%	0.83%	0.84%	0.85%	1.04%
Administrative Class	1.10	1.09	1.08	1.09	1.10	1.34
Investor Class	1.22	1.21	1.20	1.21	1.22	1.37
Retirement Class	N/A	N/A	N/A	N/A	0.80 ^a	0.87
Harbor Small Cap Growth Fund
Institutional Class	0.84%	0.83%	0.83%	0.83%	0.85%	1.08%
Administrative Class	1.09	1.08	1.08	1.08	1.10	1.35
Investor Class	1.21	1.20	1.20	1.20	1.22	1.41
Retirement Class	N/A	N/A	N/A	N/A	0.80 ^a	0.94
Harbor Small Cap Growth Opportunities Fund
Institutional Class	N/A	N/A	0.90% ^b	0.90%	0.89%	1.08%
Administrative Class	N/A	N/A	1.15 ^b	1.15	1.13	1.35
Investor Class	N/A	N/A	1.27 ^b	1.27	1.26	1.41
Retirement Class	N/A	N/A	N/A	N/A	0.84 ^a	0.94
Harbor Large Cap Value Fund
Institutional Class	0.68%	0.68%	0.68%	0.68%	0.68%	0.84%
Administrative Class	0.93	0.93	0.93	0.93	0.93	1.15
Investor Class	1.05	1.05	1.05	1.05	1.05	1.20
Retirement Class	N/A	N/A	N/A	N/A	0.63 ^a	0.70
Harbor Mid Cap Value Fund
Institutional Class	0.95%	0.93%	0.89%	0.86%	0.84%	0.94%
Administrative Class	1.20	1.18	1.14	1.11	1.09	1.26
Investor Class	1.32	1.30	1.26	1.23	1.21	1.28
Retirement Class	N/A	N/A	N/A	N/A	0.79 ^a	0.83
Harbor Small Cap Value Fund
Institutional Class	0.85%	0.84%	0.84%	0.85%	0.86%	1.09%
Administrative Class	1.10	1.09	1.09	1.10	1.11	1.48
Investor Class	1.22	1.21	1.21	1.22	1.23	1.53
Retirement Class	N/A	N/A	N/A	N/A	0.81 ^a	0.93

1	Harbor Funds’ expense ratios are for the fiscal years ended October 31 (unless otherwise noted) and are shown net of all expense offsets, waivers and reimbursements (see Financial Highlights).
2	The Morningstar Average includes all actively managed no-load funds in the October 31, 2016 Morningstar Universe with the same investment style as the comparable Harbor fund’s portfolio and with the following additional characteristics for each Harbor Funds share class: Institutional Class contains funds with 12b-1 fees less than or equal to 0.25%; Administrative Class contains funds with 12b-1 fees and which are restricted primarily for use by retirement plans; Investor Class contains funds with 12b-1 fees and a minimum investment less than $50,000; and Retirement Class contains funds with no 12b-1 fees and which are restricted primarily for use by retirement plans.
a	Annualized figures for the period March 1, 2016 (commencement of operations) through October 31, 2016.
b	Annualized figures for the period February 1, 2014 (inception) through October 31, 2014.

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Letter from the Chairman

David G. Van Hooser
Chairman

Dear Fellow Shareholder:

U.S. equities generally posted modest gains in the fiscal year ended October 31, 2016. The U.S. economy showed sufficient strength early in the fiscal year to cause the U.S. Federal Reserve to raise short term rates in late 2015 for the first time since 2006. Equity returns were weak early in the fiscal year with concerns that slowing economic growth in China and the negative effect of lingering lower energy prices would cause slower growth in the U.S. and elsewhere around the world. Oil prices stabilized early in 2016 and equities recovered on stronger economic news.

The unexpected results of the Brexit vote in June caused a momentary disruption in equity prices before markets recovered and domestic equities continued to advance. Late in the second half of the fiscal year, the contentious U.S. election and concerns about corporate earnings weighed on the market. The Russell 3000^® Index, a measure of the broad U.S. stock market, had a return of 4.24% for the fiscal year. Value stocks outperformed growth.

Comments by the portfolio managers of each Harbor domestic equity fund can be found in the pages preceding each Fund’s portfolio of investments. As always, we recommend that shareholders maintain a long-term perspective in evaluating all of their investments, including Harbor Funds.

	Returns For Periods Ended October 31, 2016
		Annualized
Domestic Equities	1 Year	5 Years	10 Years	30 Years
Russell 3000^® (entire U.S. stock market)	4.24%	13.35%	6.76%	9.87%
S&P 500 (large cap stocks)	4.51	13.57	6.70	9.95
Russell Midcap^® (mid cap stocks)	4.17	13.12	7.55	11.23
Russell 2000^® (small cap stocks)	4.11	11.51	5.96	9.01
Russell 3000^® Growth (growth stocks)	2.08	13.47	8.11	9.31
Russell 3000^® Value (value stocks)	6.55	13.17	5.31	10.06
International & Global
MSCI EAFE (ND) (foreign stocks)	-3.23%	4.99%	1.22%	5.90%
MSCI EAFE Small Cap (ND) (foreign small cap stocks)	2.98	8.91	3.72	N/A
MSCI World (ND) (global stocks)	1.18	9.03	3.89	7.40
MSCI All Country World Ex. U.S. (ND) (foreign stocks)	0.22	3.63	1.61	N/A
MSCI Emerging Markets (ND) (emerging markets stocks)	9.27	0.55	3.49	N/A
Strategic Markets
Bloomberg Commodity Index Total Return^SM(commodities)	-2.62%	-10.61%	-5.81%	N/A
Fixed Income
BofA Merrill Lynch U.S. Non-Distressed High-Yield (domestic high-yield bonds)	8.21%	7.16%	6.51%	N/A
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds)	4.37	2.90	4.64	6.48%
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds)	5.89	1.47	4.46	N/A
BofA Merrill Lynch 3-Month U.S. Treasury Bill (proxy for money market returns)	0.31	0.11	0.88	3.54

Harbor Funds Trustee Retires

On December 31, 2016, Rodger F. Smith will retire as a trustee of Harbor Funds in accordance with the board’s retirement policy. Rodger has served shareholders as a member of the board since 1987. His 29 years of service is the longest of any Harbor Funds trustee. Rodger’s knowledge of investments, the asset management industry and his broad business experience accumulated during his business and consulting career have been beneficial in the growth and development of Harbor Funds. Rodger was the first lead independent trustee of Harbor Funds, serving in that role for six years until his retirement. Rodger always focused on the best interests of fund shareholders. His insights and observations have been very helpful to the board and senior members of the Harbor Funds team. We wish Rodger the very best in what we know will be a very active retirement.

The board’s retirement policy enables the trustees to prepare for retirements well in advance. With Rodger Smith’s retirement, the board will be reduced, at least temporarily, from eight members to seven, of whom six are independent. The board has added several trustees in recent years in anticipation of certain scheduled trustee retirements.

Start Investing As Early As Possible

The end of a calendar year can serve as a useful checkpoint to evaluate your financial goals and your investments. We always encourage shareholders to take a long term perspective with all of their investments. With the growth in defined contribution plans, more and more investors each year have primary responsibility for their own retirement investments as well as their other investment needs.

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and other long term financial goals. Financial markets are volatile and stocks and bonds can go up and down in value. While past performance is never a guarantee of future results, over the long term, the returns of equities and debt have historically helped many investors achieve their financial objectives. For those investors investing for retirement, we suggest you consider the following:

1.	If you have a defined contribution retirement plan where you work, if possible, invest at least as much as necessary to obtain any company match;
2.	If you can do so, invest the maximum permitted each year in an individual retirement account; and
3.	Invest in a taxable account so you have other assets to tap for emergencies or other situations where you would prefer not to disturb your longer term investments.

With careful planning and budgeting all of us can come closer to meeting our financial goals. Harbor Funds offers equity, strategic markets and fixed income funds to help you achieve your financial objectives.

Thank you for investing with Harbor Funds.

December 21, 2016

David G. Van Hooser

Chairman

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Harbor Capital Appreciation Fund
Managers' Commentary (Unaudited)

Subadviser

Jennison Associates LLC

466 Lexington Avenue
New York, NY 10017

Portfolio Managers

Spiros Segalas
Since 1990

Kathleen A. McCarragher
Since 2013

Jennison has subadvised the Fund since 1990.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Mid to large cap growth stocks

Spiros Segalas

Kathleen A. McCarragher

Management’s Discussion of
Fund Performance

MARKET REVIEW

Numerous factors contributed to market volatility in the 12-month period ended October 31, 2016, including decelerating economic growth in China; concerns that emerging economies might face balance sheet risks; the negative effect of lower energy prices on industrial sectors; fears of slowing economic growth in the U.S.; uncertainty about the course of future Federal Reserve monetary tightening; Brexit, the United Kingdom’s vote to leave the European Union; and anxiety about the highly contentious U.S. presidential election.

Risk aversion in this volatile global market environment affected how investors valued different securities. Low-volatility/high-dividend-paying and other “safety” stocks were significant drivers of market returns. Stocks of higher-growth companies generally underperformed.

PERFORMANCE

The Harbor Capital Appreciation Fund declined -1.23% (Institutional Class), -1.48% (Administrative Class), -1.60% (Investor Class), and -1.21% (Retirement Class) in the fiscal year, underperforming the Russell 1000^® Growth Index, which rose 2.28%, and the broader market, as represented by the S&P 500 Index, which climbed 4.51%. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

Investor risk aversion hurt higher-growth, and therefore higher-valuation, stocks which negatively impacted Fund performance. Health Care stocks faced the additional headwind of growing concerns about drug pricing. Companies that sell innovative, high-priced drugs sold off, among them Fund holdings Regeneron Pharmaceuticals Inc. (eye diseases, high cholesterol), Alexion Pharmaceuticals Inc. (blood and metabolic disorders) and Vertex Pharmaceuticals Inc. (cystic fibrosis). We believe that the long-term fundamentals of the Fund’s biotechnology positions remain intact and that current valuations underestimate the potential of pipeline drugs. Health care companies for which acquiring growth plays a greater strategic role, such as Fund portfolio holding Allergan plc, declined as regulatory changes threatened to remove many of the tax benefits of mergers between U.S. and offshore companies.

Fund performance was both positively and negatively impacted by its consumer-oriented holdings. NIKE Inc. declined on inventory overhang, declining average selling prices, and increased competition. Another sector holding, Amazon.com Inc. benefitted from continued strong execution, margin expansion, and development of a meaningfully important business opportunity in cloud infrastructure. The company continued to invest to drive unit growth in its core retail business and through the proliferation of digital commerce via the mobile market. In Consumer Staples, deflationary grocery prices hindered supermarket chain Kroger Co.’s growth.

Information Technology positions were solid positive contributors to performance. Facebook Inc. rose on impressive revenue and margins, accelerating advertising revenue growth, and solid user growth and engagement. As the company solidifies its dominant position, it continued to increase its appeal to users and advertisers. Long-term growth drivers include Instagram, WhatsApp, and Messenger. Tencent Holdings Ltd., China’s largest and most visited Internet service portal, continued to perform well, fundamentally driven by its dominant position in

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Harbor Capital Appreciation Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Amazon.com Inc.	6.1%
Facebook Inc.	4.8%
Apple Inc.	4.4%
Visa Inc.	3.6%
Alibaba Group Holding Ltd. ADR	3.5%
Microsoft Corp.	3.5%
Tencent Holdings Ltd.	3.2%
MasterCard Inc.	2.8%
Alphabet Inc. Class A	2.7%
Alphabet Inc. Class C	2.6%

China’s online gaming and instant messaging markets and its growing advertising and payment service efforts. NVIDIA Corp.’s revenue, gross margin, and earnings exceeded forecasts. The company has transformed itself from a personal-computer-centric graphics provider to a company focused on key high-growth markets where we believe it can leverage its graphics expertise to offer high-value-added solutions: gaming (where it has dominant market share), automotive, high-performance computing (HPC), and cloud and enterprise. Alibaba Group Holding Ltd. reported better-than-expected revenue, earnings, user metrics, gross merchandise value, monetization revenue, and margins. We believe Alibaba, with its dominant market share, offers an attractive opportunity to invest in the long-term growth of the Chinese e-commerce market. Adobe Systems Inc. benefitted from strong revenue and earnings. Best known for its Photoshop photo-editing tool and the PDF and Flash platforms, the company is transitioning its current installed base from a perpetual license model to a subscription model.

In Financials, the Fund’s holding of S&P Global Inc. contributed to performance. The company’s solid fundamentals reflect significant barriers to entry and substantial recurring revenue. The company provides credit ratings, benchmarks, and analytics for the global capital and commodities markets.

In Real Estate, broadcast and wireless tower operator American Tower Corp. benefitted from several long-term drivers of tower industry growth, including the expansion of mobile data, household migration to wireless-only service, high barriers to entry, pricing power, low maintenance expenses, international expansion opportunities, and largely predictable business models with high earnings margins. As a real estate investment trust, the company pays out most of pre-tax profits to shareholders, making it particularly attractive in an environment that favored dividend-paying stocks.

OUTLOOK & STRATEGY

With growth scarce in many sectors and businesses, companies that are able to generate longer-term, sustainable above-average growth should become increasingly attractive. This appeal is likely to be heightened by the expected muted nature of global growth, which we feel is limiting opportunities to capitalize on a cyclical rebound, and the recent run-up in dividend-paying securities, which suggests to us that yield substitutes are offering little additional relative appreciation potential at this point.

Despite volatility and uncertainty over the past year, the Fund’s projected earnings growth for 2016 and 2017 has remained constant in the mid to upper teens, well above the expected profits growth of the Russell 1000^® Growth and S&P 500 indexes. Given that the fundamental performances of most companies in the Fund continue to meet or exceed our expectations, we believe that the market will value them appropriately over the medium and long term.

This report contains the current opinions of Jennison Associates LLC as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Equity securities, such as common stocks, are affected by company specific events and by movements in the overall stock markets in which those securities principally trade, among other factors. An adverse company specific event, or downturn in those stock markets, can depress the value of a particular company’s equity securities. For information on the different share classes and the risks associated with an investment in the Fund, please refer to the current prospectus.

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Harbor Capital Appreciation Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2012
Cusip	411511504
Ticker	HACAX
Inception Date	12/29/1987
Net Expense Ratio	0.64% ^b
Total Net Assets (000s)	$21,608,221

ADMINISTRATIVE CLASS

Fund #	2212
Cusip	411511827
Ticker	HRCAX
Inception Date	11/01/2002
Net Expense Ratio	0.89% ^b
Total Net Assets (000s)	$555,665

INVESTOR CLASS

Fund #	2412
Cusip	411511819
Ticker	HCAIX
Inception Date	11/01/2002
Net Expense Ratio	1.01% ^b
Total Net Assets (000s)	$1,540,557

RETIREMENT CLASS

Fund #	2512
Cusip	411512528
Ticker	HNACX
Inception Date	03/01/2016
Net Expense Ratio	0.59% ^a,b
Total Net Assets (000s)	$1,022,839

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$173,217	$153,160
Price/Earning Ratio (P/E)	38.2x	26.3x
Price/Book Ratio (P/B)	7.3x	6.5x
Beta vs. Russell 1000^® Growth Index	1.12	1.00
Portfolio Turnover (Year Ended 10/31/2016)	34%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects a contractual management fee waiver effective through February 28, 2017.

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Harbor Capital Appreciation Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the Russell 1000^® Growth Index and the S&P 500 Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor Capital Appreciation Fund
Institutional Class	-1.23%	13.20%	8.30%	12/29/1987	$110,990
Administrative Class	-1.48	12.92	8.03	11/01/2002	108,264
Investor Class	-1.60	12.78	7.90	11/01/2002	106,952
Retirement Class¹	-1.21	13.20	8.30	03/01/2016	111,009
Comparative Indices
Russell 1000^® Growth	2.28%	13.65%	8.22%	—	$110,132
S&P 500	4.51	13.57	6.70	—	95,618

As stated in the Fund’s current prospectus, the expense ratios were 0.65% (Net) and 0.70% (Gross) (Institutional Class); 0.90% (Net) and 0.95% (Gross) (Administrative Class); 1.02% (Net) and 1.07% (Gross) (Investor Class); and 0.60% (Net) and 0.65% (Gross) (Retirement Class). The net expense ratios reflect a contractual management fee waiver effective through 02/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

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Harbor Capital Appreciation Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of -0.1%)

COMMON STOCKS—100.1%
Shares			Value
AEROSPACE & DEFENSE—1.6%
	2,824,749	Boeing Co.	$ 402,329
AIR FREIGHT & LOGISTICS—1.0%
	1,430,975	FedEx Corp.	249,448
AUTOMOBILES—0.9%
	1,067,186	Tesla Motors Inc.^*	211,015
BEVERAGES—2.1%
	1,179,770	Constellation Brands Inc.	197,163
	2,274,817	Monster Beverage Corp.^*	328,347
			525,510
BIOTECHNOLOGY—9.2%
	2,581,555	Alexion Pharmaceuticals Inc.^*	336,893
	1,174,192	Biogen Inc.^*	328,985
	1,865,772	BioMarin Pharmaceutical Inc.^*	150,232
	5,964,497	Celgene Corp.^*	609,452
	801,805	Regeneron Pharmaceuticals Inc.^*	276,639
	2,513,890	Shire plc ADR¹	423,942
	1,905,121	Vertex Pharmaceuticals Inc.^*	144,523
			2,270,666

COMMON STOCKS—Continued
Shares			Value
CAPITAL MARKETS—2.6%
	1,965,608	Goldman Sachs Group Inc.	$ 350,350
	2,312,126	S&P Global Inc.	281,732
			632,082
CHEMICALS—0.5%
	1,544,783	Albemarle Corp.	129,067
COMMUNICATIONS EQUIPMENT—1.2%
	1,933,244	Palo Alto Networks Inc.^*	297,391
ENERGY EQUIPMENT & SERVICES—1.3%
	6,816,877	Halliburton Co.	313,576
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—1.4%
	3,027,153	American Tower Corp.	354,752
FOOD & STAPLES RETAILING—1.4%
	2,286,469	Costco Wholesale Corp.	338,100
HOTELS, RESTAURANTS & LEISURE—3.3%
	6,352,004	Marriott International Inc.	436,383
	7,132,628	Starbucks Corp.	378,528
			814,911
INTERNET & DIRECT MARKETING RETAIL—10.1%
	1,911,684	Amazon.com Inc.^*	1,509,886
	455,357	Expedia Inc.	58,846
	3,864,147	Netflix Inc.^*	482,516
	308,908	Priceline Group Inc.^*	455,401
			2,506,649
INTERNET SOFTWARE & SERVICES—16.8%
	8,530,185	Alibaba Group Holding Ltd. ADR (CHN)^*,1	867,435
	816,355	Alphabet Inc. Class A^*	661,166
	829,383	Alphabet Inc. Class C^*	650,684
	8,998,308	Facebook Inc.^*	1,178,688
	29,894,812	Tencent Holdings Ltd. (CHN)	792,282
			4,150,255
IT SERVICES—7.9%
	2,095,875	FleetCor Technologies Inc.^*	367,407
	6,509,610	MasterCard Inc.	696,658
	10,843,483	Visa Inc.	894,696
			1,958,761
LIFE SCIENCES TOOLS & SERVICES—0.7%
	1,314,025	Illumina Inc.^*	178,891
MEDIA—2.2%
	570,625	Charter Communications Inc.^*	142,594
	3,216,485	Time Warner Inc.	286,235
	1,379,311	Walt Disney Co.	127,848
			556,677
OIL, GAS & CONSUMABLE FUELS—1.4%
	2,673,811	Concho Resources Inc.^*	339,414
PHARMACEUTICALS—3.5%
	2,447,691	Allergan plc	511,421
	6,727,234	Bristol-Myers Squibb Co.	342,483
			853,904
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.1%
	5,833,433	NVIDIA Corp.	415,107

Table of Contents

Harbor Capital Appreciation Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—Continued
	3,511,440	NXP Semiconductors NV (NET)^*	$ 351,144
	7,101,639	QUALCOMM Inc.	488,025
			1,254,276
SOFTWARE—11.4%
	5,713,528	Adobe Systems Inc.^*	614,261
	378,637	Atlassian Corp. plc (AUS)^*	10,170
	14,319,421	Microsoft Corp.	858,020
	3,839,586	Red Hat Inc.^*	297,376
	6,373,134	Salesforce.com Inc.^*	479,005
	4,301,619	Splunk Inc.^*	258,915
	3,445,377	Workday Inc.^*	298,645
			2,816,392
SPECIALTY RETAIL—7.2%
	2,386,592	Home Depot Inc.	291,188
	17,552,478	Industria de Diseno Textil SA (SP)²	612,448
	1,663,662	O'Reilly Automotive Inc.^*	439,939
	4,006,592	TJX Companies Inc.	295,486
	565,525	ULTA Salon Cosmetics & Fragrance Inc.^*	137,615
			1,776,676
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—4.4%
	9,570,541	Apple Inc.	1,086,639
TEXTILES, APPAREL & LUXURY GOODS—2.9%
	2,638,789	adidas AG (GER)	433,537
	5,910,709	NIKE Inc.	296,600
			730,137
TOTAL COMMON STOCKS
(Cost $16,206,615)			24,747,518

SHORT-TERM INVESTMENTS—0.9%
Principal Amount			Value
REPURCHASE AGREEMENTS—0.3%
$	63,510	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by U.S. Treasury Notes (value $64,781)	$ 63,510
Shares
INVESTMENT COMPANY-SECURITIES LENDING INVESTMENT FUND—0.6%
	159,807,038	State Street Navigator Securities Lending Government Money Market Portfolio (1-day yield of 0.27%)³	159,807
TOTAL SHORT-TERM INVESTMENTS
(Cost $223,317)			223,317
TOTAL INVESTMENTS—101.0%
(Cost $16,429,932)			24,970,835
CASH AND OTHER ASSETS, LESS LIABILITIES—(1.0)%			(243,553)
TOTAL NET ASSETS—100.0%			$24,727,282

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Aerospace & Defense	$ 402,329	$ —	$—	$ 402,329
Air Freight & Logistics	249,448	—	—	249,448
Automobiles	211,015	—	—	211,015
Beverages	525,510	—	—	525,510
Biotechnology	2,270,666	—	—	2,270,666
Capital Markets	632,082	—	—	632,082
Chemicals	129,067	—	—	129,067
Communications Equipment	297,391	—	—	297,391
Energy Equipment & Services	313,576	—	—	313,576
Equity Real Estate Investment Trusts (REITs)	354,752	—	—	354,752
Food & Staples Retailing	338,100	—	—	338,100
Hotels, Restaurants & Leisure	814,911	—	—	814,911
Internet & Direct Marketing Retail	2,506,649	—	—	2,506,649
Internet Software & Services	3,357,973	792,282	—	4,150,255
IT Services	1,958,761	—	—	1,958,761
Life Sciences Tools & Services	178,891	—	—	178,891
Media	556,677	—	—	556,677

Table of Contents

Harbor Capital Appreciation Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS—Continued

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Oil, Gas & Consumable Fuels	$ 339,414	$ —	$—	$ 339,414
Pharmaceuticals	853,904	—	—	853,904
Semiconductors & Semiconductor Equipment	1,254,276	—	—	1,254,276
Software	2,816,392	—	—	2,816,392
Specialty Retail	1,164,228	612,448	—	1,776,676
Technology Hardware, Storage & Peripherals	1,086,639	—	—	1,086,639
Textiles, Apparel & Luxury Goods	296,600	433,537	—	730,137
Short-Term Investments
Repurchase Agreements	—	63,510	—	63,510
Investment Company-Securities Lending Investment Fund	159,807	—	—	159,807
Total Investments in Securities	$23,069,058	$1,901,777	$—	$24,970,835

There were no Level 3 holdings at October 31, 2015 or October 31, 2016, and no transfers between levels during the year.

For more information on valuation inputs and their aggregation into the levels used in the table above, please refer to Fair Value Measurements and Disclosures in Note 2 of the accompanying Notes to Financial Statements.

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
2	A portion or all of this security was out on loan as of October 31, 2016.
3	Investment of collateral received related to securities lending activities
AUS	Australia
CHN	China
GER	Germany
NET	Netherlands
SP	Spain

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Mid Cap Growth Fund
Managers' Commentary (Unaudited)

Subadviser

Wellington Management Company LLP

280 Congress Street
Boston, MA 02210

Portfolio Managers

Stephen Mortimer
Since 2010

Michael T. Carmen, CFA, CPA

Since 2005

Mario E. Abularach, CFA, CMT
Since 2006

Wellington Management has subadvised the Fund since 2005.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Mid cap companies with significant capital appreciation potential

Stephen Mortimer

Michael T. Carmen

Mario E. Abularach

Management’s Discussion of
Fund Performance

MARKET REVIEW

U.S. equities rose in the 12-month period ended October 31, 2016, as measured by the S&P 500 Index, notwithstanding significant volatility. The period started with a November that finished relatively flat but data releases continued to paint a promising picture for the U.S. economy. As widely expected, the U.S. Federal Reserve (Fed) delivered its first rate hike since 2006 in December 2015. The S&P 500 Index finished the last two months of 2015 slightly down, then plunged during a risk off environment and moved in virtual lockstep with the price of oil, as fears of a recession and weakness in China weighed on investors' minds. However, equities reversed and surged in late February and March as solid economic data, a stabilization in oil prices, and accommodative commentary from the Fed helped to calm the market’s early year jitters. Stocks continued to rise through the second quarter, despite an unexpected Brexit referendum result, which caused equities to sell off, only to recover a couple of days later. U.S. equities gained in the third quarter, in particular during July, following a solid start to the corporate earnings season and encouraging housing and employment data releases. Stocks were essentially flat in August and September as investors remained focused on the Fed’s actions, specifically on the timing of the next rate hike. Tepid economic data and valuation concerns contributed to increased volatility in September and stock prices dipped in October as U.S. election jitters took center stage. Returns varied by market-cap, as mid- and large-cap stocks, as measured by the S&P MidCap 400 Index and S&P 500 Index respectively, outperformed small-cap stocks, as measured by the Russell 2000^® Index.

Performance

For the one-year period ended October 31, 2016, the Harbor Mid Cap Growth Fund underperformed the Russell Midcap Growth^® Index. The Fund returned -0.60% (Institutional Class), -0.91% (Administrative Class), -1.05% (Investor Class), and -0.60% (Retirement Class) for the period, while the index finished up 0.40%. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

Sector allocation, which is a residual of the bottom-up stock selection process, drove relative underperformance. Underweight allocations to the Consumer Staples and Materials sectors and an overweight allocation to the Health Care sector detracted most from relative returns. Negative returns were partially offset by an overweight to the Information Technology sector, an underweight to the Consumer Discretionary sector, and strong security selection within Consumer Discretionary, Energy, and Industrials. Security selection was weaker within the Consumer Staples, Financials, and Information Technology sectors.

Health Care holding Allergan plc, a specialty pharmaceutical company, was the largest relative detractor during the period. The company’s stock price suffered after a planned merger with Pfizer Inc. in the fourth quarter of 2015 did not materialize. Although we were positive on Allergan on a standalone basis, and felt that there were numerous catalysts that could unlock value in the company, Allergan faces several near-term headwinds from generic competition and supply disruptions in a couple key drugs, so we eliminated the position to invest in opportunities that we believe have better risk/reward profiles. Information Technology holding Tableau Software, Inc., an analytics and data visualization software company, was also among

Table of Contents

Harbor Mid Cap Growth Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Expedia Inc.	4.1%
Workday Inc.	3.5%
Netflix Inc.	3.1%
ServiceNow Inc.	3.1%
Edwards Lifesciences Corp.	2.7%
Panera Bread Co.	2.6%
DexCom Inc.	2.5%
Align Technology Inc.	2.4%
CoStar Group Inc.	2.4%
Wayfair Inc.	2.4%

the top detractors during the period. The stock price fell due to competition concerns after the company reported slower-than-expected customer growth and disappointing operating margins in the first quarter of 2016. We eliminated our position in the stock during the period. Consumer Discretionary holding Harman International Industries, Inc. was another notable detractor from relative performance. Harman, a manufacturer of connected car and audio systems and services, reported weaker-than-expected earnings in the first quarter of 2016. We eliminated our position in the stock. Also among the top relative detractors during the period were Health Care companies Regeneron Pharmaceuticals Inc., Athenahealth Inc., and Edwards Lifesciences Corp.

Health Care holding Veeva Systems Inc., a software and service technology company, was the largest relative contributor to performance during the period. The company’s stock rose after reporting strong quarterly results that continue to beat expectations driven by accelerating subscription growth. We believe this company has an excellent business model and faces limited competition due to the high barriers to entry. We continue to hold the position. Consumer Discretionary holding Netflix Inc., a provider of subscription service for television shows and movies, was also a top contributor to relative performance. We initiated our position in the third quarter of 2016, after a period of heavy investment to launch its service globally in 2015-2016, on the belief that the company would exceed expectations with accelerating revenue growth and improving cost leverage. Information Technology holding Workday Inc., a provider of enterprise cloud applications for finance and human resources, was another top contributor to performance. Workday delivered strong second quarter 2016 earnings results with accelerating new signings growth, improving traction in financials, and modest margin gains that were ahead of plan. We think the company has a very favorable long-term growth trajectory and maintain our position in the stock. Also contributing to relative performance during the period were Dick’s Sporting Goods Inc. (Consumer Discretionary), Applied Materials Inc. (Information Technology), and Zillow Group Inc. (Information Technology).

OUTLOOK & STRATEGY

Our investment philosophy is based on four key underlying premises. First, we believe that changes in earnings expectations drive security prices. Second, we believe that tangible operating momentum precedes earnings momentum. Third, we believe that quality management will provide us with an opportunity to identify companies that will achieve operating excellence. Finally, we believe that our valuation discipline helps control portfolio risk.

We employ this philosophy, together with a bottom-up fundamental analysis and opportunistic investment approach, in managing the Fund. We consider a very broad universe of available stocks within the mid cap market, typically focusing on companies with projected accelerating earnings growth of 15% or higher. To narrow the universe of available companies, we rely on intensive bottom-up fundamental proprietary research.

The Fund is largely constructed without regard to benchmark weightings by sector; however, we typically do not expect to exceed the benchmark weight by more than two times in any given sector. Bottom-up investment decisions resulted in decreased exposure to the Health Care sector; however it remained the Fund’s largest overweight sector at the end of the period. The Fund added exposure and ended the period overweight to the Energy and Information Technology sectors and most underweight the Materials, Industrials, and Financials sectors.

This report contains the current opinions of Wellington Management Company LLP as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Stocks of mid cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Equity securities, such as common stocks, are affected by company specific events and by movements in the overall stock markets in which those securities principally trade, among other factors. An adverse company specific event, or downturn in those stock markets, can depress the value of a particular company’s equity securities. For information on the different share classes and the risks associated with an investment in the Fund, please refer to the current prospectus.

Table of Contents

Harbor Mid Cap Growth Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2019
Cusip	411511876
Ticker	HAMGX
Inception Date	11/01/2000
Net Expense Ratio	0.85%
Total Net Assets (000s)	$303,802

ADMINISTRATIVE CLASS

Fund #	2219
Cusip	411511793
Ticker	HRMGX
Inception Date	11/01/2002
Net Expense Ratio	1.10%
Total Net Assets (000s)	$175,211

INVESTOR CLASS

Fund #	2419
Cusip	411511785
Ticker	HIMGX
Inception Date	11/01/2002
Net Expense Ratio	1.22%
Total Net Assets (000s)	$17,167

RETIREMENT CLASS

Fund #	2519
Cusip	411512510
Ticker	HNMGX
Inception Date	03/01/2016
Net Expense Ratio	0.80% ^a
Total Net Assets (000s)	$2,718

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$12,892	$12,597
Price/Earning Ratio (P/E)	58.1x	27.9x
Price/Book Ratio (P/B)	6.6x	5.8x
Beta vs. Russell Midcap^® Growth Index	1.19	1.00
Portfolio Turnover (Year Ended 10/31/2016)	84%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized

Table of Contents

Harbor Mid Cap Growth Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the Russell Midcap^® Growth Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor Mid Cap Growth Fund
Institutional Class	-0.60%	10.38%	6.80%	11/01/2000	$ 96,565
Administrative Class	-0.91	10.08	6.53	11/01/2002	94,122
Investor Class	-1.05	9.96	6.40	11/01/2002	93,008
Retirement Class¹	-0.60	10.38	6.80	03/01/2016	96,565
Comparative Index
Russell Midcap^® Growth	0.40%	12.02%	7.65%	—	$104,533

As stated in the Fund’s current prospectus, the expense ratios were 0.86% (Institutional Class); 1.11% (Administrative Class); 1.23% (Investor Class); and 0.81% (Retirement Class). The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Mid Cap Growth Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 0.8%)

COMMON STOCKS—99.2%
Shares			Value
BEVERAGES—3.6%
	73,622	Molson Coors Brewing Co.	$ 7,643
	70,435	Monster Beverage Corp.^*	10,166
			17,809
BIOTECHNOLOGY—3.3%
	26,634	Alnylam Pharmaceuticals Inc.^*	948
	72,584	Incyte Corp.^*	6,313
	81,266	Ionis Pharmaceuticals Inc.^*	2,111
	11,461	Regeneron Pharmaceuticals Inc.^*	3,954
	24,503	Tesaro Inc.^*	2,962
			16,288
BUILDING PRODUCTS—1.0%
	90,980	Fortune Brands Home & Security Inc.	4,970
CAPITAL MARKETS—1.5%
	61,470	S&P Global Inc.	7,490
CHEMICALS—0.9%
	642,748	Platform Specialty Products Corp.^*	4,686

COMMON STOCKS—Continued
Shares			Value
COMMUNICATIONS EQUIPMENT—1.9%
	109,189	Arista Networks Inc.^*	$ 9,254
DIVERSIFIED FINANCIAL SERVICES—0.7%
	326,045	Double Eagle Acquisition Corp. (CYM )^*	3,381
ENERGY EQUIPMENT & SERVICES—1.2%
	108,675	Baker Hughes Inc.	6,021
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—2.2%
	30,539	Equinix Inc.	10,911
FOOD PRODUCTS—1.2%
	488,577	Nomad Foods Ltd. (VG)^*	6,005
HEALTH CARE EQUIPMENT & SUPPLIES—12.6%
	65,369	Abiomed Inc.^*	6,863
	137,936	Align Technology Inc.^*	11,851
	157,432	DexCom Inc.^*	12,318
	144,123	Edwards Lifesciences Corp.^*	13,723
	287,528	Hologic Inc.^*	10,354
	212,581	Insulet Corp.^*	7,891
			63,000
HEALTH CARE TECHNOLOGY—2.7%
	68,899	Athenahealth Inc.^*	7,119
	166,357	Veeva Systems Inc.^*	6,463
			13,582
HOTELS, RESTAURANTS & LEISURE—4.9%
	19,511	Chipotle Mexican Grill Inc.^*	7,039
	48,176	Jack in the Box Inc.	4,516
	68,034	Panera Bread Co.^*	12,978
			24,533
INTERNET & DIRECT MARKETING RETAIL—11.4%
	155,977	Expedia Inc.	20,157
	122,608	Netflix Inc.^*	15,310
	145,707	TripAdvisor Inc.^*	9,395
	362,621	Wayfair Inc.^*	12,086
			56,948
INTERNET SOFTWARE & SERVICES—6.1%
	63,957	CoStar Group Inc.^*	11,967
	226,825	Godaddy Inc.^*	8,118
	4,200	Trade Desk Inc. (The)^*	106
	306,026	Zillow Group Inc. Class C^*	10,209
			30,400
IT SERVICES—0.9%
	105,728	PayPal Holdings Inc.^*	4,405
LIFE SCIENCES TOOLS & SERVICES—0.0%
	1,517	Samsung Biologics Co. Ltd. (S. KOR)^*	180 ^x
MACHINERY—2.0%
	88,427	Middleby Corp.^*	9,914
OIL, GAS & CONSUMABLE FUELS—5.5%
	99,895	Anadarko Petroleum Corp.	5,938
	46,301	Diamondback Energy Inc.^*	4,227
	58,649	Energen Corp.^*	2,940
	134,458	Newfield Exploration Co.^*	5,457

Table of Contents

Harbor Mid Cap Growth Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
OIL, GAS & CONSUMABLE FUELS—Continued
	35,995	Pioneer Natural Resources Co.	$ 6,444
	158,817	Qep Resources Inc.^*	2,552
			27,558
PHARMACEUTICALS—2.9%
	91,200	Eisai Co. Ltd. (JP)	5,812
	88,310	Mylan NV (NET)^*	3,223
	211,800	Ono Pharmaceutical Co. Ltd. (JP)	5,370
			14,405
PROFESSIONAL SERVICES—3.0%
	253,889	IHS Markit Ltd. (BM)^*	9,340
	188,786	TransUnion^*	5,898
			15,238
ROAD & RAIL—1.2%
	207,701	Knight Transportation Inc.	6,075
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.2%
	339,658	Micron Technology Inc.^*	5,829
SOFTWARE—15.8%
	193,962	Atlassian Corp. plc (AUS)^*	5,210
	142,837	Guidewire Software Inc.^*	8,206
	292,028	Mobileye NV (NET)^*	10,857
	177,382	ServiceNow Inc.^*	15,594
	335,805	SS&C Technologies Holdings Inc.	10,722
	51,120	Ultimate Software Group Inc.^*	10,786
	200,419	Workday Inc.^*	17,372
			78,747
SPECIALTY RETAIL—2.9%
	43,754	Advance Auto Parts Inc.	6,129
	150,634	Dick's Sporting Goods Inc.	8,383
			14,512

COMMON STOCKS—Continued
Shares			Value
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—1.0%
	424,452	Pure Storage Inc.^*	$ 5,238
TEXTILES, APPAREL & LUXURY GOODS—3.8%
	307,924	Kate Spade & Co.^*	5,158
	1,756,130	Samsonite International SA (HK)	5,510
	312,074	Under Armour Inc. Class C^*	8,070
			18,738
TRADING COMPANIES & DISTRIBUTORS—3.8%
	183,312	AerCap Holdings NV (NET)^*	7,536
	288,413	Fastenal Co.	11,242
			18,778
TOTAL COMMON STOCKS
(Cost $458,440)			494,895

SHORT-TERM INVESTMENTS—1.5%
(Cost $7,484)
Principal Amount
REPURCHASE AGREEMENTS
$	7,484	Repurchase Agreement with Bank of America dated October 31, 2016 due November 01, 2016 at 0.300% collateralized by U.S. Treasury Notes (value $7,614)	7,484
TOTAL INVESTMENTS—100.7%
(Cost $465,924)			502,379
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.7)%			(3,481)
TOTAL NET ASSETS—100.0%			$498,898

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Beverages	$17,809	$—	$—	$17,809
Biotechnology	16,288	—	—	16,288
Building Products	4,970	—	—	4,970
Capital Markets	7,490	—	—	7,490
Chemicals	4,686	—	—	4,686
Communications Equipment	9,254	—	—	9,254
Diversified Financial Services	3,381	—	—	3,381
Energy Equipment & Services	6,021	—	—	6,021
Equity Real Estate Investment Trusts (REITs)	10,911	—	—	10,911
Food Products	6,005	—	—	6,005
Health Care Equipment & Supplies	63,000	—	—	63,000
Health Care Technology	13,582	—	—	13,582
Hotels, Restaurants & Leisure	24,533	—	—	24,533
Internet & Direct Marketing Retail	56,948	—	—	56,948
Internet Software & Services	30,400	—	—	30,400

Table of Contents

Harbor Mid Cap Growth Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS—Continued

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
IT Services	$ 4,405	$ —	$ —	$ 4,405
Life Sciences Tools & Services	—	—	180	180
Machinery	9,914	—	—	9,914
Oil, Gas & Consumable Fuels	27,558	—	—	27,558
Pharmaceuticals	3,223	11,182	—	14,405
Professional Services	15,238	—	—	15,238
Road & Rail	6,075	—	—	6,075
Semiconductors & Semiconductor Equipment	5,829	—	—	5,829
Software	78,747	—	—	78,747
Specialty Retail	14,512	—	—	14,512
Technology Hardware, Storage & Peripherals	5,238	—	—	5,238
Textiles, Apparel & Luxury Goods	13,228	5,510	—	18,738
Trading Companies & Distributors	18,778	—	—	18,778
Short-Term Investments
Repurchase Agreements	—	7,484	—	7,484
Total Investments in Securities	$478,023	$24,176	$180	$502,379

The following is a rollforward of the Fund’s Level 3 investments during the year ended October 31, 2016.

Valuation Description	Balance Beginning at 11/01/2015 (000s)	Purchases (000s)	Sales (000s)	Discount/ (Premium) (000s)	Total Realized Gain/(Loss)^w (000s)	Change in Unrealized Appreciation/ (Depreciation)^w (000s)	Transfers In Level 3 (000s)	Transfers Out of Level 3 (000s)	Ending Balance as of 10/31/2016 (000s)
Common Stocks
Life Sciences Tools & Services	$—	$182	$—	$—	$—	$(2)	$—	$—	$180

There were no transfers between Levels 1 and 2 during the year.

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy.

Valuation Descriptions	Ending Balance as of 10/31/2016 (000s)	Valuation Technique	Unobservable Inputs	Input Value(s)
Investments in Securities
Common Stocks
Samsung Biologics Co. Ltd. (S. KOR)*	$180	Market Approach	Pre-IPO Transaction Price	KRW 136,000

Table of Contents

Harbor Mid Cap Growth Fund
Portfolio of Investments—Continued

*	Non-income producing security
w	The amounts in this category are included in the “Realized and Change in Unrealized Gain/(Loss) on Investment Transactions” section of the Statement of Operations. The net unrealized appreciation/(depreciation) per investment type is below:
	Valuation Description	Unrealized Gain/(Loss) as of 10/31/2016 (000s)
	Common Stocks	$(2)
x	Fair Valued in accordance with Harbor Funds Valuation Procedures using a pre-IPO transaction price which is a Level 3 input.
KRW	South Korean Won
AUS	Australia
BM	Bermuda
CYM	Cayman Islands
HK	Hong Kong
JP	Japan
NET	Netherlands
S. KOR	South Korea
VG	Virgin Islands

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Small Cap Growth Fund
Managers' Commentary (Unaudited)

Subadviser

Westfield Capital Management Company, L.P.

One Financial Center
23rd Floor

Boston, MA 02111

Portfolio Managers

William Muggia

Lead Portfolio Manager
Since 2000

Ethan Meyers, CFA
Since 2000

John Montgomery
Since 2011

Bruce Jacobs, CFA
Since 2011

Hamlen Thompson
Since 2011

Westfield has subadvised the Fund since 2000.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Small cap growth stocks demonstrating consistent or accelerating earnings growth

William Muggia

Ethan Meyers

John Montgomery

Bruce Jacobs

Hamlen Thompson

Management’s Discussion of
Fund Performance

Market Review

After a prolonged period of gains, domestic equities began to show signs of fatigue during the fiscal year ended October 31, 2016. Market volatility picked up significantly, sentiment started to wane, and macro-economic concerns became a decisive factor behind investors’ purchasing decisions. The past twelve months witnessed two major corrections, which highlighted yet again a powerful dichotomy between two forces competing for equity market leadership: growth and safety. During periods of stock market duress, investors sought refuge in the most defensive, bond-like segments, such as Utilities, REITs, and Telecom Services. Snapback rallies off the interim lows, both in February and in June, were driven by economically-sensitive stocks. By the end of summer there was a noteworthy expansion of market breadth, with growth-oriented Information Technology and Industrial companies delivering some of the best performance results. Importantly, shares of financial companies also joined the advance, while expensive, high yield bond proxies began to underperform.

Performance

The Harbor Small Cap Growth Fund returned -0.99% (Institutional Class), -1.29% (Administrative Class), -1.44% (Investor Class), and -0.91% (Retirement Class) for the twelve month period ended October 31, 2016. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses. These returns represent a modest underperformance of the Russell 2000^® Growth Index, which posted -0.49%. While the Information Technology sector was the portfolio’s biggest contributor to relative returns, investments in Financials and Consumer Discretionary also generated incremental gains. The Health Care, Industrials, and Energy sectors were the portfolio’s most significant sources of underperformance. Additionally, the portfolio’s lack of exposure to Consumer Staples and Telecommunications Services, which were among the broad market’s best performing segments during the period, also held back relative results.

The Information Technology sector generated 1.36% of incremental gains, benefiting from successful stock selection across multiple sub-industries. Particularly impactful was contribution from investments in systems software, semiconductors, and data processing. Software maker Proofpoint, Inc., which offers an integrated suite of data protection tools, was among the top performers. The company has been seeing market share gains across a broad platform of products. We believe Proofpoint will continue to deliver above-industry-average revenue growth, aided by multiple tailwinds, such as cross-selling agreements with Intel Corp. and Palo Alto Networks Inc., cloud adoption, and McAfee conversions.

Investments within Financials contributed 1.17% to returns. We have tried to take a balanced approach to Financials, focusing on idiosyncratic ideas that we feel can outperform regardless of the interest rate environment. Of note, Texas-based regional bank Cullen/Frost Bankers, Inc. added incremental value during the period. We think the company has an experienced management team with a disciplined approach to lending and underwriting, pays a dividend

Table of Contents

Harbor Small Cap Growth Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Chemtura Corp.	2.8%
John Bean Technologies Corp.	2.8%
ICON plc	2.5%
Ultimate Software Group Inc.	2.5%
Vail Resorts Inc.	2.3%
Watsco Inc.	2.3%
Berry Plastics Group Inc.	2.2%
Ryder System Inc.	2.1%
East West Bancorp Inc.	2.0%
Microsemi Corp.	2.0%

that is above industry average, and offers the potential for a share repurchase program. Our recent discussion with management, which covered the bank’s energy loan exposure and loan loss reserves, left us confident in the quality of the franchise and its growth prospects relative to its peers.

The Health Care sector detracted 1.53% from relative results. Much of the underperformance stemmed from the portfolio’s biotechnology and pharmaceuticals investments. The biopharmaceuticals group was marked by significant volatility in the past twelve months, with the Nasdaq Biotech Index declining 21% over the period. We have reduced the portfolio’s exposure to the group and continued to balance our constructive views on the ongoing R&D productivity and new product launch dynamics within biopharma with our view that the segment will likely remain volatile near term. Shares of pharmaceutical developer Cardiome Pharma Corp. declined sharply in July following the company’s secondary offering. While we were disappointed with management’s decision to raise the capital at a substantial discount, we participated in the offering. We believe that the company is now fully funded to profitability and could be on the front end of multiple value creating events over the next 12 months.

Investments within Industrials cost the portfolio 0.69%. Steelcase Inc., the portfolio’s holding in the office services & supplies sub-industry, was the greatest source of relative weakness in the sector, declining after reporting third quarter earnings in December 2015. Lower corporate spending led to fewer product orders in the U.S., and the company’s European division missed production targets due to several operational mishaps. We felt that the company’s restructuring efforts in its European business segment might be less effective than management had thought and exited our investment in the stock.

Outlook & Strategy

The domestic stock market has more than doubled since the financial crisis of 2008. Its advance over the last couple of years came in the face of tepid global growth, tumult in the energy complex, and more recently, uncertainty about the outcome of the November presidential election. From our perspective, investor concerns about these macroeconomic and political risks resulted in a flight to those stocks that investors perceived as the most defensive, those demonstrating predictable cash flows, hefty dividends, and low volatility. Valuations became less important than income generation and stability. With emerging markets healing, the U.S. economy close to full employment, and inflation slowly firming, the U.S. Federal Reserve is likely to raise rates by 25 bps at the December meeting, in our opinion. We feel that when interest rates begin to normalize, valuation will matter once again. We already started to see this in October, when expensive, no growth stocks underperformed the broader market. Our focus remains on quality high growth stocks that we consider to be underappreciated by the market and we believe that our growth-at-a-reasonable-price (GARP) investment approach will be rewarded going forward.

This report contains the current opinions of Westfield Capital Management Company, L.P. as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Stocks of small cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Equity securities, such as common stocks, are affected by company specific events and by movements in the overall stock markets in which those securities principally trade, among other factors. An adverse company specific event, or downturn in those stock markets, can depress the value of a particular company’s equity securities. For information on the different share classes and the risks associated with an investment in the Fund, please refer to the current prospectus.

Table of Contents

Harbor Small Cap Growth Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2010
Cusip	411511868
Ticker	HASGX
Inception Date	11/01/2000
Net Expense Ratio	0.85%
Total Net Assets (000s)	$523,888

ADMINISTRATIVE CLASS

Fund #	2210
Cusip	411511769
Ticker	HRSGX
Inception Date	11/01/2002
Net Expense Ratio	1.10%
Total Net Assets (000s)	$686

INVESTOR CLASS

Fund #	2410
Cusip	411511777
Ticker	HISGX
Inception Date	11/01/2002
Net Expense Ratio	1.22%
Total Net Assets (000s)	$8,401

RETIREMENT CLASS

Fund #	2510
Cusip	411512494
Ticker	HNSGX
Inception Date	03/01/2016
Net Expense Ratio	0.80% ^a
Total Net Assets (000s)	$54,634

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$2,972	$1,927
Price/Earning Ratio (P/E)	36.0x	31.2x
Price/Book Ratio (P/B)	4.4x	4.2x
Beta vs. Russell 2000^® Growth Index	0.93	1.00
Portfolio Turnover (Year Ended 10/31/2016)	89%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized

Table of Contents

Harbor Small Cap Growth Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the Russell 2000^® Growth Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor Small Cap Growth Fund
Institutional Class	-0.99%	11.56%	7.51%	11/01/2000	$103,194
Administrative Class	-1.29	11.30	7.26	11/01/2002	100,765
Investor Class	-1.44	11.13	7.11	11/01/2002	99,359
Retirement Class¹	-0.91	11.58	7.52	03/01/2016	103,280
Comparative Index
Russell 2000^® Growth	-0.49%	11.34%	6.92%	—	$ 97,624

Table of Contents

Harbor Small Cap Growth Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 5.0%)

COMMON STOCKS—95.0%
Shares			Value
AEROSPACE & DEFENSE—2.7%
	118,500	HEICO Corp.	$ 7,110
	193,350	Hexcel Corp.	8,796
			15,906
AIRLINES—1.7%
	210,860	Spirit Airlines Inc.^*	10,107
BANKS—4.6%
	97,816	Cullen/Frost Bankers Inc.	7,433
	305,500	East West Bancorp Inc.	12,070
	196,904	FCB Financial Holdings Inc.^*	7,345
			26,848

COMMON STOCKS—Continued
Shares			Value
BIOTECHNOLOGY—5.8%
	169,750	Acceleron Pharma Inc.^*	$ 4,758
	143,370	Alder Biopharmaceuticals Inc.^*	3,477
	830,500	ARIAD Pharmaceuticals Inc.^*	7,242
	1,076,367	Merrimack Pharmaceuticals Inc.^*	5,619
	196,645	Neurocrine Biosciences Inc.^*	8,607
	90,590	Prothena Corp. plc (IE)^*	4,332
			34,035
BUILDING PRODUCTS—1.2%
	93,125	American Woodmark Corp.^*	6,956
CAPITAL MARKETS—1.9%
	674,440	BGC Partners Inc.	5,793
	37,680	MarketAxess Holdings Inc.	5,681
			11,474
CHEMICALS—2.8%
	495,300	Chemtura Corp.^*	16,246
COMMERCIAL SERVICES & SUPPLIES—0.5%
	45,670	Multi-Color Corp.	2,965
COMMUNICATIONS EQUIPMENT—2.3%
	242,070	ARRIS International plc (UK)^*	6,725
	351,940	Ciena Corp.^*	6,820
			13,545
CONTAINERS & PACKAGING—2.2%
	298,150	Berry Plastics Group Inc.^*	13,044
DIVERSIFIED CONSUMER SERVICES—1.8%
	162,010	Bright Horizons Family Solutions Inc.^*	10,840
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.0%
	217,812	Orbotech Ltd. (IL)^*	5,968
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—2.5%
	155,040	Community Healthcare Trust Inc.	3,470
	291,180	Four Corners Property Trust Inc.	5,847
	260,343	National Storage Affiliates Trust	5,097
			14,414
HEALTH CARE EQUIPMENT & SUPPLIES—5.4%
	145,520	Integra LifeSciences Holdings Corp.^*	11,570
	201,532	Masimo Corp.^*	11,084
	401,570	Wright Medical Group NV (NET)^*	8,799
			31,453
HEALTH CARE PROVIDERS & SERVICES—1.5%
	201,854	TeamHealth Holdings Inc.^*	8,649
HEALTH CARE TECHNOLOGY—1.0%
	174,574	Omnicell Inc.^*	5,696
HOTELS, RESTAURANTS & LEISURE—5.7%
	256,790	Chuy's Holdings Inc.^*	7,293
	185,990	Dave & Buster's Entertainment Inc.^*	7,690
	237,758	Isle of Capri Casinos Inc.^*	4,993
	85,310	Vail Resorts Inc.	13,602
			33,578
HOUSEHOLD DURABLES—2.0%
	352,702	Installed Building Products Inc.^*	11,657

Table of Contents

Harbor Small Cap Growth Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
INTERNET SOFTWARE & SERVICES—1.5%
	47,788	CoStar Group Inc.^*	$ 8,942
IT SERVICES—3.0%
	73,785	Euronet Worldwide Inc.^*	5,869
	167,220	Interxion Holding NV (NET)^*	6,226
	208,325	WNS Holdings Ltd. ADR (JE)^*,1	5,729
			17,824
LEISURE PRODUCTS—1.8%
	312,670	Acushnet Holdings Corp.^*	5,443
	124,084	Brunswick Corp.	5,398
			10,841
LIFE SCIENCES TOOLS & SERVICES—2.5%
	183,704	ICON plc (IE)^*	14,748
MACHINERY—4.3%
	203,750	John Bean Technologies Corp.	16,269
	728,570	Mueller Water Products Inc.	8,976
			25,245
MARINE—1.6%
	241,560	Matson Inc.	9,648
MEDIA—4.5%
	56,455	Madison Square Garden Co.^*	9,343
	149,862	Nexstar Broadcasting Group Inc.	7,313
	320,217	Starz^*	10,074
			26,730
PHARMACEUTICALS—3.3%
	1,768,065	Cardiome Pharma Corp. (CAN)^*	4,880
	166,200	Horizon Pharma plc (IE)^*	2,779
	444,473	Nektar Therapeutics^*	5,512
	192,969	Pacira Pharmaceuticals Inc.^*	6,136
			19,307
PROFESSIONAL SERVICES—1.9%
	58,678	CEB Inc.	2,855
	150,599	Huron Consulting Group Inc.^*	8,441
			11,296
ROAD & RAIL—2.7%
	154,524	Marten Transport Ltd.	3,168
	179,400	Ryder System Inc.	12,448
			15,616
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—4.4%
	74,605	Inphi Corp.^*	2,768

COMMON STOCKS—Continued
Shares			Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—Continued
	279,130	Microsemi Corp.^*	$ 11,760
	146,154	Monolithic Power Systems Inc.	11,518
			26,046
SOFTWARE—9.6%
	209,459	BroadSoft Inc.^*	8,703
	136,771	Commvault Systems Inc.^*	7,317
	317,937	Fortinet Inc.^*	10,193
	83,739	Proofpoint Inc.^*	6,564
	69,420	Ultimate Software Group Inc.^*	14,647
	346,859	Zendesk Inc.^*	9,119
			56,543
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—1.5%
	200,760	Electronics for Imaging Inc.^*	8,538
THRIFTS & MORTGAGE FINANCE—1.0%
	213,544	Essent Group Ltd. (BM)^*	5,646
TRADING COMPANIES & DISTRIBUTORS—4.8%
	311,426	Rush Enterprises Inc.^*	8,175
	111,906	Siteone Landscape Supply Inc.^*	3,489
	149,450	Univar Inc.^*	3,325
	97,435	Watsco Inc.	13,377
			28,366
TOTAL COMMON STOCKS
(Cost $477,830)			558,717

SHORT-TERM INVESTMENTS—3.7%
(Cost $21,522)
Principal Amount
REPURCHASE AGREEMENTS
$	21,522	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $21,955)	21,522
TOTAL INVESTMENTS—98.7%
(Cost $499,352)			580,239
CASH AND OTHER ASSETS, LESS LIABILITIES—1.3%			7,370
TOTAL NET ASSETS—100.0%			$587,609

FAIR VALUE MEASUREMENTS

Repurchase Agreements valued at $21,522 are classified as Level 2. All other holdings at October 31, 2016 (as disclosed in the preceding Portfolio of Investments) are classified as Level 1. There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

For more information on valuation inputs and their aggregation into the levels identified above, please refer to Fair Value Measurements and Disclosures in Note 2 of the accompanying Notes to Financial Statements.

Table of Contents

Harbor Small Cap Growth Fund
Portfolio of Investments—Continued

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
BM	Bermuda
CAN	Canada
IE	Ireland
IL	Israel
JE	Jersey
NET	Netherlands
UK	United Kingdom

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Managers' Commentary (Unaudited)

Subadviser

Elk Creek Partners, LLC

44 Cook Street
Suite 705

Denver, CO 80206

Portfolio Managers

Cam Philpott, CFA
Since 2014

Lance Marx, CFA
Since 2014

David Hand, CFA
Since 2014

Hiren Patel, Ph.D.
Since 2014

Sean McGinnis, CFA
Since 2014

Elk Creek has subadvised the Fund since 2014.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Small cap stocks with above average growth potential

Cam Philpott

Lance Marx

David Hand

Hiren Patel

Sean McGinnis

Management’s Discussion of
Fund Performance

Market REVIEW

Small cap stocks posted positive returns for the fiscal year ended October 31, 2016. Volatility has been the general theme with concerns over global economic growth, oil prices, and the direction and timing of interest rates in the U.S. competing with largely positive earnings results for prevailing influence on equities, over the course of the year.

A renewed investor interest in strong corporate earnings in February and a rally after Britain’s vote to leave the European Union in late June helped to overcome weakness early in the fiscal year.

Our investment strategy employs a bottom-up process that focuses on finding companies that we believe can grow revenues and earnings faster than peers and above investor expectations. While we are subject to the market’s short term movements based on macroeconomic concerns, we believe that stocks ultimately reflect the fundamentals of their businesses over time. We believe that our ability to identify businesses with strong fundamentals should lead to long-term outperformance through a full market cycle.

Performance

Small cap stocks have performed in line with large cap stocks over the last twelve months, as represented by the Russell 1000^® Index return of 4.26% and the Russell 2000^® Index return of 4.11%. Within small cap stocks, growth has underperformed value with the Russell 2000^® Growth Index posting a return of -0.49% vs. the Russell 2000^® Value Index return of 8.81%, in the same period. The Harbor Small Cap Growth Opportunities Fund returned 2.62% (Institutional Class), 2.94% (Administrative Class), 2.24% (Investor Class), and 2.72% (Retirement Class) and outperformed the Russell 2000^® Growth Index, the Fund’s benchmark, on a one year trailing basis. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

Performance of the Fund has been driven primarily by stock selection, which is consistent with our team’s investment process and reflected in our longer-term track record. Over the last fiscal year, stock selection was robust in the Information Technology sector, while the Fund’s picks in the Consumer Discretionary sector detracted meaningfully from performance. Sector allocation is not a primary focus of our investment strategy.

We look at stocks individually to find opportunities with significant revenue and earnings growth that we believe to be sustainable. Our investment style and process tends to result in a portfolio that is typically overweight stocks in the Information Technology, Healthcare, Industrials (which includes Business Service stocks), and Consumer Discretionary sectors. The portfolio tends to be normally underweight stocks in the Utilities, Financials, Energy, Materials, and Consumer Staples sectors.

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Synchronoss Technologies Inc.	3.4%
Maxlinear Inc.	3.3%
LogMeIn Inc.	2.4%
WageWorks Inc.	2.1%
WNS Holdings Ltd. ADR	2.1%
ICU Medical Inc.	2.0%
Blackhawk Network Holdings Inc.	1.9%
Endologix Inc.	1.8%
Gogo Inc.	1.8%
Wright Medical Group NV	1.7%

Looking at specific stock attribution, mixed-signal semiconductor company, MaxLinear Inc., was a strong stock for the Fund over the period on several fundamental developments. Revenues ran ahead of expectations, especially in their cable business. Also, at a conference in June, management provided investors with a business forecast that, for the first time, included their recent acquisition of Entropic. As we expected, the combined companies are significantly more profitable than analysts had modeled. We continue to own these shares.

WebMD Health Corp., an online healthcare information portal for consumers, physicians, and other healthcare professionals, was also a positive stock for the Fund. The company reported strong operating results in February that were better than expectations, and some market participants speculated that WebMD is a potential strategic target. We sold this position in the middle of the fiscal year, rotating the portfolio to other stocks that we believed presented more attractive opportunities.

MDC Partners Inc., a global marketing and advertising company, was a weak stock for the fiscal year. The good news is that the company won clients; however, those client wins have added to expenses without showing up in revenues yet due to timing issues. Even without these incremental revenues, MDC Partners grew consistent with peer companies, yet the shares trade at a significant discount. We believe that the company’s superior growth prospects relative to peers will become evident in the near future, and we continue to own our position in these shares.

Korn Ferry International, a leading provider of talent management solutions, was also a weak stock. The company’s earnings results have been solid, though management made some comments about softness in the Executive Recruitment segment. Given the broader market’s concerns about economic growth going into the Brexit vote, these comments were interpreted by the market as a significant slowdown in that business segment. We think that the market’s reaction was overly severe, and that the company’s business is less cyclical as the result of several strategic acquisitions made by the management team. We continue to hold our position in these shares.

Outlook & StRategy

A component of the powerful move in domestic equities towards the end of the fiscal year came from the narrative that Brexit risks would likely mean that central banks across the globe would be reluctant and somewhat slow to raise interest rates. We view this as a positive development for equity valuations.

We believe that there is more behind the strong equity performance of the last several months than just multiple expansion from new expectations regarding global monetary policy. We saw some robust earnings reports from the portfolio holdings, and the breadth of good stocks, across different industry groups, was notable and encouraging.

From our perspective, the volatility of the past fiscal year is an example of why it is important to stay disciplined to our time proven investment process. By staying focused on purchasing good companies with what we believe to be sustainable growth prospects, the Fund produced strong absolute and relative returns during a period where initial expectations were widely negative. Generally speaking, any investor who went to cash over Brexit fears missed a significant move in the equity markets. We believe this example highlights the risks of attempting to time the market as well as the virtues of a consistent process.

General market expectations are now more elevated given that broader equity valuations are higher than they were last October. Thus, we believe earnings will probably be the required driver of equity returns rather than further multiple expansion. As always, we will continue to be focused on finding good companies with sustainable growth prospects and will stay disciplined to our investment style and process.

This report contains the current opinions of Elk Creek Partners, LLC as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2037
Cusip	411512668
Ticker	HASOX
Inception Date	02/01/2014
Net Expense Ratio	0.89%
Total Net Assets (000s)	$169,718

ADMINISTRATIVE CLASS

Fund #	2237
Cusip	411512650
Ticker	HRSOX
Inception Date	02/01/2014
Net Expense Ratio	1.13%
Total Net Assets (000s)	$143

INVESTOR CLASS

Fund #	2437
Cusip	411512643
Ticker	HISOX
Inception Date	02/01/2014
Net Expense Ratio	1.26%
Total Net Assets (000s)	$871

RETIREMENT CLASS

Fund #	2537
Cusip	411512486
Ticker	HNSOX
Inception Date	03/01/2016
Net Expense Ratio	0.84% ^a
Total Net Assets (000s)	$20,230

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$1,372	$1,927
Price/Earning Ratio (P/E)	48.6x	31.2x
Price/Book Ratio (P/B)	3.3x	4.2x
Beta vs. Russell 2000^® Growth Index	0.97	1.00
Portfolio Turnover (Year Ended 10/31/2016)	85%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Fund Performance Summary (Unaudited)

CHANGE IN A $50,000 INVESTMENT

For the period 02/01/2014 through 10/31/2016

TOTAL RETURNS
For the periods ended 10/31/2016

1 Year

5 Years

Annualized

Inception
Date

Final Value
of a $50,000
Investment

Life of Fund

Harbor Small Cap Growth Opportunities Fund

Institutional Class

2.62%

N/A

2.26%

02/01/2014

$53,172

Administrative Class

2.94

N/A

2.23

02/01/2014

53,129

Investor Class

2.24

N/A

1.87

02/01/2014

52,615

Retirement Class¹

2.72

N/A

2.30

03/01/2016

53,224

Comparative Index

Russell 2000^® Growth

-0.49%

N/A

2.43%

—

$53,412

As stated in the Fund’s current prospectus, the expense ratios were 0.92% (Institutional Class); 1.17% (Administrative Class); 1.29% (Investor Class); and 0.87% (Retirement Class). The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 2.4%)

COMMON STOCKS—97.6%
Shares			Value
AEROSPACE & DEFENSE—1.8%
	57,070	DigitalGlobe Inc.^*	$1,432

COMMON STOCKS—Continued
Shares			Value
AEROSPACE & DEFENSE—Continued
	126,362	KEYW Holding Corp.^*	$ 1,326
	27,131	Mercury Systems Inc.^*	754
			3,512
AIR FREIGHT & LOGISTICS—1.3%
	12,996	Atlas Air Worldwide Holdings Inc.^*	544
	93,401	Echo Global Logistics Inc.^*	1,980
			2,524
AUTO COMPONENTS—0.7%
	59,590	Fox Factory Holding Corp.^*	1,293
BANKS—1.2%
	25,240	Chemical Financial Corp.	1,084
	54,124	FB Financial Corp.^*	1,129
			2,213
BIOTECHNOLOGY—3.6%
	145,939	ARIAD Pharmaceuticals Inc.^*	1,273
	26,300	BioSpecifics Technologies Corp.^*	1,141
	178,027	Exact Sciences Corp.^*	2,774
	16,676	Ligand Pharmaceuticals Inc.^*	1,596
			6,784
BUILDING PRODUCTS—1.9%
	58,841	Caesarstone Ltd. (IL)^*	2,080
	26,453	Masonite International Corp. (CAN)^*	1,505
			3,585
CAPITAL MARKETS—0.8%
	55,772	Financial Engines Inc.	1,542
COMMERCIAL SERVICES & SUPPLIES—1.5%
	328,190	InnerWorkings Inc.^*	2,891
COMMUNICATIONS EQUIPMENT—0.9%
	226,303	Infinera Corp.^*	1,765
CONSTRUCTION & ENGINEERING—1.3%
	31,108	Dycom Industries Inc.^*	2,393
DIVERSIFIED CONSUMER SERVICES—1.3%
	377,612	Chegg Inc.^*	2,511
DIVERSIFIED FINANCIAL SERVICES—0.5%
	203,564	On Deck Capital Inc.^*	995
DIVERSIFIED TELECOMMUNICATION SERVICES—0.9%
	220,502	Iridium Communications Inc.^*	1,797
ELECTRICAL EQUIPMENT—0.4%
	71,258	Power Solutions International Inc.^*	681
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.2%
	17,516	Coherent Inc.^*	1,824
	37,355	Methode Electronics Inc.	1,165
	25,175	MTS Systems Corp.	1,197
			4,186
HEALTH CARE EQUIPMENT & SUPPLIES—12.1%
	547,077	Cerus Corp.^*	2,637
	73,645	Cryolife Inc.^*	1,252
	323,357	Endologix Inc.^*	3,382
	26,959	ICU Medical Inc.^*	3,755
	106,117	Merit Medical Systems Inc.^*	2,329

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
HEALTH CARE EQUIPMENT & SUPPLIES—Continued
	274,776	Novadaq Technologies Inc. (CAN)^*	$ 3,053
	38,139	Nuvasive Inc.^*	2,278
	45,373	Spectranetics Corp.^*	985
	152,468	Wright Medical Group NV (NET)^*	3,341
			23,012
HEALTH CARE PROVIDERS & SERVICES—1.1%
	13,367	Surgical Care Affiliates Inc.^*	572
	91,394	Teladoc Inc.^*	1,485
			2,057
HEALTH CARE TECHNOLOGY—2.9%
	107,411	Evolent Health Inc.^*	2,261
	175,131	Vocera Communications Inc.^*	3,222
			5,483
HOTELS, RESTAURANTS & LEISURE—7.3%
	77,712	Belmond Ltd. (BM)^*	1,006
	19,991	Churchill Downs Inc.	2,719
	204,807	ClubCorp Holdings Inc.	2,366
	41,003	Dave & Buster's Entertainment Inc.^*	1,695
	93,589	Habit Restaurants Inc.^*	1,324
	195,945	Penn National Gaming Inc.^*	2,534
	109,005	Planet Fitness Inc.^*	2,311
			13,955
HOUSEHOLD DURABLES—1.8%
	101,395	Century Communities Inc.^*	1,997
	44,465	Installed Building Products Inc.^*	1,470
			3,467
INSURANCE—1.5%
	141,834	National General Holdings Corp.	2,915
INTERNET & DIRECT MARKETING RETAIL—2.3%
	393,625	EVINE Live Inc.^*	846
	57,461	NutriSystem Inc.	1,822
	34,374	Shutterfly Inc.^*	1,684
			4,352
INTERNET SOFTWARE & SERVICES—7.9%
	208,369	Angie's List Inc.^*	1,604
	300,507	Bankrate Inc.^*	2,344
	331,554	Gogo Inc.^*	3,352
	47,617	LogMeIn Inc.	4,524
	147,474	Quotient Technology Inc.^*	1,563
	28,471	Shutterstock Inc.^*	1,680
			15,067
IT SERVICES—5.7%
	104,199	Blackhawk Network Holdings Inc.^*	3,590
	88,904	Interxion Holding NV (NET)^*	3,310
	144,507	WNS Holdings Ltd. ADR (IND)^*,1	3,974
			10,874
MACHINERY—3.6%
	48,676	Barnes Group Inc.	1,939
	31,010	CIRCOR International Inc.	1,668
	90,732	NN Inc.	1,601
	83,983	Rexnord Corp.^*	1,671
			6,879

COMMON STOCKS—Continued
Shares			Value
MEDIA—2.7%
	58,189	AMC Entertainment Holdings Inc.	$ 1,830
	226,960	MDC Partners Inc. (CAN)	1,918
	108,467	National CineMedia Inc.	1,504
			5,252
MULTILINE RETAIL—0.7%
	261,485	Tuesday Morning Corp.^*	1,294
OIL, GAS & CONSUMABLE FUELS—1.5%
	77,775	Callon Petroleum Co.^*	1,010
	21,118	SM Energy Co.	710
	178,590	Synergy Resources Corp.^*	1,222
			2,942
PHARMACEUTICALS—4.2%
	406,839	Aralez Pharmaceuticals Inc. (CAN)^*	1,656
	67,613	Medicines Co.^*	2,228
	60,682	Pacira Pharmaceuticals Inc.^*	1,929
	347,149	Teligent Inc.^*	2,260
			8,073
PROFESSIONAL SERVICES—4.5%
	103,524	Korn/Ferry International	2,111
	72,776	On Assignment Inc.^*	2,504
	68,050	WageWorks Inc.^*	4,012
			8,627
ROAD & RAIL—0.6%
	53,784	Swift Transportation Corp.^*	1,204
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—3.3%
	333,772	Maxlinear Inc.^*	6,245
SOFTWARE—7.4%
	21,779	BroadSoft Inc.^*	905
	141,130	Callidus Software Inc.^*	2,576
	20,759	Imperva Inc.^*	766
	175,987	Synchronoss Technologies Inc.^*	6,460
	220,482	TubeMogul Inc.^*	1,610
	130,414	Vasco Data Security International Inc.^*	1,793
			14,110
SPECIALTY RETAIL—1.1%
	134,447	Party City Holdco Inc.^*	2,185
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—0.6%
	26,179	Electronics for Imaging Inc.^*	1,113
THRIFTS & MORTGAGE FINANCE—2.0%
	76,569	Bofi Holding Inc.^*	1,426
	30,105	LendingTree Inc.^*	2,404
			3,830
TRADING COMPANIES & DISTRIBUTORS—1.4%
	47,390	Beacon Roofing Supply Inc.^*	1,992
	33,091	Dxp Enterprises Inc.^*	721
			2,713
WATER UTILITIES—0.4%
	31,724	Aquaventure Holdings Ltd. (VG)^*	674

Table of Contents

Harbor Small Cap Growth Opportunities Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
WIRELESS TELECOMMUNICATION SERVICES—0.7%
	50,225	Shenandoah Telecommunications Co.	$ 1,326
TOTAL COMMON STOCKS
(Cost $179,131)			186,321

SHORT-TERM INVESTMENTS—1.7%
(Cost $3,323)
Principal Amount
REPURCHASE AGREEMENTS
$	3,323	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $3,390)	3,323
TOTAL INVESTMENTS—99.3%
(Cost $182,454)			189,644
CASH AND OTHER ASSETS, LESS LIABILITIES—0.7%			1,318
TOTAL NET ASSETS—100.0%			$190,962

FAIR VALUE MEASUREMENTS

Repurchase Agreements valued at $3,323 are classified as Level 2. All other holdings at October 31, 2016 (as disclosed in the preceding Portfolio of Investments) are classified as Level 1. There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
BM	Bermuda
CAN	Canada
IL	Israel
IND	India
NET	Netherlands
VG	Virgin Islands

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Large Cap Value Fund
Manager’s Commentary (Unaudited)

Subadviser

Aristotle Capital Management, LLC

11100 Santa

Monica Boulevard
Suite 1700

Los Angeles, CA 90025

Portfolio Manager

Howard Gleicher, CFA
Since 2012

Aristotle has subadvised the Fund since 2012.

Investment Objective

Long-term total return

Principal Style Characteristics

Large cap value stocks

Howard Gleicher

Management’s Discussion of
Fund Performance

Markets Review

It’s always something—or so it seems with news impacting the global financial markets. As many investors have tried to forget, stocks sold off dramatically at the start of 2016 on concerns over slowing Chinese economic growth and weak oil prices as well as uncertainty regarding global monetary policy. A week before the conclusion of the second quarter, the U.K. vote to withdraw from the European Union (“Brexit”) sent stock markets reeling around the world once again. However, during the final few trading days of the second quarter some investors rethought their likely overreaction to the Brexit vote, while others bargain hunted, causing a sharp rebound in and enabling the S&P 500 Index to generate positive momentum that persisted into the next quarter.

In the third quarter of 2016, U.S. investors’ appetite for risk increased and propelled the equity markets higher. Meanwhile, the Federal Open Market Committee passed on two opportunities to further raise interest rates after finally raising interest rates back in December 2015 —the first time in nearly a decade. With cash and bonds paying (virtually) nothing, investors turned to the stock market seeking return. In particular, they bid up the prices of technology and financial services stocks, suggesting a quest for growth and an improved outlook on the U.S. economy. As a result, the tech-laden Nasdaq Composite Index reached new highs during the third quarter. The broad market S&P 500 Index reached a new record level in early July but then stayed relatively flat to finish the Fund’s fiscal year ended October 31, 2016.

Performance

In this environment, the Harbor Large Cap Value Fund performed well over the past year, generating a return of 7.14% (Institutional Class), 6.77% (Administrative Class), 6.80% (Investor Class), and 7.17% (Retirement Class) over the twelve months ended October 31, 2016. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses. This return exceeded the 6.37% return of the Russell 1000^® Value Index. The majority of the outperformance was attributable to sector concentrations; security selection was also additive. Strength, however, was widespread with positive comparisons found in seven of the nine economic sectors where the Fund had exposure.

The primary contributors to outperformance were security selection in Information Technology and Industrials, a moderate underweight and stock selection in Energy, and an underweight as well as stock selection in Financials.

Meanwhile, the primary detractors from relative return were stock selection in the Consumer Staples sector and an overweight in Health Care. Overall, the positive factors outweighed the negative during the fiscal year, yielding moderate outperformance relative to the Russell 1000^® Value Index.

Aggregates and construction materials producer Martin Marietta Materials, Inc. was a top contributor to relative return. Shares of Martin Marietta climbed on first quarter earnings that more than doubled consensus estimates, despite the slow pace and early stages of the construction recovery. The company’s aggregates business saw improvements in both volume and pricing, and overall, gross margins rose 70% given margin expansion in nearly every

Table of Contents

Harbor Large Cap Value Fund
Manager’s Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Adobe Systems Inc.	3.4%
Medtronic plc	3.4%
Baxter International Inc.	3.2%
Home Depot Inc.	3.2%
Time Warner Inc.	3.1%
Walgreens Boots Alliance Inc.	3.1%
Microsoft Corp.	3.0%
Martin Marietta Materials Inc.	2.9%
Microchip Technology Inc.	2.8%
Texas Instruments Inc.	2.8%

business line. Given its ability to raise prices consistently in a poor construction market (which we view as a hallmark of a high-quality business), we continue to see the potential for Martin Marietta to further enhance its profitability as infrastructure spending normalizes in the coming years.

Global integrated pharmaceutical and ophthalmology firm Novartis AG was a major detractor from performance. Shares of Novartis sold off on disappointing fourth quarter 2015 earnings, as global sales were negatively affected by the strong U.S. dollar. The company’s Alcon eye care unit was particularly weak, precipitating some management changes and reorganization of its product lines. Despite the near-term pullback, our investment thesis remains intact. Within our multi-year investment horizon, among the catalysts we have identified for Novartis are: margin improvement due to its portfolio transformation; market share gains in eye care (via Alcon) and biosimilars (through Sandoz); cost savings realized from restructuring its procurement and manufacturing processes; and realization of its equity ownership in Swiss pharmaceutical and medical diagnostics firm Roche Holding AG.

Outlook & Strategy

Throughout the world, two major impediments to economic growth have been stubbornly anemic income growth and low inflation. Policymakers have yet to determine how best to nudge either higher. Originally highlighted by former Federal Reserve Chairman Ben S. Bernanke, global central banks have warned of the danger of allowing deflation to take hold. It could, they worry, lead to a downward spiral of low confidence, muted spending, low inflation, minimal income growth and low or no economic growth.

Higher inflation, it is thought, will allow for rising interest rates and reverse the downward momentum. This could be why higher rates appear to be positively correlated with higher equity prices over the past two decades. As always, we will monitor such global macroeconomic trends but continue to devote the vast majority of our resources to understanding individual businesses, which is where we believe we can add the most value for our investors.

This report contains the current opinions of Aristotle Capital Management, LLC as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor Large Cap Value Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2013
Cusip	411511603
Ticker	HAVLX
Inception Date	12/29/1987
Net Expense Ratio	0.68% ^b
Total Net Assets (000s)	$310,127

ADMINISTRATIVE CLASS

Fund #	2213
Cusip	411511751
Ticker	HRLVX
Inception Date	11/01/2002
Net Expense Ratio	0.93% ^b
Total Net Assets (000s)	$9,361

INVESTOR CLASS

Fund #	2413
Cusip	411511744
Ticker	HILVX
Inception Date	11/01/2002
Net Expense Ratio	1.05% ^b
Total Net Assets (000s)	$57,716

RETIREMENT CLASS

Fund #	2513
Cusip	411512478
Ticker	HNLVX
Inception Date	03/01/2016
Net Expense Ratio	0.63% ^a,b
Total Net Assets (000s)	$3,822

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$72,461	$108,830
Price/Earning Ratio (P/E)	22.1x	20.1x
Price/Book Ratio (P/B)	3.0x	2.1x
Beta vs. Russell 1000^® Value Index	1.04	1.00
Portfolio Turnover (Year Ended 10/31/2016)	34%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2017.

Table of Contents

Harbor Large Cap Value Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the Russell 1000^® Value Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor Large Cap Value Fund
Institutional Class	7.14%	14.73%	6.42%	12/29/1987	$93,153
Administrative Class	6.77	14.42	6.14	11/01/2002	90,704
Investor Class	6.80	14.30	6.02	11/01/2002	89,692
Retirement Class¹	7.17	14.74	6.42	03/01/2016	93,180
Comparative Index
Russell 1000^® Value	6.37%	13.31%	5.35%	—	$84,187

As stated in the Fund’s current prospectus, the expense ratios were 0.68% (Net) and 0.72% (Gross) (Institutional Class); 0.93% (Net) and 0.97% (Gross) (Administrative Class); 1.05% (Net) and 1.09% (Gross) (Investor Class); and 0.63% (Net) and 0.67% (Gross) (Retirement Class). The net expense ratios reflect an expense limitation agreement (excluding interest expense, if any) effective through 02/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Large Cap Value Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 2.1%)

COMMON STOCKS—97.9%
Shares			Value
AEROSPACE & DEFENSE—2.6%
	65,500	General Dynamics Corp.	$ 9,873
BANKS—14.5%
	919,219	Banco Bilbao Vizcaya SA ADR (SP)¹	6,628
	558,000	Bank of America Corp.	9,207
	70,000	BOK Financial Corp.	4,971
	67,000	Cullen/Frost Bankers Inc.	5,091
	133,000	First Republic Bank	9,899
	88,000	JPMorgan Chase & Co.	6,095
	59,000	M&T Bank Corp.	7,241
	1,150,000	Mitsubishi UFJ Financial Group Inc. ADR (JP)¹	5,923
			55,055
BEVERAGES—2.1%
	192,000	Coca-Cola Co.	8,141
BIOTECHNOLOGY—4.7%
	176,000	AbbVie Inc.	9,817
	57,000	Amgen Inc.	8,046
			17,863
CAPITAL MARKETS—2.3%
	98,000	Ameriprise Financial Inc.	8,662

COMMON STOCKS—Continued
Shares			Value
CHEMICALS—4.6%
	167,000	Dow Chemical Co.	$ 8,986
	90,000	PPG Industries Inc.	8,382
			17,368
CONSTRUCTION MATERIALS—2.9%
	60,000	Martin Marietta Materials Inc.	11,123
ENERGY EQUIPMENT & SERVICES—1.9%
	159,300	Halliburton Co.	7,328
FOOD & STAPLES RETAILING—3.1%
	141,000	Walgreens Boots Alliance Inc.	11,665
FOOD PRODUCTS—4.5%
	175,000	Archer Daniels Midland Co.	7,625
	211,000	Mondelez International Inc.	9,482
			17,107
GAS UTILITIES—1.8%
	132,000	National Fuel Gas Co.	6,914
HEALTH CARE EQUIPMENT & SUPPLIES—8.8%
	255,000	Baxter International Inc.	12,136
	108,000	Danaher Corp.	8,483
	158,000	Medtronic plc (IE)	12,959
			33,578
HOUSEHOLD DURABLES—2.5%
	232,000	Lennar Corp.	9,672
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—1.8%
	570,000	AES Corp.	6,709
INSURANCE—2.6%
	78,000	Chubb Ltd. (SWS)	9,906
IT SERVICES—1.8%
	168,000	PayPal Holdings Inc.^*	6,999
MACHINERY—4.1%
	71,000	Deere & Co.	6,269
	174,000	Oshkosh Corp.	9,309
			15,578
MEDIA—3.1%
	131,000	Time Warner Inc.	11,658
OIL, GAS & CONSUMABLE FUELS—7.2%
	134,000	EQT Corp.	8,844
	127,000	Phillips 66	10,306
	46,000	Pioneer Natural Resources Co.	8,235
			27,385
PERSONAL PRODUCTS—3.5%
	198,000	Coty Inc.	4,552
	212,000	Unilever NV (NET)	8,866
			13,418
PHARMACEUTICALS—2.4%
	131,000	Novartis AG ADR (SWS)¹	9,304
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.5%
	175,000	Microchip Technology Inc.	10,596
	148,000	Texas Instruments Inc.	10,486
			21,082

Table of Contents

Harbor Large Cap Value Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
SOFTWARE—6.4%
	119,000	Adobe Systems Inc.^*	$ 12,794
	194,000	Microsoft Corp.	11,624
			24,418
SPECIALTY RETAIL—3.2%
	99,500	Home Depot Inc.	12,140
TOTAL COMMON STOCKS
(Cost $308,476)			372,946

SHORT-TERM INVESTMENTS—2.2%
(Cost $8,570)
Principal Amount
REPURCHASE AGREEMENTS
$	8,570	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $8,745)	8,570
TOTAL INVESTMENTS—100.1%
(Cost $317,046)			381,516
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.1)%			(490)
TOTAL NET ASSETS—100.0%			$381,026

FAIR VALUE MEASUREMENTS

Repurchase Agreements valued at $8,570 are classified as Level 2. All other holdings at October 31, 2016 (as disclosed in the preceding Portfolio of Investments) are classified as Level 1. There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
IE	Ireland
JP	Japan
NET	Netherlands
SP	Spain
SWS	Switzerland

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Mid Cap Value Fund
Managers' Commentary (Unaudited)

Subadviser

LSV Asset Management

155 North Wacker Dr.
Suite 4600

Chicago, IL 60606

Portfolio Managers

Josef Lakonishok, Ph.D.
Since 2004

Menno Vermeulen, CFA
Since 2004

Puneet Mansharamani, CFA

Since 2006

Greg Sleight
Since 2015

Guy Lakonishok, CFA
Since 2015

LSV has subadvised the Fund since 2004.

Investment Objective

Long-term total return

Principal Style Characteristics

Mid cap value stocks of companies with inexpensive fundamentals and recent momentum, relative to their peers

Josef Lakonishok

Menno Vermeulen

Puneet Mansharamani

Greg Sleight

Guy Lakonishok

Management’s Discussion of
Fund Performance

Market Review

The U.S equity market as measured by the Russell 3000^® Index finished up 4.24% for the twelve months ended October 31, 2016. There was little difference in returns by market capitalization. Large cap stocks as measured by the Russell 1000^® Index returned 4.26% while small cap stocks as measured by the Russell 2000^® Index gained 4.11%. The Russell Midcap^® Index finished up 4.17% for the twelve months ended October 31, 2016. Value stocks outperformed across all market capitalization segments based on the Russell Indices. The Russell Midcap^® Value Index gained 7.84% while the Russell Midcap^® Growth Index was up just 0.40%.

Equity markets struggled early but rebounded to post positive returns for the twelve months ended October 31, 2016. Equities posted double digit declines early in the 2016 calendar year as concerns over slow global growth and low oil prices weighed on markets. However, a recovery in oil prices and dovish comments by central banks led to a recovery in equities. The Federal Reserve raised rates for the first time in nearly a decade at their December 2015 meeting but kept rates steady throughout 2016.

Equity markets stumbled again after the June Brexit vote in the U.K. but quickly recovered as the political fallout from the Brexit vote was contained. Theresa May was confirmed as Prime Minister and the Bank of England cut interest rates and instituted a quantitative easing program.

There was a wide disparity in sector returns over the last year as Consumer Staples, Technology, Materials and Utilities posted strong returns. Consumer Discretionary, Telecommunication Services, Health Care and Energy stocks lagged. Lower volatility stocks led early in the period but reversed course over the last four months as interest rates rose.

Performance

The Harbor Mid Cap Value Fund returned 2.81% (Institutional Class), 2.54% (Administrative Class), 2.45% (Investor Class), and 2.81% (Retirement Class) underperforming the 7.84% return for the Russell Midcap^® Value Index for the fiscal year ended October 31, 2016. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses. While value stocks as measured by the Russell Indices outperformed in the period, the Fund trailed the Russell Midcap^® Value Index, the Fund’s benchmark. Many of the stocks that did well in the benchmark can be characterized as lower quality stocks without strong cash flow and earnings. We define value stocks as stocks that are cheap on multiple measures including cash flow, earnings, book value and dividend yield. Over the last twelve months, stocks that were cheap on book value and higher yielding stocks led the market while stocks that were cheap on cash flow and earnings underperformed.

The Fund’s sector and industry exposures contributed to the relative underperformance in the period. Approximately half of the underperformance was related to the Fund’s holdings in the Energy sector. Oil and gas exploration and production companies, which the Fund

Table of Contents

Harbor Mid Cap Value Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Public Service Enterprise Group Inc.	1.6%
FirstEnergy Corp.	1.4%
Entergy Corp.	1.3%
Everest Re Group Ltd.	1.3%
SunTrust Banks Inc.	1.3%
Ameriprise Financial Inc.	1.2%
Quest Diagnostics Inc.	1.2%
Regions Financial Corp.	1.2%
Endurance Specialty Holdings Ltd.	1.1%
Tesoro Corp.	1.1%

was underweight, rallied as oil prices rebounded while refiners, which we favored, underperformed. Many of the exploration companies have negative earnings and cash flow and therefore do not rank highly on our model while refiners have been generating strong cash flow and earnings and we expect will continue to do so.

Stock selection in the Industrials, Materials, and Consumer Discretionary sectors also lagged. Energy stocks which struggled included refiners HollyFrontier Corp, Tesoro Corp., and Marathon Petroleum Corp. Materials stocks that had a negative impact included CF Industries Holdings Inc. and the Fund’s underweight to Newmont Mining Corporation which was up over 90%. Within the Consumer Discretionary sector retailers Bed Bath & Beyond Inc. and Macy’s Inc. contributed to the underperformance as did Gamestop Corp. and Group 1 Automotive Inc. Positive contributors included REITs, DuPont Fabros Technology, Inc., Senior Housing Properties Trust, Tyson Foods Inc., and Endurance Specialty Holdings Ltd., which was acquired in the period.

Outlook & Strategy

Our portfolio decision making process is strictly quantitative and driven by (1) a proprietary model which ranks securities on fundamental measures of value and indicators of near-term appreciation potential and, (2) a portfolio construction process that controls for risk while maximizing the expected return of the portfolio. The objective of the model is to pick undervalued stocks with high near-term appreciation potential. The process is purely bottom-up with no emphasis placed on macro-economic analysis.

Sector weightings are a residual of our bottom-up stock selection process subject to minimum and maximum exposures to sectors and industries. The Fund’s most significant sector exposures on an absolute basis as of the end of the fiscal year were to Financial, Industrial, Technology and Consumer Discretionary stocks. Relative to its benchmark, the Fund was overweight Technology, Financial and Consumer Discretionary stocks and underweight Real Estate, Energy and Utilities as of the end of the fiscal year.

The most significant changes in relative sector weights over the last year were a decrease in the Fund’s Energy and Utilities exposure relative to the benchmark and an increase in Financials and Health Care. We sold several stocks in the Utilities sector that had done well and became expensive including Avista Corp and Scana Corp. In the Energy sector, we sold several stocks that declined in rank including Atwood Oceanics, Inc. and Superior Energy Services Inc. We added to a number of highly ranked current holdings in the Financial sector and initiated positions in Piper Jaffray Cos., Primerica Inc. and Zions Bancorporation. As of the end of the fiscal year, the Fund was slightly overweight relative to its benchmark in Health Care after adding Cardinal Health Inc., Community Health Systems Inc., Kindred Healthcare Inc. and Mylan NV.

We believe that the Fund continued to trade at attractive valuations as we were still able to find attractive stocks across many sectors and industries to build the portfolio. The companies held by the Fund continued to generate strong cash flow and good earnings but remained attractively valued, which was reflected in the Fund’s valuations. At the end of the fiscal year, the Fund traded at 12.0x forward earnings, compared to 17.6x for its benchmark.

This report contains the current opinions of LSV Asset Management as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor Mid Cap Value Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2023
Cusip	411511835
Ticker	HAMVX
Inception Date	03/01/2002
Net Expense Ratio	0.84% ^b
Total Net Assets (000s)	$600,800

ADMINISTRATIVE CLASS

Fund #	2223
Cusip	411511728
Ticker	HRMVX
Inception Date	11/01/2002
Net Expense Ratio	1.09% ^b
Total Net Assets (000s)	$40,992

INVESTOR CLASS

Fund #	2423
Cusip	411511736
Ticker	HIMVX
Inception Date	11/01/2002
Net Expense Ratio	1.21% ^b
Total Net Assets (000s)	$152,358

RETIREMENT CLASS

Fund #	2523
Cusip	411512460
Ticker	HNMVX
Inception Date	03/01/2016
Net Expense Ratio	0.79% ^a,b
Total Net Assets (000s)	$14,999

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$9,125	$12,130
Price/Earning Ratio (P/E)	16.9x	22.4x
Price/Book Ratio (P/B)	1.8x	2.0x
Beta vs. Russell Midcap^® Value Index	1.02	1.00
Portfolio Turnover (Year Ended 10/31/2016)	18%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects a contractual management fee waiver effective through February 28, 2017.

Table of Contents

Harbor Mid Cap Value Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the Russell Midcap^® Value Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor Mid Cap Value Fund
Institutional Class	2.81%	14.65%	6.99%	03/01/2002	$ 98,308
Administrative Class	2.54	14.36	6.73	11/01/2002	95,887
Investor Class	2.45	14.23	6.60	11/01/2002	94,744
Retirement Class¹	2.81	14.65	6.99	03/01/2016	98,308
Comparative Index
Russell Midcap^® Value	7.84%	14.07%	7.19%	—	$100,165

As stated in the Fund’s current prospectus, the expense ratios were 0.88% (Institutional Class); 1.13% (Administrative Class); 1.25% (Investor Class); 0.83% (Retirement Class). The net expense ratios reflect a contractual management fee waiver effective through 02/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Mid Cap Value Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 0.7%)

COMMON STOCKS—99.3%
Shares			Value
AEROSPACE & DEFENSE—3.5%
	91,024	AAR Corp.	$ 2,928
	35,500	Huntington Ingalls Industries Inc.	5,728
	53,100	Moog Inc.^*	3,084
	11,800	Raytheon Co.	1,612
	161,102	Spirit AeroSystems Holdings Inc.	8,113
	124,900	Textron Inc.	5,006
	85,800	Triumph Group Inc.	2,033
	3,511	Vectrus Inc.^*	59
			28,563
AIR FREIGHT & LOGISTICS—0.4%
	74,217	Atlas Air Worldwide Holdings Inc.^*	3,106
AIRLINES—1.8%
	79,057	Alaska Air Group Inc.	5,709
	200,500	JetBlue Airways Corp.^*	3,505
	94,000	United Continental Holdings Inc.^*	5,286
			14,500
AUTO COMPONENTS—2.2%
	118,200	American Axle & Manufacturing Holdings Inc.^*	2,118
	29,600	Cooper-Standard Holding Inc.^*	2,702
	277,200	Goodyear Tire & Rubber Co.	8,047
	40,200	Lear Corp.	4,936
			17,803
AUTOMOBILES—0.6%
	91,600	Harley-Davidson Inc.	5,223
BANKS—6.1%
	83,600	Banco Latinoamericano de Comercio Exterior SA (PA)	2,255
	134,800	CIT Group Inc.	4,897
	327,900	Fifth Third Bancorp	7,135
	388,700	Huntington Bancshares Inc.	4,120
	495,200	KeyCorp	6,992
	4,800	PNC Financial Services Group Inc.	459
	905,300	Regions Financial Corp.	9,696
	225,100	SunTrust Banks Inc.	10,181
	113,400	Zions Bancorporation	3,653
			49,388
BIOTECHNOLOGY—0.5%
	31,000	United Therapeutics Corp.^*	3,722
CAPITAL MARKETS—1.8%
	111,000	Ameriprise Financial Inc.	9,811
	20,712	Donnelley Financial Solutions Inc.^*	444
	72,900	Piper Jaffray Cos.^*	4,123
			14,378
CHEMICALS—2.9%
	54,700	A. Schulman Inc.	1,573

Table of Contents

Harbor Mid Cap Value Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
CHEMICALS—Continued
	86,000	Cabot Corp.	$ 4,484
	55,600	Celanese Corp.	4,054
	69,000	CF Industries Holdings Inc.	1,657
	95,300	Eastman Chemical Co.	6,853
	289,700	Huntsman Corp.	4,910
			23,531
COMMERCIAL SERVICES & SUPPLIES—1.1%
	20,712	Lsc Communications Inc.	502
	187,400	Pitney Bowes Inc.	3,343
	55,233	RR Donnelley & Sons Co.	980
	103,600	TETRA Tech Inc.	3,984
			8,809
COMMUNICATIONS EQUIPMENT—2.1%
	438,900	Brocade Communications Systems Inc.	4,652
	24,000	Harris Corp.	2,141
	171,900	Juniper Networks Inc.	4,528
	49,300	NETGEAR Inc.^*	2,490
	64,600	Plantronics Inc.	3,340
			17,151
CONSTRUCTION & ENGINEERING—1.0%
	94,500	Chicago Bridge & Iron Co. NV (NET)	3,026
	85,900	Fluor Corp.	4,466
	42,500	Tutor Perini Corp.^*	809
			8,301
CONSUMER FINANCE—1.5%
	144,400	Discover Financial Services	8,134
	163,000	Navient Corp.	2,083
	56,500	Nelnet Inc.	2,214
			12,431
CONTAINERS & PACKAGING—2.4%
	93,344	Greif Inc.	4,374
	94,000	Owens-Illinois Inc.^*	1,814
	77,241	Packaging Corp. of America	6,373
	122,314	Sonoco Products Co.	6,151
	7,946	WestRock Co.	367
			19,079
DIVERSIFIED FINANCIAL SERVICES—0.5%
	120,200	Voya Financial Inc.	3,672
ELECTRIC UTILITIES—5.0%
	115,100	American Electric Power Co. Inc.	7,463
	82,400	Edison International	6,055
	144,100	Entergy Corp.	10,617
	328,500	FirstEnergy Corp.	11,264
	143,200	PPL Corp.	4,918
			40,317
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—3.0%
	65,500	Avnet Inc.	2,748
	235,500	Corning Inc.	5,348
	480,500	Flex Ltd. (SGP)^*	6,818
	105,900	Ingram Micro Inc.^*	3,940
	41,800	Tech Data Corp.^*	3,219
	154,200	Vishay Intertechnology Inc.	2,174
			24,247

COMMON STOCKS—Continued
Shares			Value
ENERGY EQUIPMENT & SERVICES—1.8%
	136,960	Bristow Group Inc.	$ 1,371
	241,367	Diamond Offshore Drilling Inc.^*	3,980
	100,600	Ensco plc (UK)	787
	379,148	McDermott International Inc. (PA)^*	1,949
	83,400	National Oilwell Varco Inc.	2,677
	129,900	Noble Corp. plc (UK)	642
	74,800	Oceaneering International Inc.	1,780
	131,800	Rowan Cos. plc (UK)^*	1,749
			14,935
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—9.6%
	181,700	Brandywine Realty Trust	2,816
	286,300	CBL & Associates Properties Inc.	3,063
	92,400	Corrections Corp. of America	1,335
	383,200	Cousins Properties Inc.	2,978
	507,836	Franklin Street Properties Corp.	5,876
	134,000	Government Properties Income Trust	2,565
	188,700	Hersha Hospitality Trust	3,363
	229,600	Hospitality Properties Trust	6,282
	733,500	Lexington Realty Trust	7,438
	243,500	Mack-Cali Realty Corp.	6,253
	263,000	Medical Properties Trust Inc.	3,666
	120,300	OMEGA Healthcare Investors Inc.	3,829
	47,900	Parkway Inc.^*	863
	320,900	Piedmont Office Realty Trust Inc.	6,572
	209,812	Select Income REIT	5,191
	411,114	Senior Housing Properties Trust	8,744
	334,600	Summit Hotel Properties Inc.	4,347
	209,823	Sunstone Hotel Investors Inc.	2,635
			77,816
FOOD & STAPLES RETAILING—0.9%
	62,200	Ingles Markets Inc.	2,457
	84,666	Kroger Co.	2,623
	516,700	SUPERVALU Inc.^*	2,217
			7,297
FOOD PRODUCTS—1.7%
	67,500	Archer Daniels Midland Co.	2,941
	59,100	Bunge Ltd. (BM)	3,665
	15,300	Ingredion Inc.	2,007
	71,400	Tyson Foods Inc.	5,058
			13,671
HEALTH CARE PROVIDERS & SERVICES—3.7%
	22,400	Aetna Inc.	2,405
	99,700	Cardinal Health Inc.	6,848
	35,000	CIGNA Corp.	4,159
	92,900	Community Health Systems Inc.^*	491
	262,983	Kindred Healthcare Inc.	2,590
	73,000	Owens & Minor Inc.	2,369
	118,200	Quest Diagnostics Inc.	9,626
	97,800	Select Medical Holdings Corp.^*	1,271
			29,759
HOTELS, RESTAURANTS & LEISURE—1.8%
	171,600	Brinker International Inc.	8,450
	87,500	Wyndham Worldwide Corp.	5,761
			14,211
HOUSEHOLD DURABLES—1.6%
	60,636	CalAtlantic Group Inc.	1,960
	101,478	Ethan Allen Interiors Inc.	3,115

Table of Contents

Harbor Mid Cap Value Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
HOUSEHOLD DURABLES—Continued
	65,200	Meritage Homes Corp.^*	$ 2,018
	37,400	Whirlpool Corp.	5,603
			12,696
HOUSEHOLD PRODUCTS—0.3%
	101,707	Central Garden & Pet Co.^*	2,374
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—0.5%
	380,400	AES Corp.	4,477
INSURANCE—9.7%
	65,100	Aflac Inc.	4,483
	38,100	Allstate Corp.	2,587
	47,574	American Financial Group Inc.	3,544
	83,000	AmTrust Financial Services Inc.	2,190
	59,700	Aspen Insurance Holdings Ltd. (BM)	2,880
	40,100	Assurant Inc.	3,229
	88,400	Assured Guaranty Ltd. (BM)	2,642
	51,900	Axis Capital Holdings Ltd. (BM)	2,957
	98,900	Endurance Specialty Holdings Ltd. (BM)	9,094
	53,100	Everest Re Group Ltd. (BM)	10,807
	150,800	Hartford Financial Services Group Inc.	6,652
	105,600	Lincoln National Corp.	5,184
	133,300	Maiden Holdings Ltd. (BM)	1,820
	57,980	Primerica Inc.	3,171
	46,000	Principal Financial Group Inc.	2,512
	134,600	Universal Insurance Holdings Inc.	2,867
	139,000	Unum Group	4,921
	77,600	Validus Holdings Ltd. (BM)	3,965
	89,700	XL Group Ltd. (BM)	3,113
			78,618
INTERNET SOFTWARE & SERVICES—0.1%
	190,700	DHI Group Inc.^*	1,087
IT SERVICES—2.6%
	43,000	Amdocs Ltd.	2,513
	110,756	Convergys Corp.	3,234
	135,957	Teradata Corp.^*	3,666
	228,100	Western Union Co.	4,578
	759,600	Xerox Corp.	7,421
			21,412
LEISURE PRODUCTS—0.6%
	184,500	Smith & Wesson Holding Corp.^*	4,876
MACHINERY—3.7%
	42,500	AGCO Corp.	2,171
	170,200	Briggs & Stratton Corp.	3,169
	62,200	Cummins Inc.	7,950
	89,800	Hillenbrand Inc.	2,726
	161,900	Meritor Inc.^*	1,664
	86,200	Oshkosh Corp.	4,612
	55,300	Timken Co.	1,828
	111,200	Trinity Industries Inc.	2,374
	327,400	Wabash National Corp.^*	3,683
			30,177
MEDIA—0.8%
	26,450	Gannett Co. Inc.	205
	98,500	TEGNA Inc.	1,933
	108,800	Viacom Inc.	4,087
			6,225

COMMON STOCKS—Continued
Shares			Value
METALS & MINING—0.7%
	78,500	Reliance Steel & Aluminum Co.	$ 5,399
MORTGAGE REAL ESTATE INVESTMENT—1.7%
	624,000	Annaly Capital Management Inc.	6,465
	202,800	Capstead Mortgage Corp.	1,929
	298,300	MFA Financial Inc.	2,180
	144,800	PennyMac Mortgage Investment Trust	2,204
	121,000	Two Harbors Investment Corp.	1,008
			13,786
MULTILINE RETAIL—1.4%
	33,600	Dillard's Inc.	2,060
	124,800	Kohl's Corp.	5,460
	102,800	Macy's Inc.	3,751
			11,271
MULTI-UTILITIES—2.3%
	77,744	Ameren Corp.	3,883
	103,000	CenterPoint Energy Inc.	2,348
	302,600	Public Service Enterprise Group Inc.	12,734
			18,965
OIL, GAS & CONSUMABLE FUELS—3.6%
	53,500	Energy XXI Ltd. (BM)^*	7
	119,000	HollyFrontier Corp.	2,969
	133,900	Marathon Petroleum Corp.	5,837
	163,700	PBF Energy Inc.	3,568
	66,300	Ship Finance International Ltd. (BM)	839
	106,100	Tesoro Corp.	9,015
	117,000	Valero Energy Corp.	6,931
			29,166
PAPER & FOREST PRODUCTS—0.7%
	44,800	Clearwater Paper Corp.^*	2,379
	98,600	Domtar Corp.	3,545
			5,924
PHARMACEUTICALS—0.6%
	64,250	Lannett Co. Inc.^*	1,407
	84,495	Mylan NV (NET)^*	3,084
			4,491
ROAD & RAIL—0.7%
	74,200	ArcBest Corp.	1,476
	62,800	Ryder System Inc.	4,358
			5,834
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—2.4%
	647,500	Amkor Technology Inc.^*	6,002
	213,100	Applied Materials Inc.	6,197
	34,200	Lam Research Corp.	3,313
	179,800	Teradyne Inc.	4,187
			19,699
SOFTWARE—1.3%
	76,300	CA Inc.	2,346
	183,400	Mentor Graphics Corp.	5,300
	101,000	Symantec Corp.	2,528
			10,174
SPECIALTY RETAIL—3.6%
	72,700	Bed Bath & Beyond Inc.	2,938

Table of Contents

Harbor Mid Cap Value Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
SPECIALTY RETAIL—Continued
	68,800	Dick's Sporting Goods Inc.	$ 3,829
	123,900	Finish Line Inc.	2,440
	53,600	Foot Locker Inc.	3,579
	89,100	GameStop Corp.	2,143
	138,900	Gap Inc.	3,832
	40,300	Group 1 Automotive Inc.	2,429
	61,063	Murphy USA Inc.^*	4,200
	76,700	Penske Automotive Group Inc.	3,432
			28,822
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—2.6%
	32,500	Lexmark International Inc.	1,290
	197,600	NCR Corp.^*	6,926
	112,600	NetApp Inc.	3,822
	143,800	Seagate Technology plc (IE)	4,934
	65,200	Western Digital Corp.	3,810
			20,782
THRIFTS & MORTGAGE FINANCE—1.0%
	249,400	MGIC Investment Corp.^*	2,035
	185,900	Radian Group Inc.	2,527
	116,000	Washington Federal Inc.	3,161
			7,723
TOBACCO—0.4%
	58,751	Universal Corp.	3,184

COMMON STOCKS—Continued
Shares			Value
TRADING COMPANIES & DISTRIBUTORS—0.5%
	113,600	Aircastle Ltd. (BM)	$ 2,334
	133,800	H&E Equipment Services Inc.	1,867
			4,201
TOTAL COMMON STOCKS
(Cost $782,690)			803,273

SHORT-TERM INVESTMENTS—0.8%
(Cost $6,577)
Principal Amount
REPURCHASE AGREEMENTS
$	6,577	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $6,710)	6,577
TOTAL INVESTMENTS—100.1%
(Cost $789,267)			809,850
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.1)%			(701)
TOTAL NET ASSETS—100.0%			$809,149

FAIR VALUE MEASUREMENTS

Repurchase Agreements valued at $6,577 are classified as Level 2. All other holdings at October 31, 2016 (as disclosed in the preceding Portfolio of Investments) are classified as Level 1. There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

*	Non-income producing security
BM	Bermuda
IE	Ireland
NET	Netherlands
PA	Panama
SGP	Singapore
UK	United Kingdom

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Small Cap Value Fund
Manager’s Commentary (Unaudited)

Subadviser

EARNEST Partners LLC

1180 Peachtree St. NE
Suite 2300

Atlanta, GA 30309

Portfolio Manager

Paul Viera
Since 2001

EARNEST Partners has subadvised the Fund since 2001.

Investment Objective

Long-term total return

Principal Style Characteristics

Small cap value stocks

Paul Viera

Management’s Discussion of
Fund Performance

Market Review

The U.S. equity markets were modestly positive during the 12-months ended October 31, 2016. The U.S. small cap market, represented by the Russell 2000^® Index, ended the period up approximately 4% and the U.S. large cap market, represented by the Russell 1000^® Index, also ended the period up just over 4%. The international equity markets were mixed as developed countries, represented by the MSCI EAFE^® Index, finished the period down nearly -3%, while the MSCI Emerging Markets^® Index advanced over 9% during the same period.

At its meeting in September of 2016, the U.S. Federal Reserve (Fed) decided to maintain the target range for the federal funds rate at 0.25% to 0.50%. While the Fed minutes noted that the labor market has continued to strengthen and that economic growth has improved in the first half of the year, inflation is still below the 2% annualized target rate. Fed chair Janet Yellen stated that the case for an increase had strengthened but decided to wait for continued progress towards the Fed’s objectives. The Fed cited declines in energy prices and non-energy imports as contributors to the below-target inflation rate. Unemployment held steady at around 4.9%, and revised second quarter GDP growth of 1.4% showed that economic expansion was stronger than previously estimated. In the week following the decision, Yellen stated that the Fed does not have a fixed timetable for changing the bank’s stance, contrary to earlier statements indicating that a rate hike could be expected if the labor market continues on its current course. Fed officials now see long-term GDP growth to be under 2%, below the previous estimate. Of note, three of the ten officials dissented, favoring a target federal funds rate of 0.50% to 0.75%, marking the first time since December of 2014 that there have been three dissenters, as short-term interest rates have been near zero since the financial crisis in 2008. U.S. 10-year treasuries, which began the quarter yielding 1.40% finished at 1.60% after hitting a record low of 1.36% in July, showing some flight away from safe-haven assets, although the 10-year yield is well below the 2.3% yield from the beginning of the year.

Performance

The Harbor Small Cap Value Fund posted a return of 8.18% (Institutional Class), 7.93% (Administrative), 7.79% (Investor Class), and 8.26% (Retirement Class) for the period ended October 31, 2016. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses. The Fund underperformed its benchmark, Russell 2000 Value^® Index, during the period which returned 8.81%. Stock selection was positive during the period and was particularly strong in Information Technology. The portfolio also maintained a relative overweight to the sector which contributed to performance during the period.

Among the Fund’s holdings contributing to performance during the period, Entegris Inc. is the leading supplier of contamination control solutions and ultra-clean microenvironments to the semiconductor chip processing industry. These solutions include highly specialized liquid and gas filters, which eliminate nano-size contaminants and control purity of the feedstock down to parts-per-trillion. Yield (the % of fabricated chips which work as designed) is a key metric for chip manufacturers in managing fabrication cost and becomes increasingly sensitive to particle contamination at smaller geometries. As chip manufacturers move to more advanced technology nodes involving nano-scale fabrication, they will increasingly face stringent contamination requirements, driving demand for Entegris’ products. During the period the firm reported revenue that grew 13% sequentially, reflecting robust demand in filtration and

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Harbor Small Cap Value Fund
Manager’s Commentary—Continued

TOP TEN HOLDINGS (% of net assets)
Global Payments Inc.	3.3%
Snap-on Inc.	3.2%
Hexcel Corp.	3.1%
Valspar Corp.	3.0%
Monolithic Power Systems Inc.	2.8%
Advanced Energy Industries Inc.	2.5%
Entegris Inc.	2.5%
EnerSys	2.4%
Littelfuse Inc.	2.4%
Raymond James Financial Inc.	2.4%

wafer handling services; shares rose 24% for the period. In addition to more stringent contamination control, the increasing number of process steps necessary for the implementation of advanced technology nodes serves as a further tailwind for Entegris.

An example of a Fund holding that detracted from performance during the period is Moog Inc., a worldwide designer and manufacturer of precision control components and systems. The company’s actuation device products include flight control systems for high-performance aircraft, thermal management controls for space stations, and controls for automated industrial machinery. During the period the company missed expectations in their aerospace segment, which translated to softer overall revenue numbers. The stock ended the period down 7%. We remain convicted in the company as it continued attracting new business while also maintaining exiting relationships as the incumbent service provider. With a strong reputation for quality among program managers and design engineers, we believe Moog remains the vendor of choice for new bids which should drive further market share expansion and earnings growth over our investment horizon.

Outlook & Strategy

As of October 31, 2016, the Fund had an overweight in the Industrials, Materials, Health Care, Information Technology, and Telecommunications sectors and an underweight in Financials, Real Estate, Consumer Staples, Consumer Discretionary, and Utilities. The Fund was neutral to Energy. The Fund’s relative overweight and underweight positions were an outgrowth of where EARNEST Partners is finding good individual investment opportunities.

In managing the Harbor Small Cap Value Fund, EARNEST Partners seeks companies with share prices that we believe do not fully reflect their earnings growth outlook. Going forward, we will continue to employ our three-step investment methodology: screen the broad universe to identify stocks that are best positioned to outperform, measure and manage downside risk to the benchmark, and perform in-depth, thorough, fundamental research to find what we believe are the best stocks to include in the Fund.

This report contains the current opinions of EARNEST Partners LLC as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

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Harbor Small Cap Value Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2022
Cusip	411511843
Ticker	HASCX
Inception Date	12/14/2001
Net Expense Ratio	0.86%
Total Net Assets (000s)	$738,705

ADMINISTRATIVE CLASS

Fund #	2222
Cusip	411511710
Ticker	HSVRX
Inception Date	11/01/2002
Net Expense Ratio	1.11%
Total Net Assets (000s)	$1,360

INVESTOR CLASS

Fund #	2422
Cusip	411511694
Ticker	HISVX
Inception Date	11/01/2002
Net Expense Ratio	1.23%
Total Net Assets (000s)	$17,775

RETIREMENT CLASS

Fund #	2522
Cusip	411512452
Ticker	HNVRX
Inception Date	03/01/2016
Net Expense Ratio	0.81% ^a
Total Net Assets (000s)	$2,529

Portfolio Statistics

	Portfolio	Benchmark
Weighted Average Market Cap (MM)	$3,988	$1,710
Price/Earning Ratio (P/E)	23.7x	21.2x
Price/Book Ratio (P/B)	2.6x	1.5x
Beta vs. Russell 2000^® Value Index	0.99	1.00
Portfolio Turnover (Year Ended 10/31/2016)	10%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

a	Annualized

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Harbor Small Cap Value Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the Russell 2000^® Value Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor Small Cap Value Fund
Institutional Class	8.18%	12.67%	6.34%	12/14/2001	$92,415
Administrative Class	7.93	12.38	6.07	11/01/2002	90,100
Investor Class	7.79	12.25	5.94	11/01/2002	89,043
Retirement Class¹	8.26	12.69	6.34	03/01/2016	92,483
Comparative Index
Russell 2000^® Value	8.81%	11.63%	4.91%	—	$80,718

As stated in the Fund’s current prospectus, the expense ratios were 0.87% (Institutional Class); 1.12% (Administrative Class); 1.24% (Investor Class); and 0.82% (Retirement Class). The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

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Harbor Small Cap Value Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.2%)

COMMON STOCKS—96.8%
Shares			Value
AEROSPACE & DEFENSE—6.3%
	520,639	Hexcel Corp.	$ 23,684
	171,154	Moog Inc.^*	9,939
	130,528	Teledyne Technologies Inc.^*	14,055
			47,678
BANKS—3.5%
	332,361	Trustmark Corp.	9,200
	246,129	United Bankshares Inc.	9,279
	255,960	WesBanco Inc.	8,424
			26,903
CAPITAL MARKETS—4.7%
	237,078	Eaton Vance Corp.	8,312
	301,388	Raymond James Financial Inc.	18,120
	235,422	Stifel Financial Corp.^*	9,214
			35,646
CHEMICALS—6.4%
	154,041	Cabot Corp.	8,032
	203,887	Scotts Miracle-Gro Co.	17,960
	226,390	Valspar Corp.	22,549
			48,541

COMMON STOCKS—Continued
Shares			Value
CONSUMER FINANCE—1.7%
	279,663	Firstcash Inc.	$ 13,200
DIVERSIFIED TELECOMMUNICATION SERVICES—2.0%
	131,295	SBA Communications Corp.^*	14,873
ELECTRICAL EQUIPMENT—2.4%
	280,212	EnerSys	18,250
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—9.6%
	166,253	Coherent Inc.^*	17,310
	379,113	FLIR Systems Inc.	12,480
	129,681	Littelfuse Inc.	18,091
	211,228	OSI Systems Inc.^*	14,814
	382,065	Sanmina Corp.^*	10,564
			73,259
ENERGY EQUIPMENT & SERVICES—1.2%
	91,868	Core Laboratories NV	8,908
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—2.2%
	687,337	First Potomac Realty Trust	6,131
	780,333	Medical Properties Trust Inc.	10,878
			17,009
FOOD & STAPLES RETAILING—1.2%
	218,351	United Natural Foods Inc.^*	9,114
GAS UTILITIES—3.7%
	428,290	South Jersey Industries Inc.	12,699
	248,256	WGL Holdings Inc.	15,657
			28,356
HEALTH CARE EQUIPMENT & SUPPLIES—1.6%
	168,602	Cantel Medical Corp.	12,010
HEALTH CARE PROVIDERS & SERVICES—6.2%
	272,030	Centene Corp.^*	16,996
	256,134	MEDNAX Inc.^*	15,688
	270,769	Molina Healthcare Inc.^*	14,733
			47,417
HOTELS, RESTAURANTS & LEISURE—1.4%
	627,074	Bloomin' Brands Inc.	10,848
HOUSEHOLD DURABLES—1.0%
	240,496	Meritage Homes Corp.^*	7,443
INSURANCE—7.0%
	505,703	American Equity Investment Life Holding Co.	9,067
	288,986	Horace Mann Educators Corp.	10,389
	162,902	Reinsurance Group of America Inc.	17,571
	163,467	State Auto Financial Corp.	3,743
	312,099	United Fire Group Inc.	12,334
			53,104
IT SERVICES—4.9%
	344,517	Global Payments Inc.	24,985
	317,749	ManTech International Corp.	12,338
			37,323
MACHINERY—11.6%
	228,022	Albany International Corp.	9,292
	345,013	Altra Industrial Motion Corp.	10,178
	458,149	Franklin Electric Co. Inc.	16,700

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Harbor Small Cap Value Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
MACHINERY—Continued
	1,344,738	Mueller Water Products Inc.	$ 16,567
	158,770	Snap-on Inc.	24,466
	322,061	Timken Co.	10,644
			87,847
OIL, GAS & CONSUMABLE FUELS—3.0%
	317,774	Gulfport Energy Corp.^*	7,662
	109,178	ONEOK Inc.	5,287
	159,879	PDC Energy Inc.^*	9,805
			22,754
PHARMACEUTICALS—1.8%
	583,368	Catalent Inc.^*	13,307
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—9.7%
	391,093	Advanced Energy Industries Inc.^*	18,655
	265,609	Cabot Microelectronics Corp.	14,678
	1,216,357	Entegris Inc.^*	19,340
	271,492	Monolithic Power Systems Inc.	21,396
			74,069
THRIFTS & MORTGAGE FINANCE—2.2%
	432,093	Astoria Financial Corp.	6,322
	527,765	EverBank Financial Corp.	10,191
			16,513

COMMON STOCKS—Continued
Shares			Value
TRADING COMPANIES & DISTRIBUTORS—1.5%
	255,471	GATX Corp.	$ 11,182
TOTAL COMMON STOCKS
(Cost $453,240)			735,554

SHORT-TERM INVESTMENTS—2.5%
(Cost $19,174)
Principal Amount
REPURCHASE AGREEMENTS
$	19,174	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $19,560)	19,174
TOTAL INVESTMENTS—99.3%
(Cost $472,414)			754,728
CASH AND OTHER ASSETS, LESS LIABILITIES—0.7%			5,641
TOTAL NET ASSETS—100.0%			$760,369

FAIR VALUE MEASUREMENTS

Repurchase Agreements valued at $19,174 are classified as Level 2. All other holdings at October 31, 2016 (as disclosed in the preceding Portfolio of Investments) are classified as Level 1. There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

*	Non-income producing security

The accompanying notes are an integral part of the Financial Statements.

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Harbor Domestic Equity Funds
Statements of Assets and Liabilities—October 31, 2016

(All amounts in thousands, except per share amounts)

	Harbor Capital Appreciation Fund	Harbor Mid Cap Growth Fund	Harbor Small Cap Growth Fund	Harbor Small Cap Growth Opportunities Fund	Harbor Large Cap Value Fund	Harbor Mid Cap Value Fund	Harbor Small Cap Value Fund
ASSETS
Investments, at identified cost*	$16,429,932	$465,924	$499,352	$182,454	$317,046	$789,267	$472,414
Investments, at value (Including securities loaned of $149,629, $0, $0, $0, $0, $0, and $0)	$24,907,325	$494,895	$558,717	$186,321	$372,946	$803,273	$735,554
Repurchase agreements	63,510	7,484	21,522	3,323	8,570	6,577	19,174
Cash	1	537	1	—	—	—	1
Receivables for:
Investments sold	16,640	1,848	13,130	3,950	2,484	—	6,699
Capital shares sold	15,028	111	1,099	154	136	491	506
Dividends	9,208	190	85	1	342	848	364
Securities lending income	4	—	—	—	—	—	—
Withholding tax	1,856	—	—	—	44	—	—
Prepaid registration fees	42	39	35	9	35	26	37
Other assets	1,033	37	33	4	23	16	49
Total Assets	25,014,647	505,141	594,622	193,762	384,580	811,231	762,384
LIABILITIES
Payables for:
Investments purchased	81,597	5,255	5,621	2,625	3,011	—	147
Capital shares reacquired	28,722	505	908	15	263	1,384	1,164
Collateral for securities loaned	159,807	—	—	—	—	—	—
Accrued expenses:
Management fees	11,771	327	379	128	189	503	489
12b-1 fees	453	42	2	—	13	41	4
Transfer agent fees	1,604	32	34	11	27	63	47
Trustees' fees and expenses	162	3	3	1	2	5	6
Other	3,249	79	66	20	49	86	158
Total Liabilities	287,365	6,243	7,013	2,800	3,554	2,082	2,015
NET ASSETS	$24,727,282	$498,898	$587,609	$190,962	$381,026	$809,149	$760,369
Net Assets Consist of:
Paid-in capital	$14,844,999	$468,883	$511,096	$192,637	$303,448	$764,493	$480,278
Accumulated undistributed net investment income/(loss)	19,425	(4,017)	(1,048)	(913)	1,062	9,598	2,050
Accumulated net realized gain/(loss)	1,322,008	(2,419)	(3,326)	(7,952)	12,046	14,475	(4,273)
Unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currencies	8,540,850	36,451	80,887	7,190	64,470	20,583	282,314
	$24,727,282	$498,898	$587,609	$190,962	$381,026	$809,149	$760,369
NET ASSET VALUE PER SHARE BY CLASS
Institutional Class
Net assets	$21,608,221	$303,802	$523,888	$169,718	$310,127	$600,800	$738,705
Shares of beneficial interest¹	358,015	35,424	43,880	16,587	25,170	29,787	27,085
Net asset value per share²	$ 60.36	$ 8.58	$ 11.94	$ 10.23	$ 12.32	$ 20.17	$ 27.27
Administrative Class
Net assets	$ 555,665	$175,211	$ 686	$ 143	$ 9,361	$ 40,992	$ 1,360
Shares of beneficial interest¹	9,339	21,176	60	14	761	2,019	50
Net asset value per share²	$ 59.50	$ 8.27	$ 11.30	$ 10.22	$ 12.30	$ 20.30	$ 27.16
Investor Class
Net assets	$ 1,540,557	$ 17,167	$ 8,401	$ 871	$ 57,716	$152,358	$ 17,775
Shares of beneficial interest¹	26,264	2,127	775	86	4,648	7,585	667
Net asset value per share²	$ 58.66	$ 8.07	$ 10.84	$ 10.12	$ 12.42	$ 20.09	$ 26.65
Retirement Class
Net assets	$ 1,022,839	$ 2,718	$ 54,634	$ 20,230	$ 3,822	$ 14,999	$ 2,529
Shares of beneficial interest¹	16,943	317	4,573	1,976	310	743	93
Net asset value per share²	$ 60.37	$ 8.58	$ 11.95	$ 10.24	$ 12.32	$ 20.17	$ 27.29

*	Including repurchase agreements and short-term investments
1	Par value $0.01 (unlimited authorizations)
2	Per share amounts can be recalculated to the amounts disclosed herein when total net assets and shares of beneficial interest are not rounded to thousands.

The accompanying notes are an integral part of the Financial Statements.

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Harbor Domestic Equity Funds
Statements of Operations—Year Ended October 31, 2016

(All amounts in thousands)

	Harbor Capital Appreciation Fund	Harbor Mid Cap Growth Fund	Harbor Small Cap Growth Fund	Harbor Small Cap Growth Opportunities Fund	Harbor Large Cap Value Fund	Harbor Mid Cap Value Fund	Harbor Small Cap Value Fund
Investment Income
Dividends	$ 205,604	$ 2,838	$ 3,706	$ 867	$ 6,357	$23,372	$11,193
Net securities lending income	109	—	—	—	—	—	—
Interest	45	31	6	1	4	3	8
Foreign taxes withheld	(4,236)	(21)	—	(30)	(104)	(4)	(37)
Total Investment Income	201,522	2,848	3,712	838	6,257	23,371	11,164
Operating Expenses
Management fees	153,723	4,014	4,355	1,564	1,879	5,612	6,245
12b-1 fees:
Administrative Class	1,479	630	2	4	28	87	3
Investor Class	4,498	57	24	2	89	402	43
Shareholder communications	1,395	13	20	4	14	87	164
Custodian fees	1,041	37	35	28	16	30	25
Transfer agent fees:
Institutional Class	17,093	199	414	154	201	412	612
Administrative Class	443	185	—	1	8	27	1
Investor Class	3,499	44	19	1	70	314	33
Retirement Class	123	—	6	1	—	2	—
Professional fees	610	16	14	5	7	16	19
Trustees' fees and expenses	698	15	15	6	8	20	23
Registration fees	190	65	63	82	65	88	78
Miscellaneous	248	14	15	10	12	15	17
Total expenses	185,040	5,289	4,982	1,862	2,397	7,112	7,263
Management fees waived	(11,568)	—	—	—	—	(98)	—
Transfer agent fees waived	(1,060)	(22)	(25)	(9)	(14)	(33)	(35)
Other expenses reimbursed	—	—	—	—	(95)	—	—
Custodial expense reductions	(4)	—	—	—	—	—	—
Net expenses	172,408	5,267	4,957	1,853	2,288	6,981	7,228
Net Investment Income/(Loss)	29,114	(2,419)	(1,245)	(1,015)	3,969	16,390	3,936
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions
Net realized gain/(loss) on:
Investments	1,533,312	1,200	(2,281)	(4,313)	15,132	12,864	(5,052)
Foreign currency transactions	118	28	—	—	—	—	—
Change in net unrealized appreciation/(depreciation) on:
Investments	(1,946,902)	(3,955)	928	14,268	4,837	153	69,284
Translations of assets and liabilities in foreign currencies	7	(3)	—	—	—	—	—
Net gain/(loss) on investment transactions	(413,465)	(2,730)	(1,353)	9,955	19,969	13,017	64,232
Net Increase/(Decrease) in Net Assets Resulting from Operations	$ (384,351)	$(5,149)	$(2,598)	$ 8,940	$23,938	$29,407	$68,168

The accompanying notes are an integral part of the Financial Statements.

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Harbor Domestic Equity Funds
Statements of Changes In Net Assets

(All amounts in thousands)

	Harbor Capital Appreciation Fund		Harbor Mid Cap Growth Fund		Harbor Small Cap Growth Fund
	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss)	$ 29,114	$ 22,045	$ (2,419)	$ (3,445)	$ (1,245)	$ (1,459)
Net realized gain/(loss) on investments	1,533,430	1,993,505	1,228	81,049	(2,281)	79,352
Change in net unrealized appreciation/(depreciation) of investments	(1,946,895)	977,755	(3,958)	(63,646)	928	(56,171)
Net increase/(decrease) in assets resulting from operations	(384,351)	2,993,305	(5,149)	13,958	(2,598)	21,722
Distributions to Shareholders
Net investment income:
Institutional Class	(18,442)	(17,426)	(1,218)	—	—	—
Administrative Class	—	—	(1,470)	—	—	—
Investor Class	—	—	(49)	—	—	—
Retirement Class	—	—	—	—	—	—
Net realized gain on investments:
Institutional Class	(1,555,558)	(1,362,695)	(20,507)	(48,715)	(67,517)	(87,734)
Administrative Class	(40,125)	(40,499)	(40,876)	(59,286)	(95)	(103)
Investor Class	(142,031)	(115,034)	(2,859)	(5,793)	(1,414)	(2,245)
Retirement Class	—	—	—	—	—	—
Total distributions to shareholders	(1,756,156)	(1,535,654)	(66,979)	(113,794)	(69,026)	(90,082)
Net Increase/(Decrease) Derived from Capital Share Transactions	(637,379)	1,022,778	(14,050)	(43,857)	58,935	50,266
Net increase/(decrease) in net assets	(2,777,886)	2,480,429	(86,178)	(143,693)	(12,689)	(18,094)
Net Assets
Beginning of period	27,505,168	25,024,739	585,076	728,769	600,298	618,392
End of period*	$24,727,282	$27,505,168	$498,898	$ 585,076	$587,609	$600,298
* Includes accumulated undistributed net investment income/(loss) of:	$ 19,425	$ 12,808	$ (4,017)	$ (756)	$ (1,048)	$(149)

The accompanying notes are an integral part of the Financial Statements.

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Harbor Small Cap Growth Opportunities Fund		Harbor Large Cap Value Fund		Harbor Mid Cap Value Fund		Harbor Small Cap Value Fund
November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015


$ (1,015)	$ (787)	$ 3,969	$ 3,166	$ 16,390	$ 7,906	$ 3,936	$ 3,016
(4,313)	5,003	15,132	13,220	12,864	13,093	(5,052)	34,267
14,268	(8,902)	4,837	1,780	153	(22,367)	69,284	(43,638)
8,940	(4,686)	23,938	18,166	29,407	(1,368)	68,168	(6,355)


—	—	(2,884)	(2,518)	(6,586)	(2,051)	(2,908)	(1,525)
—	—	(143)	(204)	(315)	(131)	—	—
—	—	(257)	(170)	(1,677)	(743)	—	—
—	—	(19)	—	—	—	—	—

(6,945)	(322)	(9,776)	(12,993)	(8,684)	(1,379)	(27,732)	(23,533)
(103)	(2)	(1,072)	(1,356)	(503)	(107)	(37)	(129)
(21)	(9)	(1,298)	(1,271)	(2,946)	(671)	(590)	(601)
—	—	—	—	—	—	—	—
(7,069)	(333)	(15,449)	(18,512)	(20,711)	(5,082)	(31,267)	(25,788)
(19,521)	153,774	87,069	42,102	121,804	383,353	(121,896)	145,301
(17,650)	148,755	95,558	41,756	130,500	376,903	(84,995)	113,158

208,612	59,857	285,468	243,712	678,649	301,746	845,364	732,206
$190,962	$208,612	$381,026	$285,468	$809,149	$678,649	$ 760,369	$845,364
$ (913)	$ —	$ 1,062	$ 892	$ 9,598	$ 5,966	$ 2,050	$1,510

Table of Contents

Harbor Domestic Equity Funds
Statements of Changes in Net Assets—Capital Stock Activity

(All amounts in thousands)

	Harbor Capital Appreciation Fund		Harbor Mid Cap Growth Fund		Harbor Small Cap Growth Fund
	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015
AMOUNT ($)
Institutional Class
Net proceeds from sale of shares	$ 4,324,920	$ 4,589,987	$ 205,012	$ 65,654	$ 128,476	$ 64,111
Reinvested distributions	1,408,137	1,244,437	18,634	44,858	65,160	84,420
Cost of shares reacquired	(6,847,149)	(4,979,432)	(99,889)	(183,133)	(183,722)	(97,598)
Cost of shares reacquired through redemption in-kind	—	(24,618)	—	—	—	—
Net increase/(decrease) in net assets	$(1,114,092)	$ 830,374	$ 123,757	$ (72,621)	$ 9,914	$ 50,933
Administrative Class
Net proceeds from sale of shares	$ 162,947	$ 212,433	$ 41,024	$ 79,485	$ 199	$ 375
Reinvested distributions	39,492	39,175	42,343	59,282	95	103
Cost of shares reacquired	(217,037)	(242,974)	(219,131)	(102,016)	(387)	(164)
Net increase/(decrease) in net assets	$ (14,598)	$ 8,634	$(135,764)	$ 36,751	$ (93)	$ 314
Investor Class
Net proceeds from sale of shares	$ 399,155	$ 818,541	$ 6,204	$ 8,724	$ 1,050	$ 3,323
Reinvested distributions	138,997	112,162	2,892	5,754	1,411	2,244
Cost of shares reacquired	(1,022,417)	(746,933)	(13,658)	(22,465)	(4,062)	(6,548)
Net increase/(decrease) in net assets	$ (484,265)	$ 183,770	$ (4,562)	$ (7,987)	$ (1,601)	$ (981)
Retirement Class
Net proceeds from sale of shares	$ 1,062,582	$ —	$ 2,588	$ —	$ 53,839	$ —
Reinvested distributions	—	—	—	—	—	—
Cost of shares reacquired	(87,006)	—	(69)	—	(3,124)	—
Net increase/(decrease) in net assets	$ 975,576	$ —	$ 2,519	$ —	$ 50,715	$ —

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Small Cap Growth Opportunities Fund		Harbor Large Cap Value Fund		Harbor Mid Cap Value Fund		Harbor Small Cap Value Fund
November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015


$ 61,682	$189,220	$135,414	$ 73,424	$ 250,615	$380,445	$ 213,448	$ 321,703
6,942	297	12,187	15,332	14,725	3,275	25,802	20,489
(107,425)	(37,501)	(76,749)	(59,793)	(156,502)	(91,555)	(363,914)	(192,480)
—	—	—	—	—	—	—	—
$ (38,801)	$152,016	$ 70,852	$ 28,963	$ 108,838	$292,165	$(124,664)	$ 149,712

$ 853	$ 3,884	$ 3,581	$ 6,267	$ 20,937	$ 24,969	$ 235	$ 175
103	1	1,215	1,560	817	237	37	129
(3,582)	(882)	(18,742)	(4,119)	(10,516)	(10,553)	(121)	(4,883)
$ (2,626)	$ 3,003	$ (13,946)	$ 3,708	$ 11,238	$ 14,653	$ 151	$ (4,579)

$ 424	$ 88	$ 51,121	$ 15,345	$ 64,185	$123,280	$ 5,036	$ 3,966
21	9	1,367	1,367	4,553	1,387	585	593
(171)	(1,342)	(25,830)	(7,281)	(81,262)	(48,132)	(5,330)	(4,391)
$ 274	$ (1,245)	$ 26,658	$ 9,431	$ (12,524)	$ 76,535	$ 291	$ 168

$ 21,950	$ —	$ 3,590	$ —	$ 15,590	$ —	$ 2,355	$ —
—	—	19	—	—	—	—	—
(318)	—	(104)	—	(1,338)	—	(29)	—
$ 21,632	$ —	$ 3,505	$ —	$ 14,252	$ —	$ 2,326	$ —

Table of Contents

Harbor Domestic Equity Funds
Statements of Changes in Net Assets—Capital Stock Activity—Continued

(All amounts in thousands)

	Harbor Capital Appreciation Fund		Harbor Mid Cap Growth Fund		Harbor Small Cap Growth Fund
	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015
SHARES
Institutional Class
Shares sold	73,643	73,504	25,045	6,510	11,230	4,431
Shares issued due to reinvestment of distributions	23,073	21,186	2,167	4,649	5,430	6,180
Shares reacquired	(116,665)	(79,918)	(11,696)	(18,066)	(15,829)	(6,619)
Shares reacquired through redemption in-kind	—	(378)	—	—	—	—
Net increase/(decrease) in shares outstanding	(19,949)	14,394	15,516	(6,907)	831	3,992
Beginning of period	377,964	363,570	19,908	26,815	43,049	39,057
End of period	358,015	377,964	35,424	19,908	43,880	43,049
Administrative Class
Shares sold	2,791	3,472	5,026	8,073	19	28
Shares issued due to reinvestment of distributions	655	673	5,096	6,334	8	8
Shares reacquired	(3,733)	(4,007)	(27,691)	(10,162)	(34)	(12)
Net increase/(decrease) in shares outstanding	(287)	138	(17,569)	4,245	(7)	24
Beginning of period	9,626	9,488	38,745	34,500	67	43
End of period	9,339	9,626	21,176	38,745	60	67
Investor Class
Shares sold	6,993	13,625	770	901	100	243
Shares issued due to reinvestment of distributions	2,336	1,949	356	628	129	177
Shares reacquired	(17,816)	(12,274)	(1,667)	(2,322)	(381)	(480)
Net increase/(decrease) in shares outstanding	(8,487)	3,300	(541)	(793)	(152)	(60)
Beginning of period	34,751	31,451	2,668	3,461	927	987
End of period	26,264	34,751	2,127	2,668	775	927
Retirement Class
Shares sold	18,414	—	325	—	4,829	—
Shares issued due to reinvestment of distributions	—	—	—	—	—	—
Shares reacquired	(1,471)	—	(8)	—	(256)	—
Net increase/(decrease) in shares outstanding	16,943	—	317	—	4,573	—
Beginning of period	—	—	—	—	—	—
End of period	16,943	—	317	—	4,573	—

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Small Cap Growth Opportunities Fund		Harbor Large Cap Value Fund		Harbor Mid Cap Value Fund		Harbor Small Cap Value Fund
November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015


6,437	17,925	11,516	6,149	13,268	18,601	8,291	11,822
684	28	1,079	1,316	784	160	1,041	777
(10,416)	(3,434)	(6,429)	(5,018)	(8,146)	(4,486)	(13,820)	(7,127)
—	—	—	—	—	—	—	—
(3,295)	14,519	6,166	2,447	5,906	14,275	(4,488)	5,472
19,882	5,363	19,004	16,557	23,881	9,606	31,573	26,101
16,587	19,882	25,170	19,004	29,787	23,881	27,085	31,573

89	349	303	527	1,095	1,190	9	7
10	—	108	134	43	12	2	5
(378)	(81)	(1,683)	(340)	(537)	(505)	(5)	(178)
(279)	268	(1,272)	321	601	697	6	(166)
293	25	2,033	1,712	1,418	721	44	210
14	293	761	2,033	2,019	1,418	50	44

43	8	4,261	1,282	3,364	5,952	198	151
2	1	120	116	243	68	24	23
(17)	(119)	(2,161)	(608)	(4,225)	(2,341)	(211)	(166)
28	(110)	2,220	790	(618)	3,679	11	8
58	168	2,428	1,638	8,203	4,524	656	648
86	58	4,648	2,428	7,585	8,203	667	656

2,006	—	317	—	811	—	94	—
—	—	2	—	—	—	—	—
(30)	—	(9)	—	(68)	—	(1)	—
1,976	—	310	—	743	—	93	—
—	—	—	—	—	—	—	—
1,976	—	310	—	743	—	93	—

Table of Contents

Harbor Domestic Equity Funds Financial Highlights
Selected Data for a Share Outstanding for the Periods Presented

HARBOR CAPITAL APPRECIATION FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 65.27	$ 61.97	$ 54.71	$ 41.44	$ 38.34
Income from Investment Operations
Net investment income/(loss)^a	0.09 ^e	0.07 ^e	0.06	0.16	0.07
Net realized and unrealized gains/(losses) on investments	(0.84)	7.05	8.98	13.28	3.07
Total from investment operations	(0.75)	7.12	9.04	13.44	3.14
Less Distributions
Dividends from net investment income	(0.05)	(0.05)	(0.05)	(0.17)	(0.04)
Distributions from net realized capital gains¹	(4.11)	(3.77)	(1.73)	—	—
Total distributions	(4.16)	(3.82)	(1.78)	(0.17)	(0.04)
Net asset value end of period	60.36	65.27	61.97	54.71	41.44
Net assets end of period (000s)	$21,608,221	$24,669,740	$22,531,379	$19,366,148	$14,752,873
Ratios and Supplemental Data (%)
Total return^b	(1.23)%	12.16%	16.95%	32.55%	8.21%
Ratio of total expenses to average net assets²	0.69	0.68	0.67	0.68	0.68
Ratio of net expenses to average net assets^a	0.64	0.64	0.65	0.65	0.66
Ratio of net investment income to average net assets^a	0.15	0.12	0.11	0.35	0.20
Portfolio turnover	34	37	34	48	41


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 63.73	$ 60.76	$ 53.82	$ 40.79	$ 37.83
Income from Investment Operations
Net investment income/(loss)^a	(0.13) ^e	(0.16) ^e	(0.17)	(0.01)	0.02
Net realized and unrealized gains/(losses) on investments	(0.83)	6.90	8.84	13.07	2.94
Total from investment operations	(0.96)	6.74	8.67	13.06	2.96
Less Distributions
Dividends from net investment income	—	—	—	(0.03)	—
Distributions from net realized capital gains¹	(4.11)	(3.77)	(1.73)	—	—
Total distributions	(4.11)	(3.77)	(1.73)	(0.03)	—
Net asset value end of period	58.66	63.73	60.76	53.82	40.79
Net assets end of period (000s)	$ 1,540,557	$ 2,214,518	$ 1,910,930	$ 1,780,774	$ 1,360,248
Ratios and Supplemental Data (%)
Total return^b	(1.60)%	11.75%	16.53%	32.04%	7.82%
Ratio of total expenses to average net assets²	1.06	1.05	1.04	1.05	1.05
Ratio of net expenses to average net assets^a	1.01	1.01	1.02	1.02	1.03
Ratio of net investment income to average net assets^a	(0.22)	(0.25)	(0.26)	(0.03)	(0.18)
Portfolio turnover	34	37	34	48	41

See page 75 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$ 64.51	$ 61.39	$ 54.29	$ 41.12	$ 38.09

(0.06) ^e	(0.08) ^e	(0.11)	0.02	—* ^,f
(0.84)	6.97	8.94	13.21	3.03
(0.90)	6.89	8.83	13.23	3.03

—	—	—	(0.06)	—
(4.11)	(3.77)	(1.73)	—	—
(4.11)	(3.77)	(1.73)	(0.06)	—
59.50	64.51	61.39	54.29	41.12
$555,665	$620,910	$582,430	$613,413	$597,023

(1.48)%	11.88%	16.69%	32.21%	7.95%
0.94	0.93	0.92	0.93	0.93
0.89	0.89	0.90	0.90	0.91
(0.11)	(0.13)	(0.14)	0.11	(0.04)
34	37	34	48	41


Retirement Class
2016 ^g
$ 55.79

0.05 ^e
4.53
4.58

—
—
—
60.37
$1,022,839

8.21% ^c
0.65 ^d
0.59 ^d
0.13 ^d
34

Table of Contents

Harbor Domestic Equity Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR MID CAP GROWTH FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 9.76	$ 11.43	$ 11.76	$ 9.22	$ 8.46
Income from Investment Operations
Net investment income/(loss)^a	(0.03) ^e	(0.04) ^e	(0.04)	(0.03)	(0.02)
Net realized and unrealized gains/(losses) on investments	(0.03)	0.20	1.55	2.76	0.78
Total from investment operations	(0.06)	0.16	1.51	2.73	0.76
Less Distributions
Dividends from net investment income	(0.06)	—	—	—	—
Distributions from net realized capital gains¹	(1.06)	(1.83)	(1.84)	(0.19)	—
Total distributions	(1.12)	(1.83)	(1.84)	(0.19)	—
Net asset value end of period	8.58	9.76	11.43	11.76	9.22
Net assets end of period (000s)	$303,802	$194,308	$306,371	$323,666	$286,490
Ratios and Supplemental Data (%)
Total return^b	(0.60)%	1.55%	14.45%	30.13%	8.98%
Ratio of total expenses to average net assets²	0.86	0.84	0.84	0.84	0.85
Ratio of net expenses to average net assets^a	0.85	0.84	0.83	0.84	0.85
Ratio of net investment income to average net assets^a	(0.31)	(0.35)	(0.34)	(0.27)	(0.31)
Portfolio turnover	84	82	95	111	123


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 9.24	$ 10.95	$ 11.37	$ 8.96	$ 8.25
Income from Investment Operations
Net investment income/(loss)^a	(0.05) ^e	(0.07) ^e	(0.05)	(0.12)	(0.09)
Net realized and unrealized gains/(losses) on investments	(0.04)	0.19	1.47	2.72	0.80
Total from investment operations	(0.09)	0.12	1.42	2.60	0.71
Less Distributions
Dividends from net investment income	(0.02)	—	—	—	—
Distributions from net realized capital gains¹	(1.06)	(1.83)	(1.84)	(0.19)	—
Total distributions	(1.08)	(1.83)	(1.84)	(0.19)	—
Net asset value end of period	8.07	9.24	10.95	11.37	8.96
Net assets end of period (000s)	$ 17,167	$ 24,647	$ 37,887	$ 35,501	$ 33,543
Ratios and Supplemental Data (%)
Total return^b	(1.05)%	1.21%	14.09%	29.54%	8.61%
Ratio of total expenses to average net assets²	1.22	1.21	1.21	1.21	1.22
Ratio of net expenses to average net assets^a	1.22	1.21	1.20	1.21	1.22
Ratio of net investment income to average net assets^a	(0.68)	(0.71)	(0.71)	(0.63)	(0.68)
Portfolio turnover	84	82	95	111	123

See page 75 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$ 9.45	$ 11.15	$ 11.54	$ 9.08	$ 8.35

(0.05) ^e	(0.06) ^e	(0.07)	(0.05)	(0.06)
(0.03)	0.19	1.52	2.70	0.79
(0.08)	0.13	1.45	2.65	0.73

(0.04)	—	—	—	—
(1.06)	(1.83)	(1.84)	(0.19)	—
(1.10)	(1.83)	(1.84)	(0.19)	—
8.27	9.45	11.15	11.54	9.08
$175,211	$366,121	$384,511	$408,494	$315,975

(0.91)%	1.29%	14.16%	29.70%	8.74%
1.10	1.09	1.09	1.09	1.10
1.10	1.09	1.08	1.09	1.10
(0.57)	(0.58)	(0.59)	(0.52)	(0.55)
84	82	95	111	123


Retirement Class
2016 ^g
$ 7.76

(0.03) ^e
0.85
0.82

—
—
—
8.58
$ 2,718

10.57% ^c
0.81 ^d
0.80 ^d
(0.45) ^d
84

Table of Contents

Harbor Domestic Equity Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR SMALL CAP GROWTH FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 13.65	$ 15.45	$ 15.72	$ 11.81	$ 12.07
Income from Investment Operations
Net investment income/(loss)^a	(0.02) ^e	(0.03) ^e	(0.05)	0.03	(0.02)
Net realized and unrealized gains/(losses) on investments	(0.11)	0.55	1.91	4.48	0.74
Total from investment operations	(0.13)	0.52	1.86	4.51	0.72
Less Distributions
Dividends from net investment income	—	—	—	(0.04)	—
Distributions from net realized capital gains¹	(1.58)	(2.32)	(2.13)	(0.56)	(0.98)
Total distributions	(1.58)	(2.32)	(2.13)	(0.60)	(0.98)
Net asset value end of period	11.94	13.65	15.45	15.72	11.81
Net assets end of period (000s)	$523,888	$587,761	$603,476	$601,255	$474,417
Ratios and Supplemental Data (%)
Total return^b	(0.99)%	3.35%	12.94%	39.90%	6.88%
Ratio of total expenses to average net assets²	0.85	0.84	0.83	0.83	0.85
Ratio of net expenses to average net assets^a	0.85	0.83	0.83	0.83	0.84
Ratio of net investment income to average net assets^a	(0.21)	(0.22)	(0.29)	0.22	(0.16)
Portfolio turnover	89	78	76	73	63


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 12.59	$ 14.47	$ 14.90	$ 11.22	$ 11.57
Income from Investment Operations
Net investment income/(loss)^a	(0.06) ^e	(0.08) ^e	(0.51)	(0.06)	(0.11)
Net realized and unrealized gains/(losses) on investments	(0.11)	0.52	2.21	4.30	0.74
Total from investment operations	(0.17)	0.44	1.70	4.24	0.63
Less Distributions
Dividends from net investment income	—	—	—	—	—
Distributions from net realized capital gains¹	(1.58)	(2.32)	(2.13)	(0.56)	(0.98)
Total distributions	(1.58)	(2.32)	(2.13)	(0.56)	(0.98)
Net asset value end of period	10.84	12.59	14.47	14.90	11.22
Net assets end of period (000s)	$ 8,401	$ 11,660	$ 14,266	$ 24,249	$ 19,530
Ratios and Supplemental Data (%)
Total return^b	(1.44)%	2.98%	12.53%	39.50%	6.37%
Ratio of total expenses to average net assets²	1.22	1.21	1.20	1.20	1.22
Ratio of net expenses to average net assets^a	1.22	1.20	1.20	1.20	1.21
Ratio of net investment income to average net assets^a	(0.58)	(0.59)	(0.66)	(0.16)	(0.55)
Portfolio turnover	89	78	76	73	63

See page 75 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$13.04	$14.89	$15.26	$11.46	$11.77

(0.05) ^e	(0.07) ^e	0.54 ^f	(7.68) ^f	(5.65) ^f
(0.11)	0.54	1.22	12.04	6.32
(0.16)	0.47	1.76	4.36	0.67

—	—	—	—	—
(1.58)	(2.32)	(2.13)	(0.56)	(0.98)
(1.58)	(2.32)	(2.13)	(0.56)	(0.98)
11.30	13.04	14.89	15.26	11.46
$ 686	$ 877	$ 650	$ 636	$1,122

(1.29)%	3.12%	12.65%	39.72%	6.61%
1.10	1.09	1.08	1.08	1.10
1.10	1.08	1.08	1.08	1.09
(0.46)	(0.47)	(0.54)	0.19	(0.74)
89	78	76	73	63


Retirement Class
2016 ^g
$ 10.72

(0.02) ^e
1.25
1.23

—
—
—
11.95
$54,634

11.47% ^c
0.81 ^d
0.80 ^d
(0.27) ^d
89

Table of Contents

Harbor Domestic Equity Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR SMALL CAP GROWTH OPPORTUNITIES FUND
	Institutional Class			Administrative Class
Year Ended October 31,	2016	2015	2014 ^h	2016	2015	2014 ^h
Net asset value beginning of period	$ 10.31	$ 10.77	$ 10.00	$10.27	$10.75	$10.00
Income from Investment Operations
Net investment income/(loss)^a	(0.05) ^e	(0.06) ^e	(0.02)	(0.07) ^e	(0.09) ^e	(0.09)
Net realized and unrealized gains/(losses) on investments	0.32	(0.35)	0.79	0.37	(0.34)	0.84
Total from investment operations	0.27	(0.41)	0.77	0.30	(0.43)	0.75
Less Distributions
Dividends from net investment income	—	—	—	—	—	—
Distributions from net realized capital gains¹	(0.35)	(0.05)	—	(0.35)	(0.05)	—
Total distributions	(0.35)	(0.05)	—	(0.35)	(0.05)	—
Net asset value end of period	10.23	10.31	10.77	10.22	10.27	10.75
Net assets end of period (000s)	$169,718	$205,007	$57,779	$ 143	$3,006	$ 269
Ratios and Supplemental Data (%)
Total return^b	2.62%	(3.78)%	7.70% ^c	2.94%	(3.98)%	7.50% ^c
Ratio of total expenses to average net assets²	0.89	0.90	1.60 ^d	1.14	1.15	1.85 ^d
Ratio of net expenses to average net assets^a	0.89	0.90	0.90 ^d	1.13	1.15	1.15 ^d
Ratio of net investment income to average net assets^a	(0.48)	(0.55)	(0.67) ^d	(0.69)	(0.80)	(0.90) ^d
Portfolio turnover	85	103	55 ^c	85	103	55 ^c

See page 75 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Investor Class			Retirement Class
2016	2015	2014 ^h	2016 ^g
$10.24	$10.74	$10.00	$ 9.04

(0.09) ^e	(0.09) ^e	(0.05)	(0.04) ^e
0.32	(0.36)	0.79	1.24
0.23	(0.45)	0.74	1.20

—	—	—	—
(0.35)	(0.05)	—	—
(0.35)	(0.05)	—	—
10.12	10.24	10.74	10.24
$ 871	$ 599	$1,809	$20,230

2.24%	(4.17)%	7.40% ^c	13.27% ^c
1.26	1.27	1.97 ^d	0.85 ^d
1.26	1.27	1.27 ^d	0.84 ^d
(0.87)	(0.86)	(1.03) ^d	(0.60) ^d
85	103	55 ^c	85

Table of Contents

Harbor Domestic Equity Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR LARGE CAP VALUE FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012 ⁱ
Net asset value beginning of period	$ 12.16	$ 12.24	$ 10.85	$ 8.52	$ 7.44
Income from Investment Operations
Net investment income/(loss)^a	0.16 ^e	0.15 ^e	0.15	0.14	0.21
Net realized and unrealized gains/(losses) on investments	0.64	0.70	1.37	2.31	1.06
Total from investment operations	0.80	0.85	1.52	2.45	1.27
Less Distributions
Dividends from net investment income	(0.13)	(0.14)	(0.13)	(0.12)	(0.19)
Distributions from net realized capital gains¹	(0.51)	(0.79)	—	—	—
Total distributions	(0.64)	(0.93)	(0.13)	(0.12)	(0.19)
Net asset value end of period	12.32	12.16	12.24	10.85	8.52
Net assets end of period (000s)	$310,127	$231,033	$202,596	$179,382	$140,323
Ratios and Supplemental Data (%)
Total return^b	7.14%	7.29%	14.13%	29.06%	17.41%
Ratio of total expenses to average net assets²	0.72	0.70	0.70	0.71	0.72
Ratio of net expenses to average net assets^a	0.68	0.68	0.68	0.68	0.68
Ratio of net investment income to average net assets^a	1.32	1.25	1.26	1.43	1.88
Portfolio turnover	34	24	32	26	125


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012 ⁱ
Net asset value beginning of period	$ 12.25	$ 12.33	$ 10.94	$ 8.59	$ 7.49
Income from Investment Operations
Net investment income/(loss)^a	0.11 ^e	0.11 ^e	0.13	0.09	0.13
Net realized and unrealized gains/(losses) on investments	0.66	0.70	1.35	2.34	1.13
Total from investment operations	0.77	0.81	1.48	2.43	1.26
Less Distributions
Dividends from net investment income	(0.09)	(0.10)	(0.09)	(0.08)	(0.16)
Distributions from net realized capital gains¹	(0.51)	(0.79)	—	—	—
Total distributions	(0.60)	(0.89)	(0.09)	(0.08)	(0.16)
Net asset value end of period	12.42	12.25	12.33	10.94	8.59
Net assets end of period (000s)	$ 57,716	$ 29,745	$ 20,189	$ 11,934	$ 11,058
Ratios and Supplemental Data (%)
Total return^b	6.80%	6.87%	13.62%	28.52%	17.04%
Ratio of total expenses to average net assets²	1.09	1.07	1.07	1.08	1.09
Ratio of net expenses to average net assets^a	1.05	1.05	1.05	1.05	1.05
Ratio of net investment income to average net assets^a	0.94	0.89	0.88	1.04	1.41
Portfolio turnover	34	24	32	26	125

See page 75 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012 ⁱ
$12.15	$ 12.23	$ 10.85	$ 8.51	$ 7.43

0.13 ^e	0.12 ^e	0.15	0.16 ^f	—* ^,f
0.63	0.70	1.34	2.27	1.25
0.76	0.82	1.49	2.43	1.25

(0.10)	(0.11)	(0.11)	(0.09)	(0.17)
(0.51)	(0.79)	—	—	—
(0.61)	(0.90)	(0.11)	(0.09)	(0.17)
12.30	12.15	12.23	10.85	8.51
$9,361	$24,690	$20,927	$13,453	$7,823

6.77%	7.02%	13.78%	28.76%	17.15%
0.96	0.95	0.95	0.96	0.97
0.93	0.93	0.93	0.93	0.93
1.09	1.00	1.02	1.16	1.59
34	24	32	26	125


Retirement Class
2016 ^g
$10.94

0.12 ^e
1.33
1.45

(0.07)
—
(0.07)
12.32
$3,822

13.24% ^c
0.67 ^d
0.63 ^d
1.46 ^d
34

Table of Contents

Harbor Domestic Equity Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR MID CAP VALUE FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 20.27	$ 20.32	$ 17.50	$ 12.64	$ 11.19
Income from Investment Operations
Net investment income/(loss)^a	0.44 ^e	0.34 ^e	0.18	0.28	0.22
Net realized and unrealized gains/(losses) on investments	0.08	(0.07)	2.84	4.86	1.38
Total from investment operations	0.52	0.27	3.02	5.14	1.60
Less Distributions
Dividends from net investment income	(0.27)	(0.19)	(0.20)	(0.28)	(0.15)
Distributions from net realized capital gains¹	(0.35)	(0.13)	—	—	—
Total distributions	(0.62)	(0.32)	(0.20)	(0.28)	(0.15)
Net asset value end of period	20.17	20.27	20.32	17.50	12.64
Net assets end of period (000s)	$600,800	$484,078	$195,247	$82,231	$63,551
Ratios and Supplemental Data (%)
Total return^b	2.81%	1.32%	17.39%	41.48%	14.50%
Ratio of total expenses to average net assets²	0.86	0.86	0.89	0.93	0.99
Ratio of net expenses to average net assets^a	0.84	0.86	0.89	0.93	0.95
Ratio of net investment income to average net assets^a	2.28	1.66	1.40	1.87	1.79
Portfolio turnover	18	12	13	18	37


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 20.19	$ 20.27	$ 17.49	$ 12.63	$ 11.17
Income from Investment Operations
Net investment income/(loss)^a	0.37 ^e	0.27 ^e	0.17	0.13	0.20
Net realized and unrealized gains/(losses) on investments	0.08	(0.08)	2.78	4.96	1.35
Total from investment operations	0.45	0.19	2.95	5.09	1.55
Less Distributions
Dividends from net investment income	(0.20)	(0.14)	(0.17)	(0.23)	(0.09)
Distributions from net realized capital gains¹	(0.35)	(0.13)	—	—	—
Total distributions	(0.55)	(0.27)	(0.17)	(0.23)	(0.09)
Net asset value end of period	20.09	20.19	20.27	17.49	12.63
Net assets end of period (000s)	$152,358	$165,642	$ 91,724	$19,260	$ 3,087
Ratios and Supplemental Data (%)
Total return^b	2.45%	0.93%	16.97%	40.99%	14.06%
Ratio of total expenses to average net assets²	1.23	1.23	1.26	1.31	1.36
Ratio of net expenses to average net assets^a	1.21	1.23	1.26	1.30	1.32
Ratio of net investment income to average net assets^a	1.92	1.29	1.01	1.21	1.43
Portfolio turnover	18	12	13	18	37

See page 75 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$ 20.40	$ 20.47	$ 17.64	$12.74	$11.28

0.40 ^e	0.29 ^e	0.25	0.23	0.18
0.07	(0.07)	2.75	4.92	1.40
0.47	0.22	3.00	5.15	1.58

(0.22)	(0.16)	(0.17)	(0.25)	(0.12)
(0.35)	(0.13)	—	—	—
(0.57)	(0.29)	(0.17)	(0.25)	(0.12)
20.30	20.40	20.47	17.64	12.74
$40,992	$28,929	$14,775	$3,479	$1,274

2.54%	1.05%	17.15%	41.17%	14.17%
1.11	1.11	1.14	1.19	1.24
1.09	1.11	1.14	1.18	1.20
2.03	1.41	1.13	1.58	1.53
18	12	13	18	37


Retirement Class
2016 ^g
$ 18.36

0.28 ^e
1.53
1.81

—
—
—
20.17
$14,999

9.86% ^c
0.82 ^d
0.79 ^d
2.11 ^d
18

Table of Contents

Harbor Domestic Equity Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR SMALL CAP VALUE FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 26.21	$ 27.17	$ 28.89	$ 21.41	$ 19.59
Income from Investment Operations
Net investment income/(loss)^a	0.12 ^e	0.10 ^e	0.06	0.13	0.23
Net realized and unrealized gains/(losses) on investments	1.92	(0.09)	2.68	7.84	1.64
Total from investment operations	2.04	0.01	2.74	7.97	1.87
Less Distributions
Dividends from net investment income	(0.09)	(0.06)	(0.05)	(0.22)	(0.05)
Distributions from net realized capital gains¹	(0.89)	(0.91)	(4.41)	(0.27)	—
Total distributions	(0.98)	(0.97)	(4.46)	(0.49)	(0.05)
Net asset value end of period	27.27	26.21	27.17	28.89	21.41
Net assets end of period (000s)	$738,705	$827,423	$709,251	$519,607	$473,100
Ratios and Supplemental Data (%)
Total return^b	8.18%	0.01%	11.03%	37.91%	9.60%
Ratio of total expenses to average net assets²	0.86	0.85	0.84	0.84	0.86
Ratio of net expenses to average net assets^a	0.86	0.85	0.84	0.84	0.85
Ratio of net investment income to average net assets^a	0.48	0.38	0.33	0.45	0.97
Portfolio turnover	10	17	13	22	14


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 25.63	$ 26.63	$ 28.45	$ 21.08	$ 19.31
Income from Investment Operations
Net investment income/(loss)^a	0.03 ^e	0.01 ^e	0.09	(0.09)	(0.19)
Net realized and unrealized gains/(losses) on investments	1.88	(0.10)	2.50	7.86	1.96
Total from investment operations	1.91	(0.09)	2.59	7.77	1.77
Less Distributions
Dividends from net investment income	—	—	—	(0.13)	—
Distributions from net realized capital gains¹	(0.89)	(0.91)	(4.41)	(0.27)	—
Total distributions	(0.89)	(0.91)	(4.41)	(0.40)	—
Net asset value end of period	26.65	25.63	26.63	28.45	21.08
Net assets end of period (000s)	$ 17,775	$ 16,797	$ 17,265	$ 17,330	$ 13,820
Ratios and Supplemental Data (%)
Total return^b	7.79%	(0.37)%	10.61%	37.41%	9.17%
Ratio of total expenses to average net assets²	1.23	1.22	1.21	1.21	1.23
Ratio of net expenses to average net assets^a	1.23	1.22	1.21	1.21	1.22
Ratio of net investment income to average net assets^a	0.10	0.02	(0.04)	0.07	0.63
Portfolio turnover	10	17	13	22	14

*	Less than $0.01
1	Includes both short-term and long-term capital gains
2	Percentage does not reflect reduction for credit balance arrangements (see Note 2 of the accompanying Notes to Financial Statements).
a	Reflects the Adviser’s waiver, if any, of its management fees and/or other operating expenses.
b	The total returns would have been lower had certain expenses not been waived during the periods shown.
c	Unannualized
d	Annualized
e	Amounts are allocated based upon average shares outstanding during the period.
f	The amount shown for a share outstanding does not correspond with the aggregate net investment income (loss) for the period due to the timing of sales and purchases in relation to fluctuating market values of the investments of the Fund.
g	For the period March 1, 2016 (inception) through October 31, 2016.
h	For the period February 1, 2014 (inception) through October 31, 2014.
i	Effective May 25, 2012, Harbor Large Cap Value Fund appointed Aristotle Capital Management, LLC as its' Subadviser.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$26.07	$27.05	$28.80	$ 21.34	$19.52

0.05 ^e	0.06 ^e	(0.12)	0.01	0.20
1.93	(0.13)	2.78	7.87	1.62
1.98	(0.07)	2.66	7.88	1.82

—	—	—	(0.15)	—*
(0.89)	(0.91)	(4.41)	(0.27)	—
(0.89)	(0.91)	(4.41)	(0.42)	—*
27.16	26.07	27.05	28.80	21.34
$1,360	$1,144	$5,690	$12,171	$8,786

7.93%	(0.28)%	10.74%	37.54%	9.35%
1.11	1.10	1.09	1.09	1.10
1.11	1.10	1.09	1.09	1.10
0.21	0.21	0.10	0.20	1.10
10	17	13	22	14


Retirement Class
2016 ^g
$23.91

0.05 ^e
3.33
3.38

—
—
—
27.29
$2,529

14.14% ^c
0.82 ^d
0.81 ^d
0.27 ^d
10

Table of Contents

Harbor Domestic Equity Funds
Notes to Financial Statements—October 31, 2016

Note 1—Organizational Matters

The Funds may offer up to four classes of shares, designated as Institutional Class, Administrative Class, Investor Class, and Retirement Class. The shares of each class represent an interest in the same portfolio of investments of the Fund and have equal rights to voting, redemptions, dividends, and liquidations, except that: (i) certain expenses, subject to the approval of the Trust’s Board of Trustees (the “Board of Trustees”), may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission and the Internal Revenue Service; and (ii) shareholders of a class that bears distribution and service expenses under terms of a distribution plan have exclusive voting rights as to that distribution plan.

Note 2—Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. Each Fund follows the investment company reporting requirements under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), which includes the accounting and reporting guidelines under Accounting Standards Topic 946, Financial Services-Investment Companies. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

Security Valuation

Equity securities (including common stock, preferred stock, and convertible preferred stock) and financial derivative instruments (such as futures contracts, options contracts, including rights and warrants and centrally cleared swap agreements) that are traded or cleared on a national securities exchange or system (except securities listed on the National Association of Securities Dealers Automated Quotation (“NASDAQ”) system and United Kingdom securities), are valued at the last sale price on a national exchange or system on which they are principally traded or cleared as of the valuation date. Securities listed on the NASDAQ system or a United Kingdom exchange are valued at the official closing price of those securities. In the case of securities for which there are no sales on the valuation day, (i) securities traded principally on a U.S. exchange, including NASDAQ, are valued at the mean between the closing bid and ask price; and (ii) securities traded principally on a foreign exchange, including United Kingdom securities, are valued at the official bid price determined as of the close of the primary exchange. Securities of open-end registered investment companies that are held by a Fund are valued at net asset value. To the extent these securities are actively traded and fair valuation adjustments are not applied, they are normally categorized as Level 1 in the fair value hierarchy. Equity securities traded on inactive markets or valued by reference to similar instruments are normally categorized as Level 2 in the fair value hierarchy. For more information on the fair value hierarchy, please refer to the Fair Value Measurements and Disclosures section in Note 2.

Short-term securities with a remaining maturity of less than 60 days at the time of acquisition that are held by a Fund are valued at amortized cost to the extent amortized cost represents fair value. Securities that use similar valuation techniques and inputs as described above are normally categorized as Level 2 in the fair value hierarchy.

When reliable market quotations or evaluated prices supplied by a pricing vendor are not readily available or are not believed to accurately reflect fair value, securities are priced at their fair value as determined by the Trust’s Valuation Committee (the “Valuation Committee”) pursuant to procedures adopted, and subject to oversight, by the Board of Trustees. The Valuation Committee is comprised of a trustee and officers of the Trust and employees of Harbor Capital with relevant experience or responsibilities. Each security for which the Valuation Committee determines a fair value, including the basis for the fair value decision, is reviewed by the Board of Trustees at its regularly scheduled board meetings.

Table of Contents

Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

When a fair valuation method is applied by the Valuation Committee or a Fund’s subadviser, securities will be priced by a method that the Valuation Committee or subadviser believes accurately reflects fair value. Securities valued using fair valuation methods that incorporate significant unobservable inputs are normally categorized as Level 3 in the fair value hierarchy. Examples of possible fair valuation methodologies used in determining the fair value of securities categorized as Level 3 in the fair value hierarchy include, but are not limited to, benchmark pricing and indicative market quotations.

When benchmark pricing is used, the base price of a debt security is set and then subsequently adjusted in proportion to the market value changes of an index or similar security (the “benchmark security”) that trades in an active market or for which other observable inputs are available. The base price may be a broker-dealer quote, transaction price, or an internal value as derived by analysis of market data. The base price of the security may be reset on a periodic basis based on the availability of market data and procedures approved by a Fund’s subadviser. If the benchmark security is categorized as Level 2 of the fair value hierarchy due to the lack of an active market for that security, any security adjusted in proportion to the market value of the benchmark security may be categorized as Level 3 in the fair value hierarchy. Significant changes in the unobservable inputs of the benchmark pricing process (i.e., the base price) would result in direct and proportional changes in the fair value of the security. The reasonability of the fair value is reviewed by the subadviser on a periodic basis and may be amended as the availability of market data indicates a material change.

If evaluated pricing through a third-party pricing vendor is not available or deemed to be indicative of fair value, a Fund’s subadviser may elect to obtain indicative market quotations (“broker quotes”) directly from a broker-dealer or passed through from a third-party pricing vendor. Indicative market quotations are typically received from established market participants. In the event that the source of fair value is from a single-sourced broker quote, but the subadviser does not have the transparency to view the underlying inputs that support the market quotation, these securities are categorized as Level 3 in the fair value hierarchy. Significant changes in the broker quote would have direct and proportional changes in the fair value of the security.

A Fund may also use fair value pricing if the value of some or all of the Fund’s securities have been materially affected by events occurring before the Fund’s pricing time but after the close of the primary markets or exchanges on which the security is traded. This most commonly occurs with foreign securities, but may occur with other securities as well. In such cases, the Fund may apply a fair value factor supplied by the pricing vendor to a foreign security’s market close value to reflect changes in value that may have occurred between the close of the primary market or exchange on which the security is traded and the Fund’s pricing time. That factor may be derived using observable inputs such as a comparison of the trading patterns of a foreign security to intraday trading in the U.S. markets that are highly correlated to the foreign security or other information that becomes available after the close of the foreign market on which the security principally traded. When fair value pricing is employed, the prices of securities used by a Fund to calculate its net asset value may differ from market quotations, official closing prices or evaluated prices for the same securities, which means that the Fund may value those securities higher or lower than another given fund that uses market quotations, official closing prices or evaluated prices supplied by a pricing vendor in its calculation of net asset value. Securities valued using observable inputs, such as those described above, are normally categorized as Level 2 of the fair value hierarchy.

Fair Value Measurements and Disclosures

Various inputs may be used to determine the value of each Fund’s investments, which are summarized in three broad categories defined as Level 1, Level 2 and Level 3. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The assignment of an investment to Levels 1, 2 or 3 is based on the lowest level of significant inputs used to determine its fair value.

Level 1–	Quoted prices in active markets for identical securities.
Level 2–	Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3–	Significant unobservable inputs are used in situations where quoted prices or other observable inputs are not available or are deemed unreliable. Significant unobservable inputs may include each Fund’s own assumptions.

Table of Contents

Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

unrealized gains and losses and purchases, sales, and transfers in/out of the Level 3 category during the period. A table that includes a categorization of investments into Levels 1, 2, or 3, transfers between levels, if any, and a Level 3 reconciliation, including details of significant unobservable inputs used, when applicable, can be found at the end of each Fund’s Portfolio of Investments schedule.

Each Fund used observable inputs in their valuation methodologies whenever they were available and deemed reliable.

U.S. Government Securities

U.S. government securities include securities issued by U.S. government agencies or government-sponsored enterprises that may not be guaranteed by the U.S. Treasury. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly owned U.S. government corporation, is authorized to guarantee, with the full faith and credit of the U.S. government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. government) include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). On September 7, 2008, the Federal Housing Finance Agency placed Fannie Mae and Freddie Mac in conservatorship, while the U.S. Treasury agreed to purchase preferred stock as needed to ensure that both Fannie Mae and Freddie Mac maintain a positive net worth (guaranteeing up to $100 billion for each entity). As a consequence, certain fixed income securities of Fannie Mae and Freddie Mac have more explicit U.S. government support. No assurance can be given as to whether the U.S. government will continue to support Fannie Mae and Freddie Mac. In addition, the future of Fannie Mae and Freddie Mac is uncertain because Congress has been considering proposals as to whether Fannie Mae and Freddie Mac should be nationalized, privatized, restructured or eliminated altogether. Fannie Mae and Freddie Mac are also the subject of continuing legal actions and investigations which may have an adverse effect on these entities.

Repurchase Agreements

In a repurchase agreement, a Fund buys a security at one price and simultaneously agrees to sell it back at a higher price. Such agreements must be adequately collateralized to cover the counterparty’s obligation to the Fund to close out the repurchase agreement. During the year, each Fund entered into repurchase agreements with domestic or foreign banks or with a member firm of the Financial Industry Regulatory Authority, Inc., or an affiliate of a member firm that is a primary dealer in U.S. government securities. Each repurchase agreement counterparty must meet the minimum credit quality requirements applicable to the respective Fund and any other appropriate counterparty criteria as determined by the Fund’s subadviser. The minimum credit quality requirements are those applicable to a Fund’s purchase of securities such that if a Fund is permitted to only purchase securities that are rated investment-grade (or the equivalent if unrated), a Fund could only enter into repurchase agreements with counterparties that have debt outstanding that is rated investment-grade (or the equivalent if unrated). The securities are regularly monitored to ensure that the collateral is adequate. A Fund seeks to further mitigate its counterparty risk by entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default, including bankruptcy, the Fund may terminate any repurchase agreements with that counterparty, determine the net amount owned, and sell or retain the collateral up to the net amount owed to the Fund. A counterparty’s default may cause the Fund to suffer losses, including loss of interest on or principal of the securities and costs associated with delay and enforcement of the terms of the master repurchase agreement.

Foreign Currency Spot Contracts

A foreign currency spot contract is an agreement between two parties to buy and sell currencies at the current market rate for settlement within two business days. During the year, Harbor Capital Appreciation Fund and Harbor Mid Cap Growth Fund used foreign currency spot contracts to facilitate transactions in foreign securities or to convert foreign currency receipts into U.S. dollars.

The foreign currency spot contract is marked-to-market daily for settlements beyond one day, and any change in market value is recorded as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value on the open and close date. Risk of losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contract’s terms. The maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

Foreign Currency Translations

Purchases and sales of securities are translated into U.S. dollars at the current exchange rate on the respective dates of the transactions. Income and withholding taxes are translated at the prevailing exchange rate when accrued or incurred. The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars based on the current exchange rates at year end.

Reported net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of foreign currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income accrued and tax reclaims receivable and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are included in the net realized and unrealized gain or loss on investments in the Statement of Operations.

Investment Income

Dividends declared on portfolio securities are accrued on the ex-dividend date. For foreign securities, certain dividends are recorded after the ex-dividend date, but as soon as the respective Fund is notified of such dividends. Interest income is accrued daily as earned. Discounts and premiums on fixed income securities are amortized over the life of the respective securities using the effective yield method.

Securities Transactions

Securities transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains or losses on security transactions are determined on the basis of identified cost.

Proceeds from Litigation

Each Fund may receive proceeds from shareholder litigation settlements involving current and/or previously held portfolio holdings. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/(loss) if the security has been disposed of by a Fund or in unrealized gain/(loss) if the security is still held by a Fund.

Distribution to Shareholders

Distributions on Fund shares are recorded on the ex-dividend date.

Expenses

Custodian

Each Fund has credit balance arrangements with the Funds' custodian whereby positive balances in demand deposit accounts used by the transfer and shareholder servicing agent for clearing shareholder transactions in the Funds generate credits that are applied against gross custody expenses. Such custodial expense reductions, if any, are reflected on the respective Fund’s accompanying Statement of Operations.

Class Allocations

Income, common expenses and realized and unrealized gains/(losses) are determined at the Fund level and allocated daily to each class of shares based on the applicable net assets of the respective classes. Distribution and service fees, if any, and transfer agent fees are calculated daily at the class level based on the applicable net assets of each class and the expense rate(s) applicable to each class.

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

Taxes

Each Fund is treated as a separate entity for federal tax purposes. Each Fund’s policy is to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute to its shareholders all of its taxable income within the prescribed time. It is also the intention of each Fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Internal Revenue Code. Therefore, no provision has been made for federal taxes on income, capital gains or unrealized appreciation of securities held or excise taxes on income and capital gains.

Each Fund may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and unrealized appreciation as such income and/or gains are earned.

Management has analyzed each Fund’s tax positions for all open tax years (in particular, U.S. federal income tax returns for the tax years ended October 31, 2013–2015), including all positions expected to be taken upon filing the 2016 tax return, in all material jurisdictions where each Fund operates, and has concluded that no provision for income tax is required in the Funds' financial statements. Each Fund will recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations.

New Accounting Pronouncements

The Funds have adopted Accounting Standards Update (“ASU”) 2014-11, Transfers and Servicing (“ASU 2014-11”) which requires expanded disclosures related to financial assets pledged in secured financing transactions, such as securities lending, and the related contractual maturity terms of these secured transactions. For more information on the remaining maturity period for outstanding securities lending transactions and the type of investment collateral pledged, please refer to the Securities Lending section in Note 3. The adoption of ASU 2014-11 had no impact on the Funds' net assets or results of operations.

In October 2016, the Securities and Exchange Commission (SEC) released its final rule on Investment Company Reporting Modernization (the “Rule”). The Rule contains amendments to certain financial statement presentation, particularly the presentation of derivative investments. Although still evaluating the impact of the Rule, management believes that many of the amendments are consistent with the Funds' current financial statement presentation.

Note 3—Investment Portfolio Transactions

Purchases and sales of investments, other than short-term securities, for each Fund for the year ended October 31, 2016 are as follows:

	Purchases (000s)	Sales (000s)
GROWTH FUNDS
Harbor Capital Appreciation Fund	$8,695,556	$10,644,369
Harbor Mid Cap Growth Fund	437,960	478,490
Harbor Small Cap Growth Fund	504,024	520,072
Harbor Small Cap Growth Opportunities Fund	175,564	204,761
VALUE FUNDS
Harbor Large Cap Value Fund	$ 177,414	$ 102,737
Harbor Mid Cap Value Fund	255,571	134,558
Harbor Small Cap Value Fund	77,102	232,726

Securities Lending

Each Fund may engage in securities lending, whereby a Fund lends its securities to financial institutions in order to increase its income. During the year, Harbor Capital Appreciation Fund engaged in securities lending. Securities loans are required to be secured at all times during the term of the loan by cash collateral that is at least equal to the value of the loaned securities determined at the close of the Fund’s business day. Any additional collateral that may be required to secure the loan is delivered to the Fund the next business day. The cash collateral is maintained on the Fund’s behalf by the lending agent (State Street Bank & Trust Company) and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio,

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 3—Investment Portfolio Transactions—Continued

a money market mutual fund that seeks to provide income while maintaining a stable net asset value of $1.00. There is no assurance that the State Street Navigator Securities Lending Government Money Market Portfolio will maintain a stable net asset value and the Funds are subject to the risk of loss on the cash collateral invested. This collateral is recognized as the gross liability for securities loaned in the Statement of Assets and Liabilities. During the term of the loan, the Funds will continue to receive interest, dividends, or other amounts, on the loaned securities, in addition to receiving a fee from the borrower and earning interest on the investment of the cash collateral. The Funds may pay reasonable fees in connection with a loan of its securities and may share the interest earned on the collateral with the borrower. Net securities lending income is disclosed as such in the Statements of Operations. Securities loans may be terminated at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities that are identical to the loaned securities. The Funds bear the risk of delay in recovery of, or loss of rights in, the securities loaned and the risk that the value of the collateral falls below the value of the securities on loan. Each Fund seeks to mitigate this borrower risk by entering into a securities lending authorization agreement with its lending agent. The securities lending authorization agreement provides that, in the event of a borrower’s default, including bankruptcy, the lending agent will request that all loaned securities be returned by the borrower. In the event the borrower is unable or unwilling to return the loaned securities to the lending agent, the lending agent may apply the proceeds of the cash collateral from the loaned securities towards the purchase of replacement securities. If such proceeds are insufficient or the collateral is unavailable, the lending agent will purchase replacement securities at its sole expense. If the lending agent is unable to purchase replacement securities, it may credit to the relevant Fund’s account an amount equal to the fair value of the unreturned loaned securities. The value at October 31, 2016 of equity securities loaned and related cash collateral for Harbor Capital Appreciation Fund was $149,629,000 and $159,807,000, respectively. As the securities loaned are subject to termination by the Fund or the borrower at any time, the remaining contractual maturities of each securities lending transaction is considered to be overnight and continuous.

Note 4—Fees and Other Transactions with Affiliates

Investment Adviser

Harbor Capital is an indirect, wholly-owned subsidiary of Robeco Groep N.V. (“Robeco”). Robeco is wholly-owned by ORIX Corporation (“ORIX”). Harbor Capital is the Trust’s investment adviser and is also responsible for administrative and other services.

Each Fund has a separate advisory agreement with Harbor Capital. The agreements provide for management fees based on an annual percentage rate of average daily net assets as follows:

	Contractual Rate	Actual Rate
Growth Funds
Harbor Capital Appreciation Fund	0.60% ^a	0.55%
Harbor Mid Cap Growth Fund	0.75	0.75
Harbor Small Cap Growth Fund	0.75	0.75
Harbor Small Cap Growth Opportunities Fund	0.75	0.75
Value Funds
Harbor Large Cap Value Fund	0.60%	0.60%
Harbor Mid Cap Value Fund	0.75 ^b	0.74
Harbor Small Cap Value Fund	0.75	0.75

For the period November 1, 2015 through February 29, 2016, the Adviser contractually agreed to reduce the management fee to 0.57% on assets between $5 billion and $10 billion and 0.54% on assets over $10 billion. For the period March 1, 2016 to February 28, 2017, the Adviser contractually agreed to reduce the management fee to 0.56% on assets between $5 billion and $10 billion, 0.54% on assets between $10 billion and $20 billion, and 0.53% on assets over $20 billion.

For the period March 1, 2016 through February 28, 2017, the Adviser contractually agreed to reduce the management fee to 0.70% on assets over $500 million.

•

Harbor Small Cap Growth Opportunities Fund. For the period November 1, 2015 through February 29, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.90%, 1.15% and 1.27% for the Institutional Class, Administrative Class and Investor Class, respectively.

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 4—Fees and Other Transactions with Affiliates—Continued

•

Harbor Large Cap Value Fund. For the period November 1, 2015 through October 31, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.68%, 0.93%, 1.05% and 0.63% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2017.

All expense limitations are inclusive of the transfer agent fee waiver discussed in the Transfer Agent note.

Distributor

Harbor Funds Distributors, Inc. (“Harbor Funds Distributors” or the “Distributor”), a wholly-owned subsidiary of Harbor Capital, is the distributor for Harbor Funds’ shares. Under the Trust’s current distribution plans pursuant to Rule 12b-1 under the Investment Company Act with respect to each Fund’s Administrative and Investor Class shares (the “12b-1 Plan”) as applicable, each Fund pays the Distributor compensation at the annual rate of 0.25% of the average daily net assets of its Administrative and Investor Class shares. Pursuant to the 12b-1 Plan the Distributor is compensated for financing any activity that is primarily intended to result in the sale of Administrative and Investor Class shares of each Fund or for recordkeeping services or the servicing of shareholder accounts in the Administrative and Investor Class shares of each Fund. Such activities include, but are not limited to: printing of prospectuses and statements of additional information and reports for prospective shareholders (i.e., other than existing shareholders); preparation and distribution of advertising material and sales literature; expenses of organizing and conducting sales seminars; supplemental payments to dealers or other institutions such as asset-based sales charges, payments of recordkeeping fees under recordkeeping arrangements, or payments of service fees under shareholder service arrangements; and costs of administering the 12b-1 Plan.

Amounts payable by a Fund under the 12b-1 Plan need not be directly related to the expenses actually incurred by the Distributor on behalf of each Fund. The 12b-1 Plan does not obligate each Fund to reimburse the Distributor for the actual expenses the Distributor may incur in fulfilling its obligations under the 12b-1 Plan. Thus, even if the Distributor’s actual expenses exceed the fee payable to the Distributor at any given time, each Fund will not be obligated to pay more than that fee. If the Distributor’s expenses are less than the fee it receives, the Distributor will retain the difference.

The fees attributable to each Fund’s respective class are shown on the accompanying Statement of Operations.

Transfer Agent

Harbor Services Group, Inc. (“Harbor Services Group”), a wholly-owned subsidiary of Harbor Capital, is the transfer and shareholder servicing agent for the Funds. The transfer agency and service agreement is reviewed and approved annually by the Board of Trustees and provides currently for compensation up to the following amounts per class of each Fund:

	Transfer Agent Fees^a
Institutional Class	0.08% of the average daily net assets of all Institutional shares
Administrative Class	0.08% of the average daily net assets of all Administrative shares
Investor Class	0.20% of the average daily net assets of all Investor shares
Retirement Class	0.03% of the average daily net assets of all Retirement shares

a	For the period November 1, 2015 through February 29, 2016, the Transfer Agent Fees for Institutional and Administrative Class shares were 0.065% and 0.185% for the Investor Class shares.

Harbor Services Group has voluntarily waived a portion of its transfer agent fees during the year ended October 31, 2016. Fees incurred for these transfer agent services are shown on each Fund’s Statement of Operations. The voluntary waiver may be discontinued at any time.

Affiliated Transactions

The Investment Company Act permits purchase and sale transactions among affiliated investment companies subject to an exemptive rule. Harbor Funds has adopted policies and procedures pursuant to the Investment Company Act exemptive rule. During the year, the Funds did not enter into any transactions with any other Harbor fund.

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 4—Fees and Other Transactions with Affiliates—Continued

Shareholders

On October 31, 2016, Harbor Capital, Harbor Funds Distributors, and Harbor Services Group, collectively held the following shares of beneficial interest in each Fund:

	Number of Shares Owned by Harbor Capital, Harbor Funds Distributors, and Harbor Services Group					Percentage of Outstanding Shares
	Institutional Class	Administrative Class	Investor Class	Retirement Class	Total	Percentage of Outstanding Shares
GROWTH FUNDS
Harbor Capital Appreciation Fund	—	—	—	37,823	37,823	0.0%
Harbor Mid Cap Growth Fund	—	—	—	132,045	132,045	0.2
Harbor Small Cap Growth Fund	—	—	—	75,184	75,184	0.2
Harbor Small Cap Growth Opportunities Fund	—	—	—	32,426	32,426	0.2
VALUE FUNDS
Harbor Large Cap Value Fund	—	—	—	102,618	102,618	0.3
Harbor Mid Cap Value Fund	—	—	—	60,107	60,107	0.1
Harbor Small Cap Value Fund	—	—	—	30,909	30,909	0.1

Independent Trustees

The fees and expenses of the Independent Trustees are shown on each Fund’s Statement of Operations. The Independent Trustees’ remuneration for the Funds totaled $698,000 for the year ended October 31, 2016.

The Board of Trustees has adopted a Deferred Compensation Plan for Independent Trustees (the “Plan”), which enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Trust. For purposes of determining the amount owed to a Trustee under the Plan, deferred amounts are treated as though they had been invested in shares of the Fund(s) selected by the Trustee. While not required to do so, each Fund makes an investment equal to the Trustee’s investment election. The deferred compensation liability and the offsetting deferred compensation investment asset are included as a component of “Liabilities; Accrued Expenses: Other” and “Other assets”, respectively, in the Statement of Assets and Liabilities. Such amounts fluctuate with changes in the market value of the selected securities. The deferred compensation and related mark-to-market impact liability and an offsetting investment asset will remain on each Fund’s Statement of Assets and Liabilities until distributed in accordance with the Plan.

Indemnification

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business the Trust enters into contracts that provide general indemnities to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 5—TAX INFORMATION

The amount and character of income and net realized gains to be distributed are determined in accordance with income tax rules and regulations, which may differ from U.S. GAAP. These differences are attributable to permanent book and tax accounting differences that were primarily due to tax treatment of net investment losses, distributions from investments in real estate investment trust securities, disposition of passive foreign investment companies' securities, use of equalization and foreign currency transactions. Reclassifications are made to each Fund’s capital account to reflect income and net realized gains available for distribution (or available capital loss carryovers) under income tax rules and regulations. The amounts reclassified on the Statements of Assets and Liabilities for the year ended October 31, 2016 are as follows:

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

NOTE 5—TAX INFORMATION—Continued

	Undistributed Net Investment Income/(Loss) (000s)	Accumulated Net Realized Gain/(Loss) (000s)	Paid in Capital (000s)
GROWTH FUNDS
Harbor Capital Appreciation Fund	$(4,055)	$(140,491)	$144,546
Harbor Mid Cap Growth Fund	1,895	(1,137)	(758)
Harbor Small Cap Growth Fund	346	6	(352)
Harbor Small Cap Growth Opportunities Fund	102	—	(102)
VALUE FUNDS
Harbor Large Cap Value Fund	$ (496)	$ (1,511)	$ 2,007
Harbor Mid Cap Value Fund	(4,180)	1,451	2,729
Harbor Small Cap Value Fund	(488)	518	(30)

The tax composition of each Fund’s distributions is as follows:

	As of October 31, 2016			As of October 31, 2015
	Ordinary Income (000s)	Long-Term Capital Gains (000s)	Total (000s)	Ordinary Income (000s)	Long-Term Capital Gains (000s)	Total (000s)
GROWTH FUNDS
Harbor Capital Appreciation Fund	$18,442	$1,737,714	$1,756,156	$17,426	$1,518,228	$1,535,654
Harbor Mid Cap Growth Fund	2,712	64,267	66,979	15,041	98,753	113,794
Harbor Small Cap Growth Fund	1,813	67,213	69,026	18,180	71,902	90,082
Harbor Small Cap Growth Opportunities Fund	4,587	2,482	7,069	333	—	333
VALUE FUNDS
Harbor Large Cap Value Fund	$ 7,430	$ 8,019	$ 15,449	$ 2,893	$ 15,619	$ 18,512
Harbor Mid Cap Value Fund	13,063	7,648	20,711	2,925	2,157	5,082
Harbor Small Cap Value Fund	6,240	25,027	31,267	2,417	23,371	25,788

As of October 31, 2016, the components of each Fund’s distributable earnings on a tax basis are as follows:

	Undistributed Ordinary Income (000s)	Undistributed Long-Term Capital Gains (000s)	Unrealized Appreciation/ (Depreciation) (000s)
GROWTH FUNDS
Harbor Capital Appreciation Fund	$20,336	$1,405,451	$8,457,405
Harbor Mid Cap Growth Fund	—	—	31,661
Harbor Small Cap Growth Fund	—	2,923	74,638
Harbor Small Cap Growth Opportunities Fund	—	—	(98)
VALUE FUNDS
Harbor Large Cap Value Fund	$ 1,271	$ 13,304	$ 63,016
Harbor Mid Cap Value Fund	12,383	9,806	22,481
Harbor Small Cap Value Fund	2,091	—	282,838

In order to meet certain excise tax distribution requirements, the Funds are required to distribute net capital gains realized during the twelve month period ending October 31 and net investment income earned during the twelve month period ending December 31. Funds are permitted to defer qualified late year losses to the next fiscal year. Qualified late year ordinary losses include ordinary losses incurred between January 1 and the end of the Fund’s fiscal year.

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

NOTE 5—TAX INFORMATION—Continued

At October 31, 2016, for Federal income tax purposes, the following Funds had qualified late year ordinary loss deferrals to offset fiscal year 2017 ordinary income:

	Qualified Late Year Ordinary Loss Deferral (000s)
Harbor Mid Cap Growth Fund	$1,616
Harbor Small Cap Growth Fund	1,020
Harbor Small Cap Growth Opportunities Fund	909

At October 31, 2016, the Funds in the following table had capital loss carryforwards for federal tax purposes which will reduce each Fund’s taxable income arising from future net realized gains on investments to the extent permitted by the Internal Revenue Code. Use of the capital loss carryforwards will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve each Fund of any federal tax liability. The capital loss carryforwards do not expire.

	Capital Loss Carryfoward
	Short-Term (000s)	Long-Term (000s)	Total (000s)
GROWTH FUNDS
Harbor Small Cap Growth Opportunities Fund	$ —	$ 665	$ 665
VALUE FUNDS
Harbor Small Cap Value Fund	$3,364	$1,438	$4,802

The identified cost for federal income tax purposes of investments owned by each Fund and their respective gross unrealized appreciation and depreciation at October 31, 2016 are as follows:

	Identified Cost (000s)	Gross Unrealized		Net Unrealized Appreciation/ (Depreciation) (000s)
	Identified Cost (000s)	Appreciation (000s)	(Depreciation) (000s)	Net Unrealized Appreciation/ (Depreciation) (000s)
GROWTH FUNDS
Harbor Capital Appreciation Fund	$16,513,375	$8,876,077	$(418,617)	$8,457,460
Harbor Mid Cap Growth Fund	470,715	55,254	(23,590)	31,664
Harbor Small Cap Growth Fund	505,601	98,897	(24,259)	74,638
Harbor Small Cap Growth Opportunities Fund*	189,743	15,602	(15,701)	(99)
VALUE FUNDS
Harbor Large Cap Value Fund	$ 318,500	$ 69,929	$ (6,913)	$ 63,016
Harbor Mid Cap Value Fund	787,368	96,299	(73,817)	22,482
Harbor Small Cap Value Fund*	471,888	294,928	(12,088)	282,840

*	Capital loss carryforwards are available, which may reduce taxable income from future net realized gain on investments.

Note 6—Legal Proceedings

Tribune Company

Harbor Mid Cap Value Fund has been named as a defendant and/or as a putative member of a proposed defendant class in Kirschner v. FitzSimons (In re Tribune Co.), No. 12-2652 (S.D.N.Y.) (the “FitzSimons action”); Deutsche Bank v. Ohlson Enterprises, No. 12-0064 (S.D.N.Y.) (the “Deutsche Bank action”); and Niese v. ABN AMRO Clearing Chicago LLC, No. 12-0555 (S.D.N.Y.) (the “Niese action”), as a result of its ownership of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. The plaintiffs in these lawsuits have alleged that, in connection with the LBO, insiders and shareholders were paid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiffs have asserted claims for fraudulent conveyance against Harbor Mid Cap Value Fund and other former Tribune shareholders.

All three lawsuits have been consolidated with the majority of the other Tribune-related lawsuits in the multidistrict litigation proceeding In re Tribune Co. Fraudulent Conveyance Litig., No. 11-2296 (S.D.N.Y.) (the “MDL Proceeding”).

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 6—Legal Proceedings—Continued

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the Deutsche Bank and Niese actions, on the basis that the plaintiffs lacked standing. On September 30, 2013, the plaintiffs filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the Deutsche Bank and Niese actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the plaintiffs filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The plaintiffs filed a reply in support of the petition on November 4, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

None of these lawsuits alleges any wrongdoing on the part of Harbor Mid Cap Value Fund. Harbor Mid Cap Value Fund held shares of Tribune and tendered these shares as part of Tribune’s LBO. The value of the proceeds received by Harbor Mid Cap Value Fund was approximately $299,000. Harbor Mid Cap Value Fund’s cost basis in the shares of Tribune was approximately $262,000. At this stage of the proceedings, Harbor Mid Cap Value Fund is not able to make a reliable prediction as to the outcome of these lawsuits or the effect, if any, on the Fund’s net asset value.

Lyondell Chemical Company

In October 2011, Harbor Capital received subpoenas in connection with two cases: Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1 (In re Lyondell Co.), No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust action”) and Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”). Both cases, and a related case entitled Weisfelner, as Trustee of the LB Creditor Trust v. Reichman, No. 12-1570 (Bankr. S.D.N.Y.) (the “Reichman action”), arise out of the bankruptcy of Lyondell Chemical Company (“Lyondell”), shares of which were previously owned by Harbor Mid Cap Value Fund. Similar to the claims made in the Tribune matter, these actions seek to have set aside and recovered as fraudulent transfers from former Lyondell shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

The Litigation Trust action and the Reichman action name classes of defendants of persons or entities that received proceeds from the Lyondell merger transaction, and the Creditor Trust action names hundreds of anonymously identified defendants. Because Harbor Mid Cap Value Fund was a beneficial owner of Lyondell stock and received proceeds from the Lyondell merger transaction, it is possible that Harbor Mid Cap Value Fund will be identified as a defendant or is already captured within the definition of the putative classes in the Litigation Trust action or Reichman action. It may also be one of the anonymously identified defendants in the Creditor Trust action.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify the defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Bankruptcy Court held oral argument on the motions to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion.

On November 18, 2015, the Court granted the defendants’ motion to dismiss the Litigation Trust action and denied their motion to dismiss the Creditor Trust and Reichman actions. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

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Harbor Domestic Equity Funds
Notes to Financial Statements—Continued

Note 6—Legal Proceedings—Continued

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust action and remanded to the Bankruptcy Court for further proceedings. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust and Reichman actions in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune Deutsche Bank and Niese actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment.

None of these lawsuits alleges any wrongdoing on the part of Harbor Mid Cap Value Fund. Harbor Mid Cap Value Fund received approximately $1,439,000 in cash proceeds from the cash out merger. Harbor Mid Cap Value Fund’s cost basis in the shares of Lyondell was approximately $931,000. At this stage of the proceedings, Harbor Mid Cap Value Fund is not able to make a reliable prediction as to the outcome of these lawsuits or the effect, if any, on the Fund’s net asset value.

Note 7—Subsequent Events

Through the date the financial statements were issued, no subsequent events or transactions had occurred that would have materially impacted the financial statements or related disclosures as presented herein.

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Harbor Domestic Equity Funds
Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

Harbor Funds

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Harbor Capital Appreciation Fund, Harbor Mid Cap Growth Fund, Harbor Small Cap Growth Fund, Harbor Small Cap Growth Opportunities Fund, Harbor Large Cap Value Fund, Harbor Mid Cap Value Fund, and Harbor Small Cap Value Fund (seven of the portfolios constituting the Harbor Funds (the Trust)) as of October 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two periods in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Harbor Capital Appreciation Fund, Harbor Mid Cap Growth Fund, Harbor Small Cap Growth Fund, Harbor Small Cap Growth Opportunities Fund, Harbor Large Cap Value Fund, Harbor Mid Cap Value Fund, and Harbor Small Cap Value Fund of the Harbor Funds at October 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two periods in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Chicago, Illinois
December 21, 2016

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Harbor Domestic Equity Funds
Fees and Expenses Example (Unaudited)

Example

As a shareholder of a Fund, you incur two types of costs:(1) transaction costs, including redemption fees (if any) and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2016 through October 31, 2016.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses for each share class. You may use the information in the respective class line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of the respective class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table for each share class below provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the respective Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Annualized Expense Ratios*	Expenses Paid During Period**	Beginning Account Value May 1, 2016	Ending Account Value October 31, 2016
Harbor Capital Appreciation Fund
Institutional Class	0.64%
Actual		$3.31	$1,000	$1,057.50
Hypothetical (5% return)		3.25	1,000	1,021.84
Administrative Class	0.89%
Actual		$4.60	$1,000	$1,056.10
Hypothetical (5% return)		4.52	1,000	1,020.55
Investor Class	1.01%
Actual		$5.22	$1,000	$1,055.40
Hypothetical (5% return)		5.13	1,000	1,019.93
Retirement Class	0.59%
Actual		$3.06	$1,000	$1,057.60
Hypothetical (5% return)		3.00	1,000	1,022.10

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Harbor Domestic Equity Funds
Fees and Expenses Example—Continued

	Annualized Expense Ratios*	Expenses Paid During Period**	Beginning Account Value May 1, 2016	Ending Account Value October 31, 2016
Harbor Mid Cap Growth Fund
Institutional Class	0.85%
Actual		$4.37	$1,000	$1,048.90
Hypothetical (5% return)		4.32	1,000	1,020.76
Administrative Class	1.10%
Actual		$5.66	$1,000	$1,048.20
Hypothetical (5% return)		5.58	1,000	1,019.47
Investor Class	1.22%
Actual		$6.27	$1,000	$1,046.70
Hypothetical (5% return)		6.19	1,000	1,018.85
Retirement Class	0.80%
Actual		$4.12	$1,000	$1,050.20
Hypothetical (5% return)		4.06	1,000	1,021.01
Harbor Small Cap Growth Fund
Institutional Class	0.85%
Actual		$4.39	$1,000	$1,056.60
Hypothetical (5% return)		4.32	1,000	1,020.76
Administrative Class	1.10%
Actual		$5.68	$1,000	$1,055.10
Hypothetical (5% return)		5.58	1,000	1,019.47
Investor Class	1.22%
Actual		$6.30	$1,000	$1,054.50
Hypothetical (5% return)		6.19	1,000	1,018.85
Retirement Class	0.80%
Actual		$4.13	$1,000	$1,056.60
Hypothetical (5% return)		4.06	1,000	1,021.01
Harbor Small Cap Growth Opportunities Fund
Institutional Class	0.89%
Actual		$4.56	$1,000	$1,041.80
Hypothetical (5% return)		4.52	1,000	1,020.55
Administrative Class	1.13%
Actual		$5.79	$1,000	$1,039.70
Hypothetical (5% return)		5.74	1,000	1,019.31
Investor Class	1.26%
Actual		$6.46	$1,000	$1,040.10
Hypothetical (5% return)		6.39	1,000	1,018.64
Retirement Class	0.84%
Actual		$4.31	$1,000	$1,042.80
Hypothetical (5% return)		4.27	1,000	1,020.81

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Harbor Domestic Equity Funds
Fees and Expenses Example—Continued

	Annualized Expense Ratios*	Expenses Paid During Period**	Beginning Account Value May 1, 2016	Ending Account Value October 31, 2016
Harbor Large Cap Value Fund
Institutional Class	0.68%
Actual		$3.51	$1,000	$1,055.00
Hypothetical (5% return)		3.46	1,000	1,021.63
Administrative Class	0.93%
Actual		$4.81	$1,000	$1,053.70
Hypothetical (5% return)		4.72	1,000	1,020.34
Investor Class	1.05%
Actual		$5.42	$1,000	$1,053.60
Hypothetical (5% return)		5.33	1,000	1,019.73
Retirement Class	0.63%
Actual		$3.26	$1,000	$1,056.20
Hypothetical (5% return)		3.20	1,000	1,021.89
Harbor Mid Cap Value Fund
Institutional Class	0.84%
Actual		$4.31	$1,000	$1,042.90
Hypothetical (5% return)		4.27	1,000	1,020.81
Administrative Class	1.09%
Actual		$5.59	$1,000	$1,041.60
Hypothetical (5% return)		5.53	1,000	1,019.52
Investor Class	1.21%
Actual		$6.20	$1,000	$1,040.90
Hypothetical (5% return)		6.14	1,000	1,018.90
Retirement Class	0.79%
Actual		$4.06	$1,000	$1,042.90
Hypothetical (5% return)		4.01	1,000	1,021.07
Harbor Small Cap Value Fund
Institutional Class	0.86%
Actual		$4.47	$1,000	$1,069.00
Hypothetical (5% return)		4.37	1,000	1,020.70
Administrative Class	1.11%
Actual		$5.77	$1,000	$1,067.60
Hypothetical (5% return)		5.63	1,000	1,019.42
Investor Class	1.23%
Actual		$6.39	$1,000	$1,066.90
Hypothetical (5% return)		6.24	1,000	1,018.80
Retirement Class	0.81%
Actual		$4.21	$1,000	$1,069.40
Hypothetical (5% return)		4.11	1,000	1,020.96

*	Reflective of all fee waivers and expense reimbursements
**	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

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Harbor Domestic Equity Funds
Additional Information (Unaudited)

Additional Tax Information

The Funds designate the following portions of their distributions from investment company taxable income for the fiscal year as qualifying for the dividends received deduction for corporate shareholders.

	Percentage of Distribution
GROWTH FUNDS
Harbor Capital Appreciation Fund	100%
Harbor Mid Cap Growth Fund	—
Harbor Small Cap Growth Fund	—
Harbor Small Cap Growth Opportunities Fund	—
VALUE FUNDS
Harbor Large Cap Value Fund	100%
Harbor Mid Cap Value Fund	80
Harbor Small Cap Value Fund	100

Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the following capital gain dividends for the year ended October 31, 2016:

	Amount (000s)
GROWTH FUNDS
Harbor Capital Appreciation Fund	$1,879,831
Harbor Mid Cap Growth Fund	64,242
Harbor Small Cap Growth Fund	67,254
Harbor Small Cap Growth Opportunities Fund	2,482
VALUE FUNDS
Harbor Large Cap Value Fund	$ 9,651
Harbor Mid Cap Value Fund	8,713
Harbor Small Cap Value Fund	25,027

For the fiscal year ended October 31, 2016, the Funds designate up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2016, complete information will be reported in conjunction with Form 1099-DIV.

Shareholders who own shares through a taxable Harbor Funds account and that received distributions from a Fund during calendar year 2016 will receive a Form 1099-DIV in January 2017 that will show the tax character of those distributions.

Proxy Voting

Harbor Funds has adopted Proxy Voting Policies and Procedures under which the Funds vote proxies relating to securities held by the Funds. In addition, the Funds file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. A description of the Funds’ Proxy Voting Policies and Procedures and the Funds’ proxy voting record (Form N-PX) is available (i) without charge, upon request, by calling Harbor Funds toll-free at 800-422-1050; (ii) on the Funds’ website at harborfunds.com; and (iii) on the SEC’s website at sec.gov.

Householding

Harbor Funds has adopted a policy that allows it to send only one copy of a Fund’s prospectus, proxy material, annual report and semi-annual report to certain shareholders residing at the same household. This reduces Fund expenses, which benefits you and other shareholders. If you need additional copies or do not want your mailings to be “householded,” please call the Shareholder Servicing Agent at 800-422-1050. Individual copies will be sent within thirty (30) days after the Shareholder Servicing Agent receives your instructions. Your consent to householding is considered valid until revoked.

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Harbor Domestic Equity Funds
Additional Information—Continued

Quarterly Portfolio Disclosures

Harbor Funds files a complete portfolio of investments with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q is available (i) without charge, upon request, by calling Harbor Funds toll-free at 800-422-1050, (ii) on the Funds’ website at harborfunds.com, and (iii) on the SEC’s website at sec.gov. The form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may also be obtained by calling 800-SEC-0330.

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Harbor Domestic Equity Funds
Additional Information—Continued

Trustees and Officers

The business and affairs of the Trust shall be managed by or under the direction of the Trustees, and they shall have all powers necessary or desirable to carry out that responsibility. The Trustees shall have full power and authority to take or refrain from taking any action and to execute any contracts and instruments that they may consider necessary or desirable in the management of the Trust. Any determination made by the Trustees in good faith as to what is in the interests of the Trust shall be conclusive. Information pertaining to the Trustees and Officers of Harbor Funds is set forth below. The address of each Trustee and Officer is: [Name of Trustee or Officer] c/o Harbor Funds, 111 South Wacker Drive, 34th Floor, Chicago, IL 60606-4302.

The Harbor Fund’s Statement of Additional Information includes additional information about the Trust’s Trustees and is available without charge by calling 800-422-1050 or at the Trust’s website at harborfunds.com.

Name (Age) Position(s) with Fund	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past Five Years	Number of Portfolios In Fund Complex Overseen By Trustee	Other Directorships Of Public Companies and Other Registered Investment Companies Held by Trustee During Past Five Years
INDEPENDENT TRUSTEES
Scott M. Amero (53) Trustee	Since 2014	Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation non-profit); Trustee, Berkshire School (2014–Present); BlackRock, Inc., (publicly traded investment management firm) Vice Chairman and Global Chief Investment Officer, Fixed Income (2010), Vice Chairman and Global Chief Investment Officer, Fixed Income, and Co-Head, Fixed Income Portfolio Management (2007-2010).	29	None
Raymond J. Ball (71) Trustee	Since 2006	Sidney Davidson Distinguished Service Professor of Accounting, University of Chicago Booth School of Business (2000-Present); Academic Affiliate, Analysis Group (litigation consulting firm) (2000-Present); Financial Reporting Faculty Advisory Group of the Institute of Chartered Accountants in England and Wales (2008-Present); and Advisory Board of the Center for Accounting Research & Education at University of Notre Dame (2006-Present).	29	None
Donna J. Dean (64) Trustee	Since 2010	Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present).	29	None
Randall A. Hack (69) Trustee	Since 2010	Founder and Senior Managing Director of Capstone Capital LLC (a private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (a private equity firm) (2002-2013).	29	None
Robert Kasdin (58) Trustee	Since 2014	Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Trustee, The Metropolitan Museum of Art (2014-2015); Trustee, The Dalton School (2004-2014); Trustee, ARTstor Digital Library (a nonprofit digital images resource) (2013-2016); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014).	29	Director of Noranda Aluminum Holdings Corporation (2007-2014); Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present).
Ann M. Spruill (62) Trustee	Since 2014	Partner (1993-2008), Member of Executive Committee (1996-2008), Member Board of Directors (2002-2008), Grantham, Mayo, Van Otterloo & Co, LLC (private investment management firm) (with the firm since 1990); Member Investment Committee and Chair of Global Equities, Museum of Fine Arts, Boston (2000-Present); and Trustee, Financial Accounting Foundation (2014-Present).	29	None
INTERESTED TRUSTEE
David G. Van Hooser (70)* Chairman, Trustee and President	Since 2000	President (2002-Present), Director and Chairman of the Board (2000-Present), Harbor Capital Advisors, Inc.; Chief Executive Officer (2007-Present), Chief Financial Officer (2012-2015), Treasurer (2007-2012) and Director (2000-Present), Harbor Funds Distributors, Inc.; and Director (2000-Present), Harbor Services Group, Inc.	29	None

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Harbor Domestic Equity Funds
Additional Information—Continued

Trustees and Officers—Continued

Name (Age) Position(s) with Fund Address	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past Five Years
FUND OFFICERS NOT LISTED ABOVE^**
Charles F. McCain (47) Chief Compliance Officer	Since 2004	Executive Vice President and General Counsel (2004-Present) and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-Present), Harbor Services Group, Inc.; and Director, Executive Vice President and Chief Compliance Officer (2007-Present), Harbor Funds Distributors, Inc.
Anmarie S. Kolinski (45) Treasurer	Since 2007	Executive Vice President and Chief Financial Officer (2007-Present), Harbor Capital Advisors, Inc.; Chief Financial Officer (2007-Present), Harbor Services Group, Inc.; and Chief Financial Officer (2015-Present) and Treasurer (2012-Present), Harbor Funds Distributors, Inc.
Erik D. Ojala (41) Vice President and Secretary; AML Compliance Officer	Since 2007; Since 2010	Senior Vice President and Associate General Counsel (2007-Present) and Secretary (2010-Present), Harbor Capital Advisors, Inc.; and Assistant Secretary (2014-Present), Harbor Services Group, Inc.
Brian L. Collins (48) Vice President	Since 2005	Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc.
Charles P. Ragusa (57) Vice President	Since 2007	Executive Vice President (2007-Present), Harbor Capital Advisors, Inc.; President (2007-Present), Harbor Services Group, Inc.; and Executive Vice President and AML Compliance Officer (2007-Present), Harbor Funds Distributors, Inc.
Jodie L. Crotteau (44) Assistant Secretary	Since 2014	Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Assistant Secretary (2015-present), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); Vice President, Grosvenor Capital Management, L.P. (2010-2014); Assistant Secretary (2005-2010) and AML Compliance Officer (2007-2010), Harbor Funds; Vice President, Secretary and Compliance Director (2007-2010), Harbor Capital Advisors, Inc.; Assistant Secretary (2005-2010), Harbor Services Group, Inc.; and Assistant Secretary (2007-2010), Harbor Funds Distributors, Inc.
John M. Paral (47) Assistant Treasurer	Since 2013	Vice President (2012-Present) and Financial Reporting Manager (2007-Present), Harbor Capital Advisors, Inc.

¹	Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually.
*	Mr. Van Hooser is deemed an “Interested Trustee” due to his affiliation with the Adviser and Distributor of Harbor Funds.
**	Officers of the Funds are “interested persons” as defined in the Investment Company Act.

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This privacy statement is not part of this report

Harbor’s Privacy Statement

The following privacy statement is issued by Harbor Funds and each series of Harbor Funds and its affiliates, Harbor Capital Advisors, Inc., Harbor Services Group, Inc. and Harbor Funds Distributors, Inc. These measures reflect our commitment to maintaining the privacy of your confidential information. We appreciate the confidence you have shown by entrusting us with your assets.

Personal Information

It is our policy to respect the privacy of current and former shareholders and to protect personal information entrusted to us. We do not sell your personal information to anyone.

In the course of providing products and services, we collect non-public personal information about you from the following sources: applications, forms, our website (including any information captured through our use of “cookies”), through mobile applications, by telephone and in correspondence and transactions with us, our affiliates or other parties.

The non-public personal information collected may include name, address, e-mail address, telephone/fax numbers, account number, social security or taxpayer identification number, investment activity, and bank account information.

When you visit us through our website or a mobile application, we may collect technical and navigational information, such as computer browser type, Internet protocol address, pages visited and average time spent on our website. We may use this information to alert you to software compatibility issues, or to improve our web design and functionality. We use “cookies” and similar files that may be placed on your hard drive for security purposes, to facilitate site navigation and to personalize the appearance of our site.

Information Sharing

We occasionally disclose non-public personal information about our current or former shareholders with affiliated and non-affiliated parties, as permitted or required by law or regulation. In the normal course of servicing our shareholders, information we collect may be shared with non-affiliated companies that perform support services on our behalf or to other firms that assist us in providing you with products and services, such as custodians, transfer agents, broker-dealers and marketing service firms, as well as with other financial institutions. These companies may not use the information for any other purpose and we require them to keep the information they handle confidential. We may also share information with affiliates that are engaged in a variety of financial services in order to better service your account(s).

When information is shared with third parties, they are not permitted to use the information for any purpose other than to assist our servicing of your account(s) or as permitted by law.

If you close your account(s) or if we lose contact with you, we will continue to share information in accordance with our current privacy policy and practices.

Access to Information

Access to non-public personal information is limited to employees, agents or other parties who need to know that information to perform their jobs, such as servicing your account(s), resolving problems or informing you of new products or services.

Security

We maintain physical, electronic and procedural safeguards that comply with industry standards to protect your non-public personal information.

For shareholders accessing information through our website or a mobile application, various forms of Internet security, such as data encryption firewall barriers, user names and passwords, and other tools are used. For additional information regarding our security measures, visit the terms and conditions of use on our website at harborfunds.com. If you have any questions or concerns about how we maintain the privacy of your non-public personal information, please contact us at 800-422-1050 Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. Eastern time.

We recommend that you read and retain this notice for your personal files.

Eff. November 2013

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Glossary

12b-1 Fee—A mutual fund fee, named for the SEC rule that permits it, used to pay for broker-dealer compensation and other distribution costs. If a fund has a 12b-1 fee, it will be disclosed in the fee table of a fund’s prospectus.

ADR—ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

Average Market Capitalization—The average market capitalization of a fund’s equity portfolio gives you a measure of the size of the companies in which the fund invests. Market capitalization is calculated by multiplying the number of a company’s shares outstanding by its price per share.

Average Weighted Coupon—A calculation from a fund’s portfolio by weighting the coupon of each bond by its relative size in the portfolio.

Beta—A measure of market-related risk. The beta of every index is 1.00, no matter how volatile the index is. A beta less than one means the portfolio is less volatile than the index. A beta higher than one indicates more volatility than the index.

Bloomberg Barclays U.S. Aggregate Bond Index—The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of investment-grade fixed-rate debt issues with maturities of at least one year. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

Bloomberg Barclays U.S. TIPS Index—The Bloomberg Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation Protected Securities rated investment grade (Baa3 or better), have at least one year to final maturity, and at least $250 million par amount outstanding. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

Bloomberg Commodity Index Total Return^SM—The Bloomberg Commodity Index Total Return^SM is a broadly diversified index that tracks the commodities markets through commodity futures contracts. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

BofA Merrill Lynch All U.S. Convertibles Ex Mandatory Index—The BofA Merrill Lynch All U.S. Convertibles Ex Mandatory Index is broadly representative of the U.S. convertible securities market, consisting of publicly traded issues, denominated in U.S. dollars, of all credit qualities, and excluding mandatory (equity-linked) convertibles. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

BofA Merrill Lynch U.S. Dollar 3-Month LIBOR Constant Maturity Index—The BofA Merrill Lynch U.S. Dollar 3-Month LIBOR Constant Maturity Index tracks the performance of a synthetic asset paying Libor to a stated maturity. The index is based on the assumed purchase at par of a synthetic instrument having exactly its stated maturity and with a coupon equal to that day’s fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

BofA Merrill Lynch 3-Month U.S. Treasury Bill Index—The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is comprised of a single U.S. Treasury Bill issue purchased at the beginning of each month and held for a full month, at which time that issue is sold and rolled into a newly selected issue. The issue selected each month is that having a maturity date closest to, but not beyond 90 days from the rebalance date.

BofA Merrill Lynch U.S. High Yield Index—The BofA Merrill Lynch U.S. High Yield Index is an unmanaged index that tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. All bonds are U.S. dollar denominated and rated Split BBB and below. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

BofA Merrill Lynch U.S. Non-Distressed High Yield Index—The BofA Merrill Lynch U.S. Non-Distressed High Yield Index is a subset of the BofA Merrill Lynch U.S. High Yield Index including all securities with an option-adjusted spread less than 1,000 basis points. The unmanaged index does not reflect fees and expenses and is not available for direct investment.

Bottom-Up Equity Management Style—A management style that de-emphasizes the significance of economic and market cycles, focusing instead on the analysis of individual stocks.

Capital Gains Distribution—Profits distributed to shareholders resulting from the sale of securities held in the fund’s portfolio.

Credit Risk—The possibility that a bond issuer may not be able to pay interest and repay its debt.

CUSIP Number—Identification number assigned to every stock, corporate bond and municipal bond by the Committee on Uniform Securities Identification Procedures (CUSIP), which is established by the American Bankers Association.

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Glossary—Continued

Diversification—The practice of investing broadly across securities of a number of issuers to reduce risk.

Duration—A common gauge of the price sensitivity of a fixed income asset or portfolio to a change in interest rates.

Emerging Markets—Emerging markets are countries with relatively young stock and bond markets. Examples include Brazil and Thailand. Typically, emerging-markets investments have the potential for losses and gains larger than those of developed-market investments.

Expense Ratio—The Fund’s total annual operating expenses (including management fees, distribution (12b-1) fees and other expenses) expressed as a percentage of average net assets.

Family of Funds—A group of mutual funds, each typically with its own investment objective, managed and distributed by the same company.

GDR—GDR after the name of a holding stands for Global Depositary Receipt representing ownership of foreign securities. GDRs are issued by either U.S. or non-U.S. banking organizations.

Inception Date—The date on which the Fund commenced operations.

Investment Objective—The goal that an investor and mutual fund pursue together (e.g., current income, long-term capital growth, etc.).

Median Market Cap—An indicator of the size of companies in which a fund invests; the midpoint of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s assets have market capitalizations above the median, and the rest are below it.

MSCI All Country World Index—The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

MSCI All Country World Ex. U.S. (ND) Index—The MSCI All Country World Ex. U.S.is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global developed and emerging markets, excluding the United States. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

MSCI EAFE (ND) Index—The MSCI EAFE (ND) Index is an unmanaged index generally representative of major overseas stock markets. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

MSCI EAFE Small Cap (ND) Index—The MSCI EAFE Small Cap (ND) Index is an equity index which captures small cap representation across developed market countries around the world, excluding the U.S. and Canada. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

MSCI Emerging Markets (ND) Index—The MSCI Emerging Markets (ND) Index is a market capitalization weighted index of equity securities in more than 20 emerging market economies. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

MSCI World (ND) Index—The MSCI World (ND) Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

Net Asset Value (NAV)—The per share value of a mutual fund, determined by subtracting the fund’s liabilities from its assets and dividing by the number of shares outstanding. Mutual funds calculate their NAVs at least once each business day.

No-Load Fund—A mutual fund whose shares are sold without a sales commission and without a 12b-1 fee of more than 0.25% per year. Harbor funds are no-load.

Open-End Investment Company—The legal name for a mutual fund, indicating that it stands ready to redeem (buy back) its shares from investors on any business day. Harbor Funds is an open-end investment company.

Operating Expenses—Business costs paid from a fund’s assets before earnings are distributed to shareholders. These include management fees and 12b-1 fees and other expenses.

Portfolio Manager—A specialist employed by a mutual fund’s adviser or subadviser to invest the fund’s assets in accordance with predetermined investment objectives.

Portfolio Turnover—A measure of the trading activity in a fund’s investment portfolio (how often securities are bought and sold by a fund). Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors).

Table of Contents

Glossary—Continued

Price to Book Ratio (P/B)—A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value. For a fund, the weighted average price/book ratio of the stocks it holds.

Price to Earnings Ratio (P/E)—The ratio of a stock’s current price to its per-share earnings over the past year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market expectations about corporate prospects; the higher the P/E, the greater the market expectations are for a company’s future growth.

Prospectus—The official document that describes a mutual fund to prospective investors. The prospectus contains information required by the SEC, such as investment objectives and policies, risks, services and fees.

Record Date—The date on which a shareholder must officially own shares in order to be entitled to a dividend.

Redemption Fee—Fee charged to shareholders by a mutual fund when they sell shares within a specified period after purchase. The time limit and size of fee vary among funds. The fee is paid to the fund, not the fund’s investment adviser. Its purpose is to protect long-term investors from the impact of short-term traders.

REITs (Real Estate Investment Trust)—REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund.

Repurchase Agreement (Repo)—A form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. For the party selling the security (and agreeing to repurchase it in the future), it is a repo. For the party on the other end of the transaction (buying the security and agreeing to sell back in the future), it is a reverse repurchase agreement.

Risk/Reward (or Return)—The relationship between the degree of risk associated with an investment and its return potential. Typically, the higher the potential return of an investment, the greater the risk.

Russell 1000^® Growth Index—The Russell 1000^® Growth Index is an unmanaged index generally representative of the U.S. market for larger capitalization growth stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 1000^® Growth Index and Russell^® are trademarks of Frank Russell Company.

Russell 1000^® Value Index—The Russell 1000^® Value Index is an unmanaged index generally representative of the U.S. market for larger capitalization value stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 1000^® Value Index and Russell^® are trademarks of Frank Russell Company.

Russell 2000^® Index—The Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000^® Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000^® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 3000^® Index and Russell^® are trademarks of Frank Russell Company.

Russell 2000^® Growth Index—The Russell 2000^® Growth Index is an unmanaged index representing the smallest 2,000 stocks with the highest price-to-book ratio and future earnings. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 2000^® Growth Index and Russell^® are trademarks of Frank Russell Company.

Russell 2000^® Value Index—The Russell 2000^® Value Index is an unmanaged index representing the smallest 2,000 stocks with the lowest price-to-book ratio and future earnings. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 2000^® Value Index and Russell^® are trademarks of Frank Russell Company.

Russell 3000^® Index—The Russell 3000^® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000^® Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 3000^® Index and Russell^® are trademarks of Frank Russell Company.

100

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Glossary—Continued

of the broad growth market. The index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 3000^® Growth Index and Russell^® are trademarks of Frank Russell Company.

Russell 3000^® Value Index—The Russell 3000^® Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000^® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000^® Value Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad value market. The index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 3000^® Value Index and Russell^® are trademarks of Frank Russell Company.

Russell Midcap^® Growth Index—The Russell Midcap^® Growth Index is an unmanaged index generally representative of the U.S. market for medium capitalization growth stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell Midcap^® Growth Index and Russell^® are trademarks of Frank Russell Company.

Russell Midcap^® Value Index—The Russell Midcap^® Value Index is an unmanaged index generally representative of the U.S. market for medium capitalization value stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell Midcap^® Value Index and Russell^® are trademarks of Frank Russell Company.

S&P 500 Index—The S&P 500 Index is an unmanaged index generally representative of the U.S. stock market. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

Statement of Additional Information (SAI)—The supplementary document to a prospectus that contains more detailed information about a mutual fund; also known as “Part B” of a fund’s registration statement.

TBAs—A term used to describe a forward mortgage-backed securities trade. Pass-through securities issued by Freddie Mac, Fannie Mae and Ginnie Mae trade in the TBA market. The term TBA is derived from the fact that the actual mortgage- backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made. The securities are “to be announced” 48 hours prior to the established trade settlement date.

Treasury Inflation-Protected Securities (TIPS)—TIPS are securities in which the principal amount is adjusted for inflation and interest payments are applied to the inflation-adjusted principal.

Top-Down Equity Management Style—Investment style that begins with an assessment of the overall economic environment and makes a general asset allocation decision regarding various sectors of the financial markets and various industries.

Total Return—Return on an investment over a specified period, including price appreciation (or depreciation) plus any income, expressed as an average annual compound of return.

Weighted Average Duration—Duration is a time measure of a bond’s interest-rate sensitivity, based on the weighted average of the time periods over which a bond’s cash flows accrue to the bondholder. Time periods are weighted by multiplying by the present value of its cash flow divided by the bond’s price. (A bond’s cash flows consist of coupon payments and repayment of capital.) A bond’s duration will almost always be shorter than its maturity, with the exception of zero-coupon bonds, for which maturity and duration are equal.

Weighted Average Maturity—The average length of time until principal must be repaid for all bonds in a mutual fund portfolio on a dollar weighted basis.

Yield—A measure of net income (dividends and interest) earned by the securities in the fund’s portfolio less fund expenses during a specified period. A fund’s yield is expressed as a percentage of the maximum offering price per share on a specified date.

Yield to Maturity—The term used to describe the rate of return an investor will receive if a long-term, interest-bearing security, such as a bond, is held to its maturity date. Yield to maturity is greater than the coupon rate if the bond is selling at a discount and less than the coupon rate if it is selling at a premium.

101

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Notes

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Notes

Table of Contents

111 South Wacker Drive, 34th Floor

Chicago, IL 60606-4302

800-422-1050

harborfunds.com

Trustees & Officers

David G. Van Hooser
Chairman, President & Trustee

Scott M. Amero
Trustee

Raymond J. Ball
Trustee

Donna J. Dean
Trustee

Randall A. Hack
Trustee

Robert Kasdin
Trustee

Ann M. Spruill
Trustee

Charles F. McCain
Chief Compliance Officer

Anmarie S. Kolinski
Treasurer

Erik D. Ojala
Vice President, Secretary &
AML Compliance Officer

Brian L. Collins
Vice President

Charles P. Ragusa
Vice President

Jodie L. Crotteau
Assistant Secretary

John M. Paral
Assistant Treasurer

Investment Adviser

Harbor Capital Advisors, Inc.
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400

Distributor & Principal Underwriter

Harbor Funds Distributors, Inc.
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600

Shareholder Servicing Agent

Harbor Services Group, Inc.
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050

Custodian

State Street Bank & Trust Company
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900

FD.AR.DE.1016

Annual Report

October 31, 2016

International & Global Funds

	Institutional Class	Administrative Class	Investor Class	Retirement Class
Harbor International Fund	HAINX	HRINX	HIINX	HNINX
Harbor Diversified International All Cap Fund	HAIDX	HRIDX	HIIDX	HNIDX
Harbor International Small Cap Fund	HAISX	HRISX	HIISX	HNISX
Harbor International Growth Fund	HAIGX	HRIGX	HIIGX	HNGFX
Harbor Global Growth Fund	HGGAX	HRGAX	HGGIX	HNGIX
Harbor Emerging Markets Equity Fund	HAEMX	HREMX	HIEEX	HNEMX

Table of Contents

Annual Report Overview	1
Letter from the Chairman	3
Harbor International Fund
Managers' Commentary	5
Fund Summary	7
Fund Performance Summary	8
Portfolio of Investments	9
Harbor Diversified International All Cap Fund
Managers' Commentary	13
Fund Summary	15
Fund Performance Summary	16
Portfolio of Investments	17
Harbor International Small Cap Fund
Managers' Commentary	24
Fund Summary	26
Fund Performance Summary	27
Portfolio of Investments	28
Harbor International Growth Fund
Managers' Commentary	32
Fund Summary	34
Fund Performance Summary	35
Portfolio of Investments	36
Harbor Global Growth Fund
Manager’s Commentary	39
Fund Summary	41
Fund Performance Summary	42
Portfolio of Investments	43
Harbor Emerging Markets Equity Fund
Managers' Commentary	45
Fund Summary	47
Fund Performance Summary	48
Portfolio of Investments	49
Financial Statements
Statements of Assets and Liabilities	53
Statements of Operations	54
Statements of Changes In Net Assets	55
Financial Highlights	61
Notes to Financial Statements	71
Report of Independent Registered Public Accounting Firm	83
Fees and Expenses Example	84
Additional Information
Additional Tax Information	87
Proxy Voting	87
Householding	87
Quarterly Portfolio Disclosures	87
Trustees and Officers	88
Harbor’s Privacy Statement	90
Glossary	91

This document must be preceded or accompanied by a Prospectus.

Table of Contents

Harbor International & Global Funds
Annual Report Overview (Unaudited)

	Total Return Year Ended October 31, 2016
HARBOR INTERNATIONAL & GLOBAL FUNDS	Institutional Class	Administrative Class	Investor Class	Retirement Class
Harbor International Fund	-3.74%	-3.97%	-4.09%	-3.70% ^a
Harbor Diversified International All Cap Fund	-2.25 ^b	-2.49 ^b	-2.60 ^b	-2.25 ^a
Harbor International Small Cap Fund	7.70 ^c	7.50 ^c	7.40 ^c	7.70 ^c
Harbor International Growth Fund	2.46	2.21	2.15	2.54 ^a
Harbor Global Growth Fund	-3.90	-4.17	-4.25	-3.90 ^a
Harbor Emerging Markets Equity Fund	9.99	9.81	9.69	9.99 ^a

COMMONLY USED MARKET INDICES	Total Return Year Ended October 31, 2016
MSCI EAFE (ND) (international equity)	-3.23%
MSCI All Country World Ex. U.S. (ND) (global equity)	0.22
MSCI EAFE Small Cap (ND) (international equity)	10.93 ^c
MSCI All Country World (ND) (global equity)	2.05
MSCI Emerging Markets (ND) (global equity)	9.27

a	Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
b	For the period November 2, 2015 (inception) through October 31, 2016.
c	For the period February 1, 2016 (inception) through October 31, 2016.

Table of Contents

Harbor International & Global Funds
Annual Report Overview—Continued

	EXPENSE RATIOS¹					Morningstar Average² (Unaudited)
INTERNATIONAL AND GLOBAL FUNDS	2012	2013	2014	2015	2016	Morningstar Average² (Unaudited)
Harbor International Fund
Institutional Class	0.77%	0.74%	0.73%	0.74%	0.77%	0.97%
Administrative Class	1.02	0.99	0.98	0.99	1.02	1.32
Investor Class	1.14	1.11	1.10	1.11	1.14	1.34
Retirement Class	N/A	N/A	N/A	N/A	0.72 ^a	0.88
Harbor Diversified International All Cap Fund
Institutional Class	N/A	N/A	N/A	N/A	0.85% ^b	0.97%
Administrative Class	N/A	N/A	N/A	N/A	1.10 ^b	1.32
Investor Class	N/A	N/A	N/A	N/A	1.22 ^b	1.34
Retirement Class	N/A	N/A	N/A	N/A	0.80 ^a	0.88
Harbor International Small Cap Fund
Institutional Class	N/A	N/A	N/A	N/A	0.95% ^c	1.26%
Administrative Class	N/A	N/A	N/A	N/A	1.20 ^c	1.59
Investor Class	N/A	N/A	N/A	N/A	1.32 ^c	1.62
Retirement Class	N/A	N/A	N/A	N/A	0.90 ^c	1.07
Harbor International Growth Fund
Institutional Class	0.87%	0.89%	0.85%	0.85%	0.85%	1.00%
Administrative Class	1.12	1.14	1.10	1.10	1.10	1.33
Investor Class	1.24	1.26	1.22	1.22	1.22	1.38
Retirement Class	N/A	N/A	N/A	N/A	0.80 ^a	0.91
Harbor Global Growth Fund
Institutional Class	0.96%	0.90%	0.90%	0.90%	0.90%	0.98%
Administrative Class	1.21	1.15	1.15	1.15	1.15	1.27
Investor Class	1.30	1.27	1.27	1.27	1.27	1.35
Retirement Class	N/A	N/A	N/A	N/A	0.85 ^a	0.86
Harbor Emerging Markets Equity Fund
Institutional Class	N/A	N/A	1.25%	1.17%	1.15%	1.27%
Administrative Class	N/A	N/A	1.50	1.43	1.40	1.64
Investor Class	N/A	N/A	1.62	1.55	1.52	1.63
Retirement Class	N/A	N/A	N/A	N/A	1.10 ^a	1.16

1	Harbor Funds’ expense ratios are for the fiscal years ended October 31 (unless otherwise noted) and are shown net of all expense offsets, waivers and reimbursements (see Financial Highlights).
2	The Morningstar Average includes all actively managed no-load funds in the October 31, 2016 Morningstar Universe with the same investment style as the comparable Harbor Fund’s portfolio and with the following additional characteristics for each Harbor Funds share class: Institutional Class contains funds with 12b-1 fees less than or equal to 0.25%; Administrative Class contains funds with 12b-1 fees and which are restricted primarily for use by retirement plans; Investor Class contains funds with 12b-1 fees and a minimum investment less than $50,000; and Retirement Class contains funds with no 12b-1 fees and which are restricted primarily for use by retirement plans.
a	Annualized figures for the period March 1, 2016 (commencement of operations) through October 31, 2016.
b	Annualized figures for the period November 2, 2015 (inception) through October 31, 2016.
c	Annualized figures for the period February 1, 2016 (inception) through October 31, 2016.

Table of Contents

Letter from the Chairman

David G. Van Hooser
Chairman

Dear Fellow Shareholder:

International markets were generally flat in the aggregate in the fiscal year ended October 31, 2016. The MSCI All Country World Ex U.S. (ND) Index had a return of 0.22%. Global markets, which include the U.S., had modest positive returns.

International markets declined early in fiscal 2016 over concerns about slowing growth in China, weak commodity prices and the strong U.S. dollar. The Chinese government provided additional stimulus to strengthen the Chinese economy which eased concerns about slowing growth. Concerns about growth in Europe and the potential long term effects of the Brexit vote weighed on European equities during the year.

After falling sharply in the first quarter of the fiscal year, commodity prices started to strengthen in the second quarter which helped shares of companies in resource rich countries. The rebounding commodity and currency prices and strong inflows into emerging markets helped emerging markets post the strongest returns among the international markets.

Comments by the portfolio managers of each Harbor international and global equity fund can be found in the pages preceding each Fund’s portfolio of investments. As always, we recommend that shareholders maintain a long-term perspective in evaluating all of their investments, including Harbor Funds.

	Returns For Periods Ended October 31, 2016
		Annualized
International & Global	1 Year	5 Years	10 Years	30 Years
MSCI EAFE (ND) (foreign stocks)	-3.23%	4.99%	1.22%	5.90%
MSCI EAFE Small Cap (ND) (foreign small cap stocks)	2.98	8.91	3.72	N/A
MSCI World (ND) (global stocks)	1.18	9.03	3.89	7.40
MSCI All Country World Ex. U.S. (ND) (foreign stocks)	0.22	3.63	1.61	N/A
MSCI Emerging Markets (ND) (emerging markets stocks)	9.27	0.55	3.49	N/A
Domestic Equities
Russell 3000^® (entire U.S. stock market)	4.24%	13.35%	6.76%	9.87%
S&P 500 (large cap stocks)	4.51	13.57	6.70	9.95
Russell Midcap^® (mid cap stocks)	4.17	13.12	7.55	11.23
Russell 2000^® (small cap stocks)	4.11	11.51	5.96	9.01
Russell 3000^® Growth (growth stocks)	2.08	13.47	8.11	9.31
Russell 3000^® Value (value stocks)	6.55	13.17	5.31	10.06
Strategic Markets
Bloomberg Commodity Index Total Return^SM(commodities)	-2.62%	-10.61%	-5.81%	N/A
Fixed Income
BofA Merrill Lynch U.S. Non-Distressed High-Yield (domestic high-yield bonds)	8.21%	7.16%	6.51%	N/A
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds)	4.37	2.90	4.64	6.48%
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds)	5.89	1.47	4.46	N/A
BofA Merrill Lynch 3-Month U.S. Treasury Bill (proxy for money market returns)	0.31	0.11	0.88	3.54

Harbor Funds Trustee Retires

Start Investing As Early As Possible

Table of Contents

We suggest each investor invest in a diversified asset allocation of stocks, bonds and cash that is consistent with your long term financial objectives and a level of risk that you find acceptable. While we know it is not always possible to invest as much as you would like for future needs, we encourage all investors to start as early as possible to save and invest for retirement and other long term financial goals. Financial markets are volatile and stocks and bonds can go up and down in value. While past performance is never a guarantee of future results, over the long term, the returns of equities and debt have historically helped many investors achieve their financial objectives. For those investors investing for retirement, we suggest you consider the following:

1.	If you have a defined contribution retirement plan where you work, if possible, invest at least as much as necessary to obtain any company match;
2.	If you can do so, invest the maximum permitted each year in an individual retirement account; and
3.	Invest in a taxable account so you have other assets to tap for emergencies or other situations where you would prefer not to disturb your longer term investments.

Thank you for investing with Harbor Funds.

December 21, 2016

David G. Van Hooser

Chairman

Table of Contents

Harbor International Fund
Managers' Commentary (Unaudited)

Subadviser

Northern Cross, LLC

125 Summer Street
Suite 1410

Boston, MA 02110

Portfolio Managers

Howard Appleby, CFA
Since 2009

Jean-Francois Ducrest
Since 2009

James LaTorre, CFA
Since 2009

Northern Cross, LLC has subadvised the Fund since 2009.

Investment Objective

Long-term total return, principally from growth of capital

Principal Style Characteristics

International large cap value oriented stocks

Howard Appleby, CFA

Jean-Francois Ducrest

James LaTorre, CFA

Management’s Discussion of
Fund Performance

MARKET REVIEW

Shares of companies based in developed overseas markets finished lower in fiscal 2016, as the MSCI EAFE (ND) Index recorded a return of -3.23% for the 12-months ended October 31, 2016. (All international and global returns are in U.S. dollars.)

Foreign stocks generally declined sharply in the first four months of the period, as concerns surrounding potentially aggressive monetary tightening by global policy makers, weakness in China, low oil prices and strength in the U.S. dollar weighed on investors. But by the end of the first half of fiscal 2016, shares had recovered much of those losses, as officials at several central banks moved toward easing and oil prices rebounded. Share prices declined sharply again in June, surrounding Brexit, the United Kingdom’s decision to leave the European Union. Then, once again stocks recovered the bulk of those losses over the last four months of the period. The index declined in October, as uncertainty surrounding Brexit’s impact lingered in the U.K. and Europe.

For U.S.-based investors, the performance of international equities also was diminished by continued strength in the U.S. dollar, which lowered MSCI EAFE (ND) Index returns by more than one percentage point.

In this environment, sector performance within the benchmark was divergent over the period. With rising commodity prices, Materials had the strongest performance of any sector, while Energy, Information Technology and Industrials also outperformed their sector peers. Conversely, Health Care and Financials were the worst performers in the benchmark, followed by Consumer Discretionary. From a country perspective, New Zealand and Australia were by far the strongest markets for the period. Shares of China- and Italy-based companies had the weakest returns, though more modest but still substantial losses in the U.K. and Switzerland hindered index performance the most.

PERFORMANCE

Harbor International Fund returned -3.74% (Institutional Class), -3.97% (Administrative Class), -4.09% (Investor Class), and -3.70% (Retirement Class) for fiscal 2016, lagging the -3.23% return of the MSCI EAFE (ND) Index. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses. From a longer-term perspective, the Fund continued to outperform the benchmark since its inception in 1987 and for the 10 years ended October 31, 2016.

Holdings in the Consumer Discretionary and Information Technology sectors were the strongest contributors to the Fund’s absolute returns for fiscal 2016, but those gains were more than offset by substantial detraction from the Health Care and Financials sectors.

Stock selection in the Consumer Discretionary sector substantially boosted Fund returns relative to the index in fiscal 2016, with a lesser contribution from holdings in Information Technology. Stock selection added value overall, though substantial underperformance in the Fund’s Health Care and Real Estate holdings hurt relative performance. Overall, sector

Table of Contents

Harbor International Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of Net Assets)
Las Vegas Sands Corp.	5.9%
Schlumberger Ltd.	3.7%
Shire plc	2.8%
Wynn Resorts Ltd.	2.8%
Roche Holding AG	2.7%
Novartis AG	2.5%
Alibaba Group Holding Ltd. ADR	2.4%
Essilor International SA	2.4%
Novo Nordisk AS	2.4%
Tokio Marine Holdings Inc.	2.4%

allocation weighed on relative results for the period, more than offsetting the positive impact of security selection. Above-index exposure to Health Care—the benchmark’s worst-performing sector—weighed significantly on relative performance, while below-benchmark exposure to Industrials also hurt relative returns.

Strength in Consumer Discretionary was driven primarily by positions in out of index holdings Las Vegas Sands Corp. and Wynn Resorts Ltd., casino operators that both derive a majority of their revenues from operations in Macao. Both benefited early in the period from a stabilization in that market after a slowdown that resulted from a government-led crackdown on corruption, as well as strong results during the period. Las Vegas Sands, the Fund’s largest holding and strongest overall contributor for the period, reported year-over-year growth in mass market gaming results as well as higher margins and declining costs. Other top contributors included an out of benchmark position in China-based e-commerce firm Alibaba Group Holding Ltd., and two Materials holdings, Swiss seeds and pesticides group Syngenta AG, which was sold from the Fund during the period, and Canada-based gold miner Barrick Gold Corp.

Several holdings in the Health Care sector were among the top individual detractors from Fund performance, including Danish diabetes care specialty pharmaceutical company Novo Nordisk AS, Irish drug maker Shire plc and Switzerland-based drug maker Novartis AG. We continued to be confident in the long-term secular growth trends for insulin products, a business in which Novo Nordisk enjoys high market share, strong pricing power and a substantial R&D pipeline. In the Financials sector, positions in U.K.-based bank Lloyds Banking Group plc and Swiss financial services firm UBS Group AG were among the notable detractors.

OUTLOOK & STRATEGY

As of October 31, 2016, the Fund’s biggest overweights relative to the MSCI EAFE (ND) Index were in the Health Care, Consumer Discretionary and Consumer Staples sectors. The biggest underweights included Telecommunication Services and Utilities, where the Fund had no exposure, and the Industrials sector. Relative to the benchmark, the Fund’s largest country overweights were in the United States, France and Switzerland, while the biggest underweights were in Japan, Australia and the United Kingdom. Sector and country exposures are primarily a reflection of our bottom-up stock selection process rather than a major element of investment strategy.

A key element of our investment philosophy is a focus on finding companies with long-term catalysts, a process that we believe leads to consistency and sustainability of individual stock performance. We believe that thorough and patient due diligence allows us to truly understand companies and industries, using fundamental research to invest in companies that will deliver long-term profit-margin expansion. In a slow-growth, global environment, we believe that companies across all sectors will increasingly look for ways to improve operating efficiency.

The Fund’s investments are focused on global franchises that can or do dominate an existing market segment or industry, and should be able to demonstrate pricing power despite slow macroeconomic growth. In addition, many of these companies have well-established positions in major developing economies. While the gap between growth in emerging markets and the developed world is not as wide as it once was, we believe there is room for growth in selected markets, including Colombia, where the Fund has out of benchmark exposure, and through investing in multinational firms with exposure to and opportunity in those markets.

This report contains the current opinions of Northern Cross, LLC as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

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. For information on the different share classes and the risks associated with an investment in the Fund, please refer to the current prospectus.

Table of Contents

Harbor International Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2011
Cusip	411511306
Ticker	HAINX
Inception Date	12/29/1987
Net Expense Ratio	0.77% ^b
Total Net Assets (000s)	$33,201,899

ADMINISTRATIVE CLASS

Fund #	2211
Cusip	411511652
Ticker	HRINX
Inception Date	11/01/2002
Net Expense Ratio	1.02% ^b
Total Net Assets (000s)	$510,575

INVESTOR CLASS

Fund #	2411
Cusip	411511645
Ticker	HIINX
Inception Date	11/01/2002
Net Expense Ratio	1.14% ^b
Total Net Assets (000s)	$2,188,360

RETIREMENT CLASS

Fund #	2511
Cusip	411512445
Ticker	HNINX
Inception Date	03/01/2016
Net Expense Ratio	0.72% ^a,b
Total Net Assets (000s)	$739,842

Portfolio Statistics

	Portfolio	Benchmark
Number of Countries	16	24
Weighted Average Market Cap (MM)	$62,830	$52,557
Price/Earning Ratio (P/E)	22.7x	21.2x
Price/Book Ratio (P/B)	2.6x	2.2x
Beta vs. MSCI EAFE (ND) Index	1.03	1.00
Portfolio Turnover (Year Ended 10/31/2016)	14%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

REGION BREAKDOWN (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects a contractual management fee waiver effective through February 28, 2017.

Table of Contents

Harbor International Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the MSCI EAFE (ND) Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor International Fund
Institutional Class	-3.74%	4.23%	3.02%	12/29/1987	$67,304
Administrative Class	-3.97	3.96	2.76	11/01/2002	65,629
Investor Class	-4.09	3.84	2.64	11/01/2002	64,855
Retirement Class¹	-3.70	4.23	3.02	03/01/2016	67,327
Comparative Index
MSCI EAFE (ND)	-3.23%	4.99%	1.22%	—	$56,461

As stated in the Fund’s current prospectus, the expense ratios were 0.76% (Net) and 0.78% (Gross) (Institutional Class); 1.01% (Net) and 1.03% (Gross) (Administrative Class); 1.13% (Net) and 1.15% (Gross) (Investor Class); and 0.71% (Net) and 0.73% (Gross). The net expense ratios reflect a contractual management fee waiver through 02/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor International Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 2.6%)

COMMON STOCKS—97.3%
Shares			Value
AEROSPACE & DEFENSE—1.9%
	78,677,129	Rolls-Royce Holdings plc (UK)^*	$ 698,387
AUTO COMPONENTS—2.1%
	6,935,568	Cie Generale des Etablissements Michelin (FR)	751,178
BANKS—8.4%
	91,386,031	Banco Bilbao Vizcaya Argentaria SA (SP)	657,859
	13,262,775	Bancolombia SA ADR (COL)¹	507,699
	17,035,274	Erste Group Bank AG (AUT)^*	534,206
	894,029,107	Lloyds Banking Group plc (UK)	624,321
	86,945,225	Standard Chartered plc (UK)^*	756,068
			3,080,153
BEVERAGES—8.7%
	9,204,000	AmBev SA (BR)	54,296
	9,366,608	AmBev SA ADR (BR)¹	55,263
	6,866,741	Anheuser-Busch InBev SA (BEL)	788,094
	25,448,472	Diageo plc (UK)	677,350
	9,599,541	Heineken NV (NET)	790,697
	6,839,263	Pernod Ricard SA (FR)²	813,348
			3,179,048
BIOTECHNOLOGY—2.8%
	18,100,996	Shire plc (UK)	1,022,031
CAPITAL MARKETS—1.7%
	44,823,480	UBS Group AG (SWS)^*	633,699
CHEMICALS—4.2%
	8,121,948	Bayer AG (GER)	806,425
	4,369,880	Linde AG (GER)	721,758
			1,528,183
CONSTRUCTION MATERIALS—2.5%
	79,338,778	Cementos Argos SA (COL)	314,001

COMMON STOCKS—Continued
Shares			Value
CONSTRUCTION MATERIALS—Continued
	17,363,939	Grupo Argos SA (COL)	$ 112,611
	9,005,372	LafargeHolcim Ltd. (SWS)^*	480,353
			906,965
DIVERSIFIED FINANCIAL SERVICES—1.9%
	9,677,533	Grupo Aval Acciones y Valores SA ADR (COL)¹	79,259
	15,540,124	Grupo de Inversiones Suramericana SA (COL)	200,429
	11,894,418	Investor AB (SW)	422,399
			702,087
ELECTRICAL EQUIPMENT—1.6%
	8,488,747	Schneider Electric SE (FR)	570,869
ENERGY EQUIPMENT & SERVICES—3.7%
	17,181,154	Schlumberger Ltd. (US)	1,344,082
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—3.5%
	25,944,435	British Land Co. plc (UK)	185,746
	13,006,336	Great Portland Estates plc (UK)	94,373
	16,537,295	Land Securities Group plc (UK)	201,930
	3,412,247	Unibail-Rodamco SE (FR)	809,948
			1,291,997
FOOD PRODUCTS—2.2%
	11,340,118	Nestlé SA (SWS)	822,316
HEALTH CARE EQUIPMENT & SUPPLIES—3.5%
	7,942,155	Essilor International SA (FR)	892,487
	9,736,000	Hoya Corp. (JP)	406,225
			1,298,712
HEALTH CARE PROVIDERS & SERVICES—1.5%
	7,499,339	Fresenius SE & Co. KGaA (GER)	554,105
HOTELS, RESTAURANTS & LEISURE—8.8%
	3,827,900	Genting Bhd (MAL)	7,153
	37,649,814	Las Vegas Sands Corp. (US)	2,179,171
	11,304,800	MGM China Holdings Ltd. (CHN)	18,651
	10,735,499	Wynn Resorts Ltd. (US)	1,015,042
			3,220,017
HOUSEHOLD PRODUCTS—1.9%
	7,594,733	Reckitt Benckiser Group plc (UK)	679,429
INSURANCE—5.7%
	3,902,115	Allianz SE (GER)	609,136
	27,138,472	AXA SA (FR)	612,307
	22,001,500	Tokio Marine Holdings Inc. (JP)	867,813
			2,089,256
INTERNET SOFTWARE & SERVICES—2.4%
	8,460,940	Alibaba Group Holding Ltd. ADR (CHN)^*,1	860,393
MACHINERY—5.1%
	24,786,938	Atlas Copco AB (SW)	726,135
	3,428,300	FANUC Corp. (JP)	627,679
	1,146,000	SMC Corp. (JP)	332,197
	9,390,374	Weir Group plc (UK)	195,064
			1,881,075
MEDIA—4.9%
	9,210,600	Dentsu Inc. (JP)	459,141
	7,534,763	JCDecaux SA (FR)	230,428
	6,469,531	Liberty Global plc Class A (UK)^*	210,907

Table of Contents

Harbor International Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
MEDIA—Continued
	5,819,873	Liberty Global plc Class C (UK)^*	$ 185,072
	620,456	Liberty Global plc LiLAC Class A (UK)^*	17,149
	733,898	Liberty Global plc LiLAC Class C (UK)^*	20,285
	33,712,339	Vivendi SA (FR)	682,356
			1,805,338
METALS & MINING—1.2%
	9,920,511	Barrick Gold Corp. (CAN)	174,502
	22,574,324	Freeport-McMoRan Inc. (US)^*	252,381
			426,883
PERSONAL PRODUCTS—1.9%
	3,976,187	L'Oreal SA (FR)	712,370
PHARMACEUTICALS—8.1%
	46,405,814	Indivior plc (UK)	178,230
	12,801,186	Novartis AG (SWS)	908,469
	24,798,250	Novo Nordisk AS (DEN)	883,450
	4,263,652	Roche Holding AG (SWS)	979,282
			2,949,431
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.5%
	5,347,947	ASML Holding NV (NET)	565,780
SOFTWARE—1.7%
	7,122,643	SAP SE (GER)	627,501
TEXTILES, APPAREL & LUXURY GOODS—2.4%
	8,165,772	Cie Financiere Richemont SA (SWS)²	524,976
	151,167	Hermes International SA (FR)	61,239
	999,686	Swatch Group AG (SWS)	300,662
			886,877
TOBACCO—1.5%
	14,484,400	Japan Tobacco Inc. (JP)	550,699
TOTAL COMMON STOCKS
(Cost $29,668,671)			35,638,861

PREFERRED STOCKS—0.1%
AEROSPACE & DEFENSE—0.0%
	3,683,056,424	Rolls-Royce Holdings plc (UK)^*	4,508 ^x
DIVERSIFIED FINANCIAL SERVICES—0.1%
	3,487,318	Grupo de Inversiones Suramericana SA (COL)	44,073
TOTAL PREFERRED STOCKS
(Cost $51,194)			48,581

SHORT-TERM INVESTMENTS—3.2%
Principal Amount			Value
COMMERCIAL PAPER—1.8%^†
		GE Capital Treasury
$	50,000	0.000%—11/08/2016	$ 50,000
		General Electric Co.
	350,000	0.000%—11/08/2016-11/10/2016	350,000
	150,000	0.000%—11/07/2016	150,000
			500,000
		Toyota Motor Credit
	50,000	0.000%—11/18/2016	50,000
	50,000	0.000%—11/23/2016	50,000
			100,000
			650,000
REPURCHASE AGREEMENTS—0.5%
	194,854	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by U.S. Treasury Bonds (market value $198,751)	194,854
Shares
INVESTMENT COMPANY-SECURITIES LENDING INVESTMENT FUND—0.9%
	330,060,267	State Street Navigator Securities Lending Government Money Market Portfolio (1-day yield of 0.27%)³	330,060
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,174,914)			1,174,914
TOTAL INVESTMENTS—100.6%
(Cost $30,894,779)			36,862,356
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.6)%			(221,680)
TOTAL NET ASSETS—100.0%			$36,640,676

RIGHTS/WARRANTS OPEN AT OCTOBER 31, 2016

Description		No. of Contracts		Strike Price		Expiration Date		Cost (000s)		Value (000s)
Genting Bhd (MAL)		30,633,782		MYR$ 7.96		12/18/2018		$ 14,434		$9,347

Table of Contents

Harbor International Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Investments in Securities
Common Stocks
Europe	$1,221,507	$23,998,667	$ —	$25,220,174
Latin America	1,323,558	—	—	1,323,558
North America	4,965,178	—	—	4,965,178
Pacific Basin	860,393	3,269,558	—	4,129,951
Preferred Stocks
Europe	—	—	4,508	4,508
Latin America	44,073	—	—	44,073
Short-Term Investments
Commercial Paper	—	650,000	—	650,000
Repurchase Agreements	—	194,854	—	194,854
Investment Company-Securities Lending Investment Fund	330,060	—	—	330,060
Total Investments in Securities	$8,744,769	$28,113,079	$4,508	$36,862,356
Financial Derivative Instruments - Assets
Rights/Warrants	$ 9,347	$ —	$ —	$ 9,347
Total Investments	$8,754,116	$28,113,079	$4,508	$36,871,703

The following is a rollforward of the Fund’s Level 3 investments during the year ended October 31, 2016.

Valuation Description		Balance Beginning at 11/01/2015 (000s)		Purchases (000s)		Sales (000s)		Discount/ (Premium) (000s)		Total Realized Gain/(Loss)^w (000s)		Change in Unrealized Appreciation/ (Depreciation)^w (000s)		Transfers In Level 3 (000s)		Transfers Out of Level 3 (000s)		Ending Balance as of 10/31/2016^w (000s)
Preferred Stocks		$12,896		$4,521		$(12,898)		$—		$—		$(11)		$—		$—		$4,508

There were no transfers between Levels 1 and 2 during the year.

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy.

Valuation Descriptions	Ending Balance as of 10/31/2016 (000s)	Valuation Technique	Unobservable Inputs	Input Value(s)
Investments in Securities
Preferred Stocks
Rolls-Royce Holdings plc (UK)^*	$4,508	Market Approach	Pre-Traded Price	£ 0.001

Table of Contents

Harbor International Fund
Portfolio of Investments—Continued

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
2	A portion or all of this security was out on loan as of October 31, 2016.
3	Investment of collateral received related to securities lending activities
†	Coupons represent yield to maturity.
w	The amounts in this category are included in the “Realized and Change in Unrealized Gain/(Loss) on Investment Transactions” section of the Statement of Operations. The net unrealized appreciation/(depreciation) per investment type is below:
	Valuation Description	Unrealized Gain/(Loss) as of 10/31/2016 (000s)
	Preferred Stocks	$(13)
x	Fair Valued in accordance with Harbor Funds Valuation Procedures using pre-traded price which is a Level 3 input.
£	British Pound

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Diversified International All Cap Fund
Managers' Commentary (Unaudited)

Subadviser

Marathon Asset Management LLP

Orion House

5 Upper St. Martin’s Lane
London, WC2H 9EA
England

Portfolio Managers

Neil M. Ostrer
Since 2015

William J. Arah
Since 2015

Charles Carter
Since 2015

Nick Longhurst
Since 2015

Michael Godfrey
Since 2015

David Cull
Since 2015

Robert Anstey
Since 2015

Simon Somerville
Since 2016

Marathon Asset Management LLP (operating as Marathon-London in the U.S.) has subadvised the Fund since 2015.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Foreign companies selected for long-term growth potential

Management’s Discussion of
Fund Performance

Market Review

Non-U.S. equity markets were flat over the fiscal year ended October 31, 2016, with the MSCI All Country World Ex-U.S. Index up 0.22% (all international and global returns are in U.S. dollars). Accommodative monetary policy and other economic stimulus campaigns across several regions continued to drive a search for yield and momentum into riskier assets. That momentum, coupled with firming commodity prices, propelled shares across several natural resource-heavy equity markets (such as Brazil, Russia, Peru, Canada and Australia). The British pound sterling weakened substantially following the referendum vote to leave the E.U. on the 23^rd of June and was down close to 20% (relative to the U.S. dollar) over the trailing twelve month period. Paradoxically, the Japanese yen strengthened in the face of negative interest rate policy efforts by the Bank of Japan. That yen appreciation weighed on sentiment for the export-oriented Nikkei equity market. In our view, macroeconomic-oriented concerns continued to dominate the majority of investor attention – be it obsessively targeted macroeconomic developments in Japan, monetary policy and elections in the U.S., “Brexit” developments and hypothesized follow on effects across Europe, or headline economic growth data coming out of China – resulting in substantial stock specific valuation distortions relative to underlying fundamentals across several markets.

Performance

The Fund underperformed the MSCI All Country World Ex-U.S. Index benchmark since its inception on November 2, 2015 through October 31, 2016, -2.25% (Institutional Class), -2.49% (Administrative Class), -2.60% (Investor Class), -2.25% (Retirement Class). Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses. The Fund experienced positive contributions from stock selection that were more than offset by the combined negative influences of regional allocation and corresponding currency exposure. More specifically, stock selection in Europe, the emerging markets and the Pacific ex-Japan region were all notable positive contributors to relative performance. Conversely, the Fund’s significant relative overweight to Japan and relative underweight to the emerging markets region both exerted a negative influence on relative returns over the period. From a currency standpoint, the Fund’s overweight exposure to the British pound sterling (which, again, weakened following a referendum vote in favor of a so-called Brexit) was another notable negative contributor. This was partially offset due to the Fund’s overweight exposure to the stronger Japanese yen. The Fund’s residual cash position also exerted a small negative influence on relative performance.

From a sector standpoint, the Fund’s aggregate underweight to Healthcare (namely pharmaceuticals) and stock selection within that sector were both positive contributors. Stock selection in Consumer Staples was another notable positive contributor to relative returns over the period. Conversely, stock selection in Financials exerted a negative influence on performance. This was primarily due to holdings in several Japanese banks and insurance companies. The Fund’s underweight exposure to both the Energy and Materials sectors also contributed negatively.

Within the context of the above performance attribution highlights over the period, it is important to emphasize that, despite nearer-term market volatility, Fund turnover remained low (with an implied holding period of over 5 years) and consistent with the long-term supply-side, bottom-up orientation of the investment philosophy and process employed by the Subadviser. However, it is as important to note that, following a regular review of relative valuations

Table of Contents

Harbor Diversified International All Cap Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of Net Assets)
Nippon Telegraph & Telephone Corp.	1.3%
Vestas Wind Systems AS	1.1%
Canadian Natural Resources Ltd.	0.9%
FUJIFILM Holdings Corp.	0.9%
Sampo OYJ	0.9%
Samsung Electronics Co. Ltd.	0.9%
West Japan Railway Co.	0.9%
Compass Group plc	0.8%
Kirin Holdings Co. Ltd.	0.8%
Reckitt Benckiser Group plc	0.8%

and the opportunity set across regions, a rare regional allocation shift was implemented during the second half of the fiscal period. The overweight exposures to both Europe and Japan were reduced (the former by 6% and the latter by 1.5%) with proceeds and an additional 1% of residual cash allocated to the emerging markets (where 6% exposure was added) and to Canada (where 2.5% exposure was added). While the regional shifts reduced the extent of relative regional exposures, the portfolio maintains its overweight to Europe and Japan offset by now smaller underweight positions to the emerging markets and Canada.

Outlook & Strategy

We believe the market outlook for European markets will be influenced not only by the progress of Brexit negotiations over the coming months but also by a series of important European political events such as the Italian referendum and the French and German elections. The European Central Bank and Bank of England remain accommodative while the U.S. and Chinese economies are likely to have a positive impact. In addition, earnings reports at the half-year were on balance fairly upbeat and a majority beat expectations. In our view, the stabilization of the oil price and relatively attractive valuation of Europe by global standards should help European markets on a relative basis. We believe that there is likely to be a gradual shift away from the highly valued defensive cash flows given the likelihood of rising interest rates at some stage over the next twelve months.

In Japan, the stock market focus remains obsessively targeted at macroeconomic developments, while microeconomic reform – in particular corporate governance – continues to progress. We believe that valuations in Japan are compelling assuming corporate Japan behaves like the rest of the world. We believe that it is these ongoing governance shifts that will unlock the real value, whether through higher shareholder returns, corporate and industry restructuring or just an end to the thirty-year accumulation of cash/pay-down of debt that has created Japan’s deflationary mindset.

We believe that emerging markets valuations appear attractive but are skewed by lowly valued (and low quality) state owned enterprises. We believe that slowing economic growth is an opportunity for the management of companies to reassess their capital allocation policies and, more broadly, the market structures in which they operate. We believe that improvements in profitability and cash generation in those companies that comprehend this shift will more than make up for slowing economic growth.

Ultimately, we remain focused on bottom-up stock selection with an aim to invest in businesses where we believe the longer-term supply side capital cycle dynamics and capital allocation decisions by management remain favorable or are improving.

This report contains the current opinions of Marathon Asset Management LLP as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor Diversified International All Cap Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2038
Cusip	411512593
Ticker	HAIDX
Inception Date	11/02/2015
Net Expense Ratio	0.85% ^a,b
Total Net Assets (000s)	$150,263

ADMINISTRATIVE CLASS

Fund #	2238
Cusip	411512585
Ticker	HRIDX
Inception Date	11/02/2015
Net Expense Ratio	1.10% ^a,b
Total Net Assets (000s)	$246

INVESTOR CLASS

Fund #	2438
Cusip	411512577
Ticker	HIIDX
Inception Date	11/02/2015
Net Expense Ratio	1.22% ^a,b
Total Net Assets (000s)	$329

RETIREMENT CLASS

Fund #	2538
Cusip	411512437
Ticker	HNIDX
Inception Date	03/01/2016
Net Expense Ratio	0.80% ^a,b
Total Net Assets (000s)	$1,786

Portfolio Statistics

	Portfolio	Benchmark
Number of Countries	40	47
Weighted Average Market Cap (MM)	$29,917	$52,715
Price/Earning Ratio (P/E)	20.5x	20.0x
Price/Book Ratio (P/B)	2.2x	2.2x
Beta vs. MSCI All Country World Ex. U.S. (ND) Index	0.85	1.00
Portfolio Turnover (Period Ended 10/31/2016)	68% ^c	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

REGION BREAKDOWN (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2017.
c	Unannualized

Table of Contents

Harbor Diversified International All Cap Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the MSCI All Country World Ex. U.S. (ND) Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/02/2015 through 10/31/2016

TOTAL RETURNS
For the periods ended 10/31/2016

1 Year

5 Years

Unannualized

Inception
Date

Final Value
of a $50,000
Investment

Life of Fund

Harbor Diversified International All Cap Fund

Institutional Class

N/A

-2.25%

11/02/2015

$48,877

Administrative Class

N/A

-2.49

11/02/2015

48,757

Investor Class

N/A

-2.60

11/02/2015

48,700

Retirement Class¹

N/A

-2.25

03/01/2016

48,877

Comparative Index

MSCI All Country World Ex. U.S. (ND)

N/A

0.22%

—

$50,112

As stated in the Fund’s current prospectus, the expense ratios were 0.85% (Net) and 1.57% (Gross) (Institutional Class); 1.10% (Net) and 1.82% (Gross) (Administrative Class); 1.22% (Net) and 1.94% (Gross) (Investor Class); and 0.80% (Net) and 1.52% (Gross) (Retirement Class). The net expense ratios reflect an expense limitation agreement (excluding interest expense, if any) effective through 2/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.5%)

COMMON STOCKS—95.2%
Shares			Value
AEROSPACE & DEFENSE—1.5%
	8,419	Airbus Group SE (FR)	$ 500
	88,175	BAE Systems plc (UK)	584

COMMON STOCKS—Continued
Shares			Value
AEROSPACE & DEFENSE—Continued
	51,430	Rolls-Royce Holdings plc (UK)^*	$ 457
	3,021	Thales SA (FR)	284
	18,587	Zodiac Aerospace SA (FR)	452
			2,277
AIR FREIGHT & LOGISTICS—0.5%
	4,764	Oesterreichische Post AG (AUT)^*	164
	24,000	Yamato Holdings Co. Ltd. (JP)	547
			711
AIRLINES—0.3%
	41,378	Air France-KLM (FR)^*	252
	15,520	EasyJet plc (UK)	178
	3,400	Japan Airlines Co. Ltd. (JP)	101
			531
AUTO COMPONENTS—0.5%
	4,000	Bridgestone Corp. (JP)	149
	7,394	Nokian Renkaat OYJ (FIN)	248
	17,700	Sumitomo Electric Industries Ltd. (JP)	262
	2,200	Toyota Industries Corp. (JP)	101
			760
AUTOMOBILES—2.0%
	6,866	Bayerische Motoren Werke AG (GER)	599
	4,000	Fuji Heavy Industries Ltd. (JP)	156
	4,818	Hyundai Motor Co. (S. KOR)	588
	14,500	Nissan Motor Co. Ltd. (JP)	148
	249,578	Piaggio & C. SpA (IT)	435
	19,700	Toyota Motor Corp. (JP)	1,143
			3,069
BANKS—8.6%
	25,582	Alpha Bank AE (GRC)^*	44
	23,639	Axis Bank Ltd. (IND)	173
	7,675	Banco Santander SA (SP)	38
	10,275	Bancolombia SA ADR (COL)¹	393
	102,200	Bangkok Bank PCL (THA)	465
	45,115	Bank of Baroda (IND)	105
	2,196,206	Bank of Ireland (IE)^*	470
	1,498	Bank Pekao SA (POL)	46
	240,333	Barclays plc (UK)	557
	6,825	BGEO Group plc (UK)	247
	12,002	BNP Paribas SA (FR)	696
	7,700	Concordia Financial Group Ltd. (JP)	36
	3,308	Danske Bank AS (DEN)	102
	9,675	DBS Group Holdings Ltd. (SGP)	104
	14,983	DNB ASA (NOR)	217
	12,000	Fukuoka Financial Group Inc. (JP)	52
	19,482	Hana Financial Group Inc. (S. KOR)	557
	69,317	HSBC Holdings plc (HK)	522
	40,349	Intesa Sanpaolo SpA (IT)	94
	37,900	Kasikornbank PCL (THA)	186
	5,616	KB Financial Group Inc. (S. KOR)	208
	3,314	Komercni Banka AS (CZ)	121
	793,273	Lloyds Banking Group plc (UK)	554
	31,100	Mitsubishi UFJ Financial Group Inc. (JP)	160
	405,000	Mizuho Financial Group Inc. (JP)	682
	23,341	Nordea Bank AB (SW)	245
	143,300	Resona Holdings Inc. (JP)	635
	42,633	Sberbank of Russia PJSC ADR (RUS)¹	405
	23,520	Shinhan Financial Group Co. Ltd. (S. KOR)	900
	38,797	Standard Bank Group Ltd. (S. AFR)	412

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
BANKS—Continued
	48,981	Standard Chartered plc (UK)^*	$ 426
	28,500	Sumitomo Mitsui Financial Group Inc. (JP)	988
	14,200	Sumitomo Mitsui Trust Holdings Inc. (JP)	479
	61,381	Svenska Handelsbanken AB (SW)	837
	60,600	Thanachart Capital PCL (THA)	68
	191,233	Turkiye Garanti Bankasi AS (TUR)	520
	127,358	UniCredit SpA (IT)	316
	7,632	United Overseas Bank Ltd. (SGP)	103
			13,163
BEVERAGES—4.0%
	8,538	Anheuser-Busch InBev SA (BEL)	980
	4,656	Carlsberg AS (DEN)	419
	196,666	China Resources Beer Holdings Co. Ltd. (CHN)^*	418
	39,135	Cia Cervecerias Unidas SA (CL)	420
	62,127	Coca-Cola Amatil Ltd. (AUS)	450
	9,814	Davide Campari-Milano SpA (IT)	99
	28,808	Diageo plc (UK)	767
	10,456	Heineken NV (NET)	861
	6,916	Hite Jinro Co. Ltd. (S. KOR)	133
	71,700	Kirin Holdings Co. Ltd. (JP)	1,233
	2,300	Suntory Beverage & Food Ltd. (JP)	101
	56,000	Tsingtao Brewery Co. Ltd. (CHN)	223
			6,104
BUILDING PRODUCTS—2.0%
	60,594	ASSA Abloy AB (SW)	1,101
	2,868	Geberit AG (SWS)	1,212
	29,200	LIXIL Group Corp. (JP)	671
			2,984
CAPITAL MARKETS—2.5%
	72,511	3i Group plc (UK)	594
	29,032	Brookfield Asset Management Inc. (CAN)	1,017
	42,437	BTG Pactual Group (BR)^*	216
	4,521	Close Brothers Group plc (UK)	73
	62,827	ICAP plc (UK)	373
	33,078	IG Group Holdings plc (UK)	334
	33,673	Jupiter Fund Management plc (UK)	178
	95,900	Nomura Holdings Inc. (JP)	480
	37,240	UBS Group AG (SWS)^*	527
			3,792
CHEMICALS—2.4%
	9,097	Akzo Nobel NV (NET)	588
	9,800	BASF SE (GER)	865
	23,199	DuluxGroup Ltd. (AUS)	113
	687	Enaex SA (CL)	7
	3,100	Nissan Chemical Industries Ltd. (JP)	105
	22,881	Orica Ltd. (AUS)	283
	1,034	Sociedad Quimica y Minera de Chile SA ADR (CL)¹	30
	55,000	Sumitomo Chemical Co. Ltd. (JP)	260
	3,943	Symrise AG (GER)	271
	57,549	Tikkurila Oyj (FIN)	1,108
			3,630
COMMERCIAL SERVICES & SUPPLIES—2.2%
	900	AEON Delight Co. Ltd. (JP)	27
	13,565	Berendsen plc (UK)	160
	328,516	Cleanaway Waste Management Ltd. (AUS)	289
	12,988	Edenred SA (FR)	301
	2,833	Elis SA (FR)	47
	180,509	G4S plc (UK)	485

COMMON STOCKS—Continued
Shares			Value
COMMERCIAL SERVICES & SUPPLIES—Continued
	59,070	HomeServe plc (UK)	$ 441
	3,299	ISS AS (DEN)	129
	9,257	Ritchie Bros Auctioneers Inc. (CAN)	320
	1,375	S-1 Corp. (S. KOR)	111
	7,000	Secom Co. Ltd. (JP)	505
	262,931	Serco Group plc (UK)^*	440
	121,212	Spotless Group Holdings Ltd. (AUS)	92
			3,347
COMMUNICATIONS EQUIPMENT—0.1%
	40,032	Telefonaktiebolaget LM Ericsson (SW)	194
CONSTRUCTION & ENGINEERING—1.1%
	10,710	Boskalis Westminster NV (NET)	345
	6,000	Maeda Corp. (JP)	56
	86,400	Obayashi Corp. (JP)	832
	8,700	Penta-Ocean Construction Co. Ltd. (JP)	52
	37,000	Shimizu Corp. (JP)	329
	200	Sho-Bond Holdings Co. Ltd. (JP)	10
			1,624
CONSTRUCTION MATERIALS—0.3%
	2,437	CRH plc (IE)	79
	738	Imerys SA (FR)	51
	1,796	Vicat SA (FR)	113
	14,976	Wienerberger AG (AUT)	239
			482
CONSUMER FINANCE—0.8%
	5,100	AEON Financial Service Co. Ltd. (JP)	90
	3,600	Hitachi Capital Corp. (JP)	80
	65,658	International Personal Finance plc (UK)	237
	76,429	Non-Standard Finance plc (UK)	65
	19,234	Provident Financial plc (UK)	693
			1,165
CONTAINERS & PACKAGING—0.4%
	9,813	Amcor Ltd. (AUS)	110
	17,223	Orora Ltd. (AUS)	38
	28,800	Toyo Seikan Group Holdings Ltd. (JP)	531
			679
DISTRIBUTORS—0.0%
	10,512	Inchcape plc (UK)	84
DIVERSIFIED FINANCIAL SERVICES—0.2%
	342,000	First Pacific Co. Ltd. (HK)	259
DIVERSIFIED TELECOMMUNICATION SERVICES—2.4%
	41,065	Deutsche Telekom AG (GER)	670
	159,780	Koninklijke KPN NV (NET)	521
	18,608	LG Uplus Corp. (S. KOR)	192
	44,800	Nippon Telegraph & Telephone Corp. (JP)	1,986
	103,578	Spark New Zealand Ltd. (NZ)	271
	17,436	Telkom SA SOC Ltd. (S. AFR)	80
			3,720
ELECTRIC UTILITIES—0.6%
	46,890	CESC Ltd. (IND)	440
	40,100	Tohoku Electric Power Co. Inc. (JP)	491
			931

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
ELECTRICAL EQUIPMENT—2.0%
	16,487	Legrand SA (FR)	$ 932
	516,850	TECO Electric And Machinery Co. Ltd. (TW)	458
	21,224	Vestas Wind Systems AS (DEN)	1,700
			3,090
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.8%
	7,500	Azbil Corp. (JP)	223
	86,000	Chroma ATE Inc. (TW)	218
	62,735	Delta Electronics Inc. (TW)	330
	213,000	Hitachi Ltd. (JP)	1,136
	6,900	Kyocera Corp. (JP)	335
	1,700	Nippon Signal Co. Ltd. (JP)	15
	3,000	Omron Corp. (JP)	115
	11,239	Spectris plc (UK)	281
	1,200	TDK Corp. (JP)	83
			2,736
ENERGY EQUIPMENT & SERVICES—0.5%
	21,226	Amec Foster Wheeler plc (UK)	116
	4,111	Petrofac Ltd. (UK)	40
	1,077,599	Saipem SpA (IT)^*	443
	1,321	Technip SA (FR)	88
	12,409	Vallourec SA (FR)^*	61
			748
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—0.2%
	33,934	Grivalia Properties REIC AE (GRC)	261
FOOD & STAPLES RETAILING—2.1%
	34,093	Almacenes Exito SA (COL)	170
	12,700	Dairy Farm International Holdings Ltd. (BM)	90
	24,069	Koninklijke Ahold Delhaize NV (NET)^*	549
	14,086	Loblaw Cos. Ltd. (CAN)	695
	1,800	Matsumotokiyoshi Holdings Co. Ltd. (JP)	93
	97,732	Metcash Ltd. (AUS)^*	147
	41,334	O'Key Group SA GDR (LUX)²	87
	28,600	Seven & I Holdings Co. Ltd. (JP)	1,194
	94,442	Tesco plc (UK)^*	243
			3,268
FOOD PRODUCTS—1.7%
	251,000	China Mengniu Dairy Co. Ltd. (CHN)	474
	39,862	Devro plc (UK)	111
	32,043	Industrias Bachoco SAB de CV (MEX)	142
	7,000	NH Foods Ltd. (JP)	168
	38,900	Nippon Suisan Kaisha Ltd. (JP)	187
	2,543	PGG Wrightson Ltd. (NZ)	1
	177,100	Super Group Ltd. (SGP)	123
	260,255	Tingyi Cayman Islands Holding Corp. (CHN)	280
	8,400	Toyo Suisan Kaisha Ltd. (JP)	340
	7,515	Viscofan SA (SP)	354
	657,000	Want Want China Holdings Ltd. (CHN)	400
			2,580
GAS UTILITIES—0.1%
	29,000	Tokyo Gas Co. Ltd. (JP)	132
HEALTH CARE EQUIPMENT & SUPPLIES—1.8%
	15,050	Coloplast AS (DEN)	1,048
	106,052	Convatec Group plc (UK)^*	324
	27,223	GN Store Nord AS (DEN)	552
	6,173	Smith & Nephew plc (UK)	89
	2,271	Sonova Holding AG (SWS)	305

COMMON STOCKS—Continued
Shares			Value
HEALTH CARE EQUIPMENT & SUPPLIES—Continued
	33,800	Top Glove Corp. Bhd (MAL)	$ 40
	24,868	William Demant Holding AS (DEN)^*	463
			2,821
HEALTH CARE PROVIDERS & SERVICES—1.3%
	34,300	Alfresa Holdings Corp. (JP)	725
	14,220	Fresenius Medical Care AG & Co. KGaA (GER)	1,158
	110,291	Sigma Pharmaceuticals Ltd. (AUS)	111
			1,994
HOTELS, RESTAURANTS & LEISURE—3.6%
	376,000	Ajisen China Holdings Ltd. (CHN)	169
	9,726	Carnival plc (UK)	469
	67,447	Compass Group plc (UK)	1,220
	152,200	GL Ltd. (SGP)	88
	27,521	GVC Holdings plc (UK)	234
	140,500	Hongkong & Shanghai Hotels Ltd. (HK)	159
	114,290	Merlin Entertainments plc (UK)	644
	10,367	Millennium & Copthorne Hotels plc (UK)	57
	9,977	OPAP SA (GRC)	85
	9,089	Paddy Power Betfair plc (UK)	942
	105,226	SSP Group plc (UK)	437
	395,818	Thomas Cook Group plc (UK)^*	336
	46,932	TUI AG (UK)	596
			5,436
HOUSEHOLD DURABLES—0.7%
	15,524	Barratt Developments plc (UK)	86
	8,300	Casio Computer Co. Ltd. (JP)	116
	13,969	GUD Holdings Ltd. (AUS)	101
	21,879	McCarthy & Stone plc (UK)	45
	117,000	MRV Engenharia E Participacoes SA (BR)	453
	9,700	Nikon Corp. (JP)	146
	6,200	Sekisui Chemical Co. Ltd. (JP)	98
			1,045
HOUSEHOLD PRODUCTS—0.8%
	14,411	Reckitt Benckiser Group plc (UK)	1,289
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—0.3%
	2,287,700	Energy Development Corp. (PHIL)	279
	756,100	Lopez Holdings Corp. (PHIL)	124
			403
INDUSTRIAL CONGLOMERATES—2.2%
	67,500	CK Hutchison Holdings Ltd. (HK)	834
	6,639	DCC plc (IE)	540
	12,500	Jardine Matheson Holdings Ltd. (HK)	761
	17,314	Koninklijke Philips NV (NET)	522
	2,664	LG Corp. (S. KOR)	142
	246,512	Quinenco SA (CL)	604
			3,403
INSURANCE—5.3%
	19,380	Admiral Group plc (UK)	454
	16,749	AXA SA (FR)	378
	30,243	Cover-More Group Ltd. (AUS)	33
	78,700	Dai-ichi Life Insurance Inc. (JP)	1,154
	1,870	Fairfax Financial Holdings Ltd. (CAN)	958
	28,100	Great Eastern Holdings Ltd. (SGP)	413
	858	Hannover Rueck SE (GER)	96
	156	Helvetia Holding AG (SWS)	81
	46,900	Japan Post Holdings Co. Ltd. (JP)	597

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
INSURANCE—Continued
	35,100	MS&AD Insurance Group Holdings Inc. (JP)	$ 1,042
	94,494	Old Mutual plc (UK)	231
	39,296	Porto Seguro SA (BR)^*	373
	29,406	Sampo OYJ (FIN)	1,347
	168	Samsung Fire & Marine Insurance Co. Ltd. (S. KOR)	43
	13,700	Sompo Japan Nipponkoa Holdings Inc. (JP)	443
	20,613	St. James's Place plc (UK)	238
	4,500	Tokio Marine Holdings Inc. (JP)	177
	4,139	Topdanmark AS (DEN)^*	111
			8,169
INTERNET & DIRECT MARKETING RETAIL—0.2%
	34,000	B2W Cia Digital (BR)	167
	378	CJ O Shopping Co. Ltd. (S. KOR)	53
	403	GS Home Shopping Inc. (S. KOR)	62
			282
INTERNET SOFTWARE & SERVICES—1.8%
	24,007	Auto Trader Group plc (UK)	110
	3,166	Baidu Inc. ADR (CHN)^*,1	560
	33,401	Just Eat plc (UK)^*	229
	63,924	Moneysupermarket.com Group plc (UK)	205
	21,559	Rightmove plc (UK)	984
	31,908	Yandex NV (RUS)^*	628
			2,716
IT SERVICES—0.9%
	7,000	Fujitsu Ltd. (JP)	42
	3,834	Genpact Ltd. (US)	88
	18,300	NTT Data Corp. (JP)	944
	900	OBIC Co. Ltd. (JP)	47
	1,400	SCSK Corp. (JP)	52
	79,000	TravelSky Technology Ltd. (CHN)	169
			1,342
LEISURE PRODUCTS—0.7%
	5,939	Amer Sports OYJ (FIN)	162
	28,200	Bandai Namco Holdings Inc. (JP)	845
	194,000	Goodbaby International Holdings Ltd. (CHN)	93
	3,842	Technogym SpA (IT)^*	17
			1,117
LIFE SCIENCES TOOLS & SERVICES—0.4%
	1,254	Eurofins Scientific SE (FR)	570
	1,111	Gerresheimer AG (GER)	84
			654
MACHINERY—2.2%
	2,286	Andritz AG (AUT)	120
	87,364	CNH Industrial NV (IT)	678
	4,900	Daifuku Co. Ltd. (JP)	89
	2,233	GEA Group AG (GER)	87
	3,548	IMI plc (UK)	43
	6,700	Kubota Corp. (JP)	108
	5,264	Metso OYJ (FIN)	138
	129,000	Mitsubishi Heavy Industries Ltd. (JP)	552
	1,700	OSG Corp. (JP)	36
	18,101	Rotork plc (UK)	45
	39,686	Sandvik AB (SW)	451
	6,331	Stabilus SA (LUX)^*	330
	2,400	Tadano Ltd. (JP)	27

COMMON STOCKS—Continued
Shares			Value
MACHINERY—Continued
	4,311	Wartsila OYJ Abp (FIN)	$ 186
	299,000	Yungtay Engineering Co. Ltd. (TW)	421
			3,311
MARINE—0.2%
	2,173,413	Cia Sud Americana de Vapores SA (CL)	44
	106,908	Grindrod Ltd. (S. AFR)^*	88
	36,163	Irish Continental Group plc (IE)	169
			301
MEDIA—3.2%
	6,538	Axel Springer SE (GER)	328
	7,416	CTS Eventim AG & Co. KGaA (GER)	266
	39,097	Daily Mail & General Trust plc (UK)	359
	306,169	Fairfax Media Ltd. (AUS)	192
	41,300	Fuji Media Holdings Inc. (JP)	570
	42,309	Informa plc (UK)	348
	302,130	ITV plc (UK)	630
	4,283	JCDecaux SA (FR)	131
	20,468	Mediaset Espana Comunicacion SA (SP)	229
	7,103	Modern Times Group Mortgage AB (SW)	191
	26,020	Nippon Television Holdings Inc. (JP)	461
	6,001	Schibsted ASA Class A (NOR)	144
	6,001	Schibsted ASA Class B (NOR)	135
	14,523	Sky plc (UK)	145
	47,900	Television Broadcasts Ltd. (HK)	173
	24,276	WPP plc (UK)	527
			4,829
METALS & MINING—3.0%
	26,657	Acerinox SA (SP)	328
	317,803	Alumina Ltd. (AUS)	382
	1,560	Anglo American Platinum Ltd. (S. AFR)^*	37
	42,911	Anglo American plc (S. AFR)^*	594
	12,608	Antofagasta plc (UK)	84
	37,876	ArcelorMittal SA (FR)^*	256
	10,197	BHP Billiton Ltd. (AUS)	178
	19,982	BHP Billiton plc (UK)	301
	81,047	BlueScope Steel Ltd. (AUS)	481
	19,966	Cia de Minas Buenaventura SAA ADR (PER)¹	265
	136,669	Glencore plc (UK)^*	418
	32,873	Iluka Resources Ltd. (AUS)	144
	29,800	JFE Holdings Inc. (JP)	427
	19,896	Newcrest Mining Ltd. (AUS)	348
	9,886	Rio Tinto plc (UK)	344
			4,587
MULTILINE RETAIL—0.7%
	37,900	Isetan Mitsukoshi Holdings Ltd. (JP)	383
	2,197	Lotte Shopping Co. Ltd. (S. KOR)	438
	8,300	Marui Group Co. Ltd. (JP)	116
	400	Ryohin Keikaku Co. Ltd. (JP)	86
			1,023
MULTI-UTILITIES—0.2%
	11,181	Centrica plc (UK)	29
	18,945	National Grid plc (UK)	247
			276
OIL, GAS & CONSUMABLE FUELS—3.1%
	181,814	BP plc (UK)	1,075
	42,857	Canadian Natural Resources Ltd. (CAN)	1,360
	250,300	CNOOC Ltd. (CHN)	315

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
OIL, GAS & CONSUMABLE FUELS—Continued
	6,627	Lukoil PJSC ADR (RUS)¹	$ 322
	17,308	PrairieSky Royalty Ltd. (CAN)	377
	31,982	Royal Dutch Shell plc (UK)	810
	17,989	Santos Ltd. (AUS)^*	48
	17,884	Statoil ASA (NOR)	292
	3,970	Total SA (FR)	190
			4,789
PERSONAL PRODUCTS—1.9%
	68,650	Asaleo Care Ltd. (AUS)^*	76
	16,200	Kao Corp. (JP)	834
	61,168	Natura Cosmeticos SA (BR)^*	587
	857	Oriflame Holding AG (SW)^*	31
	12,600	Shiseido Co. Ltd. (JP)	325
	23,512	Unilever plc (UK)	982
			2,835
PHARMACEUTICALS—2.6%
	7,100	Haw Par Corp. Ltd. (SGP)	46
	12,422	Novartis AG (SWS)	882
	18,897	Novo Nordisk AS (DEN)	673
	10,300	Otsuka Holdings Co. Ltd. (JP)	451
	4,356	Roche Holding AG (SWS)	1,000
	2,505	Sanofi AS (FR)	195
	1,200	Sawai Pharmaceutical Co. Ltd. (JP)	78
	34,400	Sumitomo Dainippon Pharma Co. Ltd. (JP)	596
	154	Virbac SA (FR)^*	24
			3,945
PROFESSIONAL SERVICES—3.0%
	10,610	Adecco Group AG (SWS)	630
	52,919	ALS Ltd. (AUS)	250
	60,936	Capita plc (UK)	436
	1,130	DKSH Holding AG (SWS)	78
	33,283	Experian plc (UK)	640
	250,527	Hays plc (UK)	418
	26,178	Intertek Group plc (UK)	1,092
	1,600	Nomura Co. Ltd. (JP)	26
	15,193	Pagegroup plc (UK)	67
	1,663	Randstad Holding NV (NET)	86
	42,855	RELX plc (UK)	765
	700	TechnoPro Holdings Inc. (JP)	24
	3,700	Temp Holdings Co. Ltd. (JP)	63
			4,575
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.7%
	5,000	Cheung Kong Property Holdings Ltd. (HK)	37
	2,300	Daiwa House Industry Co. Ltd. (JP)	63
	67,300	LPS Brasil Consultoria de Imoveis SA (BR)^*	83
	27,000	Mitsubishi Estate Co. Ltd. (JP)	537
	17,375	New World Development Co. Ltd. (HK)	22
	30,700	NTT Urban Development Corp. (JP)	282
	17,089	United Industrial Corp. Ltd. (SGP)	33
			1,057
ROAD & RAIL—1.8%
	11,900	East Japan Railway Co. (JP)	1,047
	11,145	Globaltrans Investment plc GDR (CYM)²	54
	15,339	National Express Group plc (UK)	69
	10,869	Northgate plc (UK)^*	56
	3,600	Senko Co. Ltd. (JP)	25

COMMON STOCKS—Continued
Shares			Value
ROAD & RAIL—Continued
	80,562	Stagecoach Group plc (UK)	$ 195
	22,000	West Japan Railway Co. (JP)	1,355
			2,801
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.4%
	1,167	ASML Holding NV (NET)	124
	13,114	SK Hynix Inc. (S. KOR)	469
	189,000	Taiwan Semiconductor Manufacturing Co. Ltd. (TW)	1,134
	4,100	Tokyo Electron Ltd. (JP)	370
			2,097
SOFTWARE—0.3%
	600	Nintendo Co. Ltd. (JP)	145
	36,700	TOTVS SA (BR)^*	333
			478
SPECIALTY RETAIL—1.2%
	726,100	Esprit Holdings Ltd. (BM)^*	599
	1,879	Fielmann AG (GER)	130
	11,160	Fourlis Holdings SA (GRC)^*	48
	6,336	JUMBO SA (GRC)	90
	61,440	Pets at Home Group plc (UK)	161
	1,712	Premier Investments Ltd. (AUS)	18
	25,311	WH Smith plc (UK)	456
	59,100	Yamada Denki Co. Ltd. (JP)	305
			1,807
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—2.6%
	36,000	FUJIFILM Holdings Corp. (JP)	1,361
	20,246	Logitech International SA (SWS)	490
	184,000	NEC Corp. (JP)	492
	5,774	Neopost SA (FR)	175
	1,002	Samsung Electronics Co. Ltd. (S. KOR)	1,433
			3,951
TEXTILES, APPAREL & LUXURY GOODS—2.2%
	3,149	adidas AG (GER)	517
	9,879	Cie Financiere Richemont SA (SWS)	635
	34,201	Cie Financiere Richemont SA ADR (S. AFR)¹	220
	186,000	Daphne International Holdings Ltd. (CHN)^*	24
	641,000	Li Ning Co. Ltd. (CHN)^*	458
	18,701	Luxottica Group SpA (IT)	931
	29,000	Onward Holdings Co. Ltd. (JP)	194
	110,954	Ruentex Industries Ltd. (TW)^*	179
	17,000	Shenzhou International Group Holdings Ltd. (CHN)	113
	51,246	Stella International Holdings Ltd. (CHN)	89
	22,000	Texwinca Holdings Ltd. (BM)	15
			3,375
TOBACCO—0.4%
	1,059	British American Tobacco plc (UK)	61
	8,800	Japan Tobacco Inc. (JP)	334
	5,294	Swedish Match AB (SW)	184
			579
TRADING COMPANIES & DISTRIBUTORS—1.2%
	8,007	Brenntag AG (GER)	428
	36,479	Bunzl plc (UK)	979
	10,100	ITOCHU Corp. (JP)	128
	13,600	Mitsubishi Corp. (JP)	296
			1,831

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
TRANSPORTATION INFRASTRUCTURE—0.6%
	22,552	China Merchants Holdings International Co. Ltd. (HK)	$ 58
	70,500	Global Ports Investments plc GDR (CYM)²	211
	32,202	Groupe Eurotunnel SE (FR)	302
	21,000	Mitsubishi Logistics Corp. (JP)	284
			855
WIRELESS TELECOMMUNICATION SERVICES—1.9%
	11,835	America Movil SAB de CV ADR (MEX)¹	155
	41,575	Bharti Airtel Ltd. (IND)	199
	2,300	KDDI Corp. (JP)	70
	4,124	Millicom International Cellular SA SDR (LUX)²	181
	27,110	MTN Group Ltd. (S. AFR)	234
	23,377	Rogers Communications Inc. (CAN)	940
	42,748	SmarTone Telecommunications Holdings Ltd. (BM)	65
	9,700	SoftBank Group Corp. (JP)	611
	79,477	TIM Participacoes SA (BR)	221
	86,212	Vodafone Group plc (UK)	237
	386,075	XL Axiata Tbk (IDR)^*	65
			2,978
TOTAL COMMON STOCKS
(Cost $140,634)			145,272

PREFERRED STOCKS—1.3%
AEROSPACE & DEFENSE—0.0%
	2,365,780	Rolls-Royce Holdings plc (UK)^*	3 ^x
AUTOMOBILES—0.3%
	3,774	Volkswagen AG (GER)	521

PREFERRED STOCKS—Continued
Shares			Value
BANKS—0.4%
	16,780	Banco Bradesco SA (BR)	$ 176
	144,832	Itausa - Investimentos Itau SA (BR)^*	428
			604
FOOD & STAPLES RETAILING—0.1%
	9,644	Cia Brasileira de Distribuicao (BR)	184
TEXTILES, APPAREL & LUXURY GOODS—0.5%
	204,854	Alpargatas SA (BR)^*	681
TOTAL PREFERRED STOCKS
(Cost $1,534)			1,993

SHORT-TERM INVESTMENTS—2.8%
(Cost $4,220)
Principal Amount
REPURCHASE AGREEMENTS
$	4,220	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by U.S. Treasury Bonds (value $4,309)	4,220
TOTAL INVESTMENTS—99.3%
(Cost $146,389)			151,485
CASH AND OTHER ASSETS, LESS LIABILITIES—0.7%			1,139
TOTAL NET ASSETS—100.0%			$152,624

RIGHTS/WARRANTS OPEN AT OCTOBER 31, 2016

Description	No. of Contracts	Strike Price	Expiration Date	Cost (000s)	Value (000s)
Banco Santander SA (SP)	7,675	€ —³	11/04/2016	$ 1	$ —
LPS Brasil Consultoria de Imov (BR)	6,280	R$ 3.74	11/28/2016	—	1
Total Rights/Warrants					$ 1

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Africa	$ —	$ 1,665	$—	$ 1,665
Europe	3,011	70,507	—	73,518
Latin America	3,588	1,075	—	4,663
Middle East/Central Asia	—	917	—	917
North America	5,755	704	—	6,459
Pacific Basin	560	57,490	—	58,050
Preferred Stocks
Europe	—	521	3	524
Latin America	1,469	—	—	1,469

Table of Contents

Harbor Diversified International All Cap Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS—Continued

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Short-Term Investments
Repurchase Agreements	$ —	$ 4,220	$—	$ 4,220
Total Investments in Securities	$14,383	$137,099	$ 3	$151,485
Financial Derivative Instruments - Assets
Rights/Warrants
Europe	$ —	$ —	$—	$ —
Latin America	1	—	—	1
Total Financial Derivative Instruments - Assets	$ 1	$ —	$—	$ 1
Total Investments	$14,384	$137,009	$ 3	$151,486

The following is a rollforward of the Fund’s Level 3 investments during the year ended October 31, 2016.

Valuation Description		Balance Beginning at 11/02/2015 (000s)		Purchases (000s)		Sales (000s)		Discount/ (Premium) (000s)		Total Realized Gain/(Loss)^w (000s)		Change in Unrealized Appreciation/ (Depreciation)^w (000s)		Transfers In Level 3 (000s)		Transfers Out of Level 3 (000s)		Ending Balance as of 10/31/2016^w (000s)
Preferred Stocks		$—		$3		$—		$—		$—		$—		$—		$—		$3

There were no transfers between Levels 1 and 2 during the period.

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy.

Valuation Descriptions	Ending Balance as of 10/31/2016 (000s)	Valuation Technique	Unobservable Inputs	Input Value(s)
Investments in Securities
Preferred Stocks
Rolls-Royce Holdings plc (UK)^*	$3	Market Approach	Pre-Traded Price	£ 0.001

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
2	GDR after the name of a holding stands for Global Depositary Receipts representing ownership of foreign securities. GDRs are issued by either U.S. or non-U.S. banking institutions. Country specific examples of this type of depositary receipt, if any, are denoted using different abbreviations. SADR after the name of a holding stands for South African Depositary Receipts representing ownership of South African securities listed on the Johannesburg Stock Exchange. SDR after the name of a holding stands for Swedish Depository Receipts representing ownership of foreign securities in Sweden.
3	Rights redeemable for 1 ordinary share per 87 rights
w	The amounts in this category are included in the “Realized and Change in Unrealized Gain/(Loss) on Investment Transactions” section of the Statement of Operations. The net unrealized appreciation/(depreciation) per investment type is below:
	Valuation Description	Unrealized Gain/(Loss) as of 10/31/2016 (000s)
	Preferred Stocks	$–
x	Fair Valued in accordance with Harbor Funds Valuation Procedures using pre-traded price which is a Level 3 input.
€	Euro
R$	Brazilian Real
£	British Pound

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International Small Cap Fund
Managers' Commentary (Unaudited)

Subadviser

Baring International Investment Limited

155 Bishopsgate

London, EC2M 3XY
United Kingdom

Portfolio Managers

Nicholas M. Williams
Since 2016

Colin C. Riddles
Since 2016

Rosemary C. Simmonds, CFA
Since 2016

Barings has subadvised the Fund since 2016.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

International small cap stocks with unrecognized earnings growth at reasonable valuations

Nicholas M. Williams

Colin C. Riddles

Rosemary C. Simmonds, CFA

Management’s Discussion of
Fund Performance

Market Review

During the period from the inception of the Harbor International Small Cap Fund on February 1, 2016 to October 31, 2016 the MSCI EAFE Small Cap Index rose by 10.93%, (all international and global returns are in U.S. dollars).

This period has seen slow but steady economic growth from continued efforts made by central banks to boost growth in Europe, Australia and Japan by pursuing low interest rate and quantitative easing policies. Economic data releases across these regions, while rarely very positive, typically highlighted slightly stronger than forecasted business and consumer confidence, slightly improving trends in employment data and resilient construction and property markets.

In contrast to the economic data, geopolitical events periodically surprised and dismayed investors in international smaller companies. The “Brexit” referendum in the U.K., resulting in the electorate voting for the U.K. to leave the European Union, prompted significant share price volatility in U.K. smaller companies and a sharp fall in the pound sterling’s value against the U.S. dollar. Further volatility reflected fears surrounding the upcoming Italian referendum; the outcome of the U.S. elections; uncertainty about the timing of future interest rate movements; and doubts about future economic growth in Asia.

In this context, the returns from the countries and sectors that constitute the MSCI EAFE Small Cap Index varied markedly. Australian smaller companies performed strongly, benefiting from cuts in domestic interest rates and a more optimistic outlook for companies involved in the mining and energy industries. By contrast, Italian smaller companies saw share price weakness, due to concerns about the economy and the quality of loan books of Italian banks. The Materials sector performed very strongly over the period, while the returns from the Telecommunications and Financials sectors trailed that of the Index.

Performance

Harbor International Small Cap Fund underperformed the benchmark during the nine-month period. The Fund returned 7.70% (Institutional Class), 7.50% (Administrative Class), 7.40% (Investor Class), and 7.70% (Retirement Class) compared with the MSCI EAFE Small Cap Index return of 10.93%.

The disappointing relative return over the period partly reflects the Fund’s very limited exposure to the outperforming Materials and Energy sectors. The strength in these sectors reflects rebounds in commodity and oil prices, rather than encouraging news on the profitability of the individual companies comprising these sectors.

Our investment strategy is to focus on bottom up stock selection, using a Quality Growth at a Reasonable Price analysis framework. We look to identify companies with quality characteristics such as strong balance sheets, high levels of profitability and earnings growth potential, where the current valuation does not fully reflect these attributes. The region and sector positioning of the portfolio will be dictated by these individual stock selection decisions rather than by asset allocation decisions.

Stock selection decisions resulted in an exposure to the Japanese equity market marginally lower than Japan’s weight in the Index. Despite the weakness of the domestic Japanese economy, several of our individual stock selections performed well during the period: for example, Nihon M&A Center Inc., the financial advisory group, announced strong profit growth and is recruiting further advisors to service a strong pipeline of future clients.

Table of Contents

Harbor International Small Cap Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of Net Assets)
Chiba Bank Ltd.	1.4%
Minebea Co. Ltd.	1.4%
Mabuchi Motor Co. Ltd.	1.3%
Nihon M&A Center Inc.	1.3%
Kansai Paint Co. Ltd.	1.2%
Nobina AB	1.2%
Relo Group Inc.	1.2%
Skylark Co. Ltd.	1.2%
Sunny Optical Technology Group Co. Ltd.	1.2%
Valmet OYJ	1.2%

The Fund’s U.K. exposure was slightly lower than the weight of the country in the Index. Immediately following the referendum, U.K. smaller companies experienced significant share price volatility. Although economic growth in the U.K. has subsequently proved remarkably resilient, the pound sterling has fallen sharply against the U.S. dollar. As a result of this volatility, some of the worst performers during the period sit within the Fund’s U.K. holdings. The holding in Lookers plc, a car distributor, was sold following Brexit. However, companies such as Arrow Global Group plc, the debt management group, have been retained as their profit growth continues to meet our expectations, despite significant volatility in the share price.

Emerging markets was the most significant overweight region, partially at the expense of exposure to the Pacific Ex Japan. The holding in Sunny Optical Technology Group Co. Ltd., the Chinese optical technology company listed in Hong Kong, performed well over the period, reflecting strong sales growth.

The Fund’s weighting in Europe is similar to the weighting of the region in the Index. Exposure to French smaller companies has been above that of the Index, reflecting the opportunities identified there. Among the European holdings SEB SA, the French home appliances group, performed strongly thanks to robust sales and profits growth. More disappointingly, Ontex Group NV, the Belgian diapers group, performed poorly over the period as the company faces increased competition across Europe.

Outlook & Strategy

Calendar year 2016 began with heightened volatility in global equity markets. However, concerns over global economic growth started to abate by February giving way to a strong performance from international smaller companies in the period from the Fund’s inception to the end of October. Despite this strong performance, we believe that valuations continue to indicate that opportunities exist as balance sheets remain strong and valuations appear attractive relative to other asset classes.

This period has witnessed stronger performance by emerging equity markets; a tentative rally in commodity prices; further policy stimulus from a number of central banks; and more positive economic data releases in Europe and Australia. Nevertheless in our opinion, a number of challenges remain: business and consumer confidence in both the U.K. and Japan appear fragile, uncertainties about the outcome of the U.S. presidential election and political developments in Europe and financial vulnerabilities in China might unsettle the otherwise calm global macroeconomic background. In the absence of stronger economic growth, we believe that the recent strong share price performance of commodity-related and economically-sensitive stocks may be unsustainable.

Looking forward, we maintain our Quality Growth at a Reasonable Price investment approach, and aim to identify those companies whose valuations do not reflect their underlying competitive and balance sheet strengths, and their potential to generate profit growth through further improvements in their returns and business models. Our view is that in the long term this approach should help mitigate the risks of smaller company investments and allow us to identify companies with attractive growth opportunities and valuations.

This report contains the current opinions of Baring International Investment Limited as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor International Small Cap Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2039
Cusip	411512569
Ticker	HAISX
Inception Date	02/01/2016
Net Expense Ratio	0.95% ^a,b
Total Net Assets (000s)	$17,509

ADMINISTRATIVE CLASS

Fund #	2239
Cusip	411512551
Ticker	HRISX
Inception Date	02/01/2016
Net Expense Ratio	1.20% ^a,b
Total Net Assets (000s)	$263

INVESTOR CLASS

Fund #	2439
Cusip	411512544
Ticker	HIISX
Inception Date	02/01/2016
Net Expense Ratio	1.32% ^a,b
Total Net Assets (000s)	$287

RETIREMENT CLASS

Fund #	2539
Cusip	411512536
Ticker	HNISX
Inception Date	02/01/2016
Net Expense Ratio	0.90% ^a,b
Total Net Assets (000s)	$629

Portfolio Statistics

	Portfolio	Benchmark
Number of Countries	15	25
Weighted Average Market Cap (MM)	$3,047	$2,197
Price/Earning Ratio (P/E)	23.6x	19.6x
Price/Book Ratio (P/B)	3.1x	2.0x
Beta vs. MSCI EAFE Small Cap (ND) Index	0.83	1.00
Portfolio Turnover (Period Ended 10/31/2016)	35% ^c	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

REGION BREAKDOWN (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2017.
c	Unannualized

Table of Contents

Harbor International Small Cap Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the MSCI EAFE Small Cap (ND) Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 02/01/2016 through 10/31/2016

TOTAL RETURNS
For the periods ended 10/31/2016

1 Year

5 Years

Unannualized

Inception
Date

Final Value
of a $50,000
Investment

Life of Fund

Harbor International Small Cap Fund

Institutional Class

N/A

7.70%

02/01/2016

$53,850

Administrative Class

N/A

7.50

02/01/2016

53,750

Investor Class

N/A

7.40

02/01/2016

53,700

Retirement Class

N/A

7.70

02/01/2016

53,850

Comparative Index

MSCI EAFE Small Cap (ND)

N/A

10.93%

—

$55,464

As stated in the Fund’s current prospectus, the expense ratios were 0.95% (Net) and 2.90% (Gross) (Institutional Class); 1.20% (Net) and 3.15% (Gross) (Administrative Class); 1.32% (Net) and 3.27% (Gross) (Investor Class); and 0.90% (Net) and 2.85% (Gross) (Retirement Class). The net expense ratios reflect an expense limitation agreement (excluding interest expense, if any) effective through 2/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor International Small Cap Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings by Country (% of net assets)

(Excludes net cash and short-term investments of 4.8%)

COMMON STOCKS—95.2%
Shares			Value
AUTO COMPONENTS—3.2%
	66,000	Nexteer Automotive Group Ltd. (CHN)	$ 87
	3,400	Nifco Inc. (JP)	196
	5,122	Plastic Omnium SA (FR)	167
	174,000	Xinyi Glass Holdings Ltd. (HK)^*	150
			600
BANKS—3.3%
	41,000	Chiba Bank Ltd. (JP)	254
	8,500	Suruga Bank Ltd. (JP)	207
	39,461	Virgin Money Holdings UK plc (UK)	159
			620
BEVERAGES—1.8%
	80,000	China Resources Beer Holdings Co. Ltd. (CHN)^*	170
	11,080	Refresco Gerber NV (NET)	162
			332
BUILDING PRODUCTS—0.8%
	4,210	Tarkett SA (FR)	150
CAPITAL MARKETS—2.7%
	20,436	Intermediate Capital Group plc (UK)	151
	5,984	Intertrust NV (NET)^*	126
	7,200	Nihon M&A Center Inc. (JP)	234
			511
CHEMICALS—2.9%
	14,900	Daicel Corp. (JP)	196
	10,700	Kansai Paint Co. Ltd. (JP)	230
	6,100	W-Scope Corp. (JP)^*	109
			535
COMMERCIAL SERVICES & SUPPLIES—3.1%
	25,051	HomeServe plc (UK)	187
	5,974	Intrum Justitia AB (SW)	184
	9,300	Sato Holdings Corp. (JP)	205
			576

COMMON STOCKS—Continued
Shares			Value
CONSTRUCTION & ENGINEERING—0.9%
	9,272	SPIE SA (FR)	$ 175
CONSTRUCTION MATERIALS—1.7%
	2,589	Imerys SA (FR)	181
	39,651	Marshalls plc (UK)	133
			314
CONSUMER FINANCE—0.8%
	43,184	Arrow Global Group plc (UK)	158
CONTAINERS & PACKAGING—3.6%
	28,807	DS Smith plc (UK)	141
	4,418	Huhtamaki OYJ (FIN)	178
	63,605	Orora Ltd. (AUS)	140
	18,498	RPC Group plc (UK)	215
			674
ELECTRICAL EQUIPMENT—2.3%
	4,000	Mabuchi Motor Co. Ltd. (JP)	233
	13,000	Shimadzu Corp. (JP)	189
			422
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.2%
	3,500	Iriso Electronics Co. Ltd. (JP)	193
	44,000	Sunny Optical Technology Group Co. Ltd. (CHN)	214
			407
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—0.8%
	22,952	UNITE Group plc (UK)	156
FOOD & STAPLES RETAILING—1.9%
	3,900	Daikokutenbussan Co. Ltd. (JP)	183
	9,060	MARR SpA (IT)	167
			350
FOOD PRODUCTS—4.3%
	2,539	AAK AB (SW)	168
	3,200	Ezaki Glico Co. Ltd. (JP)	182
	38,418	Greencore Group plc (UK)	155
	20,557	Tate & Lyle plc (UK)	196
	150,000	Uni-President China Holdings Ltd. (CHN)	101
			802
HEALTH CARE EQUIPMENT & SUPPLIES—1.0%
	4,949	Carl Zeiss Meditec AG (GER)	178
HEALTH CARE PROVIDERS & SERVICES—2.8%
	17,487	Attendo AB (SW)^*	149
	5,100	NMC Health plc (UK)	91
	1,539	Orpea SA (FR)	128
	20,361	UDG Healthcare plc (UK)	163
			531
HOTELS, RESTAURANTS & LEISURE—6.5%
	31,661	Dalata Hotel Group plc (IE)^*	142
	3,455	Domino's Pizza Enterprises Ltd. (AUS)	168
	8,003	Elior Group SA (FR)	180
	5,000	HIS Co. Ltd. (JP)	136
	9,500	Resorttrust Inc. (JP)	190
	15,700	Skylark Co. Ltd. (JP)	221
	42,933	SSP Group plc (UK)	178
			1,215

Table of Contents

Harbor International Small Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
HOUSEHOLD DURABLES—1.8%
	17,650	GUD Holdings Ltd. (AUS)	$ 127
	1,371	SEB SA (FR)	202
			329
HOUSEHOLD PRODUCTS—2.0%
	82,094	McBride plc (UK)^*	189
	6,400	Pigeon Corp. (JP)	180
			369
INTERNET & DIRECT MARKETING RETAIL—2.0%
	10,800	Start Today Co. Ltd. (JP)	189
	8,000	Takkt AG (GER)	190
			379
INTERNET SOFTWARE & SERVICES—0.9%
	24,800	Just Eat plc (UK)^*	170
IT SERVICES—4.1%
	10,722	Indra Sistemas SA (SP)^*	133
	30,185	Link Administration Holdings Ltd. (AUS)	165
	35,340	NCC Group plc (UK)	82
	5,400	SCSK Corp. (JP)	201
	6,897	Worldline SA (FR)^*	190
			771
LEISURE PRODUCTS—2.6%
	5,479	Amer Sports OYJ (FIN)	149
	11,213	Thule Group AB (SW)	173
	2,420	Trigano SA (FR)	171
			493
LIFE SCIENCES TOOLS & SERVICES—0.9%
	2,303	Gerresheimer AG (GER)	174
MACHINERY—7.5%
	4,638	Cargotec OYJ (FIN)	190
	9,600	Daifuku Co. Ltd. (JP)	173
	2,100	Hoshizaki Corp. (JP)	190
	26,200	Minebea Co. Ltd. (JP)	267
	6,800	Nabtesco Corp. (JP)	203
	7,600	OSG Corp. (JP)	162
	14,665	Valmet OYJ (FIN)	218
			1,403
MEDIA—3.9%
	55,106	Ascential plc (UK)	194
	23,200	IMAX China Holding Inc. (CHN)^*	110
	3,082	Kinepolis Group NV (BEL)	139
	34,713	oOh! Media Ltd. (AUS)	113
	4,294	REA Group Ltd. (AUS)	166
			722
METALS & MINING—0.5%
	7,300	Hitachi Metals Ltd. (JP)	91
OIL, GAS & CONSUMABLE FUELS—0.5%
	2,942	Gaztransport Et Technigaz SA (FR)	99
PERSONAL PRODUCTS—1.9%
	6,042	Ontex Group NV (BEL)	183
	2,000	Pola Orbis Holdings Inc. (JP)	166
			349

COMMON STOCKS—Continued
Shares			Value
PHARMACEUTICALS—1.0%
	116,000	China Medical System Holdings Ltd. (CHN)	$ 181
PROFESSIONAL SERVICES—4.0%
	20,742	Applus Services SA (SP)	199
	2,123	DKSH Holding AG (SWS)	147
	5,900	TechnoPro Holdings Inc. (JP)	202
	1,805	Teleperformance (FR)	191
			739
REAL ESTATE MANAGEMENT & DEVELOPMENT—3.2%
	19,600	Hulic Co. Ltd. (JP)	187
	3,701	Nexity SA (FR)	186
	1,300	Relo Group Inc. (JP)	215
			588
ROAD & RAIL—1.2%
	33,989	Nobina AB (SW)	228
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.0%
	4,392	ASM International NV (NET)	187
SOFTWARE—2.6%
	6,050	Micro Focus International plc (UK)	158
	54,247	Sophos Group plc (UK)	154
	2,660	Temenos Group AG (SWS)^*	172
			484
SPECIALTY RETAIL—2.0%
	2,200	Hikari Tsushin Inc. (JP)	202
	87,000	L'occitane International SA (HK)	180
			382
TEXTILES, APPAREL & LUXURY GOODS—2.6%
	10,482	Moncler SpA (IT)	174
	23,955	OVS SpA (IT)	131
	58,500	Samsonite International SA (HK)	184
			489
THRIFTS & MORTGAGE FINANCE—0.9%
	4,815	Aareal Bank AG (GER)	174
TRADING COMPANIES & DISTRIBUTORS—1.5%
	18,233	Howden Joinery Group plc (UK)	84
	4,558	IMCD Group NV (NET)	197
			281
TOTAL COMMON STOCKS
(Cost $16,452)			17,788

PREFERRED STOCKS—0.0%
(Cost $2)
HOUSEHOLD PRODUCTS—0.0%
	1,970,256	Mcbride plc (UK)^*	2 ^x

Table of Contents

Harbor International Small Cap Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

SHORT-TERM INVESTMENTS—4.6%
(Cost $854)
Principal Amount			Value
REPURCHASE AGREEMENTS
$	854	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $875)	$ 854
TOTAL INVESTMENTS—99.8%
(Cost $17,308)			18,644
CASH AND OTHER ASSETS, LESS LIABILITIES—0.2%			44
TOTAL NET ASSETS—100.0%			$18,688

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Europe	$—	$ 9,746	$—	$ 9,746
Pacific Basin	—	8,042	—	8,042
Preferred Stocks
Europe	—	—	2	2
Short-Term Investments
Repurchase Agreements	—	854	—	854
Total Investments in Securities	$—	$18,642	$ 2	$18,644

The following is a rollforward of the Fund’s Level 3 investments during the period ended October 31, 2016.

Valuation Description		Balance Beginning at 02/01/2016 (000s)		Purchases (000s)		Sales (000s)		Discount/ (Premium) (000s)		Total Realized Gain/(Loss)^w (000s)		Change in Unrealized Appreciation/ (Depreciation)^w (000s)		Transfers In Level 3 (000s)		Transfers Out of Level 3 (000s)		Ending Balance as of 10/31/2016^w (000s)
Preferred Stocks		$—		$2		$—		$—		$—		$—		$—		$—		$2

There were no transfers between Levels 1 and 2 during the period.

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy.

Valuation Descriptions	Ending Balance as of 10/31/2016 (000s)	Valuation Technique	Unobservable Inputs	Input Value(s)
Investments in Securities
Preferred Stocks
Mcbride plc (UK)^*	$2	Market Approach	Pre-Traded Price	£ 0.001

Table of Contents

Harbor International Small Cap Fund
Portfolio of Investments—Continued

*	Non-income producing security
w	The amounts in this category are included in the “Realized and Change in Unrealized Gain/(Loss) on Investment Transactions” section of the Statement of Operations. The net unrealized appreciation/(depreciation) per investment type is below:
	Valuation Description	Unrealized Gain/(Loss) as of 10/31/2016 (000s)
	Preferred Stocks	$–
x	Fair Valued in accordance with Harbor Funds Valuation Procedures using pre-traded price which is a Level 3 input.
£	British Pound

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International Growth Fund
Managers' Commentary (Unaudited)

Subadviser

Baillie Gifford Overseas Limited

Calton Square

1 Greenside Row

Edinburgh, Scotland
United Kingdom
EH1 3AN

Portfolio Managers

Gerard Callahan
Since 2013

Iain Campbell
Since 2013

Joe Faraday, CFA
Since 2013

Moritz Sitte, CFA
Since 2014

Sophie Earnshaw, CFA
Since 2014

Tom Walsh, CFA
Since 2014

Baillie Gifford Overseas Limited has subadvised the Fund since 2013.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Foreign companies selected for long-term growth potential

Gerard Callahan

Iain Campbell

Joe Faraday, CFA

Moritz Sitte, CFA

Sophie Earnshaw, CFA

Tom Walsh, CFA

Management’s Discussion of
Fund Performance

Market Review

Harbor International Growth Fund outperformed its benchmark in the twelve months to October 31, 2016. The MSCI All Country World Ex U.S. (ND) Index, a measure of stocks in both developed and emerging overseas markets, returned 0.22% (all international and global returns are in U.S. dollars).

Much of the past year was reminiscent of a rollercoaster ride in some respects. Markets went through periods of poor performance only to be followed by strong rallies against a background of ongoing gloomy news headlines on commodity prices, a slowing China, “Brexit” uncertainty and a weak European economy.

The first half of the period focused on slowing growth in China, causing commodity prices to be hard hit. The price of oil fell below $30 per barrel, reflecting increases in production by OPEC amid continued global oil production in excess of consumption. After the Chinese government cranked up infrastructure spending and state banks extended a record amount of credit, China’s economy grew by 6.7% in the first half. Meanwhile, the country’s transition from an investment-led to a consumption-led economy is a bumpy one but real nonetheless.

Concerns about deflation and global growth dogged the European recovery. The European Central Bank announced further quantitative easing, although this ultimately disappointed markets. The European banking sector went through a tumultuous period as many companies continue to battle ongoing headwinds of zero interest rates, increasingly tough capital requirements and misconduct fines.

In the second half of the year, the U.K. voted to leave the European Union, precipitating a sharp fall in the value of sterling. Global equities and the U.K. market initially fell but recovered in the three weeks following the referendum result. In contrast to some predictions, the initial impact of Brexit on the U.K. economy has been fairly benign. The long-term effects however are unpredictable at this juncture.

The fortunes of emerging markets were mixed. A rebound in commodity prices ultimately led to these markets recovering strongly since the start of 2016. The strength of some of the North Asian countries, including Taiwan, India, China and South Korea, has been notable.

Performance

The Fund returned 2.46% (Institutional Class), 2.21% (Administrative Class), 2.15% (Investor Class), and 2.54% (Retirement Class) for the twelve months ended October 31, 2016, outperforming the 0.22% of the MSCI All Country World Ex U.S. (ND) Index. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

Table of Contents

Harbor International Growth Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of Net Assets)
Cochlear Ltd.	2.9%
Taiwan Semiconductor Manufacturing Co. Ltd. ADR	2.6%
Naspers Ltd.	2.5%
MS&AD Insurance Group Holdings Inc.	2.2%
Shimano Inc.	2.1%
Zalando SE	2.1%
Atlas Copco AB	2.0%
Kao Corp.	2.0%
Svenska Handelsbanken AB	2.0%
Japan Exchange Group Inc.	1.9%

We remain focused on the bottom-up analysis of company fundamentals. The Fund’s performance over the period has primarily been a reflection of stock selection.

Regionally, the Fund’s bottom-up investment approach resulted in overweight positioning in shares based in the U.K. and Sweden whilst having low exposure to much of Western Europe. The Fund’s Australian and German-listed holdings contributed to performance as a result of stock selection. A takeover of one of the U.K.-listed holdings within the portfolio also added to relative performance but the U.K. detracted from relative performance overall. Having no exposure to a number of emerging market countries, such as Russia and Brazil, was a detractor over the period but this was offset by contributions from South Africa and Taiwan.

From a sector perspective, the Fund’s investments in Consumer Staples and Consumer Discretionary in particular contributed positively, benefitting from stock selection. On the downside, the Fund’s low exposure to materials and energy stocks detracted from performance following a rebound in commodity prices.

The top individual contributor to performance was Cochlear Ltd., the Australian hearing implants manufacturer, which benefited from a number of strong results statements over the past 12 months. Cochlear’s strategy to drive growth in the old age category and efforts to improve uptake of processor upgrades both progressed well. In a market growing at a double digit rate, Cochlear continues to take share. Looking ahead, global penetration for implanted hearing aids is low, and we believe this significant unmet need should continue to underpin Cochlear’s growth for many years to come.

German sportswear group adidas AG had a strong twelve months, reclaiming its position as the second biggest selling sports brand in the U.S. after overtaking rival Under Armour, Inc. thanks to its renewed focus on running, basketball and its “Originals” line. Management raised its full-year outlook for the group backed by ongoing product and marketing initiatives, which also bodes well for the company’s growth prospects beyond 2016.

U.K. chip manufacturer, ARM Holdings plc was also a top contributor after being acquired by Softbank Group Corp. for $32 billion to help the Japanese company become a future leader in the “internet of things” tech market.

A number of U.K. businesses suffered following the Brexit vote which resulted in significant currency movements in the period. The largest detractor from performance was Capita, plc the U.K.’s leading outsourcer. The company issued a significant profit warning due to problems with a flagship contract overrunning and disappointing sales at two small transaction based businesses.

Hargreaves Lansdown plc, the U.K. online investment savings platform, warned that investor confidence had fallen since the EU referendum result, reducing inflows into its funds by up to a fifth. Nevertheless, the group reported a 15% rise in third-quarter net revenue and a £5.9bn increase in its assets under management to £67.6bn. We believe that Hargreaves remains well positioned in an appealing and growing industry as a dominant provider in the U.K. retail savings market.

Outlook & Strategy

Whilst we are aware that the coming months could be more volatile given political or economic events, we have not changed our outlook regarding the prospects for international growth equities. Our investment style has always been directed by individual company analysis, where we believe we have a greater chance of doing something different and thus adding value, in preference to making top-down calls on macroeconomic events. We continue to focus on finding good quality companies with attractive long-term growth potential. We believe it is important, and in your interest, that we continue to be disciplined and stay the course.

This report contains the current opinions of Baillie Gifford Overseas Limited as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor International Growth Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2017
Cusip	411511801
Ticker	HAIGX
Inception Date	11/01/1993
Net Expense Ratio	0.85% ^b
Total Net Assets (000s)	$277,638

ADMINISTRATIVE CLASS

Fund #	2217
Cusip	411511637
Ticker	HRIGX
Inception Date	11/01/2002
Net Expense Ratio	1.10% ^b
Total Net Assets (000s)	$333

INVESTOR CLASS

Fund #	2417
Cusip	411511629
Ticker	HIIGX
Inception Date	11/01/2002
Net Expense Ratio	1.22% ^b
Total Net Assets (000s)	$13,466

RETIREMENT CLASS

Fund #	2517
Cusip	411512429
Ticker	HNGFX
Inception Date	03/01/2016
Net Expense Ratio	0.80% ^a,b
Total Net Assets (000s)	$2,360

Portfolio Statistics

	Portfolio	Benchmark
Number of Countries	23	47
Weighted Average Market Cap (MM)	$37,452	$52,715
Price/Earning Ratio (P/E)	24.7x	20.0x
Price/Book Ratio (P/B)	4.7x	2.2x
Beta vs. MSCI All Country World Ex. U.S. (ND) Index	1.01	1.00
Portfolio Turnover (Year Ended 10/31/2016)	19%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

REGION BREAKDOWN (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2017.

Table of Contents

Harbor International Growth Fund
Fund Performance Summary (Unaudited)

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2006 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	10 Years	Inception Date	Final Value of a $50,000 Investment
Harbor International Growth Fund
Institutional Class	2.46%	5.12%	1.78%	11/01/1993	$59,634
Administrative Class	2.21	4.85	1.52	11/01/2002	58,124
Investor Class	2.15	4.73	1.40	11/01/2002	57,458
Retirement Class¹	2.54	5.14	1.79	03/01/2016	59,680
Comparative Index
MSCI All Country World Ex. U.S. (ND)	0.22%	3.64%	1.61%	—	$58,668

As stated in the Fund’s current prospectus, the expense ratios were 0.85% (Net) and 0.91% (Gross) (Institutional Class); 1.10% (Net) and 1.16% (Gross) (Administrative Class); 1.22% (Net) and 1.28% (Gross) (Investor Class); and 0.80% (Net) and 0.86% (Gross). The net expense ratios reflect an expense limitation agreement (excluding interest expense, if any) effective through 02/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor International Growth Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 1.6%)

COMMON STOCKS—98.4%
Shares			Value
AUTO COMPONENTS—0.9%
	60,600	Denso Corp. (JP)	$ 2,637
AUTOMOBILES—1.4%
	211,173	Mahindra & Mahindra Ltd. GDR (IND)¹	4,118
BANKS—5.4%
	463,200	Public Bank BHD (MAL)	2,192
	152,400	Suruga Bank Ltd. (JP)	3,721
	425,020	Svenska Handelsbanken AB (SW)	5,794
	314,476	United Overseas Bank Ltd. (SGP)	4,243
			15,950
BEVERAGES—6.3%
	118,100	Asahi Group Holdings Ltd. (JP)	4,213
	51,270	Carlsberg AS (DEN)	4,619
	3,776,500	Thai Beverage PCL (THA)	2,618
	379,326	Treasury Wine Estates Ltd. (AUS)	3,092
	1,026,000	Tsingtao Brewery Co. Ltd. (CHN)	4,093
			18,635
BIOTECHNOLOGY—0.1%
	297,339	Mesoblast Ltd. (AUS)^*	276
	299,773	Protalix BioTherapeutics Inc. (IL)^*	141
			417

COMMON STOCKS—Continued
Shares			Value
CAPITAL MARKETS—4.8%
	392,024	Hargreaves Lansdown plc (UK)	$ 5,558
	381,300	Japan Exchange Group Inc. (JP)	5,661
	540,710	Jupiter Fund Management plc (UK)	2,851
			14,070
CHEMICALS—2.6%
	113,513	Johnson Matthey plc (UK)	4,732
	76,205	Novozymes AS (DEN)²	2,827
			7,559
COMMERCIAL SERVICES & SUPPLIES—1.5%
	515,122	Brambles Ltd. (AUS)	4,510
DIVERSIFIED FINANCIAL SERVICES—1.2%
	95,327	Investor AB (SW)	3,385
ELECTRICAL EQUIPMENT—0.9%
	48,178	Legrand SA (FR)	2,722
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.5%
	651,000	Delta Electronics Inc. (TW)	3,427
	490,892	Hon Hai Precision Industry Co. Ltd. GDR (TW)¹	2,649
	1,765,000	PAX Global Technology Ltd. (CHN)	1,109
			7,185
ENERGY EQUIPMENT & SERVICES—0.7%
	226,379	John Wood Group plc (UK)	2,128
FOOD & STAPLES RETAILING—5.1%
	370,959	Clicks Group Ltd. (S. AFR)	3,460
	488,479	Distribuidora Internacional de Alimentacion SA (SP)²	2,609
	215,276	Jeronimo Martins SGPS SA (PT)	3,699
	1,709,500	Puregold Price Club Inc. (PHIL)	1,439
	36,400	Sugi Holdings Co. Ltd. (JP)	1,950
	878,800	Wal-Mart de Mexico SAB de CV (MEX)	1,859
			15,016
FOOD PRODUCTS—1.5%
	61,196	Nestlé SA (SWS)	4,438
HEALTH CARE EQUIPMENT & SUPPLIES—4.3%
	87,497	Cochlear Ltd. (AUS)	8,501
	116,700	Olympus Corp. (JP)	4,160
			12,661
HOTELS, RESTAURANTS & LEISURE—0.8%
	660,000	Cafe de Coral Holdings Ltd. (HK)	2,330
HOUSEHOLD PRODUCTS—1.6%
	165,800	Pigeon Corp. (JP)	4,665
INDUSTRIAL CONGLOMERATES—1.9%
	66,700	Jardine Matheson Holdings Ltd. (HK)	4,063
	43,000	Jardine Strategic Holdings Ltd. (HK)	1,509
			5,572
INSURANCE—3.9%
	217,200	MS&AD Insurance Group Holdings Inc. (JP)	6,448
	19,465	Samsung Fire & Marine Insurance Co. Ltd. (S. KOR)	4,952
			11,400
INTERNET & DIRECT MARKETING RETAIL—7.7%
	84,226	ASOS plc (UK)^*	5,407
	97,657	Ctrip.com International Ltd. ADR (CHN)³	4,312

Table of Contents

Harbor International Growth Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
INTERNET & DIRECT MARKETING RETAIL—Continued
	96,744	JD.com Inc. ADR (CHN)^*,3	$ 2,510
	379,800	Rakuten Inc. (JP)	4,379
	139,062	Zalando SE (GER)^*	6,115
			22,723
INTERNET SOFTWARE & SERVICES—7.8%
	40,448	Alibaba Group Holding Ltd. ADR (CHN)^*,3	4,113
	923,901	Auto Trader Group plc (UK)	4,233
	29,573	Baidu Inc. ADR (CHN)^*,3	5,230
	254,200	Kakaku.com Inc. (JP)	4,271
	110,106	Rightmove plc (UK)	5,026
			22,873
LEISURE PRODUCTS—2.1%
	35,900	Shimano Inc. (JP)	6,138
LIFE SCIENCES TOOLS & SERVICES—1.8%
	13,011	Mettler-Toledo International Inc. (SWS)^*	5,257
MACHINERY—6.4%
	217,969	Atlas Copco AB (SW)	5,824
	79,336	Kone OYJ (FIN)	3,650
	19,798	Schindler Holding AG (SWS)	3,678
	14,700	SMC Corp. (JP)	4,261
	69,461	Weir Group plc (UK)	1,443
			18,856
MEDIA—2.5%
	44,242	Naspers Ltd. (S. AFR)	7,410
PERSONAL PRODUCTS—5.4%
	116,500	Kao Corp. (JP)	5,995
	194,200	Shiseido Co. Ltd. (JP)	5,009
	116,135	Unilever plc (UK)	4,848
			15,852
PHARMACEUTICALS—3.2%
	148,098	Novo Nordisk AS (DEN)	5,276
	17,660	Roche Holding AG (SWS)	4,056
			9,332
PROFESSIONAL SERVICES—3.2%
	480,757	Capita plc (UK)	3,441
	69,904	Intertek Group plc (UK)	2,917
	284,619	SEEK Ltd. (AUS)	3,161
			9,519
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—3.2%
	627,415	Imagination Technologies Group plc (UK)^*,2	1,735
	242,585	Taiwan Semiconductor Manufacturing Co. Ltd. ADR (TW)³	7,544
			9,279

COMMON STOCKS—Continued
Shares			Value
SPECIALTY RETAIL—1.6%
	136,262	Industria de Diseno Textil SA (SP)²	$ 4,755
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—1.8%
	3,629	Samsung Electronics Co. Ltd. (S. KOR)	5,191
TEXTILES, APPAREL & LUXURY GOODS—4.3%
	26,336	adidas AG (GER)	4,327
	151,839	Burberry Group plc (UK)	2,739
	52,593	Cie Financiere Richemont SA (SWS)	3,381
	7,705	Swatch Group AG (SWS)	2,317
			12,764
TOTAL COMMON STOCKS
(Cost $285,468)			289,347

SHORT-TERM INVESTMENTS—3.5%
Principal Amount
REPURCHASE AGREEMENTS—1.3%
$	3,707	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $3,785)	3,707
Shares
INVESTMENT COMPANY-SECURITIES LENDING INVESTMENT FUND—2.2%
	6,469,352	State Street Navigator Securities Lending Government Money Market Portfolio (1-day yield of 0.27%)⁴	6,469
TOTAL SHORT-TERM INVESTMENTS
(Cost $10,176)			10,176
TOTAL INVESTMENTS—101.9%
(Cost $295,644)			299,523
CASH AND OTHER ASSETS, LESS LIABILITIES—(1.9)%			(5,726)
TOTAL NET ASSETS—100.0%			$293,797

Table of Contents

Harbor International Growth Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Africa	$ —	$ 10,870	$—	$ 10,870
Europe	5,257	120,530	—	125,787
Latin America	1,859	—	—	1,859
Middle East/Central Asia	141	4,118	—	4,259
Pacific Basin	23,709	122,863	—	146,572
Short-Term Investments
Repurchase Agreements	—	3,707	—	3,707
Investment Company-Securities Lending Investment Fund	6,469	—	—	6,469
Total Investments in Securities	$37,435	$262,088	$—	$299,523

There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

*	Non-income producing security
1	GDR after the name of a holding stands for Global Depositary Receipts representing ownership of foreign securities. GDRs are issued by either U.S. or non-U.S. banking institutions. Country specific examples of this type of depositary receipt, if any, are denoted using different abbreviations. SADR after the name of a holding stands for South African Depositary Receipts representing ownership of South African securities listed on the Johannesburg Stock Exchange. SDR after the name of a holding stands for Swedish Depository Receipts representing ownership of foreign securities in Sweden.
2	A portion or all of this security was out on loan as of October 31, 2016.
3	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
4	Investment of collateral received related to securities lending activities

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Global Growth Fund
Manager’s Commentary (Unaudited)

Subadviser

Marsico Capital Management, LLC

1200 17th Street
Suite 1600

Denver, CO 80202

Portfolio Manager

Thomas F. Marsico
Since 2009

Marsico has subadvised the Fund since 2009.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Companies throughout the world selected for long-term growth potential

Thomas F. Marsico

Management’s Discussion of
Fund Performance

Market Review

After a sharp decline in early 2016, global equity markets generally recorded positive performances for the one-year fiscal period ended October 31, 2016. Gains were healthy in the U.S. and in many emerging markets. Japan was an outlier and turned sharply negative.

Global equities as measured by the MSCI All Country World (ND) Index posted a positive return of 2.05% for the one-year fiscal period (all returns cited are in U.S. dollars). Most commodity prices moved sideways during the period, after a notable drop in early 2016. For example, oil prices were essentially flat, with West Texas Intermediate (WTI) crude ending the period trading at approximately $47 per barrel, after dropping to a low of $27 per barrel in January.

Regarding the decline in early 2016, after mounting decent rallies through year-end 2015, most of the world’s equity markets swooned during the first two months of 2016, in part in reaction to the mid-December 2015 decision by the U.S. Federal Reserve Board (Fed) to begin raising interest rates. By early spring, Fed officials signaled newfound restraint and ratcheted down their predictions of how fast rates would rise. Share prices globally rebounded in part because of the Fed’s about-face, as well as easing by other central banks and signs of life in some emerging markets. As of period-end, there have been no Fed moves to tighten since late 2015.

During the remainder of the one-year fiscal period ended October 31, 2016, three distinct storylines emerged. Shares of U.S. and emerging economy companies continued to climb, as intermittent growth emerged, and it appeared less likely that the Fed would raise short-term interest rates. In Japan, shares were saddled with an unwanted surge for the yen after the Bank of Japan expanded its stimulus program, and the Nikkei Index ended the year down sharply. Finally, in late June, the British surprised the world by voting to leave the European Union. This ushered in a violent sell-off for the British pound. The plunge for the pound compounded worries for continental Europe regarding the impact of a “Brexit.” With the exception of the pound and the yen, currency markets experienced relatively low volatility during the period.

Throughout the developed world, inflation remained largely subdued. With global growth tepid and inflation quiescent, sovereign bond yields fell meaningfully, with several sovereign 5-year yields touching negative territory. Domestically, the U.S. 10-year Treasury bond yield finished the fiscal period at about 1.8%.

Near the end of the period, increased anxieties about the upcoming U.S presidential election were additional headwinds to equity market performance. Volatility measures increased in late October, as polls indicated that Mr. Trump’s chances began to improve. This was likely a result of the consensus view that Ms. Clinton would deliver more of the same and a Mr. Trump presidency would be harder to anticipate.

Performance

Harbor Global Growth Fund underperformed its benchmark index for the one year period. The Fund returned -3.90% (Institutional Class), -4.17% (Administrative Class), -4.25% (Investor Class), and -3.90% (Retirement Class), compared with its benchmark, the MSCI All Country World (ND) Index, which returned 2.05%. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

From an allocation perspective, the Fund’s performance was held back by having an overweight allocation to one of the weakest-performing sectors of the MSCI All Country World (ND) Index, Consumer Discretionary, as well as an underweight allocation to the strong-performing Consumer Staples sector.

Table of Contents

Harbor Global Growth Fund
Manager’s Commentary—Continued

TOP TEN HOLDINGS (% of Net Assets)
Tencent Holdings Ltd.	7.5%
Facebook Inc.	5.1%
Alibaba Group Holding Ltd. ADR	5.0%
Dollarama Inc.	4.4%
Alphabet Inc. Class A	4.1%
Amazon.com Inc.	4.0%
Anheuser-Busch InBev SA	3.8%
Domino’s Pizza Enterprises Ltd.	3.6%
Ryanair Holdings plc ADR	3.6%
UnitedHealth Group Inc.	3.6%

Stock prices of many Health Care companies were under pressure during the reporting period. Certain of the Fund’s holdings within the Pharmaceutical, Biotechnology & Life Sciences industry posted negative returns. Regeneron Pharmaceuticals, Inc. and Novartis AG declined -31% and -21%, respectively, during the period prior to being sold. We chose to sell Regeneron mainly because the U.S. government is stepping up efforts to control Medicare Part B costs, an area where Regeneron has more exposure than many of its peers. We sold Novartis after a disappointing launch of the company’s new heart failure drug and operational challenges in its eye care division.

In the Consumer Discretionary sector restaurant operator Chipotle Mexican Grill, Inc. (-45%) posted a negative return during the period after it was discovered that foodborne illnesses, including norovirus and E. coli outbreaks, were linked to Chipotle restaurants in several states. The Fund maintained a position in the company as it is taking important measures to improve the safety of its food supply chain, and a resolution of food safety issues should lead to improvement in the number of customer visits and contribute to strong same-store sales growth. Athletic apparel company NIKE Inc., meanwhile, posted a return of -23% during the period. Although the company’s growth rates slowed slightly as adidas AG and Under Armour, Inc. took market share, we still like the long-term growth potential of NIKE, which remains the clear leader in the space. Another of the Fund’s Consumer Discretionary holdings, cruise line operator Norwegian Cruise Line Holdings Ltd., posted a return of -39% during the period prior to being sold and was an additional detractor from performance.

On the brighter side, portions of this negative effect from the Consumer Discretionary sector were offset by the Fund’s overweight allocation to the strong-performing Information Technology sector and its underweight allocation to Financials, a weaker-performing sector of the benchmark MSCI All Country World (ND) Index.

Regarding positive contributors, Information Technology holdings Facebook, Inc. and Alibaba Group Holding Ltd. each had a material, positive effect on the Fund’s performance. Alibaba, China’s leading ecommerce company, staged a stock price gain of 20% during the period. Alibaba’s stock rose after sales on China’s “Singles Day,” a holiday popular among young unmarried adults in China, were stronger than expected. Facebook’s results (29%) continued to exceed market expectations, led by strong advertising revenue and monthly active user growth rates, a result of the company’s embracing a shift toward mobile phone usage. Chinese Internet services company Tencent Holdings Ltd. gained 39% as the company generated strong revenue growth from its mobile gaming business. The company also is beginning to generate successful returns from its payments and cloud computing products.

Several of the Fund’s Consumer Discretionary holdings performed well. Domino’s Pizza Enterprises Ltd. soared 49% on strong pizza sales in its Australian market. Central to our investment thesis is Domino’s use of technology to enable customers to place their orders more efficiently and other innovative enhancements designed to prepare and deliver pizzas more quickly. Canadian discount retailer Dollarama, Inc. gained 46% as the company reported strong same store sales growth, benefiting from value-conscious spending by consumers. The Fund reestablished a position in casino operator Wynn Macau Ltd. during the period and the stock rose 31% during the period it was held by the Fund. The Fund exited the position after the Wynn Palace opening failed to meet our expectations.

Although active currency management is not a central facet of the Fund’s investment process, fluctuations in major world currencies can at times affect the Fund’s performance. During the period, the net effect of currency moves was negative for the Fund. In particular, the Fund’s results were adversely impacted by having an underweight allocation, as compared to its benchmark, to investments denominated in the Japanese yen, which strengthened during the period. The Fund’s overweight allocation to stocks denominated in the relatively weaker British pound also modestly detracted from results. During the period, the Fund increased its allocations to the Information Technology and Consumer Staples sectors. The Fund reduced its positions in the Consumer Discretionary, Health Care, and Materials sectors.

Outlook & Strategy

As of October 31, 2016, the Fund’s primary economic sector allocations were Information Technology, Consumer Discretionary, and Health Care. The Fund had no investments in the Energy, Telecommunication Services, or Utilities sectors. The Fund’s most significant country allocations were the United States, China/Hong Kong, Canada, and Australia. Country-level weightings generally should be considered a residual of the Fund’s stock selection process rather than a major, proactive facet of its investment strategy.

This report contains the current opinions of Marsico Capital Management, LLC as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor Global Growth Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2030
Cusip	411512874
Ticker	HGGAX
Inception Date	03/01/2009
Net Expense Ratio	0.90% ^b
Total Net Assets (000s)	$25,471

ADMINISTRATIVE CLASS

Fund #	2230
Cusip	411512866
Ticker	HRGAX
Inception Date	03/01/2009
Net Expense Ratio	1.15% ^b
Total Net Assets (000s)	$1,253

INVESTOR CLASS

Fund #	2430
Cusip	411512858
Ticker	HGGIX
Inception Date	03/01/2009
Net Expense Ratio	1.27% ^b
Total Net Assets (000s)	$10,659

RETIREMENT CLASS

Fund #	2530
Cusip	411512411
Ticker	HNGIX
Inception Date	03/01/2016
Net Expense Ratio	0.85% ^a,b
Total Net Assets (000s)	$1,713

Portfolio Statistics

	Portfolio	Benchmark
Number of Countries	10	47
Weighted Average Market Cap (MM)	$131,464	$97,696
Price/Earning Ratio (P/E)	37.9x	21.7x
Price/Book Ratio (P/B)	7.7x	2.9x
Beta vs. MSCI All Country World (ND) Index	0.97	1.00
Portfolio Turnover (Year Ended 10/31/2016)	76%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

REGION BREAKDOWN (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2017.

Table of Contents

Harbor Global Growth Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the MSCI All Country World (ND) Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 03/01/2009 through 10/31/2016

TOTAL RETURNS For the periods ended 10/31/2016	1 Year	Annualized		Inception Date	Final Value of a $50,000 Investment
TOTAL RETURNS For the periods ended 10/31/2016	1 Year	5 Years	Life of Fund	Inception Date	Final Value of a $50,000 Investment
Harbor Global Growth Fund
Institutional Class	-3.90%	10.95%	16.48%	03/01/2009	$161,098
Administrative Class	-4.17	10.68	16.19	03/01/2009	157,998
Investor Class	-4.25	10.54	16.05	03/01/2009	156,579
Retirement Class¹	-3.90	10.95	16.48	03/01/2016	161,098
Comparative Index
MSCI All Country World (ND)	2.05%	8.03%	13.20%	—	$129,435

As stated in the Fund’s current prospectus, the expense ratios were 0.90% (Net) and 1.03% (Gross) (Institutional Class); 1.15% (Net) and 1.28% (Gross) (Administrative Class); 1.27% (Net) and 1.40% (Gross) (Investor Class); and 0.85% (Net) and 0.98% (Retirement Class). The net expense ratios reflect an expense limitation agreement (excluding interest expense, if any) effective through 02/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Global Growth Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 2.3%)

COMMON STOCKS—97.7%
Shares			Value
AIRLINES—3.6%
	18,565	Ryanair Holdings plc ADR (IE)¹	$ 1,394
BANKS—2.6%
	13,659	First Republic Bank (US)	1,017
BEVERAGES—3.8%
	12,975	Anheuser-Busch InBev SA (BEL)	1,489
BIOTECHNOLOGY—2.9%
	8,066	Amgen Inc. (US)	1,139
CHEMICALS—2.7%
	4,271	Sherwin-Williams Co. (US)	1,046
HEALTH CARE EQUIPMENT & SUPPLIES—3.5%
	2,048	Intuitive Surgical Inc. (US)^*	1,376
HEALTH CARE PROVIDERS & SERVICES—3.6%
	9,907	UnitedHealth Group Inc. (US)	1,400
HOTELS, RESTAURANTS & LEISURE—9.3%
	2,861	Chipotle Mexican Grill Inc. (US)^*	1,032
	29,065	Domino's Pizza Enterprises Ltd. (AUS)	1,416
	282,315	Domino's Pizza Group plc (UK)	1,174
			3,622
INTERNET & DIRECT MARKETING RETAIL—7.4%
	1,952	Amazon.com Inc. (US)^*	1,542
	30,465	Ctrip.com International Ltd. ADR (CHN)¹	1,345
			2,887
INTERNET SOFTWARE & SERVICES—21.8%
	19,427	Alibaba Group Holding Ltd. ADR (CHN)^*,1	1,976
	1,976	Alphabet Inc. Class A (US)^*	1,600
	15,260	Facebook Inc. (US)^*	1,999
	110,900	Tencent Holdings Ltd. (CHN)	2,939
			8,514
IT SERVICES—6.5%
	8,048	Accenture plc (IE)	936

COMMON STOCKS—Continued
Shares			Value
IT SERVICES—Continued
	15,016	Visa Inc. (US)	$ 1,239
	7,931	Wirecard AG Common Stock (GER)	376
			2,551
MEDIA—0.3%
	3,565	REA Group Ltd. (AUS)	138
MULTILINE RETAIL—4.3%
	22,837	Dollarama Inc. (CAN)	1,706
PROFESSIONAL SERVICES—2.5%
	21,916	Nielsen Holdings plc (UK)	987
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.8%
	10,932	ASML Holding NV (NET)	1,157
	15,614	NVIDIA Corp. (US)	1,111
			2,268
SOFTWARE—5.0%
	7,561	Electronic Arts Inc. (US)^*	594
	18,232	Salesforce.com Inc. (US)^*	1,370
			1,964
SPECIALTY RETAIL—5.7%
	7,958	Home Depot Inc. (US)	971
	4,752	O'Reilly Automotive Inc. (US)^*	1,256
			2,227
TEXTILES, APPAREL & LUXURY GOODS—6.4%
	3,007	Hermes International SA (FR)	1,218
	25,501	NIKE Inc. (US)	1,280
			2,498
TOTAL COMMON STOCKS
(Cost $32,785)			38,223

SHORT-TERM INVESTMENTS—0.7%
(Cost $258)
Principal Amount
REPURCHASE AGREEMENTS
$	258	Repurchase Agreement with State Street Corp. dated October 31, 2016 due November 01, 2016 at 0.000% collateralized by Federal National Mortgage Association Notes (value $265)	258
TOTAL INVESTMENTS—98.4%
(Cost $33,043)			38,481
CASH AND OTHER ASSETS, LESS LIABILITIES—1.6%			615
TOTAL NET ASSETS—100.0%			$39,096

Table of Contents

Harbor Global Growth Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Europe	$ 4,806	$3,925	$—	$ 8,731
North America	21,678	—	—	21,678
Pacific Basin	3,321	4,493	—	7,814
Short-Term Investments
Repurchase Agreements	—	258	—	258
Total Investments in Securities	$29,805	$8,676	$—	$38,481

There were no Level 3 holdings at October 31, 2016 or 2015 and no transfers between levels during the year.

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor Emerging Markets Equity Fund
Managers' Commentary (Unaudited)

Subadviser

Oaktree Capital Management, L.P.

333 South Grand Avenue
28th Floor

Los Angeles, CA 90071

Portfolio Managers

Frank Carroll
Since 2013

Tim Jensen
Since 2013

Oaktree has subadvised the Fund since 2013.

Investment Objective

Long-term growth of capital

Principal Style Characteristics

Equity securities of emerging market companies of any size

Frank Carroll

Tim Jensen

Management’s Discussion of
Fund Performance

Market Review

After a volatile start to the period, emerging markets generated strong returns in a rising market during the twelve months ended October 31, 2016. Strong performance in Brazil, rebounding currency and commodity prices and inflows into emerging markets combined to produce a strong investment environment for emerging market equities and the Fund during this period. Following a sharp 25% rise in the U.S. Trade Weighted Broad Dollar Index from mid-2014 to a peak in late January 2016, the dollar reversed course and pulled back into the period end. This dollar weakness relieved pressure on emerging markets currencies, which appreciated slightly during this twelve month period after several years of persistent weakness. Commodity prices fluctuated wildly. For example, throughout 2015 Brent crude oil plunged over 40% before bottoming in late January. From its bottom on January 20th, crude rallied sharply and ended the period up marginally. A number of metals prices, including iron ore, exhibited similar price swings. These price swings had a notable impact on energy and materials stocks and on economies like Russia and Brazil that have a high dependence on commodity exports. After years of outflows, emerging markets enjoyed inflows during the period, an encouraging indicator that negative sentiment towards the asset class has diminished (all international and global returns are in U.S. dollars).

After five difficult years, the Brazilian equity market was one of the leading performers during the period, returning 71%. The Brazilian economy has been in a deep recession for the past few years. The country has suffered from a significant negative terms-of-trade shock due to the decline in commodity prices, a broad corruption scandal and political paralysis. The market rally was driven by the prospect of political change and the potential for subsequent economic reform. Political change finally occurred when President Dilma Rousseff was impeached and replaced by her Vice President Michel Temer. Mr. Temer’s administration has proposed a series of economic reforms that if enacted could materially strengthen the performance of the Brazilian economy over the medium and long term.

China remained at the forefront of emerging markets’ headlines, ending the period up despite significant volatility early on. Marking the start to the year, China triggered the massive global sell-off that occurred in early January due to the weakening Chinese yuan and sharp decline of China’s domestic equity market. Chinese authorities struggled to contain the fallout. Since the January bottom, the Chinese government has improved communications with the market. Largely due to government spending, the economy is accelerating. Second quarter 2016 company earnings and the prospective earnings outlook improved, specifically within the consumer discretionary, telecom, internet and materials sectors. This was in line with the release of positive economic data surrounding consumer spending and the encouraging steps to reduce coal and steel production overcapacity. In August, The State Council of China approved the Shenzhen-Hong Kong Stock Connect program which will allow global investors access to more Chinese companies for investment, specifically technology companies listed on the Shenzhen exchange. We continue to believe that China will grow, albeit at a more modest pace, and that Chinese stocks offer excellent value.

Performance

Harbor Emerging Markets Equity Fund returned 9.99% (Institutional Class), 9.81% (Administrative Class), 9.69% (Investor Class), and 9.99% (Retirement Class) for the 12-months ended October 31, 2016, compared with the 9.27% return of its MSCI Emerging Markets (ND) Index benchmark. Please note that Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period,

Table of Contents

Harbor Emerging Markets Equity Fund
Managers' Commentary—Continued

TOP TEN HOLDINGS (% of Net Assets)
Samsung Electronics Co. Ltd.	6.5%
Taiwan Semiconductor Manufacturing Co. Ltd. ADR	5.2%
Itau Unibanco Holding SA ADR	3.6%
Tencent Holdings Ltd.	3.4%
Alibaba Group Holding Ltd. ADR	2.8%
Reliance Industries Ltd.	2.7%
ICICI Bank Ltd. ADR	2.4%
Industrial & Commercial Bank of China Ltd.	2.4%
SK Hynix Inc.	2.3%
Bank Rakyat Indonesia Persero Tbk PT	2.2%

Retirement Class shares would have had returns similar to, but somewhat higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.

Consistent with our bottom-up investment process, stock selection effects explained the bulk of our outperformance. Positive factors over the year included strong stock selection in Mexico, Taiwan, South Africa and South Korea; weak stock selection in China and Brazil detracted from relative returns. An overweight allocation to Brazil contributed positively to relative performance. By sector, strong stock selection among Materials, Financials and Information Technology was partially offset by weak selection among Energy, Consumer Discretionary and Consumer Staples.

Outlook & Strategy

Emerging markets equities have performed well since the market bottomed in January. Modest weakness in the dollar, the bounce in commodity prices, and tighter emerging markets debt credit spreads have supported the recovery. However, emerging markets continue to trade at significant discounts to developed markets and to their own long-term historical average multiples. The Fund currently trades at a discount to its benchmark index on a price-to-book value basis. We believe the Fund is positioned well for a market upswing and a rotation into value, as value names have been out of favor for several years. Additionally, many of the companies have strong balance sheets and experienced management teams who have weathered volatile economic environments in the past. Currently the Fund has overweight exposures in China, Brazil, Russia and India, and underweight exposures in Taiwan, Malaysia and South Africa. The Fund holds substantial positions among Taiwanese exporters, but we struggle to find interesting names in the domestic sectors. The Fund still does not hold any investments in Malaysia. Overweight sectors include financials and materials; underweights include consumer staples, industrials and consumer discretionary.

This report contains the current opinions of Oaktree Capital Management, L.P. as of the date of this report and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, the Fund’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Table of Contents

Harbor Emerging Markets Equity Fund
Fund Summary—October 31, 2016 (Unaudited)

INSTITUTIONAL CLASS

Fund #	2036
Cusip	411512692
Ticker	HAEMX
Inception Date	11/01/2013
Net Expense Ratio	1.15% ^b
Total Net Assets (000s)	$36,390

ADMINISTRATIVE CLASS

Fund #	2236
Cusip	411512684
Ticker	HREMX
Inception Date	11/01/2013
Net Expense Ratio	1.40% ^b
Total Net Assets (000s)	$217

INVESTOR CLASS

Fund #	2436
Cusip	411512676
Ticker	HIEEX
Inception Date	11/01/2013
Net Expense Ratio	1.52% ^b
Total Net Assets (000s)	$482

RETIREMENT CLASS

Fund #	2536
Cusip	411512395
Ticker	HNEMX
Inception Date	03/01/2016
Net Expense Ratio	1.10% ^a,b
Total Net Assets (000s)	$1,335

Portfolio Statistics

	Portfolio	Benchmark
Number of Countries	15	26
Weighted Average Market Cap (MM)	$70,963	$58,298
Price/Earning Ratio (P/E)	15.7x	17.2x
Price/Book Ratio (P/B)	1.9x	2.2x
Beta vs. MSCI Emerging Markets (ND) Index	0.94	1.00
Portfolio Turnover (Year Ended 10/31/2016)	49%	N/A

Sector Allocation (% of investments)

(Excludes cash and short-term investments)

REGION BREAKDOWN (% of investments)

(Excludes cash and short-term investments)

a	Annualized
b	Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2017.

Table of Contents

Harbor Emerging Markets Equity Fund
Fund Performance Summary (Unaudited)

The graph compares a $50,000 investment in the Fund with the performance of the MSCI Emerging Markets (ND) Index. The Fund’s performance assumes the reinvestment of all dividend and capital gain distributions.

CHANGE IN A $50,000 INVESTMENT

For the period 11/01/2013 through 10/31/2016

TOTAL RETURNS
For the periods ended 10/31/2016

1 Year

5 Years

Annualized

Inception
Date

Final Value
of a $50,000
Investment

Life of Fund

Harbor Emerging Markets Equity Fund

Institutional Class

9.99%

N/A

-4.46%

11/01/2013

$43,606

Administrative Class

9.81

N/A

-4.68

11/01/2013

43,310

Investor Class

9.69

N/A

-4.81

11/01/2013

43,126

Retirement Class¹

9.99

N/A

-4.46

03/01/2016

43,606

Comparative Index

MSCI Emerging Markets (ND)

9.27%

N/A

-2.05%

—

$46,994

As stated in the Fund’s current prospectus, the expense ratios were 1.15% (Net) and 1.49% (Gross) (Institutional Class); 1.40% (Net) and 1.74% (Gross) (Administrative Class); 1.52% (Net) and 1.86% (Gross) (Investor Class); and 1.10% (Net) and 1.44% (Gross) (Retirement Class). The net expense ratios reflect an expense limitation agreement (excluding interest expense, if any) effective through 2/28/2017. The expense ratios in the prospectus may differ from the actual expense ratios for the period disclosed within this report. The expense ratios shown in the prospectus are based on the prior fiscal year, adjusted to reflect changes, if any, in contractual arrangements that occurred prior to the date of the prospectus.

Table of Contents

Harbor Emerging Markets Equity Fund
Portfolio of Investments—October 31, 2016

Value, Cost, and Principal Amounts in Thousands

Equity Holdings (% of net assets)

(Excludes net cash of 1.4%)

COMMON STOCKS—94.1%
Shares			Value
AUTOMOBILES—1.4%
	448,000	Brilliance China Automotive Holdings Ltd. (CHN)	$ 533
BANKS—23.1%
	222,378	Alpha Bank AE (GRC)^*	380
	14,390	Axis Bank Ltd. (IND)	105
	914,400	Bank Rakyat Indonesia Persero Tbk PT (IDR)	854
	781,000	China Construction Bank Corp. (CHN)	570
	159,000	China Merchants Bank Co. Ltd. (CHN)	387
	461,600	E.Sun Financial Holding Co. Ltd. (TW)	262
	73,537	Grupo Financiero Banorte SAB de CV (MEX)	434
	22,077	Hana Financial Group Inc. (S. KOR)	632
	109,101	ICICI Bank Ltd. ADR (IND)¹	904
	1,546,000	Industrial & Commercial Bank of China Ltd. (CHN)	928
	115,599	Itau Unibanco Holding SA ADR (BR)¹	1,379
	119,900	Kasikornbank PCL NVDR (THA)²	589
	80,136	Sberbank of Russia PJSC ADR (RUS)¹	759
	153,690	Turkiye Halk Bankasi AS (TUR)	467
	123,500	United Bank Ltd. (PAK)	238
			8,888
BEVERAGES—1.0%
	66,670	AmBev SA ADR (BR)¹	393
CAPITAL MARKETS—1.0%
	399,000	China Galaxy Securities Co. Ltd. (CHN)	379
CHEMICALS—2.2%
	84,096	Mexichem SAB de CV (MEX)	201
	31,476	PhosAgro OJSC GDR (RUS)²	391
	2,684,000	Tianhe Chemicals Group Ltd. (CHN)^*,3	242 ^x
			834
COMMERCIAL SERVICES & SUPPLIES—1.1%
	347,900	China Everbright International Ltd. (CHN)	416
CONSTRUCTION & ENGINEERING—0.1%
	2,985	L&T Technology Services Ltd. (IND)³	37

COMMON STOCKS—Continued
Shares			Value
CONSTRUCTION MATERIALS—4.2%
	150,000	Anhui Conch Cement Co. Ltd. (CHN)	$ 414
	95,945	Cemex SAB de CV ADR (MEX)¹	833
	6,437	UltraTech Cement Ltd. (IND)	383
			1,630
DIVERSIFIED FINANCIAL SERVICES—1.1%
	117,481	FirstRand Ltd. (S. AFR)	421
DIVERSIFIED TELECOMMUNICATION SERVICES—1.3%
	34,026	Telefonica Brasil SA ADR (BR)^*,1	490
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.4%
	103,406	Delta Electronics Inc. (TW)	544
HOTELS, RESTAURANTS & LEISURE—2.8%
	42,700	Cvc Brasil Operadora E Agencia de Viagens SA (BR)^*	328
	174,418	Sands China Ltd. (CHN)	757
			1,085
HOUSEHOLD DURABLES—0.8%
	189,989	Haier Electronics Group Co. Ltd. (CHN)	306
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—1.0%
	528,000	China Longyuan Power Group Corp. Ltd. (CHN)	403
INDUSTRIAL CONGLOMERATES—0.5%
	7,318	Industries Qatar QSC (QA)	205
INSURANCE—4.5%
	168,000	China Life Insurance Co. Ltd. (CHN)	416
	190,400	China Pacific Insurance Group Co. Ltd. (CHN)	686
	45,903	ICICI Prudential Life Insurance Co. Ltd. (IND)³	215
	4,176	Samsung Life Insurance Co. Ltd. (S. KOR)	403
			1,720
INTERNET SOFTWARE & SERVICES—6.2%
	10,748	Alibaba Group Holding Ltd. ADR (CHN)^*,1	1,093
	48,600	Tencent Holdings Ltd. (CHN)	1,288
			2,381
MEDIA—2.1%
	4,798	Naspers Ltd. (S. AFR)	804
METALS & MINING—6.5%
	35,664	AngloGold Ashanti Ltd. ADR (S. AFR)^*,1	490
	142,886	Gerdau SA ADR (BR)¹	490
	47,736	Grupo Mexico SAB de CV (MEX)	117
	12,649	MMC Norilsk Nickel Pjsc ADR ADR (RUS)¹	191
	1,723	POSCO (S. KOR)	359
	131,553	Vale SA ADR (BR)¹	847
			2,494
OIL, GAS & CONSUMABLE FUELS—6.6%
	202,500	China Shenhua Energy Co. Ltd. (CHN)	420
	2,825	CNOOC Ltd. ADR (CHN)¹	354
	16,200	Lukoil PJSC ADR (RUS)¹	788
	492,000	PetroChina Co. Ltd. (CHN)	337
	14,720	Reliance Industries Ltd. (IND)	231
	14,361	Sasol Ltd. (S. AFR)	397
			2,527
PERSONAL PRODUCTS—1.1%
	42,180	Natura Cosmeticos SA (BR)^*	405

Table of Contents

Harbor Emerging Markets Equity Fund
Portfolio of Investments—Continued

Value, Cost, and Principal Amounts in Thousands

COMMON STOCKS—Continued
Shares			Value
PHARMACEUTICALS—1.2%
	37,236	Aurobindo Pharma Ltd. (IND)	$ 457
REAL ESTATE MANAGEMENT & DEVELOPMENT—2.1%
	260,000	China Overseas Land & Investment Ltd. (CHN)	798
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—8.8%
	1,234,000	GCL-Poly Energy Holdings Ltd. (CHN)	166
	24,501	SK Hynix Inc. (S. KOR)	876
	63,728	Taiwan Semiconductor Manufacturing Co. Ltd. ADR (TW)¹	1,982
	36,111	Trina Solar Ltd. ADR (CHN)^*,1	375
			3,399
SPECIALTY RETAIL—0.7%
	2,239	Dufry AG (SWS)^*	272
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—7.1%
	25,175	Advantech Co. Ltd. (TW)	204
	1,756	Samsung Electronics Co. Ltd. (S. KOR)	2,512
			2,716
TRADING COMPANIES & DISTRIBUTORS—0.5%
	34,797	BOC Aviation Ltd. (CHN)³	190
WIRELESS TELECOMMUNICATION SERVICES—3.7%
	28,585	America Movil SAB de CV ADR (MEX)¹	376
	23,294	Bharti Airtel Ltd. (IND)	111
	63,800	China Mobile Ltd. (CHN)	731
	58,471	Vimpelcom Ltd. ADR (RUS)¹	195
			1,413
TOTAL COMMON STOCKS
(Cost $33,305)			36,140

PARTICIPATION (EQUITY LINKED) NOTES—4.5%
Principal Amount
		Axis Bank Ltd. (IND)
$	49,402	$0.00—11/25/2019	361
		Bharti Airtel Ltd. (IND)
	3,201	$0.00—02/08/2017	15
	76,767	$0.00—07/11/2019	366
			381
		Reliance Industries Ltd. (IND)
	50,876	$0.00—02/07/2017-07/08/2019	801
		United Bank Ltd. (PAK)
	100,445	$0.00—06/17/2019	193
TOTAL PARTICIPATION (EQUITY LINKED) NOTES
(Cost $1,824)			1,736
TOTAL INVESTMENTS—98.6%
(Cost $35,129)			37,876
CASH AND OTHER ASSETS, LESS LIABILITIES—1.4%			548
TOTAL NET ASSETS—100.0%			$38,424

Table of Contents

Harbor Emerging Markets Equity Fund
Portfolio of Investments—Continued

FAIR VALUE MEASUREMENTS

The following table summarizes the Fund’s investments as of October 31, 2016 based on the inputs used to value them.

Asset Category	Quoted Prices Level 1 (000s)	Other Significant Observable Inputs Level 2 (000s)	Significant Unobservable Inputs Level 3 (000s)	Total (000s)
Common Stocks
Africa	$ 490	$ 1,622	$ —	$ 2,112
Europe	195	3,248	—	3,443
Latin America	5,965	328	—	6,293
Middle East/Central Asia	1,156	1,730	—	2,886
Pacific Basin	3,804	17,360	242	21,406
Participation (Equity Linked) Notes
Middle East/Central Asia	—	1,736	—	1,736
Total Investments in Securities	$11,610	$26,024	$242	$37,876

The following is a rollforward of the Fund’s Level 3 investments during the year ended October 31, 2016.

Valuation Description		Balance Beginning at 11/01/2015 (000s)		Purchases (000s)		Sales (000s)		Discount/ (Premium) (000s)		Total Realized Gain/(Loss)^w (000s)		Change in Unrealized Appreciation/ (Depreciation)^w (000s)		Transfers In Level 3 (000s)		Transfers Out of Level 3 (000s)		Ending Balance as of 10/31/2016^w (000s)
Common Stocks		$242		$—		$—		$—		$—		$—		$—		$—		$242

There were no transfers between Levels 1 and 2 during the year.

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy.

Valuation Descriptions	Ending Balance as of 10/31/2016 (000s)	Valuation Technique	Unobservable Inputs	Input Value(s)
Investments in Securities
Common Stocks
Tianhe Chemicals Group Ltd. (CHN)^*,3	$242	Market Approach	Liquidity Discount	HK$ 0.70

*	Non-income producing security
1	ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.
2	GDR after the name of a holding stands for Global Depositary Receipts representing ownership of foreign securities. GDRs are issued by either U.S. or non-U.S. banking institutions. Country specific examples of this type of depositary receipt, if any, are denoted using different abbreviations. SADR after the name of a holding stands for South African Depositary Receipts representing ownership of South African securities listed on the Johannesburg Stock Exchange. SDR after the name of a holding stands for Swedish Depository Receipts representing ownership of foreign securities in Sweden.
3	Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. These securities are priced by an independent pricing service in accordance with Harbor Funds Valuation Procedures. At October 31, 2016, the aggregate value of these securities was $877,000 or 2% of net assets.
w	The amounts in this category are included in the “Realized and Change in Unrealized Gain/(Loss) on Investment Transactions” section of the Statement of Operations. The net unrealized appreciation/(depreciation) per investment type is below:
	Valuation Description	Unrealized Gain/(Loss) as of 10/31/2016 (000s)
	Common Stocks	$(270)
x	Fair Valued in accordance with Harbor Funds Valuation Procedures using a liquidity discount which is a Level 3 input.
HK$	Hong Kong Dollar

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

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Table of Contents

Harbor International & Global Funds
Statements of Assets and Liabilities—October 31, 2016

(All amounts in thousands, except per share amounts)

	Harbor International Fund	Harbor Diversified International All Cap Fund	Harbor International Small Cap Fund	Harbor International Growth Fund	Harbor Global Growth Fund	Harbor Emerging Markets Equity Fund
ASSETS
Investments, at identified cost*	$30,894,779	$146,389	$17,308	$ 295,644	$33,043	$35,129
Investments, at value(Including securities loaned of $313,358, $0, $0, $6,065, $0 and $0)	$36,667,502	$147,265	$17,790	$ 295,816	$38,223	$37,876
Repurchase agreements	194,854	4,220	854	3,707	258	—
Cash	—	1	—	1	—	—
Foreign currency, at value (cost: $0, $735, $0, $0, $0 and $0)	—	730	—	—	—	—
Receivables for:
Investments sold	63,078	17	76	50	624	894
Capital shares sold	17,976	65	—	60	4	1
Dividends	37,397	407	35	560	14	29
Interest	29	—	—	—	—	—
Securities lending income	11	—	—	—	—	—
Purchased options, at value (cost: $14,434, $1, $0, $0, $0 and $0)	9,347	1	—	—	—	—
Withholding tax	73,933	69	11	392	18	1
Prepaid registration fees	42	37	9	34	10	36
Other assets	2,171	70	31	48	4	7
Total Assets	37,066,340	152,882	18,806	300,668	39,155	38,844
LIABILITIES
Payables for:
Due to custodian	—	—	—	—	—	4
Investments purchased	—	34	78	—	—	313
Foreign currency spot contracts	220	—	—	—	—	2
Capital shares reacquired	60,608	1	—	30	9	6
Collateral for securities loaned	330,060	—	—	6,469	—	—
Accrued expenses:
Management fees	21,517	96	14	191	26	32
12b-1 fees	588	—	—	3	3	—
Transfer agent fees	2,439	9	1	19	4	3
Trustees' fees and expenses	251	1	—	2	—	—
Other	9,981	117	25	157	17	60
Total Liabilities	425,664	258	118	6,871	59	420
NET ASSETS	$36,640,676	$152,624	$18,688	$ 293,797	$39,096	$38,424
Net Assets Consist of:
Paid-in capital	$30,716,520	$148,466	$17,515	$ 458,045	$36,182	$44,403
Accumulated undistributed net investment income/(loss)	329,584	1,687	199	3,291	(1)	319
Accumulated net realized gain/(loss)	(364,881)	(2,608)	(360)	(171,388)	(2,522)	(9,031)
Unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currencies	5,964,540	5,079	1,334	3,849	5,437	2,733
Unrealized appreciation/(depreciation) of other financial instruments	(5,087)	—	—	—	—	—
	$36,640,676	$152,624	$18,688	$ 293,797	$39,096	$38,424
NET ASSET VALUE PER SHARE BY CLASS
Institutional Class
Net assets	$33,201,899	$150,263	$17,509	$ 277,638	$25,471	$36,390
Shares of beneficial interest¹	550,604	15,384	1,626	21,536	1,255	4,235
Net asset value per share²	$ 60.30	$ 9.77	$ 10.77	$ 12.89	$ 20.29	$ 8.59
Administrative Class
Net assets	$ 510,575	$ 246	$ 263	$ 333	$ 1,253	$ 217
Shares of beneficial interest¹	8,511	25	25	26	62	25
Net asset value per share²	$ 59.99	$ 9.75	$ 10.75	$ 12.87	$ 20.06	$ 8.58
Investor Class
Net assets	$ 2,188,360	$ 329	$ 287	$ 13,466	$10,659	$ 482
Shares of beneficial interest¹	36,714	34	27	1,053	536	56
Net asset value per share²	$ 59.61	$ 9.74	$ 10.74	$ 12.79	$ 19.89	$ 8.56
Retirement Class
Net assets	$ 739,842	$ 1,786	$ 629	$ 2,360	$ 1,713	$ 1,335
Shares of beneficial interest¹	12,266	183	58	183	84	155
Net asset value per share²	$ 60.32	$ 9.77	$ 10.77	$ 12.90	$ 20.29	$ 8.59

*	Including repurchase agreements and short-term investments.
1	Par value $0.01 (unlimited authorizations).
2	Per share amounts can be recalculated to the amounts disclosed herein when total net assets and shares of beneficial interest are not rounded to thousands.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International & Global Funds
Statements of Operations—Year Ended October 31, 2016

(All amounts in thousands)

	Harbor International Fund	Harbor Diversified International All Cap Fund^a	Harbor International Small Cap Fund^b	Harbor International Growth Fund	Harbor Global Growth Fund	Harbor Emerging Markets Equity Fund
Investment Income
Dividends	$ 1,048,414	$ 3,578	$ 328	$ 6,797	$ 439	$ 886
Net securities lending income	7,015	—	—	42	—	—
Interest	2,715	—	—	1	—	—
Foreign taxes withheld	(91,159)	(290)	(27)	(575)	(12)	(124)
Total Investment Income	966,985	3,288	301	6,265	427	762
Operating Expenses
Management fees	271,408	828	109	2,125	343	349
12b-1 fees:
Administrative Class	1,541	—	—	1	3	1
Investor Class	6,705	1	1	36	31	1
Shareholder communications	2,485	26	23	7	3	2
Custodian fees	7,885	218	28	92	22	79
Transfer agent fees:
Institutional Class	27,213	86	10	202	24	27
Administrative Class	457	—	—	—	1	—
Investor Class	5,211	—	1	28	24	1
Retirement Class	90	—	—	—	—	—
Professional fees	1,102	77	74	27	3	15
Trustees' fees and expenses	1,101	3	—	8	1	1
Registration fees	243	95	74	62	59	64
Miscellaneous	397	12	8	13	9	11
Total expenses	325,838	1,346	328	2,601	523	551
Management fees waived	(5,136)	—	—	—	—	—
Transfer agent fees waived	(1,641)	(6)	—	(12)	(2)	(2)
Other expenses reimbursed	—	(400)	(204)	(127)	(61)	(125)
Custodial expense reductions	(7)	—	—	—	—	—
Net expenses	319,054	940	124	2,462	460	424
Net Investment Income/(Loss)	647,931	2,348	177	3,803	(33)	338
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions
Net realized gain/(loss) on:
Investments	(91,256)	(2,576)	(360)	(4,738)	(2,284)	(5,750)
Foreign currency transactions	(9,834)	(330)	22	(266)	9	(24)
Purchased options	—	—	—	65	—	1
Change in net unrealized appreciation/(depreciation) on:
Investments	(2,295,717)	5,097	1,336	8,152	738	9,206
Purchased options	3,036	—	—	—	—	—
Translations of assets and liabilities in foreign currencies	(279)	(18)	(2)	(4)	—	—
Net gain/(loss) on investment transactions	(2,394,050)	2,173	996	3,209	(1,537)	3,433
Net Increase/(Decrease) in Net Assets Resulting from Operations	$(1,746,119)	$ 4,521	$1,173	$ 7,012	$(1,570)	$ 3,771

a	For the period November 2, 2015 (inception) through October 31, 2016.
b	For the period February 1, 2016 (inception) through October 31, 2016.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International & Global Funds
Statements of Changes In Net Assets

(All amounts in thousands)

	Harbor International Fund		Harbor Diversified International All Cap Fund	Harbor International Small Cap Fund
	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 2, 2015^a through October 31, 2016	February 1, 2016^a through October 31, 2016
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss)	$ 647,931	$ 846,117	$ 2,348	$ 177
Net realized gain/(loss) on investments	(101,090)	1,788,506	(2,906)	(338)
Change in net unrealized appreciation/(depreciation) of investments	(2,292,960)	(3,344,691)	5,079	1,334
Net increase/(decrease) in assets resulting from operations	(1,746,119)	(710,068)	4,521	1,173
Distributions to Shareholders
Net investment income:
Institutional Class	(663,480)	(900,561)	(21)	—
Administrative Class	(11,261)	(13,412)	—	—
Investor Class	(39,315)	(80,120)	—	—
Retirement Class	—	—	—	—
Net realized gain on investments:
Institutional Class	(1,087,932)	—	—	—
Administrative Class	(21,975)	—	—	—
Investor Class	(89,647)	—	—	—
Retirement Class	—	—	—	—
Total distributions to shareholders	(1,913,610)	(994,093)	(21)	–
Net Increase/(Decrease) Derived from Capital Share Transactions	(5,484,241)	(1,644,041)	148,124	17,515
Net increase/(decrease) in net assets	(9,143,970)	(3,348,202)	152,624	18,688
Net Assets
Beginning of period	45,784,646	49,132,848	—	—
End of period*	$36,640,676	$45,784,646	$152,624	$18,688
* Includes accumulated undistributed net investment income/(loss) of:	$ 329,584	$ 249,193	$ 1,687	$199

a	Commencement of operations.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International Growth Fund		Harbor Global Growth Fund		Harbor Emerging Markets Equity Fund
November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015


$ 3,803	$ 2,871	$ (33)	$ (76)	$ 338	$ 344
(4,939)	(1,741)	(2,275)	1,504	(5,773)	(2,935)
8,148	(235)	738	(644)	9,206	(6,803)
7,012	895	(1,570)	784	3,771	(9,394)


(2,643)	(2,885)	—	(39)	(339)	(133)
(1)	(8)	—	—	(1)	(1)
(96)	(190)	—	—	(2)	(1)
—	—	—	—	—	—

—	—	(1,124)	(2,921)	—	—
—	—	(37)	(93)	—	—
—	—	(446)	(997)	—	—
—	—	—	—	—	—
(2,740)	(3,083)	(1,607)	(4,050)	(342)	(135)
18,757	58,790	(7,020)	16,572	(7,535)	24,061
23,029	56,602	(10,197)	13,306	(4,106)	14,532

270,768	214,166	49,293	35,987	42,530	27,998
$293,797	$270,768	$ 39,096	$49,293	$38,424	$42,530
$ 3,291	$ 2,306	$ (1)	$ (58)	$ 319	$ 327

Table of Contents

Harbor International & Global Funds
Statements of Changes in Net Assets—Capital Stock Activity

(All amounts in thousands)

	Harbor International Fund		Harbor Diversified International All Cap Fund	Harbor International Small Cap Fund
	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 2, 2015^a through October 31, 2016	February 1, 2016^a through October 31, 2016
AMOUNT ($)
Institutional Class
Net proceeds from sale of shares	$ 6,472,181	$ 7,815,560	$215,224	$16,564
Reinvested distributions	1,536,571	775,192	21	—
Cost of shares reacquired	(12,709,358)	(9,246,787)	(69,472)	(184)
Net increase/(decrease) in net assets	$ (4,700,606)	$ (656,035)	$145,773	$16,380
Administrative Class
Net proceeds from sale of shares	$ 120,940	$ 266,176	$ 253	$ 245
Reinvested distributions	31,538	12,596	—	—
Cost of shares reacquired	(397,568)	(381,656)	—	—
Net increase/(decrease) in net assets	$ (245,090)	$ (102,884)	$ 253	$ 245
Investor Class
Net proceeds from sale of shares	$ 394,564	$ 847,209	$ 334	$ 473
Reinvested distributions	126,893	74,364	—	—
Cost of shares reacquired	(1,797,732)	(1,806,695)	—	(198)
Net increase/(decrease) in net assets	$ (1,276,275)	$ (885,122)	$ 334	$ 275
Retirement Class
Net proceeds from sale of shares	$ 785,702	$ —	$ 1,780	$ 615
Cost of shares reacquired	(47,972)	—	(16)	—
Net increase/(decrease) in net assets	$ 737,730	$ —	$ 1,764	$ 615

a	Commencement of operations.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International Growth Fund		Harbor Global Growth Fund		Harbor Emerging Markets Equity Fund
November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015


$ 57,542	$101,314	$ 2,664	$12,301	$ 4,774	$33,105
2,591	2,831	1,101	2,883	339	133
(40,817)	(43,657)	(10,475)	(5,025)	(13,818)	(9,236)
$ 19,316	$ 60,488	$ (6,710)	$10,159	$ (8,705)	$24,002

$ 367	$ 788	$ 297	$ 542	$ —	$ 1
1	8	37	93	1	—
(375)	(1,125)	(193)	(166)	—	—
$ (7)	$ (329)	$ 141	$ 469	$ 1	$ 1

$ 1,793	$ 2,190	$ 1,793	$ 7,974	$ 1,116	$ 154
95	188	446	995	2	1
(4,556)	(3,747)	(4,323)	(3,025)	(1,092)	(97)
$ (2,668)	$ (1,369)	$ (2,084)	$ 5,944	$ 26	$ 58

$ 2,316	$ —	$ 1,732	$ —	$ 1,162	$ —
(200)	—	(99)	—	(19)	—
$ 2,116	$ —	$ 1,633	$ —	$ 1,143	$ —

Table of Contents

Harbor International & Global Funds
Statements of Changes in Net Assets—Capital Stock Activity—Continued

(All amounts in thousands)

	Harbor International Fund		Harbor Diversified International All Cap Fund	Harbor International Small Cap Fund
	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 2, 2015^a through October 31, 2016	February 1, 2016^a through October 31, 2016
SHARES
Institutional Class
Shares sold	109,758	115,666	22,533	1,644
Shares issued due to reinvestment of distributions	26,048	11,779	2	—
Shares reacquired	(212,523)	(137,272)	(7,151)	(18)
Net increase/(decrease) in shares outstanding	(76,717)	(9,827)	15,384	1,626
Beginning of period	627,321	637,148	—	—
End of period	550,604	627,321	15,384	1,626
Administrative Class
Shares sold	2,042	3,935	25	25
Shares issued due to reinvestment of distributions	536	192	—	—
Shares reacquired	(6,804)	(5,639)	—	—
Net increase/(decrease) in shares outstanding	(4,226)	(1,512)	25	25
Beginning of period	12,737	14,249	—	—
End of period	8,511	12,737	25	25
Investor Class
Shares sold	6,701	12,656	34	47
Shares issued due to reinvestment of distributions	2,169	1,140	—	—
Shares reacquired	(30,082)	(27,063)	—	(20)
Net increase/(decrease) in shares outstanding	(21,212)	(13,267)	34	27
Beginning of period	57,926	71,193	—	—
End of period	36,714	57,926	34	27
Retirement Class
Shares sold	13,062	—	185	58
Shares reacquired	(796)	—	(2)	—
Net increase/(decrease) in shares outstanding	12,266	—	183	58
Beginning of period	—	—	0	—
End of period	12,266	—	183	58

a	Commencement of operations.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents

Harbor International Growth Fund		Harbor Global Growth Fund		Harbor Emerging Markets Equity Fund
November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015	November 1, 2015 through October 31, 2016	November 1, 2014 through October 31, 2015


4,573	7,888	130	554	653	3,657
212	230	52	135	46	14
(3,274)	(3,467)	(503)	(231)	(1,780)	(1,071)
1,511	4,651	(321)	458	(1,081)	2,600
20,025	15,374	1,576	1,118	5,316	2,716
21,536	20,025	1,255	1,576	4,235	5,316

30	63	14	24	—	—
—	1	2	4	—	—
(30)	(91)	(9)	(7)	—	—
—	(27)	7	21	—	—
26	53	55	34	25	25
26	26	62	55	25	25

145	172	89	366	154	17
8	15	21	47	—	—
(368)	(298)	(211)	(141)	(150)	(10)
(215)	(111)	(101)	272	4	7
1,268	1,379	637	365	52	45
1,053	1,268	536	637	56	52

198	—	89	—	157	—
(15)	—	(5)	—	(2)	—
183	—	84	—	155	—
—	—	—	—	—	—
183	—	84	—	155	—

Table of Contents

Harbor International & Global Funds Financial Highlights
Selected Data for a Share Outstanding for the Periods Presented

HARBOR INTERNATIONAL FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 65.67	$ 68.09	$ 70.79	$ 59.12	$ 56.19
Income from Investment Operations
Net investment income/(loss)^a	0.99 ^e	1.22 ^e	1.25	1.24	1.10
Net realized and unrealized gains/(losses) on investments	(3.51)	(2.22)	(2.45)	11.69	3.15
Total from investment operations	(2.52)	(1.00)	(1.20)	12.93	4.25
Less Distributions
Dividends from net investment income	(1.08)	(1.42)	(1.50)	(1.26)	(1.32)
Distributions from net realized capital gains¹	(1.77)	—	—	—	—
Total distributions	(2.85)	(1.42)	(1.50)	(1.26)	(1.32)
Proceeds from redemption fees	—	—	—	—*	—*
Net asset value end of period	60.30	65.67	68.09	70.79	59.12
Net assets end of period (000s)	$33,201,899	$41,195,827	$43,385,100	$39,828,959	$29,723,443
Ratios and Supplemental Data (%)
Total return^b	(3.74)%	(1.48)%	(1.69)%	22.19%	7.95%
Ratio of total expenses to average net assets²	0.79	0.76	0.76	0.76	0.78
Ratio of net expenses to average net assets^a	0.77	0.74	0.73	0.74	0.77
Ratio of net investment income to average net assets^a	1.66	1.80	1.78	1.96	1.96
Portfolio turnover	14	25	11	10	11


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 64.86	$ 67.23	$ 69.92	$ 58.42	$ 55.51
Income from Investment Operations
Net investment income/(loss)^a	0.73 ^e	0.96 ^e	1.07	1.01	0.87
Net realized and unrealized gains/(losses) on investments	(3.43)	(2.19)	(2.51)	11.54	3.14
Total from investment operations	(2.70)	(1.23)	(1.44)	12.55	4.01
Less Distributions
Dividends from net investment income	(0.78)	(1.14)	(1.25)	(1.05)	(1.10)
Distributions from net realized capital gains¹	(1.77)	—	—	—	—
Total distributions	(2.55)	(1.14)	(1.25)	(1.05)	(1.10)
Proceeds from redemption fees	—	—	—	—*	—*
Net asset value end of period	59.61	64.86	67.23	69.92	58.42
Net assets end of period (000s)	$ 2,188,360	$ 3,756,852	$ 4,786,270	$ 5,279,866	$ 4,169,704
Ratios and Supplemental Data (%)
Total return^b	(4.09)%	(1.84)%	(2.05)%	21.76%	7.54%
Ratio of total expenses to average net assets²	1.16	1.13	1.13	1.13	1.15
Ratio of net expenses to average net assets^a	1.14	1.11	1.10	1.11	1.14
Ratio of net investment income to average net assets^a	1.23	1.43	1.46	1.60	1.60
Portfolio turnover	14	25	11	10	11

See page 69 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$ 65.32	$ 67.48	$ 70.18	$ 58.63	$ 55.72

0.79 ^e	1.04 ^e	1.91 ⁱ	1.03	0.99
(3.44)	(2.20)	(3.27)	11.63	3.09
(2.65)	(1.16)	(1.36)	12.66	4.08

(0.91)	(1.00)	(1.34)	(1.11)	(1.17)
(1.77)	—	—	—	—
(2.68)	(1.00)	(1.34)	(1.11)	(1.17)
—	—	—	—*	—*
59.99	65.32	67.48	70.18	58.63
$510,575	$831,967	$961,478	$2,896,387	$2,210,914

(3.97)%	(1.73)%	(1.93)%	21.87%	7.67%
1.04	1.01	1.01	1.01	1.03
1.02	0.99	0.98	0.99	1.02
1.33	1.54	1.85	1.66	1.71
14	25	11	10	11


Retirement Class
2016 ^f
$ 57.14

0.68 ^e
2.50
3.18

—
—
—
—
60.32
$739,842

5.57% ^c
0.75 ^d
0.72 ^d
1.68 ^d
14

Table of Contents

Harbor International & Global Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR DIVERSIFIED INTERNATIONAL ALL CAP FUND
	Institutional Class	Administrative Class	Investor Class	Retirement Class
Year Ended October 31,	2016 ^g	2016 ^g	2016 ^g	2016 ^f
Net asset value beginning of period	$ 10.00	$10.00	$10.00	$ 9.21
Income from Investment Operations
Net investment income/(loss)^a	0.20 ^e	0.13 ^e	0.12 ^e	0.06 ^e
Net realized and unrealized gains/(losses) on investments	(0.42)	(0.38)	(0.38)	0.50
Total from investment operations	(0.22)	(0.25)	(0.26)	0.56
Less Distributions
Dividends from net investment income	(0.01)	—*	—	—
Distributions from net realized capital gains¹	—	—	—	—
Total distributions	(0.01)	—*	—	—
Net asset value end of period	9.77	9.75	9.74	9.77
Net assets end of period (000s)	$150,263	$ 246	$ 329	$1,786
Ratios and Supplemental Data (%)
Total return^b	(2.25)% ^c	(2.49)% ^c	(2.60)% ^c	6.08% ^c
Ratio of total expenses to average net assets²	1.22 ^d	1.46 ^d	1.59 ^d	1.17 ^d
Ratio of net expenses to average net assets^a	0.85 ^d	1.10 ^d	1.22 ^d	0.80 ^d
Ratio of net investment income to average net assets^a	2.13 ^d	1.39 ^d	1.28 ^d	0.97 ^d
Portfolio turnover	68 ^c	68 ^c	68 ^c	68 ^c

HARBOR INTERNATIONAL SMALL CAP FUND
	Institutional Class	Administrative Class	Investor Class	Retirement Class
Year Ended October 31,	2016 ^h	2016 ^h	2016 ^h	2016 ^h
Net asset value beginning of period	$ 10.00	$10.00	$10.00	$10.00
Income from Investment Operations
Net investment income/(loss)^a	0.11 ^e	0.09 ^e	0.10 ^e	0.06 ^e
Net realized and unrealized gains/(losses) on investments	0.66	0.66	0.64	0.71
Total from investment operations	0.77	0.75	0.74	0.77
Less Distributions
Dividends from net investment income	—	—	—	—
Distributions from net realized capital gains¹	—	—	—	—
Total distributions	—	—	—	—
Net asset value end of period	10.77	10.75	10.74	10.77
Net assets end of period (000s)	$ 17,509	$ 263	$ 287	$ 629
Ratios and Supplemental Data (%)
Total return^b	7.70% ^c	7.50% ^c	7.40% ^c	7.70% ^c
Ratio of total expenses to average net assets²	2.55 ^d	2.80 ^d	2.92 ^d	2.50 ^d
Ratio of net expenses to average net assets^a	0.95 ^d	1.20 ^d	1.32 ^d	0.90 ^d
Ratio of net investment income to average net assets^a	1.40 ^d	1.16 ^d	1.33 ^d	0.73 ^d
Portfolio turnover	35 ^c	35 ^c	35 ^c	35 ^c

See page 69 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

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Harbor International & Global Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR INTERNATIONAL GROWTH FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013 ^j	2012
Net asset value beginning of period	$ 12.71	$ 12.75	$ 13.01	$ 11.60	$ 11.10
Income from Investment Operations
Net investment income/(loss)^a	0.17 ^e	0.15 ^e	0.16	0.44	0.44
Net realized and unrealized gains/(losses) on investments	0.14	—*	(0.23)	1.67	0.06
Total from investment operations	0.31	0.15	(0.07)	2.11	0.50
Less Distributions
Dividends from net investment income	(0.13)	(0.19)	(0.19)	(0.70)	—
Distributions from net realized capital gains¹	—	—	—	—	—
Total distributions	(0.13)	(0.19)	(0.19)	(0.70)	—
Proceeds from redemption fees	—	—	—	—*	—*
Net asset value end of period	12.89	12.71	12.75	13.01	11.60
Net assets end of period (000s)	$277,638	$254,461	$196,062	$196,412	$324,404
Ratios and Supplemental Data (%)
Total return^b	2.46%	1.22%	(0.54)%	19.09%	4.50%
Ratio of total expenses to average net assets²	0.90	0.89	0.88	0.93	0.87
Ratio of net expenses to average net assets^a	0.85	0.85	0.85	0.89	0.87
Ratio of net investment income to average net assets^a	1.36	1.19	1.23	1.38	1.22
Portfolio turnover	19	20	30	166	70


	Investor Class
Year Ended October 31,	2016	2015	2014	2013 ^j	2012
Net asset value beginning of period	$ 12.60	$ 12.64	$ 12.89	$ 11.50	$ 11.05
Income from Investment Operations
Net investment income/(loss)^a	0.12 ^e	0.10 ^e	—*	0.06	0.05
Net realized and unrealized gains/(losses) on investments	0.15	—*	(0.11)	1.99	0.40
Total from investment operations	0.27	0.10	(0.11)	2.05	0.45
Less Distributions
Dividends from net investment income	(0.08)	(0.14)	(0.14)	(0.66)	—
Distributions from net realized capital gains¹	—	—	—	—	—
Total distributions	(0.08)	(0.14)	(0.14)	(0.66)	—
Proceeds from redemption fees	—	—	—	—*	—*
Net asset value end of period	12.79	12.60	12.64	12.89	11.50
Net assets end of period (000s)	$ 13,466	$ 15,978	$ 17,429	$ 20,458	$ 20,203
Ratios and Supplemental Data (%)
Total return^b	2.15%	0.81%	(0.85)%	18.60%	4.07%
Ratio of total expenses to average net assets²	1.27	1.26	1.25	1.30	1.24
Ratio of net expenses to average net assets^a	1.22	1.22	1.22	1.26	1.24
Ratio of net investment income to average net assets^a	0.99	0.79	0.87	0.98	0.80
Portfolio turnover	19	20	30	166	70

See page 69 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013 ^j	2012
$12.63	$12.66	$12.93	$11.52	$11.06

0.16 ^e	0.15 ^e	(0.08)	0.01	0.11
0.12	(0.03)	(0.03)	2.07	0.35
0.28	0.12	(0.11)	2.08	0.46

(0.04)	(0.15)	(0.16)	(0.67)	—
—	—	—	—	—
(0.04)	(0.15)	(0.16)	(0.67)	—
—	—	—	—*	—*
12.87	12.63	12.66	12.93	11.52
$ 333	$ 329	$ 675	$ 919	$1,027

2.21%	0.96%	(0.83)%	18.89%	4.16%
1.15	1.14	1.13	1.18	1.12
1.10	1.10	1.10	1.14	1.12
1.25	1.20	1.08	1.09	0.90
19	20	30	166	70


Retirement Class
2016 ^f
$11.76

0.09 ^e
1.05
1.14

—
—
—
—
12.90
$2,360

9.69% ^c
0.86 ^d
0.80 ^d
1.06 ^d
19

Table of Contents

Harbor International & Global Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR GLOBAL GROWTH FUND
	Institutional Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 21.83	$ 23.79	$ 23.78	$ 17.99	$ 15.88
Income from Investment Operations
Net investment income/(loss)^a	0.01 ^e	(0.01) ^e	0.05	0.08	0.06
Net realized and unrealized gains/(losses) on investments	(0.83)	0.65	2.18	6.26	2.05
Total from investment operations	(0.82)	0.64	2.23	6.34	2.11
Less Distributions
Dividends from net investment income	—	(0.03)	(0.07)	(0.06)	—
Distributions from net realized capital gains¹	(0.72)	(2.57)	(2.15)	(0.49)	—
Total distributions	(0.72)	(2.60)	(2.22)	(0.55)	—
Proceeds from redemption fees	—	—	—	—*	—*
Net asset value end of period	20.29	21.83	23.79	23.78	17.99
Net assets end of period (000s)	$25,471	$34,402	$26,601	$24,734	$16,290
Ratios and Supplemental Data (%)
Total return^b	(3.90)%	2.97%	10.08%	36.24%	13.29%
Ratio of total expenses to average net assets²	1.04	1.01	1.08	1.24	1.60
Ratio of net expenses to average net assets^a	0.90	0.90	0.90	0.90	0.96
Ratio of net investment income to average net assets^a	0.04	(0.06)	0.22	0.44	0.39
Portfolio turnover	76	106	141	110	91


	Investor Class
Year Ended October 31,	2016	2015	2014	2013	2012
Net asset value beginning of period	$ 21.49	$ 23.51	$ 23.54	$ 17.83	$ 15.80
Income from Investment Operations
Net investment income/(loss)^a	(0.07) ^e	(0.10) ^e	(0.03)	0.01	(0.01)
Net realized and unrealized gains/(losses) on investments	(0.81)	0.65	2.15	6.20	2.04
Total from investment operations	(0.88)	0.55	2.12	6.21	2.03
Less Distributions
Dividends from net investment income	—	—	—*	(0.01)	—
Distributions from net realized capital gains¹	(0.72)	(2.57)	(2.15)	(0.49)	—
Total distributions	(0.72)	(2.57)	(2.15)	(0.50)	—
Proceeds from redemption fees	—	—	—	—*	—*
Net asset value end of period	19.89	21.49	23.51	23.54	17.83
Net assets end of period (000s)	$10,659	$13,693	$ 8,584	$ 5,988	$ 3,189
Ratios and Supplemental Data (%)
Total return^b	(4.25)%	2.57%	9.68%	35.76%	12.85%
Ratio of total expenses to average net assets²	1.41	1.38	1.45	1.61	1.98
Ratio of net expenses to average net assets^a	1.27	1.27	1.27	1.27	1.30
Ratio of net investment income to average net assets^a	(0.35)	(0.44)	(0.17)	0.04	(0.01)
Portfolio turnover	76	106	141	110	91

See page 69 for notes to the Financial Highlights.

The accompanying notes are an integral part of the Financial Statements.

Table of Contents


Administrative Class
2016	2015	2014	2013	2012
$21.65	$23.63	$23.65	$17.90	$15.83

(0.05) ^e	(0.07) ^e	0.01	0.04	0.03
(0.82)	0.66	2.14	6.22	2.04
(0.87)	0.59	2.15	6.26	2.07

—	—	(0.02)	(0.02)	—
(0.72)	(2.57)	(2.15)	(0.49)	—
(0.72)	(2.57)	(2.17)	(0.51)	—
—	—	—	—*	—*
20.06	21.65	23.63	23.65	17.90
$1,253	$1,198	$ 802	$ 562	$ 371

(4.17)%	2.74%	9.77%	35.89%	13.08%
1.29	1.26	1.33	1.49	1.85
1.15	1.15	1.15	1.15	1.21
(0.23)	(0.31)	(0.01)	0.17	0.14
76	106	141	110	91


Retirement Class
2016 ^f
$19.79

(0.03) ^e
0.53
0.50

—
—
—
—
20.29
$1,713

2.53% ^c
1.00 ^d
0.85 ^d
(0.18) ^d
76

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Harbor International & Global Funds Financial Highlights—Continued
Selected Data for a Share Outstanding for the Periods Presented

HARBOR EMERGING MARKETS EQUITY FUND
	Institutional Class			Administrative Class
Year Ended October 31,	2016	2015	2014	2016	2015	2014
Net asset value beginning of period	$ 7.89	$ 10.05	$ 10.00	$ 7.87	$ 10.03	$10.00
Income from Investment Operations
Net investment income/(loss)^a	0.07 ^e	0.08 ^e	0.05	0.05 ^e	0.04 ^e	0.05
Net realized and unrealized gains/(losses) on investments	0.71	(2.19)	—*	0.71	(2.18)	(0.02)
Total from investment operations	0.78	(2.11)	0.05	0.76	(2.14)	0.03
Less Distributions
Dividends from net investment income	(0.08)	(0.05)	—	(0.05)	(0.02)	—
Distributions from net realized capital gains¹	—	—	—	—	—	—
Total distributions	(0.08)	(0.05)	—	(0.05)	(0.02)	—
Net asset value end of period	8.59	7.89	10.05	8.58	7.87	10.03
Net assets end of period (000s)	$36,390	$41,927	$27,294	$ 217	$ 197	$ 250
Ratios and Supplemental Data (%)
Total return^b	9.99%	(21.10)%	0.50%	9.81%	(21.36)%	0.30%
Ratio of total expenses to average net assets²	1.49	1.47	2.34	1.74	1.72	2.59
Ratio of net expenses to average net assets^a	1.15	1.17	1.25	1.40	1.43	1.50
Ratio of net investment income to average net assets^a	0.93	0.90	0.78	0.69	0.49	0.47
Portfolio turnover	49	58	50	49	58	50

*	Less than $0.01.
1	Includes both short-term and long-term capital gains.
2	Percentage does not reflect reduction for credit balance arrangements (see Note 2 of the accompanying Notes to Financial Statements).
a	Reflects the Adviser’s waiver, if any, of its management fees and/or other operating expenses.
b	The total returns would have been lower had certain expenses not been waived during the periods shown.
c	Unannualized.
d	Annualized.
e	Amounts are allocated based upon average shares outstanding during the period.
f	For the period March 1, 2016 (commencement of operations) through October 31, 2016.
g	For the period November 2, 2015 (inception) through October 31, 2016.
h	For the period February 1, 2016 (inception) through October 31, 2016.
i	The amount shown for a share outstanding does not correspond with the aggregate net investment income/(loss) for the period due to the timing of the sales and purchases of shares in relation to fluctuating market values of the investments of the Fund.
j	Effective May 21, 2013, Harbor International Growth Fund appointed Baillie Gifford Overseas Limited as its' Subadviser.

The accompanying notes are an integral part of the Financial Statements.

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Investor Class			Retirement Class
2016	2015	2014	2016 ^f
$ 7.85	$ 10.01	$10.00	$ 6.90

0.05 ^e	0.04 ^e	0.03	0.05 ^e
0.70	(2.18)	(0.02)	1.64
0.75	(2.14)	0.01	1.69

(0.04)	(0.02)	—	—
—	—	—	—
(0.04)	(0.02)	—	—
8.56	7.85	10.01	8.59
$ 482	$ 406	$ 454	$1,335

9.69%	(21.45)%	0.10%	24.49% ^c
1.86	1.84	2.71	1.45 ^d
1.52	1.55	1.62	1.10 ^d
0.69	0.40	0.45	0.95 ^d
49	58	50	49

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Harbor International & Global Funds
Notes to Financial Statements—October 31, 2016

Note 1—Organizational Matters

Note 2—Significant Accounting Policies

Security Valuation

Participation notes are valued at the last sale price of the underlying local shares on the national exchange on which they trade. Such securities are normally categorized as Level 2 in the fair value hierarchy.

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

pricing models. The pricing models use inputs, such as issuer details, indices, spreads, interest rates, yield curves, dividends and exchange rates, that are observed from actively quoted markets. Derivative instruments that use valuation techniques and inputs similar to those described above are normally categorized as Level 2 in the fair value hierarchy.

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

Fair Value Measurements and Disclosures

Level 1–	Quoted prices in active markets for identical securities.
Level 2–	Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3–	Significant unobservable inputs are used in situations where quoted prices or other observable inputs are not available or are deemed unreliable. Significant unobservable inputs may include each Fund’s own assumptions.

Transfers between levels, if any, are recognized as of the last day in the fiscal quarter of the period in which the event or change in circumstances that caused the reclassification occurred. For fair valuations using significant unobservable inputs, a reconciliation of the beginning to ending balances for reported fair values is provided that presents changes attributable to realized and unrealized gains and losses and purchases, sales, and transfers in/out of the Level 3 category during the period. A table that includes a categorization of investments into Levels 1, 2, or 3, transfers between levels, if any, and a Level 3 reconciliation, including details of significant unobservable inputs used, when applicable, can be found at the end of each Fund’s Portfolio of Investments schedule.

Each Fund used observable inputs in their valuation methodologies whenever they were available and deemed reliable.

U.S. Government Securities

Repurchase Agreements

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

counterparty, determine the net amount owned, and sell or retain the collateral up to the net amount owed to the Fund. A counterparty’s default may cause the Fund to suffer losses, including loss of interest on or principal of the securities and costs associated with delay and enforcement of the terms of the master repurchase agreement.

Options

An option, including rights and warrants, is a contract that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). During the year, Harbor International Fund, Harbor Diversified International All Cap Fund, Harbor International Small Cap Fund, Harbor International Growth Fund, and Harbor Emerging Markets Equity Fund purchased option contracts to manage their exposure to equity prices. Call options tend to increase a Fund’s exposure to the underlying instrument, if purchased, and decrease exposure to the underlying instrument, if written. Put options tend to decrease a Fund’s exposure to the underlying instrument, if purchased, and increase exposure to the underlying instrument, if written.

When a Fund purchases an option, it pays a premium. If a purchased option expires, a Fund realizes a loss in the amount of the premium. If a Fund enters into a closing sale transaction, it realizes a gain or loss, depending on whether the proceeds from the sale are greater or less than the cost of the option. If a call option is exercised by a Fund, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If a put option is exercised by a Fund, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid. The risk associated with purchasing options is limited to the premium paid. A Fund’s maximum risk of loss from counterparty credit risk is also limited to the premium paid for the contract.

Participation Notes

Participation notes are equity-linked securities which can be used to gain exposure to emerging markets. These instruments represent interests in securities listed on certain foreign exchanges and thus present similar risks to investing directly in such equity securities. These instruments are issued by a broker-dealer evidencing ownership of shares listed on a foreign stock exchange. Accordingly, the participation notes also expose investors to counterparty risk which is the risk that the entity issuing the note may not be able to honor its financial commitments. A Fund’s participation notes are not subject to any master netting agreements. Participation notes may be more volatile and less liquid than holding the underlying security directly. A Participation note is intended to reflect the performance of the underlying equity securities on a one-to-one basis. During the year, Harbor Emerging Markets Equity Fund invested in participation notes to gain exposure to certain foreign markets. The Fund is entitled to receive dividends or other distributions paid on the underlying securities from the broker-dealer. The Fund however is not entitled to the same rights as an owner of the underlying securities, such as voting rights.

Foreign Currency Spot Contracts

A foreign currency spot contract is an agreement between two parties to buy and sell currencies at the current market rate for settlement within two business days. During the year, each Fund used foreign currency spot contracts to facilitate transactions in foreign securities or to convert foreign currency receipts into U.S. dollars.

Foreign Currency Translations

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

Investment Income

Securities Transactions

Proceeds from Litigation

Distribution to Shareholders

Distributions on Fund shares are recorded on the ex-dividend date.

Expenses

Custodian

Class Allocations

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 2—Significant Accounting Policies—Continued

Taxes

New Accounting Pronouncements

Note 3—Investment Portfolio Transactions

Purchases and sales of investments, other than short-term securities, for each Fund for the year ended October 31, 2016 are as follows:

	Purchases (000s)	Sales (000s)
Harbor International Fund	$5,457,622	$11,324,361
Harbor Diversified International All Cap Fund	216,863	72,179
Harbor International Small Cap Fund	22,724	5,910
Harbor International Growth Fund	72,709	53,380
Harbor Global Growth Fund	33,745	41,899
Harbor Emerging Markets Equity Fund	17,875	25,040

Securities Lending

Each Fund may engage in securities lending, whereby a Fund lends its securities to financial institutions in order to increase its income. During the year, Harbor International Fund and Harbor International Growth Fund engaged in securities lending. Securities loans are required to be secured at all times during the term of the loan by cash collateral that is at least equal to the value of the loaned securities determined at the close of the Fund’s business day. Any additional collateral that may be required to secure the loan is delivered to the Fund the next business day. The cash collateral is maintained on the Fund’s behalf by the lending agent (State Street Bank & Trust Company) and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market mutual fund that seeks to provide income while maintaining a stable net asset value of $1.00. There is no assurance that the State Street Navigator Securities Lending Government Money Market Portfolio will maintain a stable net asset value and the Funds are subject to the risk of loss on the cash collateral

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 3—Investment Portfolio Transactions—Continued

invested. This collateral is recognized as the gross liability for securities loaned in the Statement of Assets and Liabilities. During the term of the loan, the Funds will continue to receive interest, dividends, or other amounts, on the loaned securities, in addition to receiving a fee from the borrower and earning interest on the investment of the cash collateral. The Funds may pay reasonable fees in connection with a loan of its securities and may share the interest earned on the collateral with the borrower. Net securities lending income is disclosed as such in the Statements of Operations. Securities loans may be terminated at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities that are identical to the loaned securities. The Funds bear the risk of delay in recovery of, or loss of rights in, the securities loaned and the risk that the value of the collateral falls below the value of the securities on loan. Each Fund seeks to mitigate this borrower risk by entering into a securities lending authorization agreement with its lending agent. The securities lending authorization agreement provides that, in the event of a borrower’s default, including bankruptcy, the lending agent will request that all loaned securities be returned by the borrower. In the event the borrower is unable or unwilling to return the loaned securities to the lending agent, the lending agent may apply the proceeds of the cash collateral from the loaned securities towards the purchase of replacement securities. If such proceeds are insufficient or the collateral is unavailable, the lending agent will purchase replacement securities at its sole expense. If the lending agent is unable to purchase replacement securities, it may credit to the relevant Fund’s account an amount equal to the fair value of the unreturned loaned securities. The value at October 31, 2016 of equity securities loaned and related cash collateral for Harbor International Fund was $313,358,000 and $330,060,000, respectively. The value at October 31, 2016 of equity securities loaned and related cash collateral for Harbor International Growth Fund was $6,065,000 and $6,469,000, respectively. As the securities loaned are subject to termination by the Fund or the borrower at any time, the remaining contractual maturities of each securities lending transaction is considered to be overnight and continuous.

Note 4—Fees and Other Transactions with Affiliates

Investment Adviser

Each Fund has a separate advisory agreement with Harbor Capital. The agreements provide for management fees based on an annual percentage rate of average daily net assets as follows:

	Contractual Rate	Actual Rate
Harbor International Fund	0.75%, 0.65%^a	0.67%
Harbor Diversified International All Cap Fund	0.75	0.75
Harbor International Small Cap Fund	0.85	0.85
Harbor International Growth Fund	0.75	0.75
Harbor Global Growth Fund	0.75	0.75
Harbor Emerging Markets Equity Fund	0.95	0.95

The management fee rate is 0.75% on assets up to $12 billion and 0.65% on assets in excess of $12 billion. The Adviser contractually agreed to reduce the management fee to 0.63% on assets between $24 billion and $36 billion, 0.58% on assets between $36 billion and $48 billion, and 0.57% on assets over $48 billion through February 28, 2017.

•

Harbor Diversified International All Cap Fund. For the period November 2, 2015 through October 31, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.85%, 1.10%, 1.22% and 0.80% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2017.

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 4—Fees and Other Transactions with Affiliates—Continued

•	Harbor International Small Cap Fund. For the period February 1, 2016 through October 31, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.95%, 1.20%, 1.32% and 0.90% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2017.
•	Harbor International Growth Fund. For the period November 1, 2015 through October 31, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.85%, 1.10%, 1.22% and 0.80% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2017.
•	Harbor Global Growth Fund. For the period November 1, 2015 through October 31, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.90%, 1.15%, 1.27% and 0.85% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2017.
•	Harbor Emerging Markets Equity Fund. For the period November 1, 2015 through October 31, 2016, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 1.15%, 1.40%, 1.52% and 1.10% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2017.

All expense limitations are inclusive of the transfer agent fee waiver discussed in the Transfer Agent note.

Distributor

The fees attributable to each Fund’s respective class are shown on the accompanying Statement of Operations.

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 4—Fees and Other Transactions with Affiliates—Continued

Transfer Agent

	Transfer Agent Fees^a
Institutional Class	0.08% of the average daily net assets of all Institutional shares
Administrative Class	0.08% of the average daily net assets of all Administrative shares
Investor Class	0.20% of the average daily net assets of all Investor shares
Retirement Class	0.03% of the average daily net assets of all Retirement shares

a	For the period November 1, 2015 through February 29, 2016, the Transfer Agent Fees for Institutional and Administrative Class shares were 0.065% and 0.185% for the Investor Class shares.

Affiliated Transactions

Shareholders

On October 31, 2016, Harbor Capital, Harbor Funds Distributors, and Harbor Services Group, collectively held the following shares of beneficial interest in each Fund:

	Number of Shares Owned by Harbor Capital, Harbor Funds Distributors, and Harbor Services Group					Percentage of Outstanding Shares
	Institutional Class	Administrative Class	Investor Class	Retirement Class	Total	Percentage of Outstanding Shares
Harbor International Fund	—	—	—	23,841	23,841	0.0%
Harbor Diversified International All Cap Fund	3,952,213	25,004	25,000	44,834	4,047,051	25.9
Harbor International Small Cap Fund	1,450,000	24,500	24,500	20,390	1,519,390	87.6
Harbor International Growth Fund	—	—	—	75,050	75,050	0.3
Harbor Global Growth Fund	428,748	23,629	23,617	38,043	514,037	26.5
Harbor Emerging Markets Equity Fund	1,269,095	25,239	25,190	75,311	1,394,835	31.2

Independent Trustees

The fees and expenses of the Independent Trustees are shown on each Fund’s Statement of Operations. The Independent Trustees’ remuneration for the Funds totaled $990,000 for the year ended October 31, 2016.

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 4—Fees and Other Transactions with Affiliates—Continued

Indemnification

NOTE 5—TAX INFORMATION

The amount and character of income and net realized gains to be distributed are determined in accordance with income tax rules and regulations, which may differ from U.S. GAAP. These differences are attributable to permanent book and tax accounting differences that were primarily due to tax treatment of net investment losses, disposition of passive foreign investment companies' securities, use of equalization and foreign currency transactions. Reclassifications are made to each Fund’s capital account to reflect income and net realized gains available for distribution (or available capital loss carryovers) under income tax rules and regulations. The amounts reclassified on the Statements of Assets and Liabilities for the year ended October 31, 2016 are as follows:

	Undistributed Net Investment Income/(Loss) (000s)	Accumulated Net Realized Gain/(Loss) (000s)	Paid in Capital (000s)
Harbor International Fund	$146,516	$(177,970)	$31,454
Harbor Diversified International All Cap Fund	(640)	298	342
Harbor International Small Cap Fund	22	(22)	—
Harbor International Growth Fund	(78)	266	(188)
Harbor Global Growth Fund	90	(9)	(81)
Harbor Emerging Markets Equity Fund	(4)	22	(18)

The tax composition of each Fund’s distributions is as follows:

	As of October 31, 2016			As of October 31, 2015
	Ordinary Income (000s)	Long-Term Capital Gains (000s)	Total (000s)	Ordinary Income (000s)	Long-Term Capital Gains (000s)	Total (000s)
Harbor International Fund	$714,056	$1,199,554	$1,913,610	$994,093	$ —	$994,093
Harbor Diversified International All Cap Fund	21	—	21	N/A	N/A	N/A
Harbor International Small Cap Fund	—	—	—	N/A	N/A	N/A
Harbor International Growth Fund	2,740	—	2,740	3,083	—	3,083
Harbor Global Growth Fund	—	1,607	1,607	589	3,461	4,050
Harbor Emerging Markets Equity Fund	342	—	342	135	—	135

As of October 31, 2016, the components of each Fund’s distributable earnings on a tax basis are as follows:

	Undistributed Ordinary Income (000s)	Undistributed Long-Term Capital Gains (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Harbor International Fund	$671,451	$—	$5,470,105
Harbor Diversified International All Cap Fund	2,010	—	3,299
Harbor International Small Cap Fund	202	—	1,334
Harbor International Growth Fund	3,661	—	3,176
Harbor Global Growth Fund	—	—	5,120
Harbor Emerging Markets Equity Fund	336	—	1,780

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Harbor International & Global Funds
Notes to Financial Statements—Continued

NOTE 5—TAX INFORMATION—Continued

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the taxation of regulated investment companies, including the treatment of capital loss carryforwards. Under the Act, for taxable years subsequent to December 22, 2010, each Fund will be permitted to carry forward capital losses incurred in such taxable years for an unlimited period. However, any losses incurred during such taxable years will be required to be utilized prior to the losses incurred in taxable years prior to the Act, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses, as opposed to previous regulation, which permitted all capital loss carryforwards to be considered short-term.

	Capital Loss to Expire in 2017 (000s)
Harbor International Growth Fund	$163,692

The following capital loss carryforwards do not expire:

	Capital Loss Carryforward
	Short-Term (000s)	Long-Term (000s)	Total (000s)
Harbor International Fund	$145,530	$65,799	$211,329
Harbor Diversified International All Cap Fund	1,114	—	1,114
Harbor International Small Cap Fund	360	—	360
Harbor International Growth Fund	—	7,314	7,314
Harbor Global Growth Fund	2,204	—	2,204
Harbor Emerging Markets Equity Fund	3,863	4,215	8,078

The identified cost for federal income tax purposes of investments owned by each Fund and their respective gross unrealized appreciation and depreciation at October 31, 2016 are as follows:

	Identified Cost (000s)	Gross Unrealized		Net Unrealized Appreciation/ (Depreciation) (000s)
	Identified Cost (000s)	Appreciation (000s)	(Depreciation) (000s)	Net Unrealized Appreciation/ (Depreciation) (000s)
Harbor International Fund*	$31,384,125	$7,884,266	$(2,406,035)	$5,478,231
Harbor Diversified International All Cap Fund*	148,169	8,759	(5,442)	3,317
Harbor International Small Cap Fund*	17,308	2,074	(738)	1,336
Harbor International Growth Fund*	296,315	29,715	(26,507)	3,208
Harbor Global Growth Fund*	33,360	6,210	(1,089)	5,121
Harbor Emerging Markets Equity Fund*	36,081	3,770	(1,975)	1,795

*	Capital loss carryforwards are available, which may reduce taxable income from future net realized gain on investments.

Note 6—Derivatives

Each Fund’s derivative holdings do not qualify for hedge accounting treatment and as such are recorded at current fair value. For a detailed discussion of risks related to these investments please refer to the descriptions of each type of derivative instrument in Note 2— Significant Accounting Policies.

Each Fund’s derivative instruments outstanding as of the year ended October 31, 2016, if any, as disclosed in the Portfolios of Investments, and the related amounts of realized and changes in unrealized gains and losses on derivative instruments during the year as disclosed in the Statements of Operations, are indicators of the volume of derivative activity for each Fund.

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Harbor International & Global Funds
Notes to Financial Statements—Continued

Note 6—Derivatives—Continued

Derivative Instruments

At October 31, 2016, the fair values of derivatives, by primary risk exposure, were reflected in the Statement of Assets and Liabilities as follows:

HARBOR INTERNATIONAL FUND

Statement of Assets and Liabilities Caption		Equity Contracts (000s)
Purchased Options (rights/warrants)		$9,347

HARBOR DIVERSIFIED INTERNATIONAL ALL CAP FUND

Statement of Assets and Liabilities Caption		Equity Contracts (000s)
Purchased Options (rights/warrants)		$1

Realized net gain/(loss) and the change in unrealized appreciation/(depreciation) on derivatives, by primary risk exposure, for the year ended October 31, 2016, were:

HARBOR INTERNATIONAL FUND

Change in Unrealized Appreciation/(Depreciation) on Derivatives		Equity Contracts (000s)
Purchased Options (rights/warrants)		$3,036

HARBOR INTERNATIONAL GROWTH FUND

Net Realized Gain/(Loss) on Derivatives		Equity Contracts (000s)
Purchased Options (rights/warrants)		$65

HARBOR EMERGING MARKETS EQUITY FUND

Net Realized Gain/(Loss) on Derivatives		Equity Contracts (000s)
Purchased Options (rights/warrants)		$1

a	Rounds to less than $1,000.

Note 7—Subsequent Events

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Harbor International & Global Funds
Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

Harbor Funds

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Harbor International Fund, Harbor Diversified International All Cap Fund, Harbor International Small Cap Fund, Harbor International Growth Fund, Harbor Global Growth Fund and Harbor Emerging Markets Equity Fund, (six of the portfolios constituting the Harbor Funds (the Trust)) as of October 31, 2016, the statements of changes in net assets for each of the two periods in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Harbor International Fund, Harbor Diversified International All Cap Fund, Harbor International Small Cap Fund, Harbor International Growth Fund, Harbor Global Growth Fund and Harbor Emerging Markets Equity Fund of the Harbor Funds at October 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two periods in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Chicago, Illinois
December 21, 2016

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Harbor International & Global Funds
Fees and Expenses Example (Unaudited)

Example

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2016 through October 31, 2016.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratios*	Expenses Paid During Period**	Beginning Account Value May 1, 2016	Ending Account Value October 31, 2016
Harbor International Fund
Institutional Class	0.77%
Actual		$3.85	$1,000	$ 989.20
Hypothetical (5% return)		3.91	1,000	1,021.17
Administrative Class	1.02%
Actual		$5.10	$1,000	$ 988.00
Hypothetical (5% return)		5.18	1,000	1,019.88
Investor Class	1.14%
Actual		$5.69	$1,000	$ 987.40
Hypothetical (5% return)		5.79	1,000	1,019.26
Retirement Class	0.72%
Actual		$3.60	$1,000	$ 989.50
Hypothetical (5% return)		3.66	1,000	1,021.43

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Harbor International & Global Funds
Fees and Expenses Example—Continued

	Annualized Expense Ratios*	Expenses Paid During Period**	Beginning Account Value May 1, 2016	Ending Account Value October 31, 2016
Harbor Diversified International All Cap Fund
Institutional Class	0.85%
Actual		$4.28	$1,000	$1,006.20
Hypothetical (5% return)		4.32	1,000	1,020.76
Administrative Class	1.10%
Actual		$5.54	$1,000	$1,005.20
Hypothetical (5% return)		5.58	1,000	1,019.47
Investor Class	1.22%
Actual		$6.15	$1,000	$1,005.20
Hypothetical (5% return)		6.19	1,000	1,018.85
Retirement Class	0.80%
Actual		$4.03	$1,000	$1,007.20
Hypothetical (5% return)		4.06	1,000	1,021.01
Harbor International Small Cap Fund
Institutional Class	0.95%
Actual		$4.84	$1,000	$1,024.70
Hypothetical (5% return)		4.82	1,000	1,020.24
Administrative Class	1.20%
Actual		$6.10	$1,000	$1,022.80
Hypothetical (5% return)		6.09	1,000	1,018.95
Investor Class	1.32%
Actual		$6.72	$1,000	$1,022.90
Hypothetical (5% return)		6.70	1,000	1,018.33
Retirement Class	0.90%
Actual		$4.58	$1,000	$1,024.70
Hypothetical (5% return)		4.57	1,000	1,020.50
Harbor International Growth Fund
Institutional Class	0.85%
Actual		$4.34	$1,000	$1,034.50
Hypothetical (5% return)		4.32	1,000	1,020.76
Administrative Class	1.10%
Actual		$5.62	$1,000	$1,033.70
Hypothetical (5% return)		5.58	1,000	1,019.47
Investor Class	1.22%
Actual		$6.23	$1,000	$1,033.10
Hypothetical (5% return)		6.19	1,000	1,018.85
Retirement Class	0.80%
Actual		$4.09	$1,000	$1,035.30
Hypothetical (5% return)		4.06	1,000	1,021.01

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Harbor International & Global Funds
Fees and Expenses Example—Continued

	Annualized Expense Ratios*	Expenses Paid During Period**	Beginning Account Value May 1, 2016	Ending Account Value October 31, 2016
Harbor Global Growth Fund
Institutional Class	0.90%
Actual		$4.52	$1,000	$1,002.00
Hypothetical (5% return)		4.57	1,000	1,020.50
Administrative Class	1.15%
Actual		$5.78	$1,000	$1,000.50
Hypothetical (5% return)		5.84	1,000	1,019.21
Investor Class	1.27%
Actual		$6.38	$1,000	$1,000.00
Hypothetical (5% return)		6.44	1,000	1,018.59
Retirement Class	0.85%
Actual		$4.27	$1,000	$1,002.00
Hypothetical (5% return)		4.32	1,000	1,020.76
Harbor Emerging Markets Equity Fund
Institutional Class	1.15%
Actual		$6.12	$1,000	$1,118.50
Hypothetical (5% return)		5.84	1,000	1,019.21
Administrative Class	1.40%
Actual		$7.46	$1,000	$1,118.60
Hypothetical (5% return)		7.10	1,000	1,017.92
Investor Class	1.52%
Actual		$8.08	$1,000	$1,116.00
Hypothetical (5% return)		7.71	1,000	1,017.30
Retirement Class	1.10%
Actual		$5.86	$1,000	$1,118.50
Hypothetical (5% return)		5.58	1,000	1,019.47

*	Reflective of all fee waivers and expense reimbursements
**	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

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Harbor International & Global Funds
Additional Information (Unaudited)

Additional Tax Information

	Percentage of Distribution
Harbor International Fund	16%

Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the following capital gain dividends for the year ended October 31, 2016:

	Amount (000s)
Harbor International Fund	$1,199,554
Harbor Global Growth Fund	1,607

The Funds designate the following for Federal income tax purposes:

	Foreign Taxes Paid (000s)	Foreign Source Earned Income (000s)
Harbor International Fund	$58,077	$772,842
Harbor Diversified International All Cap Fund	255	3,598
Harbor International Small Cap Fund	24	328
Harbor International Growth Fund	503	6,482
Harbor Emerging Markets Equity Fund	110	1,087

Proxy Voting

Householding

Quarterly Portfolio Disclosures

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Harbor International & Global Funds
Additional Information—Continued

Trustees and Officers

Name (Age) Position(s) with Fund	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past Five Years	Number of Portfolios In Fund Complex Overseen By Trustee	Other Directorships Of Public Companies and Other Registered Investment Companies Held by Trustee During Past Five Years
INDEPENDENT TRUSTEES
Scott M. Amero (53) Trustee	Since 2014	Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation non-profit); Trustee, Berkshire School (2014–Present); BlackRock, Inc., (publicly traded investment management firm) Vice Chairman and Global Chief Investment Officer, Fixed Income (2010), Vice Chairman and Global Chief Investment Officer, Fixed Income, and Co-Head, Fixed Income Portfolio Management (2007-2010).	29	None
Raymond J. Ball (71) Trustee	Since 2006	Sidney Davidson Distinguished Service Professor of Accounting, University of Chicago Booth School of Business (2000-Present); Academic Affiliate, Analysis Group (litigation consulting firm) (2000-Present); Financial Reporting Faculty Advisory Group of the Institute of Chartered Accountants in England and Wales (2008-Present); and Advisory Board of the Center for Accounting Research & Education at University of Notre Dame (2006-Present).	29	None
Donna J. Dean (64) Trustee	Since 2010	Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present).	29	None
Randall A. Hack (69) Trustee	Since 2010	Founder and Senior Managing Director of Capstone Capital LLC (a private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (a private equity firm) (2002-2013).	29	None
Robert Kasdin (58) Trustee	Since 2014	Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Trustee, The Metropolitan Museum of Art (2014-2015); Trustee, The Dalton School (2004-2014); Trustee, ARTstor Digital Library (a nonprofit digital images resource) (2013-2016); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014).	29	Director of Noranda Aluminum Holdings Corporation (2007-2014); Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present).
Ann M. Spruill (62) Trustee	Since 2014	Partner (1993-2008), Member of Executive Committee (1996-2008), Member Board of Directors (2002-2008), Grantham, Mayo, Van Otterloo & Co, LLC (private investment management firm) (with the firm since 1990); Member Investment Committee and Chair of Global Equities, Museum of Fine Arts, Boston (2000-Present); and Trustee, Financial Accounting Foundation (2014-Present).	29	None
INTERESTED TRUSTEE
David G. Van Hooser (70)* Chairman, Trustee and President	Since 2000	President (2002-Present), Director and Chairman of the Board (2000-Present), Harbor Capital Advisors, Inc.; Chief Executive Officer (2007-Present), Chief Financial Officer (2012-2015), Treasurer (2007-2012) and Director (2000-Present), Harbor Funds Distributors, Inc.; and Director (2000-Present), Harbor Services Group, Inc.	29	None

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Harbor International & Global Funds
Additional Information—Continued

Trustees and Officers—Continued

Name (Age) Position(s) with Fund Address	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past Five Years
FUND OFFICERS NOT LISTED ABOVE^**
Charles F. McCain (47) Chief Compliance Officer	Since 2004	Executive Vice President and General Counsel (2004-Present) and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-Present), Harbor Services Group, Inc.; and Director, Executive Vice President and Chief Compliance Officer (2007-Present), Harbor Funds Distributors, Inc.
Anmarie S. Kolinski (45) Treasurer	Since 2007	Executive Vice President and Chief Financial Officer (2007-Present), Harbor Capital Advisors, Inc.; Chief Financial Officer (2007-Present), Harbor Services Group, Inc.; and Chief Financial Officer (2015-Present) and Treasurer (2012-Present), Harbor Funds Distributors, Inc.
Erik D. Ojala (41) Vice President and Secretary; AML Compliance Officer	Since 2007; Since 2010	Senior Vice President and Associate General Counsel (2007-Present) and Secretary (2010-Present), Harbor Capital Advisors, Inc.; and Assistant Secretary (2014-Present), Harbor Services Group, Inc.
Brian L. Collins (48) Vice President	Since 2005	Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc.
Charles P. Ragusa (57) Vice President	Since 2007	Executive Vice President (2007-Present), Harbor Capital Advisors, Inc.; President (2007-Present), Harbor Services Group, Inc.; and Executive Vice President and AML Compliance Officer (2007-Present), Harbor Funds Distributors, Inc.
Jodie L. Crotteau (44) Assistant Secretary	Since 2014	Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Assistant Secretary (2015-present), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); Vice President, Grosvenor Capital Management, L.P. (2010-2014); Assistant Secretary (2005-2010) and AML Compliance Officer (2007-2010), Harbor Funds; Vice President, Secretary and Compliance Director (2007-2010), Harbor Capital Advisors, Inc.; Assistant Secretary (2005-2010), Harbor Services Group, Inc.; and Assistant Secretary (2007-2010), Harbor Funds Distributors, Inc.
John M. Paral (47) Assistant Treasurer	Since 2013	Vice President (2012-Present) and Financial Reporting Manager (2007-Present), Harbor Capital Advisors, Inc.

¹	Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually.
*	Mr. Van Hooser is deemed an “Interested Trustee” due to his affiliation with the Adviser and Distributor of Harbor Funds.
**	Officers of the Funds are “interested persons” as defined in the Investment Company Act.