Table of Contents
Chicago, Illinois 60606-4302
Charles F. McCain, Esq. HARBOR FUNDS 111 South Wacker Drive, 34th Floor Chicago, Illinois 60606-4302 | Christopher P. Harvey, Esq. DECHERT LLP One International Place – 40th Floor 100 Oliver Street Boston, MA 02110-2605 |
Table of Contents
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 |
Harbor Small Cap Value Opportunities Fund | HSOVX | HSAVX | HSIVX | HSRVX |
96 | |
97 | |
Additional Information | |
101 | |
101 | |
101 | |
102 | |
102 | |
104 | |
105 | |
108 | |
109 |
Annual Report Overview (Unaudited)
Total Return Year Ended October 31, 2017 | |||||||
GROWTH FUNDS | Institutional Class | Administrative Class | Investor Class | Retirement Class | |||
Harbor Capital Appreciation Fund | 32.52% | 32.20% | 32.04% | 32.62% | |||
Harbor Mid Cap Growth Fund | 31.00 | 30.71 | 30.61 | 31.12 | |||
Harbor Small Cap Growth Fund | 26.72 | 26.02 | 26.29 | 26.78 | |||
Harbor Small Cap Growth Opportunities Fund | 23.07 | 22.70 | 22.63 | 23.14 | |||
VALUE FUNDS | |||||||
Harbor Large Cap Value Fund | 26.00 | 25.77 | 25.52 | 26.08 | |||
Harbor Mid Cap Value Fund | 19.16 | 18.84 | 18.71 | 19.22 | |||
Harbor Small Cap Value Fund | 33.00 | 32.67 | 32.49 | 33.06 | |||
Harbor Small Cap Value Opportunities Fund | 0.70 a | 0.60 a | 0.60 a | 0.70 a |
COMMONLY USED MARKET INDICES | Total Return Year Ended October 31, 2017 |
S&P 500 (large cap, domestic equity) | 23.63% |
Russell 1000® Growth (large cap, domestic equity) | 29.71 |
Russell 1000® Value (large cap, domestic equity) | 17.78 |
Russell Midcap® Growth (mid cap, domestic equity) | 26.25 |
Russell Midcap® Value (mid cap, domestic equity) | 17.12 |
Russell 2000® Growth (small cap, domestic equity) | 31.00 |
Russell 2000® Value (small cap, domestic equity) | 24.81 |
a | For the period August 1, 2017 (inception) through October 31, 2017. |
Annual Report Overview—Continued
EXPENSE RATIOS1 | Morningstar Average2 | ||||||||||
DOMESTIC EQUITY FUNDS | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||
Harbor Capital Appreciation Fund | |||||||||||
Institutional Class | 0.65% | 0.65% | 0.64% | 0.64% | 0.65% | 0.87% | |||||
Administrative Class | 0.90 | 0.90 | 0.89 | 0.89 | 0.90 | 1.16 | |||||
Investor Class | 1.02 | 1.02 | 1.01 | 1.01 | 1.02 | 1.25 | |||||
Retirement Class | N/A | N/A | N/A | 0.59 a | 0.59 | 0.80 | |||||
Harbor Mid Cap Growth Fund | |||||||||||
Institutional Class | 0.84% | 0.83% | 0.84% | 0.85% | 0.87% | 1.00% | |||||
Administrative Class | 1.09 | 1.08 | 1.09 | 1.10 | 1.12 | 1.29 | |||||
Investor Class | 1.21 | 1.20 | 1.21 | 1.22 | 1.24 | 1.33 | |||||
Retirement Class | N/A | N/A | N/A | 0.80 a | 0.81 | 0.93 | |||||
Harbor Small Cap Growth Fund | |||||||||||
Institutional Class | 0.83% | 0.83% | 0.83% | 0.85% | 0.85% | 1.06% | |||||
Administrative Class | 1.08 | 1.08 | 1.08 | 1.10 | 1.10 | 1.32 | |||||
Investor Class | 1.20 | 1.20 | 1.20 | 1.22 | 1.22 | 1.39 | |||||
Retirement Class | N/A | N/A | N/A | 0.80 a | 0.79 | 1.02 | |||||
Harbor Small Cap Growth Opportunities Fund | |||||||||||
Institutional Class | N/A | 0.90% b | 0.90% | 0.89% | 0.88% | 1.06% | |||||
Administrative Class | N/A | 1.15 b | 1.15 | 1.13 | 1.13 | 1.32 | |||||
Investor Class | N/A | 1.27 b | 1.27 | 1.26 | 1.25 | 1.39 | |||||
Retirement Class | N/A | N/A | N/A | 0.84 a | 0.81 | 1.02 | |||||
Harbor Large Cap Value Fund | |||||||||||
Institutional Class | 0.68% | 0.68% | 0.68% | 0.68% | 0.68% | 0.83% | |||||
Administrative Class | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 1.14 | |||||
Investor Class | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1.19 | |||||
Retirement Class | N/A | N/A | N/A | 0.63 a | 0.60 | 0.78 | |||||
Harbor Mid Cap Value Fund | |||||||||||
Institutional Class | 0.93% | 0.89% | 0.86% | 0.84% | 0.84% | 0.92% | |||||
Administrative Class | 1.18 | 1.14 | 1.11 | 1.09 | 1.09 | 1.27 | |||||
Investor Class | 1.30 | 1.26 | 1.23 | 1.21 | 1.21 | 1.28 | |||||
Retirement Class | N/A | N/A | N/A | 0.79 a | 0.77 | 0.86 | |||||
Harbor Small Cap Value Fund | |||||||||||
Institutional Class | 0.84% | 0.84% | 0.85% | 0.86% | 0.87% | 1.07% | |||||
Administrative Class | 1.09 | 1.09 | 1.10 | 1.11 | 1.12 | 1.47 | |||||
Investor Class | 1.21 | 1.21 | 1.22 | 1.23 | 1.24 | 1.51 | |||||
Retirement Class | N/A | N/A | N/A | 0.81 a | 0.81 | 1.01 | |||||
Harbor Small Cap Value Opportunities Fund | |||||||||||
Institutional Class | N/A | N/A | N/A | N/A | 0.88% c | 1.07% | |||||
Administrative Class | N/A | N/A | N/A | N/A | 1.13 c | 1.47 | |||||
Investor Class | N/A | N/A | N/A | N/A | 1.25 c | 1.51 | |||||
Retirement Class | N/A | N/A | N/A | N/A | 0.80 c | 1.01 |
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, 2017 Morningstar Universe with the same investment style as the comparable Harbor Funds 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. |
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 |
c | Annualized figures for the period August 1, 2017 (inception) through October 31, 2017 |
Charles F. McCain Chairman |
Returns For Periods Ended October 31, 2017 | ||||||||
Annualized | ||||||||
Domestic Equities | 1 Year | 5 Years | 10 Years | 30 Years | ||||
Russell 3000® (entire U.S. stock market) | 23.98% | 15.12% | 7.61% | 10.60% | ||||
S&P 500 (large cap stocks) | 23.63 | 15.18 | 7.51 | 10.50 | ||||
Russell Midcap® (mid cap stocks) | 21.09 | 14.87 | 8.09 | 12.11 | ||||
Russell 2000® (small cap stocks) | 27.85 | 14.49 | 7.63 | 10.45 | ||||
Russell 3000® Growth (growth stocks) | 29.80 | 16.71 | 9.05 | 10.16 | ||||
Russell 3000® Value (value stocks) | 18.30 | 13.48 | 6.07 | 10.68 | ||||
International & Global | ||||||||
MSCI EAFE (ND) (foreign stocks) | 23.44% | 8.53% | 1.10% | 5.62% | ||||
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 | 13.03 | 4.18 | N/A | ||||
MSCI World (ND) (global stocks) | 22.77 | 11.56 | 4.10 | 7.44 | ||||
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 | 7.29 | 0.92 | N/A | ||||
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 | 4.83 | 0.60 | N/A | ||||
Strategic Markets | ||||||||
Bloomberg Commodity Index Total ReturnSM (commodities) | 2.35% | -9.37% | -6.93% | N/A | ||||
Fixed Income | ||||||||
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62% | 6.33% | 6.69% | N/A | ||||
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 | 2.04 | 4.19 | 6.43% | ||||
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds) | -0.11 | -0.11 | 3.81 | N/A | ||||
ICE BofAML U.S. 3-Month Treasury Bill (proxy for money market returns) | 0.72 | 0.24 | 0.45 | 3.35 |
Charles F. McCain |
Chairman |
Managers' Commentary (Unaudited)
New York, NY 10017
Since 1990
Since 2013
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Apple Inc. | 6.3% |
Amazon.com Inc. | 4.5% |
Facebook Inc. | 4.4% |
Alibaba Group Holding Ltd. ADR | 4.2% |
Microsoft Corp. | 4.1% |
MasterCard Inc. | 3.3% |
Visa Inc. | 3.3% |
Netflix Inc. | 3.1% |
Tencent Holdings Ltd. | 3.1% |
Adobe Systems Inc. | 2.7% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2012 |
Cusip | 411511504 |
Ticker | HACAX |
Inception Date | 12/29/1987 |
Net Expense Ratio | 0.65% a |
Total Net Assets (000s) | $23,896,840 |
ADMINISTRATIVE CLASS | |
Fund # | 2212 |
Cusip | 411511827 |
Ticker | HRCAX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 0.90% a |
Total Net Assets (000s) | $493,860 |
INVESTOR CLASS | |
Fund # | 2412 |
Cusip | 411511819 |
Ticker | HCAIX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.02% a |
Total Net Assets (000s) | $1,531,809 |
RETIREMENT CLASS | |
Fund # | 2512 |
Cusip | 411512528 |
Ticker | HNACX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.59% a |
Total Net Assets (000s) | $2,892,484 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $261,451 | $225,048 | |
Price/Earning Ratio (P/E) | 40.9x | 31.8x | |
Price/Book Ratio (P/B) | 8.6x | 7.9x | |
Beta vs. Russell 1000® Growth Index | 1.11 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 52% | N/A |
a | Reflects a contractual management fee waiver effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Capital Appreciation Fund | ||||||||||||||
Institutional Class | 32.52% | 17.88% | 9.42% | 12/29/1987 | $123,034 | |||||||||
Administrative Class | 32.20 | 17.59 | 9.15 | 11/01/2002 | 119,992 | |||||||||
Investor Class | 32.04 | 17.44 | 9.02 | 11/01/2002 | 118,575 | |||||||||
Retirement Class1 | 32.62 | 17.90 | 9.43 | 03/01/2016 | 123,147 | |||||||||
Comparative Indices | ||||||||||||||
Russell 1000® Growth | 29.71% | 16.83% | 9.13% | — | $119,819 | |||||||||
S&P 500 | 23.63 | 15.18 | 7.51 | — | 103,191 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—100.0% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—2.3% | |||
2,592,309 | Boeing Co. | $ 668,764 | |
AIR FREIGHT & LOGISTICS—1.4% | |||
1,854,834 | FedEx Corp. | 418,840 | |
AUTOMOBILES—1.4% | |||
1,210,270 | Tesla Inc.* | 401,241 | |
BANKS—1.8% | |||
5,231,476 | JPMorgan Chase & Co. | 526,339 | |
BEVERAGES—1.1% | |||
5,525,650 | Monster Beverage Corp.* | 320,101 | |
BIOTECHNOLOGY—6.1% | |||
4,322,319 | AbbVie Inc. | 390,089 | |
1,963,519 | Alexion Pharmaceuticals Inc.* | 234,955 | |
3,712,767 | BioMarin Pharmaceutical Inc.* | 304,781 | |
3,207,054 | Celgene Corp.* | 323,816 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
BIOTECHNOLOGY—Continued | |||
560,227 | Regeneron Pharmaceuticals Inc.* | $ 225,559 | |
1,987,290 | Vertex Pharmaceuticals Inc.* | 290,601 | |
1,769,801 | |||
CAPITAL MARKETS—1.5% | |||
1,835,256 | Goldman Sachs Group Inc. | 445,013 | |
CHEMICALS—1.5% | |||
3,031,505 | Albemarle Corp. | 427,109 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—0.6% | |||
5,514,769 | Corning Inc. | 172,667 | |
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—1.3% | |||
3,573,644 | Crown Castle International Corp. | 382,666 | |
FOOD & STAPLES RETAILING—0.8% | |||
1,366,274 | Costco Wholesale Corp. | 220,079 | |
HEALTH CARE PROVIDERS & SERVICES—1.6% | |||
2,149,092 | UnitedHealth Group Inc. | 451,782 | |
HOTELS, RESTAURANTS & LEISURE—4.0% | |||
4,881,198 | Marriott International Inc. | 583,206 | |
3,408,006 | McDonald's Corp. | 568,830 | |
1,152,036 | |||
INTERNET & DIRECT MARKETING RETAIL—9.8% | |||
1,172,299 | Amazon.com Inc.* | 1,295,719 | |
4,527,896 | Netflix Inc.* | 889,414 | |
331,623 | Priceline Group Inc.* | 634,050 | |
2,819,183 | |||
INTERNET SOFTWARE & SERVICES—16.5% | |||
6,534,317 | Alibaba Group Holding Ltd. ADR (CHN)*,1 | 1,208,130 | |
666,946 | Alphabet Inc. Class A* | 688,982 | |
680,098 | Alphabet Inc. Class C* | 691,415 | |
6,991,786 | Facebook Inc.* | 1,258,941 | |
19,765,390 | Tencent Holdings Ltd. (CHN) | 888,357 | |
4,735,825 | |||
IT SERVICES—9.1% | |||
1,912,977 | FleetCor Technologies Inc.* | 316,158 | |
6,476,577 | MasterCard Inc. | 963,520 | |
5,552,725 | PayPal Holdings Inc.* | 402,906 | |
8,775,055 | Visa Inc. | 965,080 | |
2,647,664 | |||
LIFE SCIENCES TOOLS & SERVICES—1.0% | |||
1,410,258 | Illumina Inc.* | 289,371 | |
MACHINERY—2.6% | |||
2,458,950 | Catepillar Inc. | 333,926 | |
2,191,288 | Parker-Hannifin Corp. | 400,151 | |
734,077 | |||
MEDIA—1.5% | |||
1,265,926 | Charter Communications Inc.* | 423,035 | |
OIL, GAS & CONSUMABLE FUELS—1.1% | |||
2,328,303 | Concho Resources Inc.* | 312,482 | |
PERSONAL PRODUCTS—1.2% | |||
3,042,378 | Estée Lauder Companies Inc. | 340,168 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
PHARMACEUTICALS—1.8% | |||
8,520,616 | Bristol-Myers Squibb Co. | $ 525,381 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.5% | |||
2,070,262 | Broadcom Ltd. | 546,363 | |
3,131,835 | NVIDIA Corp. | 647,695 | |
4,085,803 | Texas Instruments Inc. | 395,056 | |
1,589,114 | |||
SOFTWARE—14.2% | |||
6,782,320 | Activision Blizzard Inc. | 444,174 | |
4,378,307 | Adobe Systems Inc.* | 766,904 | |
14,149,007 | Microsoft Corp. | 1,176,915 | |
3,268,608 | Red Hat Inc.* | 394,946 | |
7,212,213 | Salesforce.com Inc.* | 738,098 | |
3,256,393 | Splunk Inc.* | 219,155 | |
2,972,595 | Workday Inc.* | 329,928 | |
4,070,120 | |||
SPECIALTY RETAIL—1.7% | |||
2,217,425 | Home Depot Inc. | 367,605 | |
3,074,603 | Industria de Diseno Textil SA (SP)2 | 114,922 | |
482,527 | |||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—6.3% | |||
10,823,610 | Apple Inc. | 1,829,623 | |
TEXTILES, APPAREL & LUXURY GOODS—2.3% | |||
1,777,375 | adidas AG (GER) | 395,613 | |
554,108 | Kering SA (FR) | 254,117 | |
649,730 | |||
TOTAL COMMON STOCKS | |||
(Cost $16,395,679) | 28,804,738 | ||
SHORT-TERM INVESTMENTS—0.3% | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS—0.0% | |||
$ | 8,240 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $8,407) | $ 8,240 |
Shares | |||
INVESTMENT COMPANY-SECURITIES LENDING INVESTMENT FUND—0.3% | |||
90,739,211 | State Street Navigator Securities Lending Government Money Market Portfolio (1-day yield of 1.000%)3 | 90,739 | |
TOTAL SHORT-TERM INVESTMENTS | |||
(Cost $98,979) | 98,979 | ||
TOTAL INVESTMENTS—100.3% | |||
(Cost $16,494,658) | 28,903,717 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.3)% | (88,724) | ||
TOTAL NET ASSETS—100.0% | $28,814,993 |
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 | $ 668,764 | $ — | $— | $ 668,764 | ||||
Air Freight & Logistics | 418,840 | — | — | 418,840 | ||||
Automobiles | 401,241 | — | — | 401,241 | ||||
Banks | 526,339 | — | — | 526,339 | ||||
Beverages | 320,101 | — | — | 320,101 | ||||
Biotechnology | 1,769,801 | — | — | 1,769,801 | ||||
Capital Markets | 445,013 | — | — | 445,013 | ||||
Chemicals | 427,109 | — | — | 427,109 | ||||
Electronic Equipment, Instruments & Components | 172,667 | — | — | 172,667 | ||||
Equity Real Estate Investment Trusts (REITs) | 382,666 | — | — | 382,666 | ||||
Food & Staples Retailing | 220,079 | — | — | 220,079 | ||||
Health Care Providers & Services | 451,782 | — | — | 451,782 | ||||
Hotels, Restaurants & Leisure | 1,152,036 | — | — | 1,152,036 | ||||
Internet & Direct Marketing Retail | 2,819,183 | — | — | 2,819,183 | ||||
Internet Software & Services | 3,847,468 | 888,357 | — | 4,735,825 | ||||
IT Services | 2,647,664 | — | — | 2,647,664 | ||||
Life Sciences Tools & Services | 289,371 | — | — | 289,371 |
Portfolio of Investments—Continued
Asset Category | Quoted Prices Level 1 (000s) | Other Significant Observable Inputs Level 2 (000s) | Significant Unobservable Inputs Level 3 (000s) | Total (000s) | ||||
Machinery | $ 734,077 | $ — | $— | $ 734,077 | ||||
Media | 423,035 | — | — | 423,035 | ||||
Oil, Gas & Consumable Fuels | 312,482 | — | — | 312,482 | ||||
Personal Products | 340,168 | — | — | 340,168 | ||||
Pharmaceuticals | 525,381 | — | — | 525,381 | ||||
Semiconductors & Semiconductor Equipment | 1,589,114 | — | — | 1,589,114 | ||||
Software | 4,070,120 | — | — | 4,070,120 | ||||
Specialty Retail | 367,605 | 114,922 | — | 482,527 | ||||
Technology Hardware, Storage & Peripherals | 1,829,623 | — | — | 1,829,623 | ||||
Textiles, Apparel & Luxury Goods | — | 649,730 | — | 649,730 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 8,240 | — | 8,240 | ||||
Investment Company-Securities Lending Investment Fund | 90,739 | — | — | 90,739 | ||||
Total Investments in Securities | $27,242,468 | $1,661,249 | $— | $28,903,717 |
* | 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 | All or a portion of this security was out on loan as of October 31, 2017. |
3 | Represents the investment of collateral received from securities lending activities. |
CHN | China |
FR | France |
GER | Germany |
SP | Spain |
Managers' Commentary (Unaudited)
Boston, MA 02210
Since 2010
Since 2006
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
ServiceNow Inc. | 4.1% |
Workday Inc. | 3.7% |
Guidewire Software Inc. | 3.2% |
Arista Networks Inc. | 3.1% |
Microchip Technology Inc. | 3.1% |
Align Technology Inc. | 3.0% |
Autodesk Inc. | 2.7% |
Hilton Worldwide Holdings Inc. | 2.7% |
TD Ameritrade Holding Corp. | 2.7% |
CoStar Group Inc. | 2.6% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2019 |
Cusip | 411511876 |
Ticker | HAMGX |
Inception Date | 11/01/2000 |
Net Expense Ratio | 0.87% |
Total Net Assets (000s) | $145,914 |
ADMINISTRATIVE CLASS | |
Fund # | 2219 |
Cusip | 411511793 |
Ticker | HRMGX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.12% |
Total Net Assets (000s) | $110,114 |
INVESTOR CLASS | |
Fund # | 2419 |
Cusip | 411511785 |
Ticker | HIMGX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.24% |
Total Net Assets (000s) | $20,121 |
RETIREMENT CLASS | |
Fund # | 2519 |
Cusip | 411512510 |
Ticker | HNMGX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.81% |
Total Net Assets (000s) | $127,446 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $17,664 | $15,466 | |
Price/Earning Ratio (P/E) | 54.9x | 33.1x | |
Price/Book Ratio (P/B) | 10.5x | 6.8x | |
Beta vs. Russell Midcap® Growth Index | 1.11 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 87% | N/A |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Mid Cap Growth Fund | ||||||||||||||
Institutional Class | 31.00% | 14.51% | 6.51% | 11/01/2000 | $ 93,910 | |||||||||
Administrative Class | 30.71 | 14.20 | 6.24 | 11/01/2002 | 91,602 | |||||||||
Investor Class | 30.61 | 14.09 | 6.12 | 11/01/2002 | 90,600 | |||||||||
Retirement Class1 | 31.12 | 14.54 | 6.52 | 03/01/2016 | 93,994 | |||||||||
Comparative Index | ||||||||||||||
Russell Midcap® Growth | 26.25% | 15.34% | 8.23% | — | $110,231 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—94.1% | |||
Shares | Value | ||
AIRLINES—1.0% | |||
214,336 | JetBlue Airways Corp.* | $ 4,104 | |
AUTOMOBILES—0.9% | |||
10,645 | Tesla Inc.* | 3,529 | |
BEVERAGES—1.1% | |||
75,449 | Monster Beverage Corp.* | 4,371 | |
BIOTECHNOLOGY—4.2% | |||
143,920 | Exact Sciences Corp.* | 7,914 | |
19,499 | Incyte Corp.* | 2,209 | |
94,100 | Ionis Pharmaceuticals Inc.* | 5,374 | |
11,093 | Tesaro Inc.* | 1,284 | |
16,781 | |||
CAPITAL MARKETS—2.7% | |||
217,136 | TD Ameritrade Holding Corp. | 10,855 | |
CHEMICALS—0.9% | |||
354,141 | Platform Specialty Products Corp.* | 3,789 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
COMMERCIAL SERVICES & SUPPLIES—2.2% | |||
65,727 | Brink's Co. | $ 5,002 | |
75,581 | Clean Harbors Inc.* | 4,044 | |
9,046 | |||
COMMUNICATIONS EQUIPMENT—4.3% | |||
62,626 | Arista Networks Inc.* | 12,518 | |
33,799 | Harris Corp. | 4,709 | |
17,227 | |||
CONTAINERS & PACKAGING—2.6% | |||
106,068 | International Paper Co. | 6,074 | |
38,419 | Packaging Corp. of America | 4,467 | |
10,541 | |||
DIVERSIFIED FINANCIAL SERVICES—0.9% | |||
326,045 | Double Eagle Acquisition Corp. (CYM)* | 3,482 | |
ELECTRICAL EQUIPMENT—1.3% | |||
27,042 | Rockwell Automation Inc. | 5,431 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.8% | |||
92,109 | Trimble Inc.* | 3,765 | |
21,400 | Universal Display Corp. | 3,135 | |
39,535 | Zebra Technologies Corp.* | 4,586 | |
11,486 | |||
ENERGY EQUIPMENT & SERVICES—0.5% | |||
68,101 | Baker Hughes A GE Co. | 2,140 | |
FOOD PRODUCTS—1.7% | |||
240,946 | Blue Buffalo Pet Products Inc.* | 6,971 | |
HEALTH CARE EQUIPMENT & SUPPLIES—9.6% | |||
50,204 | Align Technology Inc.* | 11,998 | |
86,703 | DexCom Inc.* | 3,899 | |
60,666 | Edwards Lifesciences Corp.* | 6,202 | |
174,270 | Hologic Inc.* | 6,596 | |
171,510 | Insulet Corp.* | 10,086 | |
38,781 | |||
HEALTH CARE TECHNOLOGY—1.0% | |||
67,109 | Veeva Systems Inc.* | 4,090 | |
HOTELS, RESTAURANTS & LEISURE—9.6% | |||
79,957 | Dave & Buster's Entertainment Inc.* | 3,854 | |
38,267 | Domino's Pizza Inc. | 7,003 | |
151,834 | Hilton Worldwide Holdings Inc. | 10,974 | |
27,259 | Marriott Vacations Worldwide Corp. | 3,588 | |
330,168 | Melco Resorts & Entertainment Ltd. ADR (HK)1 | 8,347 | |
32,655 | Wynn Resorts Ltd. | 4,816 | |
38,582 | |||
INTERNET & DIRECT MARKETING RETAIL—3.1% | |||
18,970 | Netflix Inc.* | 3,726 | |
127,077 | Wayfair Inc.* | 8,883 | |
12,609 | |||
INTERNET SOFTWARE & SERVICES—5.7% | |||
35,670 | CoStar Group Inc.* | 10,550 | |
137,477 | Godaddy Inc.* | 6,420 | |
144,649 | Zillow Group Inc. Class C* | 5,971 | |
22,941 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
IT SERVICES—1.3% | |||
50,761 | Global Payments Inc. | $ 5,277 | |
MACHINERY—3.5% | |||
57,147 | IDEX Corp. | 7,327 | |
60,258 | Middleby Corp.* | 6,984 | |
14,311 | |||
OIL, GAS & CONSUMABLE FUELS—0.9% | |||
119,184 | Newfield Exploration Co.* | 3,670 | |
PHARMACEUTICALS—1.4% | |||
49,400 | Eisai Co. Ltd. (JP) | 2,749 | |
127,100 | Ono Pharmaceutical Co. Ltd. (JP) | 2,913 | |
5,662 | |||
PROFESSIONAL SERVICES—1.7% | |||
129,775 | TransUnion* | 6,812 | |
ROAD & RAIL—1.1% | |||
108,807 | Knight-Swift Transportation Holdings Inc.* | 4,510 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—11.2% | |||
745,287 | Advanced Micro Devices Inc.* | 8,187 | |
55,952 | Cavium Inc.* | 3,860 | |
133,943 | Microchip Technology Inc. | 12,698 | |
135,904 | Micron Technology Inc.* | 6,022 | |
47,901 | NVIDIA Corp. | 9,906 | |
90,308 | Teradyne Inc. | 3,873 | |
44,546 | |||
SOFTWARE—15.9% | |||
87,177 | Autodesk Inc.* | 10,894 | |
159,756 | Guidewire Software Inc.* | 12,777 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
SOFTWARE—Continued | |||
76,320 | PTC Inc.* | $ 5,071 | |
132,000 | ServiceNow Inc.* | 16,681 | |
136,338 | Workday Inc.* | 15,132 | |
838,221 | Zynga Inc.* | 3,269 | |
63,824 | |||
TRADING COMPANIES & DISTRIBUTORS—1.0% | |||
79,114 | AerCap Holdings NV (NET)* | 4,165 | |
TOTAL COMMON STOCKS | |||
(Cost $292,275) | 379,533 | ||
SHORT-TERM INVESTMENTS—5.8% | |||
(Cost $23,512) | |||
Principal Amount | |||
REPURCHASE AGREEMENTS | |||
$ | 23,512 | Repurchase Agreement with Bank of America dated October 31, 2017 due November 01, 2017 at 1.040% collateralized by U.S. Treasury Notes (value $23,991) | 23,512 |
TOTAL INVESTMENTS—99.9% | |||
(Cost $315,787) | 403,045 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.1% | 550 | ||
TOTAL NET ASSETS—100.0% | $403,595 |
Asset Category | Quoted Prices Level 1 (000s) | Other Significant Observable Inputs Level 2 (000s) | Significant Unobservable Inputs Level 3 (000s) | Total (000s) | ||||
Common Stocks | ||||||||
Airlines | $ 4,104 | $— | $— | $ 4,104 | ||||
Automobiles | 3,529 | — | — | 3,529 | ||||
Beverages | 4,371 | — | — | 4,371 | ||||
Biotechnology | 16,781 | — | — | 16,781 | ||||
Capital Markets | 10,855 | — | — | 10,855 | ||||
Chemicals | 3,789 | — | — | 3,789 | ||||
Commercial Services & Supplies | 9,046 | — | — | 9,046 | ||||
Communications Equipment | 17,227 | — | — | 17,227 | ||||
Containers & Packaging | 10,541 | — | — | 10,541 | ||||
Diversified Financial Services | 3,482 | — | — | 3,482 | ||||
Electrical Equipment | 5,431 | — | — | 5,431 | ||||
Electronic Equipment, Instruments & Components | 11,486 | — | — | 11,486 | ||||
Energy Equipment & Services | 2,140 | — | — | 2,140 | ||||
Food Products | 6,971 | — | — | 6,971 | ||||
Health Care Equipment & Supplies | 38,781 | — | — | 38,781 | ||||
Health Care Technology | 4,090 | — | — | 4,090 | ||||
Hotels, Restaurants & Leisure | 38,582 | — | — | 38,582 | ||||
Internet & Direct Marketing Retail | 12,609 | — | — | 12,609 | ||||
Internet Software & Services | 22,941 | — | — | 22,941 |
Portfolio of Investments—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 | $ 5,277 | $ — | $— | $ 5,277 | ||||
Machinery | 14,311 | — | — | 14,311 | ||||
Oil, Gas & Consumable Fuels | 3,670 | — | — | 3,670 | ||||
Pharmaceuticals | — | 5,662 | — | 5,662 | ||||
Professional Services | 6,812 | — | — | 6,812 | ||||
Road & Rail | 4,510 | — | — | 4,510 | ||||
Semiconductors & Semiconductor Equipment | 44,546 | — | — | 44,546 | ||||
Software | 63,824 | — | — | 63,824 | ||||
Trading Companies & Distributors | 4,165 | — | — | 4,165 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 23,512 | — | 23,512 | ||||
Total Investments in Securities | $373,871 | $29,174 | $— | $403,045 |
Valuation Description | Balance Beginning at 11/01/2016 (000s) | Purchases (000s) | Sales (000s) | Discount/ (Premium) (000s) | Total Realized Gain/(Loss) (000s) | Change in Unrealized Appreciation/ (Depreciation)w (000s) | Transfers In Level 3 (000s) | Transfers Out of Level 3 (000s) | Ending Balance as of 10/31/2017 (000s) | |||||||||
Common Stocks | ||||||||||||||||||
Life Sciences Tools & Services | $180 | $— | $(182) | $— | $— | $2 | $— | $— | $— |
* | 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. | ||
w | Amounts in this category are included in the “Realized and Change in Unrealized Gain/(Loss) on Investment Transactions” section of the Statement of Operations. | ||
Valuation Description | Unrealized Gain/(Loss) as of 10/31/2017 (000s) | ||
Common Stocks | $2 | ||
CYM | Cayman Islands | ||
HK | Hong Kong | ||
JP | Japan | ||
NET | Netherlands |
Managers' Commentary (Unaudited)
23rd Floor
Since 2000
Since 2000
Since 2011
Since 2011
Since 2011
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
ICON plc | 2.7% |
John Bean Technologies Corp. | 2.7% |
Installed Building Products Inc. | 2.6% |
Berry Global Group Inc. | 2.5% |
Eldorado Resorts Inc. | 2.0% |
Ryder System Inc. | 2.0% |
Integra LifeSciences Holdings Corp. | 1.8% |
Nektar Therapeutics | 1.8% |
Rush Enterprises Inc. | 1.8% |
BMC Stock Holdings Inc. | 1.7% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2010 |
Cusip | 411511868 |
Ticker | HASGX |
Inception Date | 11/01/2000 |
Net Expense Ratio | 0.85% |
Total Net Assets (000s) | $509,889 |
ADMINISTRATIVE CLASS | |
Fund # | 2210 |
Cusip | 411511769 |
Ticker | HRSGX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.10% |
Total Net Assets (000s) | $719 |
INVESTOR CLASS | |
Fund # | 2410 |
Cusip | 411511777 |
Ticker | HISGX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.22% |
Total Net Assets (000s) | $7,913 |
RETIREMENT CLASS | |
Fund # | 2510 |
Cusip | 411512494 |
Ticker | HNSGX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.79% |
Total Net Assets (000s) | $189,516 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $3,833 | $2,483 | |
Price/Earning Ratio (P/E) | 39.5x | 32.7x | |
Price/Book Ratio (P/B) | 4.6x | 5.0x | |
Beta vs. Russell 2000® Growth Index | 0.95 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 83% | N/A |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Small Cap Growth Fund | ||||||||||||||
Institutional Class | 26.72% | 15.42% | 8.13% | 11/01/2000 | $109,291 | |||||||||
Administrative Class | 26.02 | 15.08 | 7.84 | 11/01/2002 | 106,390 | |||||||||
Investor Class | 26.29 | 15.01 | 7.74 | 11/01/2002 | 105,350 | |||||||||
Retirement Class1 | 26.78 | 15.46 | 8.15 | 03/01/2016 | 109,436 | |||||||||
Comparative Index | ||||||||||||||
Russell 2000® Growth | 31.00% | 15.36% | 8.16% | — | $109,558 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—97.1% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—2.2% | |||
199,292 | KLX Inc.* | $ 10,933 | |
100,030 | Mercury Systems Inc.* | 5,049 | |
15,982 | |||
BANKS—3.7% | |||
268,340 | Bank of NT Butterfield & Son Ltd. (BM) | 10,023 | |
105,483 | FCB Financial Holdings Inc.* | 4,926 | |
142,239 | Pacific Premier Bancorp Inc.* | 5,746 | |
84,608 | Pinnacle Financial Partners Inc. | 5,601 | |
26,296 | |||
BIOTECHNOLOGY—5.7% | |||
267,510 | Acceleron Pharma Inc.* | 10,433 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
BIOTECHNOLOGY—Continued | |||
79,250 | Avexis Inc.* | $ 8,283 | |
101,100 | Clovis Oncology Inc.* | 7,620 | |
58,725 | Neurocrine Biosciences Inc.* | 3,647 | |
166,070 | Prothena Corp. plc (IE)* | 9,640 | |
39,623 | |||
CHEMICALS—2.3% | |||
193,310 | H.B. Fuller Co. | 10,994 | |
69,767 | Trinseo SA (LUX) | 4,953 | |
15,947 | |||
COMMUNICATIONS EQUIPMENT—1.3% | |||
425,090 | Ciena Corp.* | 9,042 | |
CONSTRUCTION MATERIALS—1.6% | |||
359,830 | Summit Materials Inc.* | 11,299 | |
CONSUMER FINANCE—1.0% | |||
654,390 | SLM Corp.* | 6,930 | |
CONTAINERS & PACKAGING—2.5% | |||
293,690 | Berry Global Group Inc.* | 17,460 | |
DIVERSIFIED CONSUMER SERVICES—2.2% | |||
128,340 | Bright Horizons Family Solutions Inc.* | 11,076 | |
291,295 | Chegg Inc.* | 4,518 | |
15,594 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—0.5% | |||
314,503 | Orbcomm Inc.* | 3,557 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.1% | |||
172,484 | Orbotech Ltd. (IL)* | 7,714 | |
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—2.9% | |||
99,110 | Camden Property Trust | 9,043 | |
125,113 | Community Healthcare Trust Inc. | 3,432 | |
133,440 | QTS Realty Trust Inc. | 7,719 | |
20,194 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—6.5% | |||
65,848 | Cantel Medical Corp. | 6,458 | |
278,250 | Integra LifeSciences Holdings Corp.* | 13,017 | |
97,072 | Masimo Corp.* | 8,519 | |
84,200 | Nevro Corp.* | 7,374 | |
438,460 | Wright Medical Group NV (NET)* | 11,492 | |
46,860 | |||
HEALTH CARE TECHNOLOGY—1.4% | |||
196,744 | Omnicell Inc.* | 9,798 | |
HOTELS, RESTAURANTS & LEISURE—4.8% | |||
560,747 | Eldorado Resorts Inc.* | 14,411 | |
360,700 | Sonic Corp. | 9,162 | |
45,515 | Vail Resorts Inc. | 10,424 | |
33,997 | |||
HOUSEHOLD DURABLES—2.6% | |||
261,052 | Installed Building Products Inc.* | 18,195 | |
INTERNET SOFTWARE & SERVICES—1.6% | |||
39,419 | CoStar Group Inc.* | 11,658 | |
IT SERVICES—4.2% | |||
80,595 | Euronet Worldwide Inc.* | 7,789 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
IT SERVICES—Continued | |||
210,470 | Interxion Holding NV (NET)* | $ 11,237 | |
285,825 | WNS Holdings Ltd. ADR (JE)*,1 | 10,838 | |
29,864 | |||
LIFE SCIENCES TOOLS & SERVICES—2.7% | |||
159,664 | ICON plc (IE)* | 18,978 | |
MACHINERY—4.6% | |||
100,320 | Flowserve Corp. | 4,421 | |
175,110 | John Bean Technologies Corp. | 18,719 | |
559,990 | Milacron Holdings Corp.* | 10,052 | |
33,192 | |||
MARINE—0.6% | |||
144,030 | Matson Inc. | 3,922 | |
MEDIA—4.5% | |||
411,751 | Lions Gate Entertainment Corp. Class B (CAN)* | 11,389 | |
52,295 | Madison Square Garden Co.* | 11,645 | |
143,554 | Nexstar Media Group Inc. | 9,159 | |
32,193 | |||
OIL, GAS & CONSUMABLE FUELS—2.0% | |||
105,310 | Resolute Energy Corp.* | 3,163 | |
309,080 | RSP Permian Inc.* | 10,635 | |
13,798 | |||
PAPER & FOREST PRODUCTS—1.0% | |||
307,670 | KapStone Paper and Packaging Corp. | 6,910 | |
PHARMACEUTICALS—5.1% | |||
263,231 | Aclaris Therapeutics Inc.* | 6,636 | |
1,712,565 | Cardiome Pharma Corp. (CAN)* | 3,014 | |
255,520 | Medicines Co.* | 7,343 | |
539,883 | Nektar Therapeutics* | 13,006 | |
226,234 | Pacira Pharmaceuticals Inc.* | 7,251 | |
37,250 | |||
PROFESSIONAL SERVICES—1.1% | |||
123,495 | WageWorks Inc.* | 7,873 | |
ROAD & RAIL—2.0% | |||
175,690 | Ryder System Inc. | 14,245 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—6.3% | |||
162,810 | Cavium Inc.* | 11,232 | |
266,970 | Integrated Device Technology Inc.* | 8,295 | |
157,040 | Microsemi Corp.* | 8,381 | |
50,991 | MKS Instruments Inc. | 5,540 | |
88,574 | Monolithic Power Systems Inc. | 10,777 | |
44,225 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
SOFTWARE—10.2% | |||
219,102 | Bottomline Technologies de Inc.* | $ 7,134 | |
100,373 | BroadSoft Inc.* | 5,505 | |
164,911 | Commvault Systems Inc.* | 8,584 | |
205,117 | Fortinet Inc.* | 8,084 | |
90,610 | Nice Ltd. ADR (IL)1 | 7,549 | |
131,109 | Proofpoint Inc.* | 12,116 | |
120,560 | Tableau Software Inc.* | 9,776 | |
25,115 | Ultimate Software Group Inc.* | 5,088 | |
284,659 | Zendesk Inc.* | 8,824 | |
72,660 | |||
SPECIALTY RETAIL—1.2% | |||
47,090 | Lithia Motors Inc. | 5,330 | |
86,630 | National Vision Holdings Inc.* | 2,495 | |
7,825 | |||
THRIFTS & MORTGAGE FINANCE—1.5% | |||
756,531 | MGIC Investment Corp.* | 10,818 | |
TRADING COMPANIES & DISTRIBUTORS—6.2% | |||
569,891 | BMC Stock Holdings Inc.* | 12,224 | |
251,146 | Rush Enterprises Inc.* | 12,753 | |
384,300 | Univar Inc.* | 11,433 | |
46,905 | Watsco Inc. | 7,813 | |
44,223 | |||
TOTAL COMMON STOCKS | |||
(Cost $539,007) | 688,122 | ||
SHORT-TERM INVESTMENTS—3.9% | |||
(Cost $27,333) | |||
Principal Amount | |||
REPURCHASE AGREEMENTS | |||
$ | 27,333 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $27,883) | 27,333 |
TOTAL INVESTMENTS—101.0% | |||
(Cost $566,340) | 715,455 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(1.0)% | (7,418) | ||
TOTAL NET ASSETS—100.0% | $708,037 |
Portfolio of Investments—Continued
Security Name | Beginning Balance as of 11/01/2016 (000s) | Purchases (000s) | Sales (000s) | Net Realized Gain/(Loss) (000s) | Change in Unrealized Appreciation/ (Depreciation) (000s) | Net Dividend Income (000s) | Ending Balance as of 10/31/2017 (000s) | |||||||
Cardiome Pharma Corp. (CAN)* | $4,880 | $– | $(192) | $(341) | $(1,333) | $– | $3,014 |
* | 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 |
LUX | Luxembourg |
NET | Netherlands |
Managers' Commentary (Unaudited)
Suite 705
Since 2014
Since 2014
Since 2014
Since 2014
Since 2014
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Maxlinear Inc. | 2.9% |
Interxion Holding NV | 2.8% |
WNS Holdings Ltd. ADR | 2.1% |
Sarepta Therapeutics Inc. | 2.0% |
ICU Medical Inc. | 1.9% |
Chegg Inc. | 1.8% |
WageWorks Inc. | 1.8% |
Evolent Health Inc. | 1.7% |
Exact Sciences Corp. | 1.7% |
Synchronoss Technologies Inc. | 1.7% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2037 |
Cusip | 411512668 |
Ticker | HASOX |
Inception Date | 02/01/2014 |
Net Expense Ratio | 0.88% |
Total Net Assets (000s) | $254,925 |
ADMINISTRATIVE CLASS | |
Fund # | 2237 |
Cusip | 411512650 |
Ticker | HRSOX |
Inception Date | 02/01/2014 |
Net Expense Ratio | 1.13% |
Total Net Assets (000s) | $1,308 |
INVESTOR CLASS | |
Fund # | 2437 |
Cusip | 411512643 |
Ticker | HISOX |
Inception Date | 02/01/2014 |
Net Expense Ratio | 1.25% |
Total Net Assets (000s) | $1,167 |
RETIREMENT CLASS | |
Fund # | 2537 |
Cusip | 411512486 |
Ticker | HNSOX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.81% |
Total Net Assets (000s) | $47,569 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $1,871 | $2,483 | |
Price/Earning Ratio (P/E) | 40.4x | 32.7x | |
Price/Book Ratio (P/B) | 3.5x | 5.0x | |
Beta vs. Russell 2000® Growth Index | 1.07 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 67% | N/A |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 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 | 23.07% | N/A | 7.44% | 02/01/2014 | $65,438 | |||||||||
Administrative Class | 22.70 | N/A | 7.33 | 02/01/2014 | 65,190 | |||||||||
Investor Class | 22.63 | N/A | 7.04 | 02/01/2014 | 64,521 | |||||||||
Retirement Class1 | 23.14 | N/A | 7.49 | 03/01/2016 | 65,542 | |||||||||
Comparative Index | ||||||||||||||
Russell 2000® Growth2 | 31.00% | N/A | 9.38% | — | $69,968 |
1 | 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. |
2 | The “Life of Fund” return and “Final Value of a $50,000 Investment” as shown reflect the period 02/01/2014 through 10/31/2017. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—96.4% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—1.2% | |||
223,610 | KeyW Holding Corp.* | $ 1,689 | |
33,336 | Maxar Technologies Ltd. (CAN) | 2,110 | |
3,799 | |||
AIR FREIGHT & LOGISTICS—2.0% | |||
41,003 | Atlas Air Worldwide Holdings Inc.* | 2,516 | |
148,490 | Echo Global Logistics Inc.* | 3,571 | |
6,087 | |||
BANKS—2.2% | |||
49,075 | Chemical Financial Corp. | 2,586 | |
57,257 | FB Financial Corp.* | 2,340 | |
84,295 | Tristate Capital Holdings Inc.* | 1,909 | |
6,835 | |||
BEVERAGES—0.8% | |||
210,256 | Primo Water Corp.* | 2,315 | |
BIOTECHNOLOGY—5.6% | |||
43,914 | BioSpecifics Technologies Corp.* | 2,010 | |
92,059 | Exact Sciences Corp.* | 5,062 | |
24,498 | Ligand Pharmaceuticals Inc.* | 3,561 | |
125,767 | Sarepta Therapeutics Inc.* | 6,202 | |
16,835 | |||
BUILDING PRODUCTS—1.3% | |||
69,676 | Caesarstone Ltd. (IL)* | 1,972 | |
132,082 | NCI Building Systems Inc.* | 2,107 | |
4,079 | |||
CAPITAL MARKETS—0.6% | |||
48,531 | Financial Engines Inc. | 1,752 | |
COMMERCIAL SERVICES & SUPPLIES—2.3% | |||
213,662 | Hudson Technologies Inc.* | 1,265 | |
311,252 | InnerWorkings Inc.* | 3,386 | |
49,818 | TETRA Tech Inc. | 2,454 | |
7,105 | |||
COMMUNICATIONS EQUIPMENT—0.9% | |||
336,350 | Infinera Corp.* | 2,815 | |
CONSTRUCTION & ENGINEERING—1.2% | |||
40,327 | Dycom Industries Inc.* | 3,542 | |
CONSUMER FINANCE—0.9% | |||
50,708 | Green Dot Corp.* | 2,871 | |
DIVERSIFIED CONSUMER SERVICES—1.8% | |||
347,001 | Chegg Inc.* | 5,382 | |
DIVERSIFIED TELECOMMUNICATION SERVICES—1.1% | |||
272,522 | Iridium Communications Inc.* | 3,270 | |
ELECTRICAL EQUIPMENT—0.4% | |||
125,571 | Power Solutions International Inc.* | 1,224 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.8% | |||
62,822 | Methode Electronics Inc. | 2,946 | |
47,624 | MTS Systems Corp. | 2,479 | |
5,425 | |||
FOOD PRODUCTS—0.5% | |||
107,036 | Freshpet Inc.* | 1,664 | |
HEALTH CARE EQUIPMENT & SUPPLIES—7.2% | |||
1,146,051 | Cerus Corp.* | 3,289 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
HEALTH CARE EQUIPMENT & SUPPLIES—Continued | |||
135,766 | Cryolife Inc.* | $ 2,641 | |
30,004 | ICU Medical Inc.* | 5,734 | |
236,353 | Invacare Corp. | 3,663 | |
28,610 | Nuvasive Inc.* | 1,623 | |
191,518 | Wright Medical Group NV (NET)* | 5,020 | |
21,970 | |||
HEALTH CARE PROVIDERS & SERVICES—1.5% | |||
120,382 | Surgery Partners Inc.* | 1,113 | |
100,719 | Teladoc Inc.* | 3,329 | |
4,442 | |||
HEALTH CARE TECHNOLOGY—3.1% | |||
320,409 | Evolent Health Inc.* | 5,207 | |
147,313 | Vocera Communications Inc.* | 4,157 | |
9,364 | |||
HOTELS, RESTAURANTS & LEISURE—4.8% | |||
19,266 | Churchill Downs Inc. | 4,018 | |
174,491 | Habit Restaurants Inc.* | 2,146 | |
160,626 | Planet Fitness Inc. | 4,279 | |
225,684 | Playa Hotels & Resorts NV (NET)* | 2,332 | |
52,297 | Wingstop Inc. | 1,771 | |
14,546 | |||
HOUSEHOLD DURABLES—1.0% | |||
109,807 | Century Communities Inc.* | 3,135 | |
INSURANCE—2.1% | |||
55,269 | Kinsale Capital Group Inc. | 2,397 | |
202,169 | National General Holdings Corp. | 4,080 | |
6,477 | |||
INTERNET & DIRECT MARKETING RETAIL—0.8% | |||
46,787 | NutriSystem Inc. | 2,337 | |
INTERNET SOFTWARE & SERVICES—4.7% | |||
29,391 | 2U Inc.* | 1,870 | |
92,353 | Carbonite Inc.* | 2,097 | |
56,329 | Cloudera Inc.* | 852 | |
314,091 | Gogo Inc.* | 3,122 | |
48,100 | Hortonworks Inc.* | 794 | |
239,308 | Quotient Technology Inc.* | 3,745 | |
55,992 | Twilio Inc.* | 1,789 | |
14,269 | |||
IT SERVICES—6.5% | |||
146,373 | Blackhawk Network Holdings Inc.* | 4,969 | |
162,310 | Interxion Holding NV (NET)* | 8,666 | |
168,883 | WNS Holdings Ltd. ADR (IND)*,1 | 6,404 | |
20,039 | |||
LIFE SCIENCES TOOLS & SERVICES—1.1% | |||
152,782 | Luminex Corp. | 3,262 | |
MACHINERY—5.3% | |||
77,540 | Actuant Corp. | 1,977 | |
29,941 | Barnes Group Inc. | 1,949 | |
52,542 | CIRCOR International Inc. | 2,309 | |
101,431 | Kornit Digital Ltd. (IL)* | 1,577 | |
131,667 | NN Inc. | 3,891 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
MACHINERY—Continued | |||
71,064 | REV Group Inc. | $ 1,834 | |
113,653 | Rexnord Corp.* | 2,900 | |
16,437 | |||
MEDIA—1.3% | |||
78,531 | AMC Entertainment Holdings Inc. | 1,091 | |
107,569 | World Wrestling Entertainment Inc. | 2,854 | |
3,945 | |||
OIL, GAS & CONSUMABLE FUELS—2.2% | |||
182,893 | Callon Petroleum Co.* | 2,028 | |
111,087 | SM Energy Co. | 2,370 | |
227,178 | SRC Energy Inc.* | 2,167 | |
6,565 | |||
PERSONAL PRODUCTS—0.6% | |||
89,697 | Elf Beauty Inc.* | 1,901 | |
PHARMACEUTICALS—3.0% | |||
128,109 | Medicines Co.* | 3,682 | |
117,699 | Pacira Pharmaceuticals Inc.* | 3,772 | |
321,002 | Teligent Inc.* | 1,823 | |
9,277 | |||
PROFESSIONAL SERVICES—4.2% | |||
102,049 | Korn/Ferry International | 4,269 | |
50,976 | On Assignment Inc.* | 3,121 | |
84,085 | WageWorks Inc.* | 5,360 | |
12,750 | |||
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.4% | |||
43,683 | Marcus & Millichap Inc.* | 1,242 | |
ROAD & RAIL—1.7% | |||
123,207 | Daseke Inc.* | 1,704 | |
52,161 | Saia Inc.* | 3,380 | |
5,084 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—4.1% | |||
92,094 | Inphi Corp.* | 3,774 | |
365,442 | Maxlinear Inc.* | 8,942 | |
12,716 | |||
SOFTWARE—6.8% | |||
71,652 | BroadSoft Inc.* | 3,930 | |
152,035 | Callidus Software Inc.* | 3,854 | |
50,507 | Imperva Inc.* | 2,157 | |
22,798 | Proofpoint Inc.* | 2,107 | |
450,146 | Synchronoss Technologies Inc.* | 5,100 | |
248,984 | Vasco Data Security International Inc.* | 3,386 | |
20,534 | |||
SPECIALTY RETAIL—2.4% | |||
72,396 | Camping World Holdings Inc. | 3,042 | |
76,191 | J. Jill Inc.* | 389 | |
45,472 | National Vision Holdings Inc.* | 1,310 | |
123,299 | Party City Holdco Inc.* | 1,375 | |
171,814 | Tile Shop Holdings Inc. | 1,469 | |
7,585 | |||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—1.2% | |||
115,821 | Electronics for Imaging Inc.* | 3,574 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
TEXTILES, APPAREL & LUXURY GOODS—0.9% | |||
127,984 | Canada Goose Holdings Inc. (CAN)* | $ 2,749 | |
THRIFTS & MORTGAGE FINANCE—1.7% | |||
12,042 | LendingTree Inc.* | 3,228 | |
21,961 | Meta Financial Group Inc. | 1,916 | |
5,144 | |||
TRADING COMPANIES & DISTRIBUTORS—2.0% | |||
68,981 | Beacon Roofing Supply Inc.* | 3,822 | |
176,389 | Foundation Building Materials Inc.* | 2,373 | |
6,195 | |||
WATER UTILITIES—0.6% | |||
141,111 | Aquaventure Holdings Ltd. (VG)* | 1,717 | |
WIRELESS TELECOMMUNICATION SERVICES—0.6% | |||
49,832 | Shenandoah Telecommunications Co. | 1,894 | |
TOTAL COMMON STOCKS | |||
(Cost $264,353) | 294,150 | ||
SHORT-TERM INVESTMENTS—3.1% | |||
(Cost $9,354) | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS | |||
$ | 9,354 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $9,545) | $ 9,354 |
TOTAL INVESTMENTS—99.5% | |||
(Cost $273,707) | 303,504 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.5% | 1,465 | ||
TOTAL NET ASSETS—100.0% | $304,969 |
* | 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. |
CAN | Canada |
IL | Israel |
IND | India |
NET | Netherlands |
VG | Virgin Islands |
Manager’s Commentary (Unaudited)
Suite 1700
Since 2012
Fund Performance
Manager’s Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Adobe Systems Inc. | 4.1% |
Baxter International Inc. | 3.5% |
Bank of America Corp. | 3.3% |
Microsoft Corp. | 3.3% |
Home Depot Inc. | 3.2% |
Microchip Technology Inc. | 3.2% |
AbbVie Inc. | 3.1% |
Danaher Corp. | 2.9% |
Oshkosh Corp. | 2.9% |
Ameriprise Financial Inc. | 2.8% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2013 |
Cusip | 411511603 |
Ticker | HAVLX |
Inception Date | 12/29/1987 |
Net Expense Ratio | 0.68% a |
Total Net Assets (000s) | $498,360 |
ADMINISTRATIVE CLASS | |
Fund # | 2213 |
Cusip | 411511751 |
Ticker | HRLVX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 0.93% a |
Total Net Assets (000s) | $53,006 |
INVESTOR CLASS | |
Fund # | 2413 |
Cusip | 411511744 |
Ticker | HILVX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.05% a |
Total Net Assets (000s) | $71,374 |
RETIREMENT CLASS | |
Fund # | 2513 |
Cusip | 411512478 |
Ticker | HNLVX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.60% a |
Total Net Assets (000s) | $143,966 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $96,823 | $120,800 | |
Price/Earning Ratio (P/E) | 26.5x | 22.8x | |
Price/Book Ratio (P/B) | 3.4x | 2.2x | |
Beta vs. Russell 1000® Value Index | 1.01 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 16% | N/A |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Large Cap Value Fund | ||||||||||||||
Institutional Class | 26.00% | 16.36% | 7.31% | 12/29/1987 | $101,242 | |||||||||
Administrative Class | 25.77 | 16.06 | 7.03 | 11/01/2002 | 98,673 | |||||||||
Investor Class | 25.52 | 15.91 | 6.90 | 11/01/2002 | 97,481 | |||||||||
Retirement Class1 | 26.08 | 16.38 | 7.32 | 03/01/2016 | 101,334 | |||||||||
Comparative Index | ||||||||||||||
Russell 1000® Value | 17.78% | 13.48% | 5.99% | — | $ 89,464 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—97.0% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—2.8% | |||
105,000 | General Dynamics Corp. | $ 21,313 | |
BANKS—13.8% | |||
2,350,000 | Banco Bilbao Vizcaya SA ADR (SP)1 | 20,539 | |
912,000 | Bank of America Corp. | 24,980 | |
115,000 | BOK Financial Corp. | 9,944 | |
110,000 | Cullen/Frost Bankers Inc. | 10,835 | |
124,578 | East West Bancorp Inc. | 7,455 | |
43,898 | First Republic Bank | 4,275 | |
147,000 | JPMorgan Chase & Co. | 14,790 | |
1,860,000 | Mitsubishi UFJ Financial Group Inc. ADR (JP)1 | 12,629 | |
105,447 | |||
BEVERAGES—1.9% | |||
324,000 | Coca-Cola Co. | 14,897 | |
BIOTECHNOLOGY—5.2% | |||
260,000 | AbbVie Inc. | 23,465 | |
94,000 | Amgen Inc. | 16,471 | |
39,936 | |||
CAPITAL MARKETS—2.8% | |||
139,000 | Ameriprise Financial Inc. | 21,759 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
CHEMICALS—5.2% | |||
266,000 | Dowdupont Inc. | $ 19,235 | |
181,000 | PPG Industries Inc. | 21,039 | |
40,274 | |||
CONSTRUCTION MATERIALS—2.7% | |||
96,000 | Martin Marietta Materials Inc. | 20,818 | |
CONSUMER FINANCE—2.4% | |||
199,000 | Capital One Financial Corp. | 18,344 | |
ENERGY EQUIPMENT & SERVICES—1.5% | |||
270,000 | Halliburton Co. | 11,540 | |
FOOD & STAPLES RETAILING—3.9% | |||
616,000 | Kroger Co. | 12,751 | |
260,000 | Walgreens Boots Alliance Inc. | 17,230 | |
29,981 | |||
FOOD PRODUCTS—3.7% | |||
320,000 | Archer Daniels Midland Co. | 13,078 | |
367,000 | Mondelez International Inc. | 15,205 | |
28,283 | |||
GAS UTILITIES—2.2% | |||
287,000 | National Fuel Gas Co. | 16,660 | |
HEALTH CARE EQUIPMENT & SUPPLIES—9.1% | |||
414,000 | Baxter International Inc. | 26,691 | |
240,000 | Danaher Corp. | 22,145 | |
258,000 | Medtronic plc (IE) | 20,774 | |
69,610 | |||
HEALTH CARE PROVIDERS & SERVICES—1.6% | |||
393,000 | Acadia Healthcare Co. Inc.* | 12,324 | |
HOUSEHOLD DURABLES—2.6% | |||
356,000 | Lennar Corp. | 19,818 | |
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—1.3% | |||
946,000 | AES Corp. | 10,056 | |
INSURANCE—2.3% | |||
119,000 | Chubb Ltd. (SWS) | 17,948 | |
IT SERVICES—2.5% | |||
261,000 | PayPal Holdings Inc.* | 18,938 | |
MACHINERY—2.9% | |||
246,000 | Oshkosh Corp. | 22,524 | |
OIL, GAS & CONSUMABLE FUELS—5.7% | |||
215,000 | EQT Corp. | 13,446 | |
200,000 | Phillips 66 | 18,216 | |
84,000 | Pioneer Natural Resources Co. | 12,572 | |
44,234 | |||
PERSONAL PRODUCTS—2.4% | |||
320,000 | Unilever NV (UK) | 18,547 | |
PHARMACEUTICALS—2.2% | |||
200,000 | Novartis AG ADR (SWS)1 | 16,516 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—3.2% | |||
257,000 | Microchip Technology Inc. | 24,364 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
SOFTWARE—9.9% | |||
178,000 | Adobe Systems Inc.* | $ 31,178 | |
135,000 | ANSYS Inc.* | 18,456 | |
310,000 | Microsoft Corp. | 25,786 | |
75,420 | |||
SPECIALTY RETAIL—3.2% | |||
147,000 | Home Depot Inc. | 24,370 | |
TOTAL COMMON STOCKS | |||
(Cost $593,286) | 743,921 | ||
SHORT-TERM INVESTMENTS—3.9% | |||
(Cost $29,522) | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS | |||
$ | 29,522 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $30,112) | $ 29,522 |
TOTAL INVESTMENTS—100.9% | |||
(Cost $622,808) | 773,443 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.9)% | (6,737) | ||
TOTAL NET ASSETS—100.0% | $766,706 |
* | 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 |
SP | Spain |
SWS | Switzerland |
UK | United Kingdom |
Managers' Commentary (Unaudited)
Suite 4600
Since 2004
Since 2004
Since 2015
Since 2015
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Ameriprise Financial Inc. | 1.8% |
Public Service Enterprise Group Inc. | 1.7% |
Lam Research Corp. | 1.6% |
Valero Energy Corp. | 1.5% |
Entergy Corp. | 1.4% |
FirstEnergy Corp. | 1.4% |
Lincoln National Corp. | 1.4% |
Regions Financial Corp. | 1.4% |
SunTrust Banks Inc. | 1.4% |
Spirit AeroSystems Holdings Inc. | 1.3% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2023 |
Cusip | 411511835 |
Ticker | HAMVX |
Inception Date | 03/01/2002 |
Net Expense Ratio | 0.84% a |
Total Net Assets (000s) | $739,122 |
ADMINISTRATIVE CLASS | |
Fund # | 2223 |
Cusip | 411511728 |
Ticker | HRMVX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.09% a |
Total Net Assets (000s) | $48,809 |
INVESTOR CLASS | |
Fund # | 2423 |
Cusip | 411511736 |
Ticker | HIMVX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.21% a |
Total Net Assets (000s) | $110,094 |
RETIREMENT CLASS | |
Fund # | 2523 |
Cusip | 411512460 |
Ticker | HNMVX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.77% a |
Total Net Assets (000s) | $89,942 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $12,134 | $13,729 | |
Price/Earning Ratio (P/E) | 17.3x | 24.3x | |
Price/Book Ratio (P/B) | 2.1x | 2.1x | |
Beta vs. Russell Midcap® Value Index | 1.09 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 22% | N/A |
a | Reflects a contractual management fee waiver effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Mid Cap Value Fund | ||||||||||||||
Institutional Class | 19.16% | 15.57% | 8.36% | 03/01/2002 | $111,596 | |||||||||
Administrative Class | 18.84 | 15.29 | 8.09 | 11/01/2002 | 108,860 | |||||||||
Investor Class | 18.71 | 15.15 | 7.96 | 11/01/2002 | 107,519 | |||||||||
Retirement Class1 | 19.22 | 15.58 | 8.36 | 03/01/2016 | 111,648 | |||||||||
Comparative Index | ||||||||||||||
Russell Midcap® Value | 17.12% | 14.49% | 7.90% | — | $106,911 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—99.0% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—4.3% | |||
35,500 | Huntington Ingalls Industries Inc. | $ 8,266 | |
53,100 | Moog Inc.* | 4,660 | |
52,800 | Orbital ATK Inc. | 7,019 | |
161,102 | Spirit AeroSystems Holdings Inc. | 12,904 | |
124,900 | Textron Inc. | 6,587 | |
85,800 | Triumph Group Inc. | 2,664 | |
42,100 | |||
AIR FREIGHT & LOGISTICS—0.5% | |||
74,217 | Atlas Air Worldwide Holdings Inc.* | 4,553 | |
AIRLINES—2.6% | |||
79,057 | Alaska Air Group Inc. | 5,220 | |
153,800 | American Airlines Group Inc. | 7,201 | |
315,600 | JetBlue Airways Corp.* | 6,044 | |
139,300 | United Continental Holdings Inc.* | 8,146 | |
26,611 | |||
AUTO COMPONENTS—2.2% | |||
118,200 | American Axle & Manufacturing Holdings Inc.* | 2,103 | |
29,600 | Cooper-Standard Holdings Inc.* | 3,300 | |
277,200 | Goodyear Tire & Rubber Co. | 8,479 | |
46,300 | Lear Corp. | 8,130 | |
22,012 | |||
AUTOMOBILES—0.4% | |||
91,600 | Harley-Davidson Inc. | 4,336 | |
BANKS—6.6% | |||
120,000 | Banco Latinoamericano de Comercio Exterior SA (PA) | 3,364 | |
134,800 | CIT Group Inc. | 6,284 | |
138,500 | Citizens Financial Group Inc. | 5,264 | |
327,900 | Fifth Third Bancorp | 9,476 | |
495,200 | KeyCorp | 9,038 | |
905,300 | Regions Financial Corp. | 14,014 | |
225,100 | SunTrust Banks Inc. | 13,553 | |
113,400 | Zions Bancorporation | 5,269 | |
66,262 | |||
BUILDING PRODUCTS—0.6% | |||
76,600 | Owens Corning Inc. | 6,334 | |
CAPITAL MARKETS—3.0% | |||
111,000 | Ameriprise Financial Inc. | 17,376 | |
144,135 | Lazard Ltd. (BM) | 6,852 | |
121,300 | Legg Mason Inc. | 4,631 | |
28,859 | |||
CHEMICALS—4.4% | |||
90,300 | A. Schulman Inc. | 3,549 | |
86,000 | Cabot Corp. | 5,243 | |
72,800 | Celanese Corp. | 7,594 | |
141,100 | Eastman Chemical Co. | 12,813 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
CHEMICALS—Continued | |||
289,700 | Huntsman Corp. | $ 9,276 | |
70,400 | Trinseo SA (LUX) | 4,998 | |
43,473 | |||
COMMERCIAL SERVICES & SUPPLIES—0.4% | |||
20,712 | LSC Communications Inc. | 335 | |
228,100 | Pitney Bowes Inc. | 3,134 | |
55,233 | RR Donnelley & Sons Co. | 508 | |
3,977 | |||
COMMUNICATIONS EQUIPMENT—1.1% | |||
232,600 | Juniper Networks Inc. | 5,776 | |
49,300 | NETGEAR Inc.* | 2,300 | |
64,600 | Plantronics Inc. | 2,930 | |
11,006 | |||
CONSTRUCTION & ENGINEERING—0.2% | |||
86,400 | Tutor Perini Corp.* | 2,436 | |
CONSUMER FINANCE—1.6% | |||
144,400 | Discover Financial Services | 9,607 | |
225,200 | Navient Corp. | 2,806 | |
56,500 | Nelnet Inc. | 3,307 | |
15,720 | |||
CONTAINERS & PACKAGING—1.6% | |||
201,198 | Owens-Illinois Inc.* | 4,807 | |
64,200 | Packaging Corp. of America | 7,464 | |
51,800 | WestRock Co. | 3,177 | |
15,448 | |||
DIVERSIFIED FINANCIAL SERVICES—0.5% | |||
120,200 | Voya Financial Inc. | 4,827 | |
ELECTRIC UTILITIES—3.8% | |||
44,200 | American Electric Power Co. Inc. | 3,289 | |
82,400 | Edison International | 6,588 | |
162,200 | Entergy Corp. | 13,991 | |
409,500 | FirstEnergy Corp. | 13,493 | |
37,361 | |||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.9% | |||
76,400 | Avnet Inc. | 3,041 | |
235,500 | Corning Inc. | 7,373 | |
480,500 | Flex Ltd. (SGP)* | 8,553 | |
41,800 | Tech Data Corp.* | 3,878 | |
196,236 | TTM Technologies Inc.* | 3,096 | |
154,200 | Vishay Intertechnology Inc. | 3,431 | |
29,372 | |||
ENERGY EQUIPMENT & SERVICES—1.1% | |||
190,000 | Diamond Offshore Drilling Inc.* | 3,179 | |
629,600 | McDermott International Inc. (PA)* | 4,168 | |
74,800 | Oceaneering International Inc.* | 1,512 | |
131,800 | Rowan Cos. plc (UK)* | 1,889 | |
10,748 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—10.1% | |||
181,700 | Brandywine Realty Trust | 3,178 | |
286,300 | CBL & Associates Properties Inc. | 2,245 | |
472,900 | DDR Corp. | 3,627 | |
507,836 | Franklin Street Properties Corp. | 5,078 | |
211,000 | Government Properties Income Trust | 3,834 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—Continued | |||
188,700 | Hersha Hospitality Trust | $ 3,338 | |
229,600 | Hospitality Properties Trust | 6,562 | |
512,200 | Host Hotels & Resorts Inc. | 10,019 | |
733,500 | Lexington Realty Trust | 7,423 | |
243,500 | Mack-Cali Realty Corp. | 5,545 | |
263,000 | Medical Properties Trust Inc. | 3,479 | |
209,300 | OMEGA Healthcare Investors Inc. | 6,040 | |
320,900 | Piedmont Office Realty Trust Inc. | 6,206 | |
234,300 | Sabra Health Care REIT Inc. | 4,667 | |
209,812 | Select Income REIT | 5,069 | |
411,114 | Senior Housing Properties Trust | 7,565 | |
334,600 | Summit Hotel Properties Inc. | 5,290 | |
565,400 | Vereit Inc. | 4,461 | |
244,700 | Xenia Hotels & Resorts Inc. | 5,325 | |
98,951 | |||
FOOD & STAPLES RETAILING—0.7% | |||
62,200 | Ingles Markets Inc. | 1,449 | |
240,200 | Kroger Co. | 4,972 | |
73,814 | Supervalu Inc.* | 1,203 | |
7,624 | |||
FOOD PRODUCTS—1.6% | |||
67,500 | Archer Daniels Midland Co. | 2,759 | |
43,785 | Bunge Ltd. (BM) | 3,011 | |
32,700 | JM Smucker Co. | 3,468 | |
86,900 | Tyson Foods Inc. | 6,336 | |
15,574 | |||
HEALTH CARE PROVIDERS & SERVICES—3.4% | |||
126,800 | Cardinal Health Inc. | 7,849 | |
35,000 | CIGNA Corp. | 6,903 | |
116,600 | HCA Holdings Inc.* | 8,821 | |
61,286 | LifePoint Health Inc.* | 2,951 | |
57,348 | Magellan Health Inc.* | 4,892 | |
73,000 | Owens & Minor Inc. | 1,793 | |
33,209 | |||
HOTELS, RESTAURANTS & LEISURE—1.4% | |||
171,600 | Brinker International Inc. | 5,272 | |
87,500 | Wyndham Worldwide Corp. | 9,349 | |
14,621 | |||
HOUSEHOLD DURABLES—2.4% | |||
99,700 | CalAtlantic Group Inc. | 4,919 | |
101,478 | Ethan Allen Interiors Inc. | 3,019 | |
65,200 | Meritage Homes Corp.* | 3,175 | |
183,453 | Pulte Group Inc. | 5,546 | |
40,100 | Whirlpool Corp. | 6,574 | |
23,233 | |||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—0.3% | |||
283,200 | AES Corp. | 3,010 | |
INSURANCE—8.5% | |||
65,100 | Aflac Inc. | 5,461 | |
38,100 | Allstate Corp. | 3,576 | |
47,574 | American Financial Group Inc. | 5,019 | |
83,000 | AmTrust Financial Services Inc. | 1,042 | |
40,100 | Assurant Inc. | 4,036 | |
88,400 | Assured Guaranty Ltd. (BM) | 3,280 | |
51,900 | Axis Capital Holdings Ltd. (BM) | 2,823 | |
44,900 | Everest Re Group Ltd. (BM) | 10,661 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
INSURANCE—Continued | |||
150,800 | Hartford Financial Services Group Inc. | $ 8,301 | |
179,800 | Lincoln National Corp. | 13,625 | |
186,500 | Maiden Holdings Ltd. (BM) | 1,539 | |
60,800 | Principal Financial Group Inc. | 4,004 | |
134,600 | Universal Insurance Holdings Inc. | 3,210 | |
139,000 | Unum Group | 7,234 | |
77,600 | Validus Holdings Ltd. (BM) | 4,041 | |
156,600 | XL Group Ltd. (BM) | 6,338 | |
84,190 | |||
INTERNET SOFTWARE & SERVICES—0.0% | |||
190,700 | DHI Group Inc.* | 420 | |
IT SERVICES—0.8% | |||
110,756 | Convergys Corp. | 2,850 | |
228,100 | Western Union Co. | 4,530 | |
7,380 | |||
LEISURE PRODUCTS—0.3% | |||
184,500 | American Outdoor Brands Corp.* | 2,644 | |
MACHINERY—4.9% | |||
42,500 | AGCO Corp. | 2,914 | |
170,200 | Briggs & Stratton Corp. | 4,289 | |
61,457 | Cummins Inc. | 10,871 | |
161,900 | Meritor Inc.* | 4,211 | |
86,200 | Oshkosh Corp. | 7,892 | |
29,300 | Snap-on Inc. | 4,623 | |
64,700 | Timken Co. | 3,051 | |
111,200 | Trinity Industries Inc. | 3,616 | |
327,400 | Wabash National Corp. | 7,367 | |
48,834 | |||
MEDIA—0.9% | |||
76,200 | AMC Networks Inc.* | 3,877 | |
164,900 | Gannett Co. Inc. | 1,435 | |
98,500 | TEGNA Inc. | 1,205 | |
108,800 | Viacom Inc. | 2,614 | |
9,131 | |||
METALS & MINING—0.6% | |||
78,500 | Reliance Steel & Aluminum Co. | 6,032 | |
MORTGAGE REAL ESTATE INVESTMENT TRUSTS (REITs)—1.9% | |||
624,000 | Annaly Capital Management Inc. | 7,151 | |
171,000 | Invesco Mortgage Capital Inc. | 2,945 | |
298,300 | MFA Financial Inc. | 2,458 | |
191,300 | PennyMac Mortgage Investment Trust | 3,072 | |
316,100 | Two Harbors Investment Corp. | 3,098 | |
18,724 | |||
MULTILINE RETAIL—0.9% | |||
33,600 | Dillard's Inc. | 1,707 | |
124,800 | Kohl's Corp. | 5,212 | |
102,800 | Macy's Inc. | 1,928 | |
8,847 | |||
MULTI-UTILITIES—2.3% | |||
340,300 | Public Service Enterprise Group Inc. | 16,743 | |
136,840 | SCANA Corp. | 5,903 | |
22,646 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS—3.6% | |||
47,100 | Andeavor Corp. | $ 5,004 | |
89,800 | Marathon Petroleum Corp. | 5,365 | |
192,400 | Murphy Oil Corp. | 5,147 | |
163,700 | PBF Energy Inc. | 4,742 | |
66,300 | Ship Finance International Ltd. (BM) | 988 | |
183,400 | Valero Energy Corp. | 14,468 | |
35,714 | |||
PAPER & FOREST PRODUCTS—0.5% | |||
98,600 | Domtar Corp. | 4,666 | |
PHARMACEUTICALS—1.1% | |||
41,200 | Jazz Pharmaceuticals plc (IE)* | 5,831 | |
110,150 | Lannett Co. Inc.* | 2,192 | |
84,495 | Mylan NV (NET)* | 3,017 | |
11,040 | |||
PROFESSIONAL SERVICES—0.6% | |||
47,700 | ManpowerGroup Inc. | 5,880 | |
ROAD & RAIL—0.7% | |||
74,200 | ArcBest Corp. | 2,419 | |
62,800 | Ryder System Inc. | 5,092 | |
7,511 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.2% | |||
475,000 | Amkor Technology Inc.* | 5,496 | |
178,800 | Applied Materials Inc. | 10,090 | |
84,900 | Cirrus Logic Inc.* | 4,754 | |
74,800 | Lam Research Corp. | 15,601 | |
409,900 | On Semiconductor Corp.* | 8,739 | |
141,100 | Teradyne Inc. | 6,052 | |
50,732 | |||
SOFTWARE—0.3% | |||
87,700 | CA Inc. | 2,840 | |
SPECIALTY RETAIL—3.3% | |||
92,800 | Bed Bath & Beyond Inc. | 1,847 | |
68,800 | Dick's Sporting Goods Inc. | 1,683 | |
123,900 | Finish Line Inc. | 1,149 | |
53,600 | Foot Locker Inc. | 1,612 | |
89,100 | GameStop Corp. | 1,665 | |
138,900 | Gap Inc. | 3,610 | |
73,700 | Group 1 Automotive Inc. | 5,791 | |
61,063 | Murphy USA Inc.* | 4,541 | |
677,800 | Office Depot Inc. | 2,101 | |
76,700 | Penske Automotive Group Inc. | 3,576 | |
26,700 | The Children's Place Retail Stores Inc. | 2,905 | |
30,480 | |||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—3.3% | |||
242,314 | HP Inc. | 5,222 | |
197,600 | NCR Corp.* | 6,341 | |
112,600 | NetApp Inc. | 5,002 | |
143,800 | Seagate Technology plc (IE) | 5,316 | |
65,200 | Western Digital Corp. | 5,820 | |
189,900 | Xerox Corp. | 5,756 | |
33,457 | |||
TEXTILES, APPAREL & LUXURY GOODS—0.4% | |||
38,500 | Carter's Inc. | 3,724 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
THRIFTS & MORTGAGE FINANCE—0.8% | |||
249,400 | MGIC Investment Corp.* | $ 3,566 | |
185,900 | Radian Group Inc. | 3,897 | |
7,463 | |||
TOBACCO—0.1% | |||
15,991 | Universal Corp. | 917 | |
TRADING COMPANIES & DISTRIBUTORS—0.3% | |||
113,600 | Aircastle Ltd. (BM) | 2,642 | |
TOTAL COMMON STOCKS | |||
(Cost $844,404) | 977,571 | ||
SHORT-TERM INVESTMENTS—0.9% | |||
(Cost $9,351) | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS | |||
$ | 9,351 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $9,540) | $ 9,351 |
TOTAL INVESTMENTS—99.9% | |||
(Cost $853,755) | 986,922 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.1% | 1,045 | ||
TOTAL NET ASSETS—100.0% | $987,967 |
* | Non-income producing security |
BM | Bermuda |
IE | Ireland |
LUX | Luxembourg |
NET | Netherlands |
PA | Panama |
SGP | Singapore |
UK | United Kingdom |
Manager’s Commentary (Unaudited)
Suite 2300
Since 2001
Fund Performance
Manager’s Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Coherent Inc. | 4.3% |
Entegris Inc. | 3.9% |
Advanced Energy Industries Inc. | 3.3% |
Monolithic Power Systems Inc. | 3.3% |
Global Payments Inc. | 3.1% |
Hexcel Corp. | 3.1% |
Littelfuse Inc. | 2.7% |
Cabot Microelectronics Corp. | 2.5% |
Catalent Inc. | 2.5% |
Raymond James Financial Inc. | 2.2% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2022 |
Cusip | 411511843 |
Ticker | HASCX |
Inception Date | 12/14/2001 |
Net Expense Ratio | 0.87% |
Total Net Assets (000s) | $1,081,412 |
ADMINISTRATIVE CLASS | |
Fund # | 2222 |
Cusip | 411511710 |
Ticker | HSVRX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.12% |
Total Net Assets (000s) | $4,462 |
INVESTOR CLASS | |
Fund # | 2422 |
Cusip | 411511694 |
Ticker | HISVX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.24% |
Total Net Assets (000s) | $37,548 |
RETIREMENT CLASS | |
Fund # | 2522 |
Cusip | 411512452 |
Ticker | HNVRX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.81% |
Total Net Assets (000s) | $57,196 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $4,983 | $2,035 | |
Price/Earning Ratio (P/E) | 27.6x | 24.3x | |
Price/Book Ratio (P/B) | 3.2x | 1.7x | |
Beta vs. Russell 2000® Value Index | 0.84 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 8% | N/A |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Small Cap Value Fund | ||||||||||||||
Institutional Class | 33.00% | 17.12% | 8.52% | 12/14/2001 | $113,269 | |||||||||
Administrative Class | 32.67 | 16.81 | 8.25 | 11/01/2002 | 110,473 | |||||||||
Investor Class | 32.49 | 16.68 | 8.12 | 11/01/2002 | 109,148 | |||||||||
Retirement Class1 | 33.06 | 17.14 | 8.53 | 03/01/2016 | 113,399 | |||||||||
Comparative Index | ||||||||||||||
Russell 2000® Value | 24.81% | 13.58% | 7.04% | — | $ 98,723 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—97.2% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—6.9% | |||
611,994 | Hexcel Corp. | $ 37,142 | |
201,189 | Moog Inc.* | 17,656 | |
153,380 | Teledyne Technologies Inc.* | 26,069 | |
80,867 | |||
BANKS—4.2% | |||
432,051 | Sterling Bancorp | 10,823 | |
483,887 | Trustmark Corp. | 15,939 | |
289,323 | United Bankshares Inc. | 10,401 | |
300,831 | WesBanco Inc. | 12,154 | |
49,317 | |||
CAPITAL MARKETS—4.6% | |||
276,936 | Eaton Vance Corp. | 13,977 | |
310,076 | Raymond James Financial Inc. | 26,288 | |
276,753 | Stifel Financial Corp. | 14,676 | |
54,941 | |||
CHEMICALS—3.6% | |||
303,513 | Cabot Corp. | 18,502 | |
239,624 | Scotts Miracle-Gro Co. | 23,872 | |
42,374 | |||
CONSUMER FINANCE—1.8% | |||
328,775 | Firstcash Inc. | 20,992 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
ELECTRICAL EQUIPMENT—2.1% | |||
356,040 | EnerSys | $ 24,699 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—11.9% | |||
193,080 | Coherent Inc.* | 50,724 | |
445,582 | FLIR Systems Inc. | 20,862 | |
152,397 | Littelfuse Inc. | 31,851 | |
248,281 | OSI Systems Inc.* | 21,943 | |
449,125 | Sanmina Corp.* | 14,698 | |
140,078 | |||
ENERGY EQUIPMENT & SERVICES—2.5% | |||
167,806 | Core Laboratories NV | 16,764 | |
544,369 | Oil States International Inc.* | 12,548 | |
29,312 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—3.8% | |||
128,298 | EastGroup Properties Inc. | 11,622 | |
917,203 | Medical Properties Trust Inc. | 12,135 | |
131,295 | SBA Communications Corp.* | 20,637 | |
44,394 | |||
FOOD & STAPLES RETAILING—0.8% | |||
238,414 | United Natural Foods Inc.* | 9,243 | |
FOOD PRODUCTS—1.5% | |||
944,120 | Darling Ingredients Inc.* | 17,230 | |
GAS UTILITIES—3.6% | |||
503,453 | South Jersey Industries Inc. | 17,102 | |
291,798 | WGL Holdings Inc. | 25,007 | |
42,109 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—1.6% | |||
196,396 | Cantel Medical Corp. | 19,263 | |
HEALTH CARE PROVIDERS & SERVICES—3.5% | |||
193,551 | Centene Corp.* | 18,130 | |
301,079 | MEDNAX Inc.* | 13,184 | |
159,289 | Molina Healthcare Inc.* | 10,805 | |
42,119 | |||
HOTELS, RESTAURANTS & LEISURE—2.3% | |||
872,489 | Bloomin' Brands Inc. | 15,513 | |
470,856 | Penn National Gaming Inc.* | 12,284 | |
27,797 | |||
HOUSEHOLD DURABLES—1.7% | |||
401,865 | Meritage Homes Corp.* | 19,571 | |
INSURANCE—6.6% | |||
560,037 | American Equity Investment Life Holding Co. | 16,527 | |
330,312 | Horace Mann Educators Corp. | 14,468 | |
171,436 | Reinsurance Group of America Inc. | 25,609 | |
192,142 | State Auto Financial Corp. | 4,926 | |
366,919 | United Fire Group Inc. | 16,911 | |
78,441 | |||
IT SERVICES—4.6% | |||
354,479 | Global Payments Inc. | 36,848 | |
373,487 | ManTech International Corp. | 17,334 | |
54,182 | |||
MACHINERY—11.2% | |||
265,920 | Albany International Corp. | 16,048 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
MACHINERY—Continued | |||
401,464 | Altra Industrial Motion Corp. | $ 19,230 | |
538,579 | Franklin Electric Co. Inc. | 24,505 | |
1,942,816 | Mueller Water Products Inc. | 23,197 | |
166,177 | Snap-on Inc. | 26,220 | |
474,078 | Timken Co. | 22,353 | |
131,553 | |||
OIL, GAS & CONSUMABLE FUELS—1.5% | |||
373,555 | Gulfport Energy Corp.* | 5,117 | |
245,253 | PDC Energy Inc.* | 12,491 | |
17,608 | |||
PHARMACEUTICALS—2.4% | |||
677,256 | Catalent Inc.* | 28,844 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—13.0% | |||
459,739 | Advanced Energy Industries Inc.* | 38,949 | |
309,029 | Cabot Microelectronics Corp. | 29,874 | |
1,416,631 | Entegris Inc. | 46,394 | |
319,164 | Monolithic Power Systems Inc. | 38,833 | |
154,050 | |||
TRADING COMPANIES & DISTRIBUTORS—1.5% | |||
300,301 | GATX Corp. | 17,841 | |
TOTAL COMMON STOCKS | |||
(Cost $629,944) | 1,146,825 | ||
SHORT-TERM INVESTMENTS—2.8% | |||
(Cost $33,578) | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS | |||
$ | 33,578 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $34,254) | $ 33,578 |
TOTAL INVESTMENTS—100.0% | |||
(Cost $663,522) | 1,180,403 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | 215 | ||
TOTAL NET ASSETS—100.0% | $1,180,618 |
* | Non-income producing security |
Manager’s Commentary (Unaudited)
Suite 650
92660
Since 2017
Fund Performance
Manager’s Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Signet Jewelers Ltd. | 4.5% |
Michaels Cos Inc. | 3.9% |
Sterling Bancorp | 3.1% |
Envision Healthcare Corp. | 2.6% |
Evertec Inc. | 2.6% |
Forum Energy Technologies Inc. | 2.6% |
Aspen Insurance Holdings Ltd. | 2.5% |
RSP Permian Inc. | 2.4% |
TreeHouse Foods Inc. | 2.4% |
WPX Energy Inc. | 2.3% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2041 |
Cusip | 411512320 |
Ticker | HSOVX |
Inception Date | 08/01/2017 |
Net Expense Ratio | 0.88% a,b |
Total Net Assets (000s) | $24,655 |
ADMINISTRATIVE CLASS | |
Fund # | 2241 |
Cusip | 411512312 |
Ticker | HSAVX |
Inception Date | 08/01/2017 |
Net Expense Ratio | 1.13% a,b |
Total Net Assets (000s) | $252 |
INVESTOR CLASS | |
Fund # | 2441 |
Cusip | 411512296 |
Ticker | HSIVX |
Inception Date | 08/01/2017 |
Net Expense Ratio | 1.25% a,b |
Total Net Assets (000s) | $254 |
RETIREMENT CLASS | |
Fund # | 2541 |
Cusip | 411512288 |
Ticker | HSRVX |
Inception Date | 08/01/2017 |
Net Expense Ratio | 0.80% a,b |
Total Net Assets (000s) | $30 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $3,152 | $2,035 | |
Price/Earning Ratio (P/E) | 21.6x | 24.3x | |
Price/Book Ratio (P/B) | 1.8x | 1.7x | |
Beta vs. Russell 2000® Value Index | 0.95 | N/A | |
Portfolio Turnover (Period Ended 10/31/2017) | 9% c | N/A |
a | Annualized |
b | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2019 |
c | Unannualized |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | 5 Years | Unannualized | Inception Date | Final Value of a $50,000 Investment | |||||||||
Life of Fund | ||||||||||||||
Harbor Small Cap Value Opportunities Fund | ||||||||||||||
Institutional Class | N/A | N/A | 0.70% | 08/01/2017 | $50,350 | |||||||||
Administrative Class | N/A | N/A | 0.60 | 08/01/2017 | 50,300 | |||||||||
Investor Class | N/A | N/A | 0.60 | 08/01/2017 | 50,300 | |||||||||
Retirement Class | N/A | N/A | 0.70 | 08/01/2017 | 50,350 | |||||||||
Comparative Index | ||||||||||||||
Russell 2000® Value | N/A | N/A | 4.59% | — | $52,293 |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—97.9% | |||
Shares | Value | ||
BANKS—15.7% | |||
12,850 | Bank of NT Butterfield & Son Ltd. (BM) | $ 480 | |
9,850 | Bankunited Inc. | 343 | |
7,700 | Cathay General Bancorp | 322 | |
18,800 | First Hawaiian Inc. | 550 | |
4,650 | Hancock Holding Co. | 227 | |
30,750 | Sterling Bancorp | 770 | |
5,250 | Texas Capital Bancshares Inc.* | 452 | |
4,600 | UMB Financial Corp. | 338 | |
5,650 | Wintrust Financial Corp. | 459 | |
3,941 | |||
BUILDING PRODUCTS—1.3% | |||
11,950 | Continental Building Products Inc.* | 319 | |
CAPITAL MARKETS—1.5% | |||
11,030 | Artisan Partners Asset Management Inc. | 380 | |
COMMERCIAL SERVICES & SUPPLIES—4.0% | |||
9,650 | Kar Auction Services Inc. | 457 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
COMMERCIAL SERVICES & SUPPLIES—Continued | |||
12,200 | Ritchie Bros Auctioneers Inc. (CAN) | $ 342 | |
14,200 | Steelcase Inc. | 206 | |
1,005 | |||
CONSUMER FINANCE—1.5% | |||
11,930 | Onemain Holdings Inc.* | 379 | |
CONTAINERS & PACKAGING—1.2% | |||
10,500 | Silgan Holdings Inc. | 307 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.1% | |||
14,750 | VeriFone Holdings Inc.* | 282 | |
ENERGY EQUIPMENT & SERVICES—4.0% | |||
46,510 | Forum Energy Technologies Inc.* | 670 | |
92,700 | Weatherford International plc (IE)* | 321 | |
991 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—6.0% | |||
11,800 | Corecivic Inc. | 291 | |
9,900 | Education Realty Trust Inc. | 346 | |
23,150 | Outfront Media Inc. | 543 | |
20,450 | Physicians Realty Trust | 355 | |
1,535 | |||
FOOD PRODUCTS—5.7% | |||
9,600 | Hain Celestial Group Inc.* | 346 | |
5,700 | Post Holdings Inc.* | 472 | |
9,050 | TreeHouse Foods Inc.* | 601 | |
1,419 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—1.0% | |||
5,200 | Integer Holdings Corp.* | 253 | |
HEALTH CARE PROVIDERS & SERVICES—5.3% | |||
6,450 | Amedisys Inc.* | 310 | |
15,250 | Envision Healthcare Corp.* | 650 | |
8,450 | MEDNAX Inc.* | 370 | |
1,330 | |||
INSURANCE—5.6% | |||
7,990 | Argo Group International Holdings Ltd. (BM) | 503 | |
14,500 | Aspen Insurance Holdings Ltd. (BM) | 622 | |
4,950 | First American Financial Corp. | 269 | |
1,394 | |||
INTERNET SOFTWARE & SERVICES—1.9% | |||
20,300 | Cars.com Inc.* | 484 | |
IT SERVICES—2.6% | |||
43,300 | Evertec Inc. (PRI) | 650 | |
LIFE SCIENCES TOOLS & SERVICES—1.0% | |||
1,120 | BIO-RAD Laboratories Inc.* | 246 | |
MACHINERY—4.3% | |||
9,750 | Actuant Corp. | 249 | |
3,697 | Altra Industrial Motion Corp. | 177 | |
4,230 | EnPro Industries Inc. | 354 | |
6,280 | Terex Corp. | 296 | |
1,076 | |||
MARINE—1.2% | |||
4,300 | Kirby Corp.* | 305 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
MEDIA—0.1% | |||
979 | Liberty Global plc LiLAC Class A (UK)* | $ 21 | |
MORTGAGE REAL ESTATE INVESTMENT TRUSTS (REITs)—1.5% | |||
24,300 | Redwood Trust Inc. | 382 | |
MULTI-UTILITIES—1.4% | |||
6,160 | Northwestern Corp. | 365 | |
OIL, GAS & CONSUMABLE FUELS—6.5% | |||
47,250 | Oasis Petroleum Inc.* | 446 | |
17,520 | RSP Permian Inc.* | 603 | |
51,950 | WPX Energy Inc.* | 586 | |
1,635 | |||
PROFESSIONAL SERVICES—2.5% | |||
7,250 | Korn/Ferry International | 304 | |
21,350 | Resources Connection Inc. | 336 | |
640 | |||
ROAD & RAIL—2.6% | |||
5,570 | Genesee & Wyoming Inc.* | 400 | |
6,300 | Knight-Swift Transportation Holdings Inc.* | 261 | |
661 | |||
SPECIALTY RETAIL—14.1% | |||
204,200 | Ascena Retail Group Inc.* | 396 | |
50,900 | Michaels Cos Inc.* | 988 | |
47,700 | Party City Holdco Inc.* | 532 | |
29,400 | Sally Beauty Holdings Inc.* | 509 | |
17,400 | Signet Jewelers Ltd. | 1,141 | |
3,566 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—1.6% | |||
21,200 | Diebold Nixdorf Inc. | $ 409 | |
THRIFTS & MORTGAGE FINANCE—1.5% | |||
11,130 | Washington Federal Inc. | 387 | |
TRADING COMPANIES & DISTRIBUTORS—1.2% | |||
7,190 | Air Lease Corp. | 312 | |
TOTAL COMMON STOCKS | |||
(Cost $24,624) | 24,674 | ||
SHORT-TERM INVESTMENTS—2.0% | |||
(Cost $498) | |||
Principal Amount | |||
REPURCHASE AGREEMENTS | |||
$ | 498 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $510) | 498 |
TOTAL INVESTMENTS—99.9% | |||
(Cost $25,122) | 25,172 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.1% | 19 | ||
TOTAL NET ASSETS—100.0% | $25,191 |
* | Non-income producing security |
BM | Bermuda |
CAN | Canada |
IE | Ireland |
PRI | Puerto Rico |
UK | United Kingdom |
StatementS of Assets and Liabilities—October 31, 2017
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 | Harbor Small Cap Value Opportunities Fund | |
ASSETS | ||||||||
Investments, at identified cost* | $16,494,658 | $315,787 | $566,340 | $273,707 | $622,808 | $853,755 | $ 663,522 | $25,122 |
Investments, at value(Including securities loaned of $86,225, $0, $0, $0, $0, $0, $0 and $0) | $28,895,477 | $379,533 | $688,122 | $294,150 | $743,921 | $977,571 | $1,146,825 | $24,674 |
Repurchase agreements | 8,240 | 23,512 | 27,333 | 9,354 | 29,522 | 9,351 | 33,578 | 498 |
Cash | — | — | — | — | 1 | 1 | — | 1 |
Receivables for: | ||||||||
Investments sold | 25,843 | 1,106 | 2,329 | 2,033 | — | 263 | — | — |
Capital shares sold | 31,169 | 212 | 262 | 390 | 1,896 | 1,171 | 1,934 | — |
Dividends | 11,799 | 58 | 29 | 18 | 386 | 1,030 | 500 | 9 |
Interest | — | 1 | — | — | — | — | — | — |
Securities lending income | 3 | — | — | — | — | — | — | — |
Withholding tax | 1,812 | — | — | — | 55 | — | — | — |
Prepaid registration fees | 45 | 33 | 31 | 9 | 36 | 23 | 40 | 2 |
Other assets | 1,553 | 49 | 48 | 7 | 68 | 29 | 70 | 86 |
Total Assets | 28,975,941 | 404,504 | 718,154 | 305,961 | 775,885 | 989,439 | 1,182,947 | 25,270 |
LIABILITIES | ||||||||
Payables for: | ||||||||
Investments purchased | 32,012 | 374 | 9,130 | 652 | 8,376 | — | — | 21 |
Foreign currency spot contracts | 7 | — | — | — | — | — | — | — |
Capital shares reacquired | 17,518 | 133 | 389 | 94 | 294 | 563 | 1,136 | — |
Collateral for securities loaned | 90,739 | — | — | — | — | — | — | — |
Accrued expenses: | ||||||||
Management fees | 13,273 | 254 | 449 | 195 | 363 | 613 | 735 | 16 |
12b-1 fees | 430 | 28 | 2 | — | 26 | 34 | 9 | — |
Transfer agent fees | 1,917 | 22 | 38 | 18 | 48 | 74 | 79 | 2 |
Trustees' fees and expenses | 184 | 4 | 4 | 1 | 2 | 4 | 5 | — |
Other | 4,868 | 94 | 105 | 32 | 70 | 184 | 365 | 40 |
Total Liabilities | 160,948 | 909 | 10,117 | 992 | 9,179 | 1,472 | 2,329 | 79 |
NET ASSETS | $28,814,993 | $403,595 | $708,037 | $304,969 | $766,706 | $987,967 | $1,180,618 | $25,191 |
Net Assets Consist of: | ||||||||
Paid-in capital | $13,477,919 | $284,686 | $497,327 | $261,996 | $595,013 | $819,321 | $ 640,191 | $25,028 |
Accumulated undistributed net investment income/(loss) | 35,329 | (318) | (35) | (6) | 863 | 7,117 | (8) | 37 |
Accumulated net realized gain/(loss) | 2,892,647 | 31,969 | 61,630 | 13,182 | 20,195 | 28,362 | 23,554 | 76 |
Unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currencies | 12,409,098 | 87,258 | 149,115 | 29,797 | 150,635 | 133,167 | 516,881 | 50 |
$28,814,993 | $403,595 | $708,037 | $304,969 | $766,706 | $987,967 | $1,180,618 | $25,191 | |
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 | Harbor Small Cap Value Opportunities Fund | |||||||||
NET ASSET VALUE PER SHARE BY CLASS | ||||||||||||||||
Institutional Class | ||||||||||||||||
Net assets | $23,896,840 | $145,914 | $509,889 | $254,925 | $498,360 | $739,122 | $1,081,412 | $24,655 | ||||||||
Shares of beneficial interest1 | 317,259 | 12,985 | 33,858 | 20,242 | 33,509 | 31,685 | 29,926 | 2,449 | ||||||||
Net asset value per share2 | $ 75.32 | $ 11.24 | $ 15.06 | $ 12.59 | $ 14.87 | $ 23.33 | $ 36.14 | $ 10.07 | ||||||||
Administrative Class | ||||||||||||||||
Net assets | $ 493,860 | $110,114 | $ 719 | $ 1,308 | $ 53,006 | $ 48,809 | $ 4,462 | $ 252 | ||||||||
Shares of beneficial interest1 | 6,667 | 10,185 | 50 | 104 | 3,573 | 2,079 | 124 | 25 | ||||||||
Net asset value per share2 | $ 74.08 | $ 10.81 | $ 14.17 | $ 12.54 | $ 14.84 | $ 23.47 | $ 35.97 | $ 10.06 | ||||||||
Investor Class | ||||||||||||||||
Net assets | $ 1,531,809 | $ 20,121 | $ 7,913 | $ 1,167 | $ 71,374 | $110,094 | $ 37,548 | $ 254 | ||||||||
Shares of beneficial interest1 | 21,018 | 1,909 | 581 | 94 | 4,762 | 4,739 | 1,064 | 25 | ||||||||
Net asset value per share2 | $ 72.88 | $ 10.54 | $ 13.62 | $ 12.41 | $ 14.99 | $ 23.23 | $ 35.29 | $ 10.06 | ||||||||
Retirement Class | ||||||||||||||||
Net assets | $ 2,892,484 | $127,446 | $189,516 | $ 47,569 | $143,966 | $ 89,942 | $ 57,196 | $ 30 | ||||||||
Shares of beneficial interest1 | 38,393 | 11,328 | 12,566 | 3,773 | 9,681 | 3,854 | 1,582 | 3 | ||||||||
Net asset value per share2 | $ 75.34 | $ 11.25 | $ 15.08 | $ 12.61 | $ 14.87 | $ 23.33 | $ 36.16 | $ 10.07 |
* | 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. |
StatementS of Operations—Year Ended October 31, 2017
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 | Harbor Small Cap Value Opportunities Funda | |
Investment Income | ||||||||
Dividends | $ 222,839 | $ 2,657 | $ 3,641 | $ 631 | $ 9,621 | $ 24,248 | $ 10,539 | $ 93 |
Interest | 185 | 85 | 19 | 8 | 18 | 8 | 33 | — |
Net securities lending income | 23 | — | — | — | — | — | — | — |
Foreign taxes withheld | (1,700) | (12) | (2) | — | (167) | (4) | (38) | — |
Total Investment Income | 221,347 | 2,730 | 3,658 | 639 | 9,472 | 24,252 | 10,534 | 93 |
Operating Expenses | ||||||||
Management fees | 157,071 | 2,745 | 5,011 | 1,857 | 3,246 | 7,008 | 7,138 | 47 |
12b-1 fees: | ||||||||
Administrative Class | 1,165 | 298 | 1 | 3 | 71 | 119 | 6 | — |
Investor Class | 3,790 | 50 | 20 | 3 | 193 | 359 | 76 | — |
Shareholder communications | 2,193 | 23 | 28 | 7 | 26 | 124 | 229 | 11 |
Custodian fees | 1,126 | 46 | 36 | 27 | 25 | 35 | 32 | 7 |
Transfer agent fees: | ||||||||
Institutional Class | 19,199 | 127 | 449 | 185 | 349 | 603 | 782 | 6 |
Administrative Class | 403 | 101 | — | 1 | 25 | 41 | 2 | — |
Investor Class | 3,134 | 42 | 17 | 3 | 160 | 296 | 63 | — |
Retirement Class | 292 | 8 | 20 | 5 | 4 | 7 | 2 | — |
Professional fees | 748 | 12 | 19 | 7 | 13 | 29 | 26 | 63 |
Trustees' fees and expenses | 760 | 12 | 19 | 6 | 13 | 26 | 25 | — |
Registration fees | 198 | 66 | 64 | 58 | 91 | 83 | 95 | 72 |
Miscellaneous | 251 | 13 | 16 | 12 | 14 | 19 | 19 | 8 |
Total expenses | 190,330 | 3,543 | 5,700 | 2,174 | 4,230 | 8,749 | 8,495 | 214 |
Management fees waived | (12,325) | — | — | — | — | (217) | — | — |
Transfer agent fees waived | (2,250) | (26) | (50) | (21) | (47) | (82) | (86) | — |
Other expenses reimbursed | — | — | — | — | (176) | — | — | (158) |
Net expenses | 175,755 | 3,517 | 5,650 | 2,153 | 4,007 | 8,450 | 8,409 | 56 |
Net Investment Income/(Loss) | 45,592 | (787) | (1,992) | (1,514) | 5,465 | 15,802 | 2,125 | 37 |
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions | ||||||||
Net realized gain/(loss) on: | ||||||||
Investments | 3,441,569 | 49,750 | 88,078 | 24,181 | 26,388 | 27,835 | 29,319 | 76 |
Foreign currency transactions | (382) | (12) | — | — | — | — | — | — |
Redemption in-kind | 58,783 | — | — | — | — | — | — | — |
Change in net unrealized appreciation/(depreciation) on: | ||||||||
Investments | 3,868,155 | 50,803 | 68,228 | 22,607 | 86,165 | 112,584 | 234,567 | 50 |
Translations of assets and liabilities in foreign currencies | 93 | 4 | — | — | — | — | — | — |
Net gain/(loss) on investment transactions | 7,368,218 | 100,545 | 156,306 | 46,788 | 112,553 | 140,419 | 263,886 | 126 |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $7,413,810 | $ 99,758 | $154,314 | $45,274 | $118,018 | $156,221 | $266,011 | $ 163 |
a | For the period August 1, 2017 (inception) through October 31, 2017. |
Statements of Changes In Net Assets
Harbor Capital Appreciation Fund | Harbor Mid Cap Growth Fund | Harbor Small Cap Growth Fund | ||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||
INCREASE/(DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income/(loss) | $ 45,592 | $ 29,114 | $ (787) | $ (2,419) | $ (1,992) | $ (1,245) | ||
Net realized gain/(loss) on investments | 3,499,970 | 1,533,430 | 49,738 | 1,228 | 88,078 | (2,281) | ||
Change in net unrealized appreciation/(depreciation) of investments | 3,868,248 | (1,946,895) | 50,807 | (3,958) | 68,228 | 928 | ||
Net increase/(decrease) in assets resulting from operations | 7,413,810 | (384,351) | 99,758 | (5,149) | 154,314 | (2,598) | ||
Distributions to Shareholders | ||||||||
Net investment income: | ||||||||
Institutional Class | (21,322) | (18,442) | — | (1,218) | — | — | ||
Administrative Class | — | — | — | (1,470) | — | — | ||
Investor Class | — | — | — | (49) | — | — | ||
Retirement Class | (1,881) | — | — | — | — | — | ||
Net realized gain on investments: | ||||||||
Institutional Class | (1,220,935) | (1,555,558) | — | (20,507) | (2,458) | (67,517) | ||
Administrative Class | (30,286) | (40,125) | — | (40,876) | (3) | (95) | ||
Investor Class | (88,361) | (142,031) | — | (2,859) | (45) | (1,414) | ||
Retirement Class | (65,872) | — | — | — | (418) | — | ||
Total distributions to shareholders | (1,428,657) | (1,756,156) | — | (66,979) | (2,924) | (69,026) | ||
Net Increase/(Decrease) Derived from Capital Share Transactions | (1,897,442) | (637,379) | (195,061) | (14,050) | (30,962) | 58,935 | ||
Net increase/(decrease) in net assets | 4,087,711 | (2,777,886) | (95,303) | (86,178) | 120,428 | (12,689) | ||
Net Assets | ||||||||
Beginning of period | 24,727,282 | 27,505,168 | 498,898 | 585,076 | 587,609 | 600,298 | ||
End of period* | $28,814,993 | $24,727,282 | $ 403,595 | $498,898 | $708,037 | $587,609 | ||
* Includes accumulated undistributed net investment income/(loss) of: | $ 35,329 | $ 19,425 | $ (318) | $ (4,017) | $ (35) | $ (1,048) |
a | Inception |
Harbor Small Cap Growth Opportunities Fund | Harbor Large Cap Value Fund | Harbor Mid Cap Value Fund | Harbor Small Cap Value Fund | Harbor Small Cap Value Opportunities Fund | ||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | August 1, 2017a through October 31, 2017 | ||||
$ (1,514) | $ (1,015) | $ 5,465 | $ 3,969 | $ 15,802 | $ 16,390 | $ 2,125 | $ 3,936 | $ 37 | ||||
24,181 | (4,313) | 26,388 | 15,132 | 27,835 | 12,864 | 29,319 | (5,052) | 76 | ||||
22,607 | 14,268 | 86,165 | 4,837 | 112,584 | 153 | 234,567 | 69,284 | 50 | ||||
45,274 | 8,940 | 118,018 | 23,938 | 156,221 | 29,407 | 266,011 | 68,168 | 163 | ||||
— | — | (3,694) | (2,884) | (10,454) | (6,586) | (2,998) | (2,908) | — | ||||
— | — | (277) | (143) | (625) | (315) | (3) | — | — | ||||
— | — | (460) | (257) | (2,058) | (1,677) | (10) | — | — | ||||
— | — | (259) | (19) | (270) | — | (12) | — | — | ||||
— | (6,945) | (10,933) | (9,776) | (9,256) | (8,684) | — | (27,732) | — | ||||
— | (103) | (318) | (1,072) | (636) | (503) | — | (37) | — | ||||
— | (21) | (2,114) | (1,298) | (2,358) | (2,946) | — | (590) | — | ||||
— | — | (134) | — | (232) | — | — | — | — | ||||
— | (7,069) | (18,189) | (15,449) | (25,889) | (20,711) | (3,023) | (31,267) | — | ||||
68,733 | (19,521) | 285,851 | 87,069 | 48,486 | 121,804 | 157,261 | (121,896) | 25,028 | ||||
114,007 | (17,650) | 385,680 | 95,558 | 178,818 | 130,500 | 420,249 | (84,995) | 25,191 | ||||
190,962 | 208,612 | 381,026 | 285,468 | 809,149 | 678,649 | 760,369 | 845,364 | — | ||||
$304,969 | $190,962 | $766,706 | $381,026 | $987,967 | $809,149 | $1,180,618 | $ 760,369 | $25,191 | ||||
$ (6) | $ (913) | $ 863 | $ 1,062 | $ 7,117 | $ 9,598 | $ (8) | $ 2,050 | $ 37 |
Statements of Changes in Net Assets—Capital Stock Activity
Harbor Capital Appreciation Fund | Harbor Mid Cap Growth Fund | Harbor Small Cap Growth Fund | ||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||
AMOUNT ($) | ||||||||
Institutional Class | ||||||||
Net proceeds from sale of shares | $ 3,276,589 | $ 4,324,920 | $ 34,285 | $ 205,012 | $ 63,756 | $ 128,476 | ||
Reinvested distributions | 1,106,036 | 1,408,137 | — | 18,634 | 2,405 | 65,160 | ||
Cost of shares reacquired | (7,001,496) | (6,847,149) | (233,261) | (99,889) | (199,752) | (183,722) | ||
Cost of shares reacquired through redemption in-kind | (107,830) | — | — | — | — | — | ||
Net increase/(decrease) in net assets | $(2,726,701) | $(1,114,092) | $(198,976) | $ 123,757 | $(133,591) | $ 9,914 | ||
Administrative Class | ||||||||
Net proceeds from sale of shares | $ 98,518 | $ 162,947 | $ 55,699 | $ 41,024 | $ 986 | $ 199 | ||
Reinvested distributions | 29,735 | 39,492 | — | 42,343 | 3 | 95 | ||
Cost of shares reacquired | (285,429) | (217,037) | (153,126) | (219,131) | (1,097) | (387) | ||
Net increase/(decrease) in net assets | $ (157,176) | $ (14,598) | $ (97,427) | $(135,764) | $ (108) | $ (93) | ||
Investor Class | ||||||||
Net proceeds from sale of shares | $ 250,072 | $ 399,155 | $ 8,536 | $ 6,204 | $ 804 | $ 1,050 | ||
Reinvested distributions | 86,039 | 138,997 | — | 2,892 | 44 | 1,411 | ||
Cost of shares reacquired | (676,775) | (1,022,417) | (10,864) | (13,658) | (3,211) | (4,062) | ||
Net increase/(decrease) in net assets | $ (340,664) | $ (484,265) | $ (2,328) | $ (4,562) | $ (2,363) | $ (1,601) | ||
Retirement Class | ||||||||
Net proceeds from sale of shares | $ 2,162,111 | $ 1,062,582 | $ 119,909 | $ 2,588 | $ 139,351 | $ 53,839 | ||
Reinvested distributions | 66,899 | — | — | — | 418 | — | ||
Cost of shares reacquired | (901,911) | (87,006) | (16,239) | (69) | (34,669) | (3,124) | ||
Net increase/(decrease) in net assets | $ 1,327,099 | $ 975,576 | $ 103,670 | $ 2,519 | $ 105,100 | $ 50,715 |
a | Inception |
Harbor Small Cap Growth Opportunities Fund | Harbor Large Cap Value Fund | Harbor Mid Cap Value Fund | Harbor Small Cap Value Fund | Harbor Small Cap Value Opportunities Fund | ||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | August 1, 2017a through October 31, 2017 | ||||
$ 91,607 | $ 61,682 | $ 292,174 | $135,414 | $ 239,318 | $ 250,615 | $ 345,325 | $ 213,448 | $24,494 | ||||
— | 6,942 | 14,027 | 12,187 | 19,313 | 14,725 | 2,418 | 25,802 | — | ||||
(46,086) | (107,425) | (191,931) | (76,749) | (216,527) | (156,502) | (253,759) | (363,914) | — | ||||
— | — | — | — | — | — | — | — | — | ||||
$ 45,521 | $ (38,801) | $ 114,270 | $ 70,852 | $ 42,104 | $ 108,838 | $ 93,984 | $(124,664) | $24,494 | ||||
$ 1,411 | $ 853 | $ 43,445 | $ 3,581 | $ 16,625 | $ 20,937 | $ 2,733 | $ 235 | $ 250 | ||||
— | 103 | 594 | 1,215 | 1,259 | 817 | 3 | 37 | — | ||||
(408) | (3,582) | (5,086) | (18,742) | (16,615) | (10,516) | (280) | (121) | — | ||||
$ 1,003 | $ (2,626) | $ 38,953 | $ (13,946) | $ 1,269 | $ 11,238 | $ 2,456 | $ 151 | $ 250 | ||||
$ 387 | $ 424 | $ 56,096 | $ 51,121 | $ 48,514 | $ 64,185 | $ 42,084 | $ 5,036 | $ 253 | ||||
— | 21 | 2,403 | 1,367 | 4,335 | 4,553 | 10 | 585 | — | ||||
(312) | (171) | (59,100) | (25,830) | (116,100) | (81,262) | (29,939) | (5,330) | — | ||||
$ 75 | $ 274 | $ (601) | $ 26,658 | $ (63,251) | $ (12,524) | $ 12,155 | $ 291 | $ 253 | ||||
$ 27,035 | $ 21,950 | $ 135,337 | $ 3,590 | $ 78,013 | $ 15,590 | $ 51,537 | $ 2,355 | $ 31 | ||||
— | — | 393 | 19 | 501 | — | 12 | — | — | ||||
(4,901) | (318) | (2,501) | (104) | (10,150) | (1,338) | (2,883) | (29) | — | ||||
$ 22,134 | $ 21,632 | $ 133,229 | $ 3,505 | $ 68,364 | $ 14,252 | $ 48,666 | $ 2,326 | $ 31 |
Statements of Changes in Net Assets—Capital Stock Activity—Continued
Harbor Capital Appreciation Fund | Harbor Mid Cap Growth Fund | Harbor Small Cap Growth Fund | ||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||
SHARES | ||||||||
Institutional Class | ||||||||
Shares sold | 50,273 | 73,643 | 3,495 | 25,045 | 4,659 | 11,230 | ||
Shares issued due to reinvestment of distributions | 19,319 | 23,073 | — | 2,167 | 186 | 5,430 | ||
Shares reacquired | (108,725) | (116,665) | (25,934) | (11,696) | (14,867) | (15,829) | ||
Shares reacquired through redemption in-kind | (1,623) | — | — | — | — | — | ||
Net increase/(decrease) in shares outstanding | (40,756) | (19,949) | (22,439) | 15,516 | (10,022) | 831 | ||
Beginning of period | 358,015 | 377,964 | 35,424 | 19,908 | 43,880 | 43,049 | ||
End of period | 317,259 | 358,015 | 12,985 | 35,424 | 33,858 | 43,880 | ||
Administrative Class | ||||||||
Shares sold | 1,555 | 2,791 | 5,811 | 5,026 | 73 | 19 | ||
Shares issued due to reinvestment of distributions | 527 | 655 | — | 5,096 | — | 8 | ||
Shares reacquired | (4,754) | (3,733) | (16,802) | (27,691) | (83) | (34) | ||
Net increase/(decrease) in shares outstanding | (2,672) | (287) | (10,991) | (17,569) | (10) | (7) | ||
Beginning of period | 9,339 | 9,626 | 21,176 | 38,745 | 60 | 67 | ||
End of period | 6,667 | 9,339 | 10,185 | 21,176 | 50 | 60 | ||
Investor Class | ||||||||
Shares sold | 3,962 | 6,993 | 905 | 770 | 64 | 100 | ||
Shares issued due to reinvestment of distributions | 1,548 | 2,336 | — | 356 | 4 | 129 | ||
Shares reacquired | (10,756) | (17,816) | (1,123) | (1,667) | (262) | (381) | ||
Net increase/(decrease) in shares outstanding | (5,246) | (8,487) | (218) | (541) | (194) | (152) | ||
Beginning of period | 26,264 | 34,751 | 2,127 | 2,668 | 775 | 927 | ||
End of period | 21,018 | 26,264 | 1,909 | 2,127 | 581 | 775 | ||
Retirement Class | ||||||||
Shares sold | 33,211 | 18,414 | 12,594 | 325 | 10,446 | 4,829 | ||
Shares issued due to reinvestment of distributions | 1,169 | — | — | — | 32 | — | ||
Shares reacquired | (12,930) | (1,471) | (1,583) | (8) | (2,485) | (256) | ||
Net increase/(decrease) in shares outstanding | 21,450 | 16,943 | 11,011 | 317 | 7,993 | 4,573 | ||
Beginning of period | 16,943 | — | 317 | — | 4,573 | — | ||
End of period | 38,393 | 16,943 | 11,328 | 317 | 12,566 | 4,573 |
a | Inception |
Harbor Small Cap Growth Opportunities Fund | Harbor Large Cap Value Fund | Harbor Mid Cap Value Fund | Harbor Small Cap Value Fund | Harbor Small Cap Value Opportunities Fund | ||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | August 1, 2017a through October 31, 2017 | ||||
7,471 | 6,437 | 21,074 | 11,516 | 10,728 | 13,268 | 10,669 | 8,291 | 2,449 | ||||
— | 684 | 1,088 | 1,079 | 875 | 784 | 79 | 1,041 | — | ||||
(3,816) | (10,416) | (13,823) | (6,429) | (9,705) | (8,146) | (7,907) | (13,820) | — | ||||
— | — | — | — | — | — | — | — | — | ||||
3,655 | (3,295) | 8,339 | 6,166 | 1,898 | 5,906 | 2,841 | (4,488) | 2,449 | ||||
16,587 | 19,882 | 25,170 | 19,004 | 29,787 | 23,881 | 27,085 | 31,573 | — | ||||
20,242 | 16,587 | 33,509 | 25,170 | 31,685 | 29,787 | 29,926 | 27,085 | 2,449 | ||||
125 | 89 | 3,133 | 303 | 739 | 1,095 | 83 | 9 | 25 | ||||
— | 10 | 45 | 108 | 56 | 43 | — | 2 | — | ||||
(35) | (378) | (366) | (1,683) | (735) | (537) | (9) | (5) | — | ||||
90 | (279) | 2,812 | (1,272) | 60 | 601 | 74 | 6 | 25 | ||||
14 | 293 | 761 | 2,033 | 2,019 | 1,418 | 50 | 44 | — | ||||
104 | 14 | 3,573 | 761 | 2,079 | 2,019 | 124 | 50 | 25 | ||||
34 | 43 | 4,142 | 4,261 | 2,188 | 3,364 | 1,323 | 198 | 25 | ||||
— | 2 | 185 | 120 | 196 | 243 | — | 24 | — | ||||
(26) | (17) | (4,213) | (2,161) | (5,230) | (4,225) | (926) | (211) | — | ||||
8 | 28 | 114 | 2,220 | (2,846) | (618) | 397 | 11 | 25 | ||||
86 | 58 | 4,648 | 2,428 | 7,585 | 8,203 | 667 | 656 | — | ||||
94 | 86 | 4,762 | 4,648 | 4,739 | 7,585 | 1,064 | 667 | 25 | ||||
2,211 | 2,006 | 9,515 | 317 | 3,539 | 811 | 1,572 | 94 | 3 | ||||
— | — | 30 | 2 | 23 | — | — | — | — | ||||
(414) | (30) | (174) | (9) | (451) | (68) | (83) | (1) | — | ||||
1,797 | 1,976 | 9,371 | 310 | 3,111 | 743 | 1,489 | 93 | 3 | ||||
1,976 | — | 310 | — | 743 | — | 93 | — | — | ||||
3,773 | 1,976 | 9,681 | 310 | 3,854 | 743 | 1,582 | 93 | 3 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR CAPITAL APPRECIATION FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 60.36 | $ 65.27 | $ 61.97 | $ 54.71 | $ 41.44 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.13 e | 0.09 e | 0.07 e | 0.06 | 0.16 |
Net realized and unrealized gains/(losses) on investments | 18.38 | (0.84) | 7.05 | 8.98 | 13.28 |
Total from investment operations | 18.51 | (0.75) | 7.12 | 9.04 | 13.44 |
Less Distributions | |||||
Dividends from net investment income | (0.06) | (0.05) | (0.05) | (0.05) | (0.17) |
Distributions from net realized capital gains1 | (3.49) | (4.11) | (3.77) | (1.73) | — |
Total distributions | (3.55) | (4.16) | (3.82) | (1.78) | (0.17) |
Net asset value end of period | 75.32 | 60.36 | 65.27 | 61.97 | 54.71 |
Net assets end of period (000s) | $23,896,840 | $21,608,221 | $24,669,740 | $22,531,379 | $19,366,148 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 32.52% | (1.23)% | 12.16% | 16.95% | 32.55% |
Ratio of total expenses to average net assets2 | 0.71 | 0.69 | 0.68 | 0.67 | 0.68 |
Ratio of net expenses to average net assetsa | 0.65 | 0.64 | 0.64 | 0.65 | 0.65 |
Ratio of net investment income to average net assetsa | 0.20 | 0.15 | 0.12 | 0.11 | 0.35 |
Portfolio turnover | 52 | 34 | 37 | 34 | 48 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 58.66 | $ 63.73 | $ 60.76 | $ 53.82 | $ 40.79 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.11) e | (0.13) e | (0.16) e | (0.17) | (0.01) |
Net realized and unrealized gains/(losses) on investments | 17.82 | (0.83) | 6.90 | 8.84 | 13.07 |
Total from investment operations | 17.71 | (0.96) | 6.74 | 8.67 | 13.06 |
Less Distributions | |||||
Dividends from net investment income | — | — | — | — | (0.03) |
Distributions from net realized capital gains1 | (3.49) | (4.11) | (3.77) | (1.73) | — |
Total distributions | (3.49) | (4.11) | (3.77) | (1.73) | (0.03) |
Net asset value end of period | 72.88 | 58.66 | 63.73 | 60.76 | 53.82 |
Net assets end of period (000s) | $ 1,531,809 | $ 1,540,557 | $ 2,214,518 | $ 1,910,930 | $ 1,780,774 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 32.04% | (1.60)% | 11.75% | 16.53% | 32.04% |
Ratio of total expenses to average net assets2 | 1.08 | 1.06 | 1.05 | 1.04 | 1.05 |
Ratio of net expenses to average net assetsa | 1.02 | 1.01 | 1.01 | 1.02 | 1.02 |
Ratio of net investment income to average net assetsa | (0.17) | (0.22) | (0.25) | (0.26) | (0.03) |
Portfolio turnover | 52 | 34 | 37 | 34 | 48 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 59.50 | $ 64.51 | $ 61.39 | $ 54.29 | $ 41.12 |
(0.04) e | (0.06) e | (0.08) e | (0.11) | 0.02 |
18.11 | (0.84) | 6.97 | 8.94 | 13.21 |
18.07 | (0.90) | 6.89 | 8.83 | 13.23 |
— | — | — | — | (0.06) |
(3.49) | (4.11) | (3.77) | (1.73) | — |
(3.49) | (4.11) | (3.77) | (1.73) | (0.06) |
74.08 | 59.50 | 64.51 | 61.39 | 54.29 |
$493,860 | $555,665 | $620,910 | $582,430 | $613,413 |
32.20% | (1.48)% | 11.88% | 16.69% | 32.21% |
0.96 | 0.94 | 0.93 | 0.92 | 0.93 |
0.90 | 0.89 | 0.89 | 0.90 | 0.90 |
(0.06) | (0.11) | (0.13) | (0.14) | 0.11 |
52 | 34 | 37 | 34 | 48 |
Retirement Class | |
2017 | 2016 f |
$ 60.37 | $ 55.79 |
0.16 e | 0.05 e |
18.40 | 4.53 |
18.56 | 4.58 |
(0.10) | — |
(3.49) | — |
(3.59) | — |
75.34 | 60.37 |
$2,892,484 | $1,022,839 |
32.62% | 8.21% c |
0.63 | 0.65 d |
0.59 | 0.59 d |
0.23 | 0.13 d |
52 | 34 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR MID CAP GROWTH FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 8.58 | $ 9.76 | $ 11.43 | $ 11.76 | $ 9.22 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.01) e | (0.03) e | (0.04) e | (0.04) | (0.03) |
Net realized and unrealized gains/(losses) on investments | 2.67 | (0.03) | 0.20 | 1.55 | 2.76 |
Total from investment operations | 2.66 | (0.06) | 0.16 | 1.51 | 2.73 |
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 | 11.24 | 8.58 | 9.76 | 11.43 | 11.76 |
Net assets end of period (000s) | $145,914 | $303,802 | $194,308 | $306,371 | $323,666 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 31.00% | (0.60)% | 1.55% | 14.45% | 30.13% |
Ratio of total expenses to average net assets2 | 0.88 | 0.86 | 0.84 | 0.84 | 0.84 |
Ratio of net expenses to average net assetsa | 0.87 | 0.85 | 0.84 | 0.83 | 0.84 |
Ratio of net investment income to average net assetsa | (0.14) | (0.31) | (0.35) | (0.34) | (0.27) |
Portfolio turnover | 87 | 84 | 82 | 95 | 111 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 8.07 | $ 9.24 | $ 10.95 | $ 11.37 | $ 8.96 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.04) e | (0.05) e | (0.07) e | (0.05) | (0.12) |
Net realized and unrealized gains/(losses) on investments | 2.51 | (0.04) | 0.19 | 1.47 | 2.72 |
Total from investment operations | 2.47 | (0.09) | 0.12 | 1.42 | 2.60 |
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 | 10.54 | 8.07 | 9.24 | 10.95 | 11.37 |
Net assets end of period (000s) | $ 20,121 | $ 17,167 | $ 24,647 | $ 37,887 | $ 35,501 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 30.61% | (1.05)% | 1.21% | 14.09% | 29.54% |
Ratio of total expenses to average net assets2 | 1.25 | 1.22 | 1.21 | 1.21 | 1.21 |
Ratio of net expenses to average net assetsa | 1.24 | 1.22 | 1.21 | 1.20 | 1.21 |
Ratio of net investment income to average net assetsa | (0.48) | (0.68) | (0.71) | (0.71) | (0.63) |
Portfolio turnover | 87 | 84 | 82 | 95 | 111 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 8.27 | $ 9.45 | $ 11.15 | $ 11.54 | $ 9.08 |
(0.04) e | (0.05) e | (0.06) e | (0.07) | (0.05) |
2.58 | (0.03) | 0.19 | 1.52 | 2.70 |
2.54 | (0.08) | 0.13 | 1.45 | 2.65 |
— | (0.04) | — | — | — |
— | (1.06) | (1.83) | (1.84) | (0.19) |
— | (1.10) | (1.83) | (1.84) | (0.19) |
10.81 | 8.27 | 9.45 | 11.15 | 11.54 |
$110,114 | $175,211 | $366,121 | $384,511 | $408,494 |
30.71% | (0.91)% | 1.29% | 14.16% | 29.70% |
1.13 | 1.10 | 1.09 | 1.09 | 1.09 |
1.12 | 1.10 | 1.09 | 1.08 | 1.09 |
(0.45) | (0.57) | (0.58) | (0.59) | (0.52) |
87 | 84 | 82 | 95 | 111 |
Retirement Class | |
2017 | 2016 f |
$ 8.58 | $ 7.76 |
0.01 e | (0.03) e |
2.66 | 0.85 |
2.67 | 0.82 |
— | — |
— | — |
— | — |
11.25 | 8.58 |
$127,446 | $2,718 |
31.12% | 10.57% c |
0.81 | 0.81 d |
0.81 | 0.80 d |
0.07 | (0.45) d |
87 | 84 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR SMALL CAP GROWTH FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 11.94 | $ 13.65 | $ 15.45 | $ 15.72 | $ 11.81 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.04) e | (0.02) e | (0.03) e | (0.05) | 0.03 |
Net realized and unrealized gains/(losses) on investments | 3.22 | (0.11) | 0.55 | 1.91 | 4.48 |
Total from investment operations | 3.18 | (0.13) | 0.52 | 1.86 | 4.51 |
Less Distributions | |||||
Dividends from net investment income | — | — | — | — | (0.04) |
Distributions from net realized capital gains1 | (0.06) | (1.58) | (2.32) | (2.13) | (0.56) |
Total distributions | (0.06) | (1.58) | (2.32) | (2.13) | (0.60) |
Net asset value end of period | 15.06 | 11.94 | 13.65 | 15.45 | 15.72 |
Net assets end of period (000s) | $509,889 | $523,888 | $587,761 | $603,476 | $601,255 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 26.72% | (0.99)% | 3.35% | 12.94% | 39.90% |
Ratio of total expenses to average net assets2 | 0.86 | 0.85 | 0.84 | 0.83 | 0.83 |
Ratio of net expenses to average net assetsa | 0.85 | 0.85 | 0.83 | 0.83 | 0.83 |
Ratio of net investment income to average net assetsa | (0.30) | (0.21) | (0.22) | (0.29) | 0.22 |
Portfolio turnover | 83 | 89 | 78 | 76 | 73 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 10.84 | $ 12.59 | $ 14.47 | $ 14.90 | $ 11.22 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.08) e | (0.06) e | (0.08) e | (0.51) | (0.06) |
Net realized and unrealized gains/(losses) on investments | 2.92 | (0.11) | 0.52 | 2.21 | 4.30 |
Total from investment operations | 2.84 | (0.17) | 0.44 | 1.70 | 4.24 |
Less Distributions | |||||
Dividends from net investment income | — | — | — | — | — |
Distributions from net realized capital gains1 | (0.06) | (1.58) | (2.32) | (2.13) | (0.56) |
Total distributions | (0.06) | (1.58) | (2.32) | (2.13) | (0.56) |
Net asset value end of period | 13.62 | 10.84 | 12.59 | 14.47 | 14.90 |
Net assets end of period (000s) | $ 7,913 | $ 8,401 | $ 11,660 | $ 14,266 | $ 24,249 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 26.29% | (1.44)% | 2.98% | 12.53% | 39.50% |
Ratio of total expenses to average net assets2 | 1.23 | 1.22 | 1.21 | 1.20 | 1.20 |
Ratio of net expenses to average net assetsa | 1.22 | 1.22 | 1.20 | 1.20 | 1.20 |
Ratio of net investment income to average net assetsa | (0.67) | (0.58) | (0.59) | (0.66) | (0.16) |
Portfolio turnover | 83 | 89 | 78 | 76 | 73 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$11.30 | $13.04 | $14.89 | $15.26 | $11.46 |
(0.07) e | (0.05) e | (0.07) e | 0.54 i | (7.68) i |
3.00 | (0.11) | 0.54 | 1.22 | 12.04 |
2.93 | (0.16) | 0.47 | 1.76 | 4.36 |
— | — | — | — | — |
(0.06) | (1.58) | (2.32) | (2.13) | (0.56) |
(0.06) | (1.58) | (2.32) | (2.13) | (0.56) |
14.17 | 11.30 | 13.04 | 14.89 | 15.26 |
$ 719 | $ 686 | $ 877 | $ 650 | $ 636 |
26.02% | (1.29)% | 3.12% | 12.65% | 39.72% |
1.11 | 1.10 | 1.09 | 1.08 | 1.08 |
1.10 | 1.10 | 1.08 | 1.08 | 1.08 |
(0.56) | (0.46) | (0.47) | (0.54) | 0.19 |
83 | 89 | 78 | 76 | 73 |
Retirement Class | |
2017 | 2016 f |
$ 11.95 | $ 10.72 |
(0.04) e | (0.02) e |
3.23 | 1.25 |
3.19 | 1.23 |
— | — |
(0.06) | — |
(0.06) | — |
15.08 | 11.95 |
$189,516 | $54,634 |
26.78% | 11.47% c |
0.79 | 0.81 d |
0.79 | 0.80 d |
(0.26) | (0.27) d |
83 | 89 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR SMALL CAP GROWTH OPPORTUNITIES FUND | ||||
Institutional Class | ||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 g |
Net asset value beginning of period | $ 10.23 | $ 10.31 | $ 10.77 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income/(loss)a | (0.07) e | (0.05) e | (0.06) e | (0.02) |
Net realized and unrealized gains/(losses) on investments | 2.43 | 0.32 | (0.35) | 0.79 |
Total from investment operations | 2.36 | 0.27 | (0.41) | 0.77 |
Less Distributions | ||||
Dividends from net investment income | — | — | — | — |
Distributions from net realized capital gains1 | — | (0.35) | (0.05) | — |
Total distributions | — | (0.35) | (0.05) | — |
Net asset value end of period | 12.59 | 10.23 | 10.31 | 10.77 |
Net assets end of period (000s) | $254,925 | $169,718 | $205,007 | $57,779 |
Ratios and Supplemental Data (%) | ||||
Total returnb | 23.07% | 2.62% | (3.78)% | 7.70% c |
Ratio of total expenses to average net assets2 | 0.88 | 0.89 | 0.90 | 1.60 d |
Ratio of net expenses to average net assetsa | 0.88 | 0.89 | 0.90 | 0.90 d |
Ratio of net investment income to average net assetsa | (0.61) | (0.48) | (0.55) | (0.67) d |
Portfolio turnover | 67 | 85 | 103 | 55 c |
Investor Class | ||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 g |
Net asset value beginning of period | $ 10.12 | $ 10.24 | $ 10.74 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income/(loss)a | (0.11) e | (0.09) e | (0.09) e | (0.05) |
Net realized and unrealized gains/(losses) on investments | 2.40 | 0.32 | (0.36) | 0.79 |
Total from investment operations | 2.29 | 0.23 | (0.45) | 0.74 |
Less Distributions | ||||
Dividends from net investment income | — | — | — | — |
Distributions from net realized capital gains1 | — | (0.35) | (0.05) | — |
Total distributions | — | (0.35) | (0.05) | — |
Net asset value end of period | 12.41 | 10.12 | 10.24 | 10.74 |
Net assets end of period (000s) | $ 1,167 | $ 871 | $ 599 | $ 1,809 |
Ratios and Supplemental Data (%) | ||||
Total returnb | 22.63% | 2.24% | (4.17)% | 7.40% c |
Ratio of total expenses to average net assets2 | 1.25 | 1.26 | 1.27 | 1.97 d |
Ratio of net expenses to average net assetsa | 1.25 | 1.26 | 1.27 | 1.27 d |
Ratio of net investment income to average net assetsa | (0.99) | (0.87) | (0.86) | (1.03) d |
Portfolio turnover | 67 | 85 | 103 | 55 c |
Administrative Class | |||
2017 | 2016 | 2015 | 2014 g |
$10.22 | $10.27 | $10.75 | $10.00 |
(0.12) e | (0.07) e | (0.09) e | (0.09) |
2.44 | 0.37 | (0.34) | 0.84 |
2.32 | 0.30 | (0.43) | 0.75 |
— | — | — | — |
— | (0.35) | (0.05) | — |
— | (0.35) | (0.05) | — |
12.54 | 10.22 | 10.27 | 10.75 |
$1,308 | $ 143 | $3,006 | $ 269 |
22.70% | 2.94% | (3.98)% | 7.50% c |
1.13 | 1.14 | 1.15 | 1.85 d |
1.13 | 1.13 | 1.15 | 1.15 d |
(0.96) | (0.69) | (0.80) | (0.90) d |
67 | 85 | 103 | 55 c |
Retirement Class | |
2017 | 2016 f |
$ 10.24 | $ 9.04 |
(0.07) e | (0.04) e |
2.44 | 1.24 |
2.37 | 1.20 |
— | — |
— | — |
— | — |
12.61 | 10.24 |
$47,569 | $20,230 |
23.14% | 13.27% c |
0.81 | 0.85 d |
0.81 | 0.84 d |
(0.57) | (0.60) d |
67 | 85 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR LARGE CAP VALUE FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 12.32 | $ 12.16 | $ 12.24 | $ 10.85 | $ 8.52 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.15 e | 0.16 e | 0.15 e | 0.15 | 0.14 |
Net realized and unrealized gains/(losses) on investments | 2.97 | 0.64 | 0.70 | 1.37 | 2.31 |
Total from investment operations | 3.12 | 0.80 | 0.85 | 1.52 | 2.45 |
Less Distributions | |||||
Dividends from net investment income | (0.14) | (0.13) | (0.14) | (0.13) | (0.12) |
Distributions from net realized capital gains1 | (0.43) | (0.51) | (0.79) | — | — |
Total distributions | (0.57) | (0.64) | (0.93) | (0.13) | (0.12) |
Net asset value end of period | 14.87 | 12.32 | 12.16 | 12.24 | 10.85 |
Net assets end of period (000s) | $498,360 | $310,127 | $231,033 | $202,596 | $179,382 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 26.00% | 7.14% | 7.29% | 14.13% | 29.06% |
Ratio of total expenses to average net assets2 | 0.72 | 0.72 | 0.70 | 0.70 | 0.71 |
Ratio of net expenses to average net assetsa | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 |
Ratio of net investment income to average net assetsa | 1.10 | 1.32 | 1.25 | 1.26 | 1.43 |
Portfolio turnover | 16 | 34 | 24 | 32 | 26 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 12.42 | $ 12.25 | $ 12.33 | $ 10.94 | $ 8.59 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.10 e | 0.11 e | 0.11 e | 0.13 | 0.09 |
Net realized and unrealized gains/(losses) on investments | 2.99 | 0.66 | 0.70 | 1.35 | 2.34 |
Total from investment operations | 3.09 | 0.77 | 0.81 | 1.48 | 2.43 |
Less Distributions | |||||
Dividends from net investment income | (0.09) | (0.09) | (0.10) | (0.09) | (0.08) |
Distributions from net realized capital gains1 | (0.43) | (0.51) | (0.79) | — | — |
Total distributions | (0.52) | (0.60) | (0.89) | (0.09) | (0.08) |
Net asset value end of period | 14.99 | 12.42 | 12.25 | 12.33 | 10.94 |
Net assets end of period (000s) | $ 71,374 | $ 57,716 | $ 29,745 | $ 20,189 | $ 11,934 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 25.52% | 6.80% | 6.87% | 13.62% | 28.52% |
Ratio of total expenses to average net assets2 | 1.09 | 1.09 | 1.07 | 1.07 | 1.08 |
Ratio of net expenses to average net assetsa | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 |
Ratio of net investment income to average net assetsa | 0.75 | 0.94 | 0.89 | 0.88 | 1.04 |
Portfolio turnover | 16 | 34 | 24 | 32 | 26 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 12.30 | $12.15 | $ 12.23 | $ 10.85 | $ 8.51 |
0.10 e | 0.13 e | 0.12 e | 0.15 | 0.16 |
2.99 | 0.63 | 0.70 | 1.34 | 2.27 |
3.09 | 0.76 | 0.82 | 1.49 | 2.43 |
(0.12) | (0.10) | (0.11) | (0.11) | (0.09) |
(0.43) | (0.51) | (0.79) | — | — |
(0.55) | (0.61) | (0.90) | (0.11) | (0.09) |
14.84 | 12.30 | 12.15 | 12.23 | 10.85 |
$53,006 | $9,361 | $24,690 | $20,927 | $13,453 |
25.77% | 6.77% | 7.02% | 13.78% | 28.76% |
0.97 | 0.96 | 0.95 | 0.95 | 0.96 |
0.93 | 0.93 | 0.93 | 0.93 | 0.93 |
0.70 | 1.09 | 1.00 | 1.02 | 1.16 |
16 | 34 | 24 | 32 | 26 |
Retirement Class | |
2017 | 2016 f |
$ 12.32 | $10.94 |
0.12 e | 0.12 e |
3.00 | 1.33 |
3.12 | 1.45 |
(0.14) | (0.07) |
(0.43) | — |
(0.57) | (0.07) |
14.87 | 12.32 |
$143,966 | $3,822 |
26.08% | 13.24% c |
0.64 | 0.67 d |
0.60 | 0.63 d |
0.83 | 1.46 d |
16 | 34 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR MID CAP VALUE FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 20.17 | $ 20.27 | $ 20.32 | $ 17.50 | $ 12.64 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.39 e | 0.44 e | 0.34 e | 0.18 | 0.28 |
Net realized and unrealized gains/(losses) on investments | 3.43 | 0.08 | (0.07) | 2.84 | 4.86 |
Total from investment operations | 3.82 | 0.52 | 0.27 | 3.02 | 5.14 |
Less Distributions | |||||
Dividends from net investment income | (0.35) | (0.27) | (0.19) | (0.20) | (0.28) |
Distributions from net realized capital gains1 | (0.31) | (0.35) | (0.13) | — | — |
Total distributions | (0.66) | (0.62) | (0.32) | (0.20) | (0.28) |
Net asset value end of period | 23.33 | 20.17 | 20.27 | 20.32 | 17.50 |
Net assets end of period (000s) | $739,122 | $600,800 | $484,078 | $195,247 | $82,231 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 19.16% | 2.81% | 1.32% | 17.39% | 41.48% |
Ratio of total expenses to average net assets2 | 0.87 | 0.86 | 0.86 | 0.89 | 0.93 |
Ratio of net expenses to average net assetsa | 0.84 | 0.84 | 0.86 | 0.89 | 0.93 |
Ratio of net investment income to average net assetsa | 1.76 | 2.28 | 1.66 | 1.40 | 1.87 |
Portfolio turnover | 22 | 18 | 12 | 13 | 18 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 20.09 | $ 20.19 | $ 20.27 | $ 17.49 | $ 12.63 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.31 e | 0.37 e | 0.27 e | 0.17 | 0.13 |
Net realized and unrealized gains/(losses) on investments | 3.41 | 0.08 | (0.08) | 2.78 | 4.96 |
Total from investment operations | 3.72 | 0.45 | 0.19 | 2.95 | 5.09 |
Less Distributions | |||||
Dividends from net investment income | (0.27) | (0.20) | (0.14) | (0.17) | (0.23) |
Distributions from net realized capital gains1 | (0.31) | (0.35) | (0.13) | — | — |
Total distributions | (0.58) | (0.55) | (0.27) | (0.17) | (0.23) |
Net asset value end of period | 23.23 | 20.09 | 20.19 | 20.27 | 17.49 |
Net assets end of period (000s) | $110,094 | $152,358 | $165,642 | $ 91,724 | $19,260 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 18.71% | 2.45% | 0.93% | 16.97% | 40.99% |
Ratio of total expenses to average net assets2 | 1.24 | 1.23 | 1.23 | 1.26 | 1.31 |
Ratio of net expenses to average net assetsa | 1.21 | 1.21 | 1.23 | 1.26 | 1.30 |
Ratio of net investment income to average net assetsa | 1.40 | 1.92 | 1.29 | 1.01 | 1.21 |
Portfolio turnover | 22 | 18 | 12 | 13 | 18 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 20.30 | $ 20.40 | $ 20.47 | $ 17.64 | $12.74 |
0.34 e | 0.40 e | 0.29 e | 0.25 | 0.23 |
3.45 | 0.07 | (0.07) | 2.75 | 4.92 |
3.79 | 0.47 | 0.22 | 3.00 | 5.15 |
(0.31) | (0.22) | (0.16) | (0.17) | (0.25) |
(0.31) | (0.35) | (0.13) | — | — |
(0.62) | (0.57) | (0.29) | (0.17) | (0.25) |
23.47 | 20.30 | 20.40 | 20.47 | 17.64 |
$48,809 | $40,992 | $28,929 | $14,775 | $3,479 |
18.84% | 2.54% | 1.05% | 17.15% | 41.17% |
1.12 | 1.11 | 1.11 | 1.14 | 1.19 |
1.09 | 1.09 | 1.11 | 1.14 | 1.18 |
1.51 | 2.03 | 1.41 | 1.13 | 1.58 |
22 | 18 | 12 | 13 | 18 |
Retirement Class | |
2017 | 2016 f |
$ 20.17 | $ 18.36 |
0.40 e | 0.28 e |
3.43 | 1.53 |
3.83 | 1.81 |
(0.36) | — |
(0.31) | — |
(0.67) | — |
23.33 | 20.17 |
$89,942 | $14,999 |
19.22% | 9.86% c |
0.80 | 0.82 d |
0.77 | 0.79 d |
1.79 | 2.11 d |
22 | 18 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR SMALL CAP VALUE FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 27.27 | $ 26.21 | $ 27.17 | $ 28.89 | $ 21.41 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.08 e | 0.12 e | 0.10 e | 0.06 | 0.13 |
Net realized and unrealized gains/(losses) on investments | 8.90 | 1.92 | (0.09) | 2.68 | 7.84 |
Total from investment operations | 8.98 | 2.04 | 0.01 | 2.74 | 7.97 |
Less Distributions | |||||
Dividends from net investment income | (0.11) | (0.09) | (0.06) | (0.05) | (0.22) |
Distributions from net realized capital gains1 | — | (0.89) | (0.91) | (4.41) | (0.27) |
Total distributions | (0.11) | (0.98) | (0.97) | (4.46) | (0.49) |
Net asset value end of period | 36.14 | 27.27 | 26.21 | 27.17 | 28.89 |
Net assets end of period (000s) | $1,081,412 | $738,705 | $827,423 | $709,251 | $519,607 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 33.00% | 8.18% | 0.01% | 11.03% | 37.91% |
Ratio of total expenses to average net assets2 | 0.88 | 0.86 | 0.85 | 0.84 | 0.84 |
Ratio of net expenses to average net assetsa | 0.87 | 0.86 | 0.85 | 0.84 | 0.84 |
Ratio of net investment income to average net assetsa | 0.24 | 0.48 | 0.38 | 0.33 | 0.45 |
Portfolio turnover | 8 | 10 | 17 | 13 | 22 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 26.65 | $ 25.63 | $ 26.63 | $ 28.45 | $ 21.08 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.05) e | 0.03 e | 0.01 e | 0.09 | (0.09) |
Net realized and unrealized gains/(losses) on investments | 8.71 | 1.88 | (0.10) | 2.50 | 7.86 |
Total from investment operations | 8.66 | 1.91 | (0.09) | 2.59 | 7.77 |
Less Distributions | |||||
Dividends from net investment income | (0.02) | — | — | — | (0.13) |
Distributions from net realized capital gains1 | — | (0.89) | (0.91) | (4.41) | (0.27) |
Total distributions | (0.02) | (0.89) | (0.91) | (4.41) | (0.40) |
Net asset value end of period | 35.29 | 26.65 | 25.63 | 26.63 | 28.45 |
Net assets end of period (000s) | $ 37,548 | $ 17,775 | $ 16,797 | $ 17,265 | $ 17,330 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 32.49% | 7.79% | (0.37)% | 10.61% | 37.41% |
Ratio of total expenses to average net assets2 | 1.25 | 1.23 | 1.22 | 1.21 | 1.21 |
Ratio of net expenses to average net assetsa | 1.24 | 1.23 | 1.22 | 1.21 | 1.21 |
Ratio of net investment income to average net assetsa | (0.16) | 0.10 | 0.02 | (0.04) | 0.07 |
Portfolio turnover | 8 | 10 | 17 | 13 | 22 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$27.16 | $26.07 | $27.05 | $28.80 | $ 21.34 |
(0.02) e | 0.05 e | 0.06 e | (0.12) | 0.01 |
8.88 | 1.93 | (0.13) | 2.78 | 7.87 |
8.86 | 1.98 | (0.07) | 2.66 | 7.88 |
(0.05) | — | — | — | (0.15) |
— | (0.89) | (0.91) | (4.41) | (0.27) |
(0.05) | (0.89) | (0.91) | (4.41) | (0.42) |
35.97 | 27.16 | 26.07 | 27.05 | 28.80 |
$4,462 | $1,360 | $1,144 | $5,690 | $12,171 |
32.67% | 7.93% | (0.28)% | 10.74% | 37.54% |
1.13 | 1.11 | 1.10 | 1.09 | 1.09 |
1.12 | 1.11 | 1.10 | 1.09 | 1.09 |
(0.05) | 0.21 | 0.21 | 0.10 | 0.20 |
8 | 10 | 17 | 13 | 22 |
Retirement Class | |
2017 | 2016 f |
$ 27.29 | $23.91 |
0.06 e | 0.05 e |
8.94 | 3.33 |
9.00 | 3.38 |
(0.13) | — |
— | — |
(0.13) | — |
36.16 | 27.29 |
$57,196 | $2,529 |
33.06% | 14.14% c |
0.81 | 0.82 d |
0.81 | 0.81 d |
0.17 | 0.27 d |
8 | 10 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR SMALL CAP VALUE OPPORTUNITIES FUND | |||||||
Institutional Class | Administrative Class | Investor Class | Retirement Class | ||||
Period Ended October 31, 2017h | Period Ended October 31, 2017h | Period Ended October 31, 2017h | Period Ended October 31, 2017h | ||||
Net asset value beginning of period | $ 10.00 | $10.00 | $10.00 | $10.00 | |||
Income from Investment Operations | |||||||
Net investment income/(loss)a | 0.02 e | 0.01 e | 0.01 e | 0.01 e | |||
Net realized and unrealized gains/(losses) on investments | 0.05 | 0.05 | 0.05 | 0.06 | |||
Total from investment operations | 0.07 | 0.06 | 0.06 | 0.07 | |||
Less Distributions | |||||||
Dividends from net investment income | — | — | — | — | |||
Distributions from net realized capital gains1 | — | — | — | — | |||
Total distributions | — | — | — | — | |||
Net asset value end of period | 10.07 | 10.06 | 10.06 | 10.07 | |||
Net assets end of period (000s) | $24,655 | $ 252 | $ 254 | $ 30 | |||
Ratios and Supplemental Data (%) | |||||||
Total returnb | 0.70% c | 0.60% c | 0.60% c | 0.70% c | |||
Ratio of total expenses to average net assets2 | 3.41 d | 3.66 d | 3.78 d | 3.33 d | |||
Ratio of net expenses to average net assetsa | 0.88 d | 1.13 d | 1.25 d | 0.80 d | |||
Ratio of net investment income to average net assetsa | 0.60 d | 0.35 d | 0.23 d | 0.48 d | |||
Portfolio turnover | 9 c | 9 c | 9 c | 9 c |
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 on shares outstanding during the period. |
f | For the period March 1, 2016 (inception) through October 31, 2016 |
g | For the period February 1, 2014 (inception) through October 31, 2014 |
h | For the period August 1, 2017 (inception) through October 31, 2017 |
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 sales and purchases in relation to fluctuating market values of the investments of the Fund. |
Notes to Financial Statements—October 31, 2017
Notes to Financial Statements—Continued
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. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Purchases (000s) | Sales (000s) | ||
GROWTH FUNDS | |||
Harbor Capital Appreciation Fund | $13,859,602 | $17,168,202* | |
Harbor Mid Cap Growth Fund | 312,536 | 528,439 | |
Harbor Small Cap Growth Fund | 533,746 | 560,647 | |
Harbor Small Cap Growth Opportunities Fund | 221,189 | 159,866 | |
VALUE FUNDS | |||
Harbor Large Cap Value Fund | $ 344,187 | $ 85,683 | |
Harbor Mid Cap Value Fund | 238,010 | 204,061 | |
Harbor Small Cap Value Fund | 216,556 | 69,155 | |
Harbor Small Cap Value Opportunities Fund | 26,769 | 2,221 |
* | Sales for this Fund include $107,715 in connection with an in-kind redemption of the Fund’s capital shares. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
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 | 0.73 | |
Harbor Small Cap Value Fund | 0.75 | 0.75 | |
Harbor Small Cap Value Opportunities Fund | 0.75 | 0.75 |
a | The Adviser has 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 through February 28, 2018. |
b | The Adviser has contractually agreed to reduce the management fee to 0.70% on assets over $500 million through February 28, 2018. |
• | Harbor Large Cap Value Fund. For the period March 1, 2017 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.68%, 0.93%, 1.05% and 0.60% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. For the period November 1, 2016 through February 28, 2017, 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, 2018. |
• | Harbor Small Cap Value Opportunities Fund. For the period August 1, 2016 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.88%, 1.13%, 1.25% and 0.80% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. These contractual expense limitations are effective through February 28, 2019. |
Notes to Financial Statements—Continued
Transfer Agent Feesa | |
Institutional Class | 0.09% of the average daily net assets of all Institutional Class shares |
Administrative Class | 0.09% of the average daily net assets of all Administrative Class shares |
Investor Class | 0.21% of the average daily net assets of all Investor Class shares |
Retirement Class | 0.01% of the average daily net assets of all Retirement Class shares |
a | For the period November 1, 2016 through February 28, 2017, the Transfer Agent Fees were 0.08% for the Institutional and Administrative Class shares, 0.20% for the Investor Class shares, and 0.03% for the Retirement Class shares. |
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 | |||||||
GROWTH FUNDS | |||||||||||
Harbor Capital Appreciation Fund | — | — | — | 35,203 | 35,203 | 0.0% | |||||
Harbor Mid Cap Growth Fund | — | — | — | 111,933 | 111,933 | 0.3 | |||||
Harbor Small Cap Growth Fund | — | — | — | 61,568 | 61,568 | 0.1 | |||||
Harbor Small Cap Growth Opportunities Fund | — | — | — | 39,812 | 39,812 | 0.2 | |||||
VALUE FUNDS | |||||||||||
Harbor Large Cap Value Fund | — | — | — | 85,132 | 85,132 | 0.2 | |||||
Harbor Mid Cap Value Fund | — | — | — | 50,470 | 50,470 | 0.1 | |||||
Harbor Small Cap Value Fund | — | — | — | 27,469 | 27,469 | 0.1 | |||||
Harbor Small Cap Value Opportunities Fund | 2,449,000 | 25,000 | 25,000 | 1,012 | 2,500,012 | 99.9 |
Notes to Financial Statements—Continued
Undistributed Net Investment Income/(Loss) (000s) | Accumulated Net Realized Gain/(Loss) (000s) | Paid in Capital (000s) | |||
GROWTH FUNDS | |||||
Harbor Capital Appreciation Fund | $(6,485) | $(523,877) | $530,362 | ||
Harbor Mid Cap Growth Fund | 4,486 | (15,350) | 10,864 | ||
Harbor Small Cap Growth Fund | 3,005 | (20,198) | 17,193 | ||
Harbor Small Cap Growth Opportunities Fund | 2,421 | (3,047) | 626 | ||
VALUE FUNDS | |||||
Harbor Large Cap Value Fund | $ (974) | $ (4,740) | $ 5,714 | ||
Harbor Mid Cap Value Fund | (4,876) | (1,466) | 6,342 | ||
Harbor Small Cap Value Fund | (1,160) | (1,492) | 2,652 | ||
Harbor Small Cap Value Opportunities Fund | — | — | — |
Notes to Financial Statements—Continued
As of October 31, 2017 | As of October 31, 2016 | ||||||||||
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 | $23,203 | $1,405,454 | $1,428,657 | $18,442 | $1,737,714 | $1,756,156 | |||||
Harbor Mid Cap Growth Fund | — | — | — | 2,712 | 64,267 | 66,979 | |||||
Harbor Small Cap Growth Fund | — | 2,924 | 2,924 | 1,813 | 67,213 | 69,026 | |||||
Harbor Small Cap Growth Opportunities Fund | — | — | — | 4,587 | 2,482 | 7,069 | |||||
VALUE FUNDS | |||||||||||
Harbor Large Cap Value Fund | $ 4,885 | $ 13,304 | $ 18,189 | $ 7,430 | $ 8,019 | $ 15,449 | |||||
Harbor Mid Cap Value Fund | 16,082 | 9,807 | 25,889 | 13,063 | 7,648 | 20,711 | |||||
Harbor Small Cap Value Fund | 3,023 | — | 3,023 | 6,240 | 25,027 | 31,267 | |||||
Harbor Small Cap Value Opportunities Fund | — | — | — | N/A | N/A | N/A |
Undistributed Ordinary Income (000s) | Undistributed Long-Term Capital Gains (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||
GROWTH FUNDS | |||||
Harbor Capital Appreciation Fund | $36,525 | $3,005,814 | $12,295,931 | ||
Harbor Mid Cap Growth Fund | 9,833 | 25,409 | 83,700 | ||
Harbor Small Cap Growth Fund | 10,089 | 57,274 | 143,383 | ||
Harbor Small Cap Growth Opportunities Fund | 2,422 | 14,702 | 25,855 | ||
VALUE FUNDS | |||||
Harbor Large Cap Value Fund | $ 1,600 | $ 21,200 | $ 148,912 | ||
Harbor Mid Cap Value Fund | 15,152 | 17,327 | 136,187 | ||
Harbor Small Cap Value Fund | 44 | 23,200 | 517,231 | ||
Harbor Small Cap Value Opportunities Fund | 114 | — | 50 |
Identified Cost (000s) | Gross Unrealized | Net Unrealized Appreciation/ (Depreciation) (000s) | |||||
Appreciation (000s) | (Depreciation) (000s) | ||||||
GROWTH FUNDS | |||||||
Harbor Capital Appreciation Fund | $16,607,825 | $12,381,067 | $(85,136) | $12,295,931 | |||
Harbor Mid Cap Growth Fund | 319,345 | 91,409 | (7,709) | 83,700 | |||
Harbor Small Cap Growth Fund | 572,072 | 162,997 | (19,614) | 143,383 | |||
Harbor Small Cap Growth Opportunities Fund | 277,649 | 51,656 | (25,801) | 25,855 | |||
VALUE FUNDS | |||||||
Harbor Large Cap Value Fund | $ 624,531 | $ 161,062 | $(12,150) | $ 148,912 | |||
Harbor Mid Cap Value Fund | 850,735 | 204,827 | (68,640) | 136,187 | |||
Harbor Small Cap Value Fund | 663,173 | 530,601 | (13,370) | 517,231 | |||
Harbor Small Cap Value Opportunities Fund | 25,122 | 1,148 | (1,098) | 50 |
Notes to Financial Statements—Continued
Report of Independent Registered Public Accounting Firm
December 21, 2017
Fees and Expenses Example (Unaudited)
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Capital Appreciation Fund | ||||||||
Institutional Class | 0.65% | |||||||
Actual | $3.56 | $1,000 | $1,168.10 | |||||
Hypothetical (5% return) | 3.31 | 1,000 | 1,021.85 | |||||
Administrative Class | 0.90% | |||||||
Actual | $4.92 | $1,000 | $1,166.60 | |||||
Hypothetical (5% return) | 4.58 | 1,000 | 1,020.55 | |||||
Investor Class | 1.02% | |||||||
Actual | $5.57 | $1,000 | $1,165.90 | |||||
Hypothetical (5% return) | 5.19 | 1,000 | 1,019.93 | |||||
Retirement Class | 0.59% | |||||||
Actual | $3.22 | $1,000 | $1,168.40 | |||||
Hypothetical (5% return) | 3.01 | 1,000 | 1,022.16 |
Fees and Expenses Example—Continued
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Mid Cap Growth Fund | ||||||||
Institutional Class | 0.87% | |||||||
Actual | $4.72 | $1,000 | $1,148.10 | |||||
Hypothetical (5% return) | 4.43 | 1,000 | 1,020.71 | |||||
Administrative Class | 1.12% | |||||||
Actual | $6.06 | $1,000 | $1,146.30 | |||||
Hypothetical (5% return) | 5.70 | 1,000 | 1,019.42 | |||||
Investor Class | 1.24% | |||||||
Actual | $6.71 | $1,000 | $1,145.70 | |||||
Hypothetical (5% return) | 6.31 | 1,000 | 1,018.80 | |||||
Retirement Class | 0.81% | |||||||
Actual | $4.38 | $1,000 | $1,149.10 | |||||
Hypothetical (5% return) | 4.13 | 1,000 | 1,021.02 | |||||
Harbor Small Cap Growth Fund | ||||||||
Institutional Class | 0.85% | |||||||
Actual | $4.46 | $1,000 | $1,082.70 | |||||
Hypothetical (5% return) | 4.33 | 1,000 | 1,020.81 | |||||
Administrative Class | 1.10% | |||||||
Actual | $5.77 | $1,000 | $1,077.60 | |||||
Hypothetical (5% return) | 5.60 | 1,000 | 1,019.52 | |||||
Investor Class | 1.22% | |||||||
Actual | $6.40 | $1,000 | $1,081.00 | |||||
Hypothetical (5% return) | 6.21 | 1,000 | 1,018.90 | |||||
Retirement Class | 0.79% | |||||||
Actual | $4.14 | $1,000 | $1,082.60 | |||||
Hypothetical (5% return) | 4.02 | 1,000 | 1,021.12 | |||||
Harbor Small Cap Growth Opportunities Fund | ||||||||
Institutional Class | 0.88% | |||||||
Actual | $4.52 | $1,000 | $1,037.10 | |||||
Hypothetical (5% return) | 4.48 | 1,000 | 1,020.66 | |||||
Administrative Class | 1.13% | |||||||
Actual | $5.80 | $1,000 | $1,036.40 | |||||
Hypothetical (5% return) | 5.75 | 1,000 | 1,019.37 | |||||
Investor Class | 1.25% | |||||||
Actual | $6.41 | $1,000 | $1,035.90 | |||||
Hypothetical (5% return) | 6.36 | 1,000 | 1,018.75 | |||||
Retirement Class | 0.81% | |||||||
Actual | $4.16 | $1,000 | $1,037.90 | |||||
Hypothetical (5% return) | 4.13 | 1,000 | 1,021.02 |
Fees and Expenses Example—Continued
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Large Cap Value Fund | ||||||||
Institutional Class | 0.68% | |||||||
Actual | $3.59 | $1,000 | $1,091.40 | |||||
Hypothetical (5% return) | 3.47 | 1,000 | 1,021.69 | |||||
Administrative Class | 0.93% | |||||||
Actual | $4.90 | $1,000 | $1,090.60 | |||||
Hypothetical (5% return) | 4.74 | 1,000 | 1,020.40 | |||||
Investor Class | 1.05% | |||||||
Actual | $5.53 | $1,000 | $1,090.00 | |||||
Hypothetical (5% return) | 5.35 | 1,000 | 1,019.78 | |||||
Retirement Class | 0.60% | |||||||
Actual | $3.16 | $1,000 | $1,092.60 | |||||
Hypothetical (5% return) | 3.06 | 1,000 | 1,022.10 | |||||
Harbor Mid Cap Value Fund | ||||||||
Institutional Class | 0.84% | |||||||
Actual | $4.30 | $1,000 | $1,034.60 | |||||
Hypothetical (5% return) | 4.28 | 1,000 | 1,020.86 | |||||
Administrative Class | 1.09% | |||||||
Actual | $5.58 | $1,000 | $1,033.00 | |||||
Hypothetical (5% return) | 5.55 | 1,000 | 1,019.57 | |||||
Investor Class | 1.21% | |||||||
Actual | $6.20 | $1,000 | $1,032.40 | |||||
Hypothetical (5% return) | 6.16 | 1,000 | 1,018.95 | |||||
Retirement Class | 0.77% | |||||||
Actual | $3.95 | $1,000 | $1,034.60 | |||||
Hypothetical (5% return) | 3.92 | 1,000 | 1,021.23 | |||||
Harbor Small Cap Value Fund | ||||||||
Institutional Class | 0.87% | |||||||
Actual | $4.65 | $1,000 | $1,117.80 | |||||
Hypothetical (5% return) | 4.43 | 1,000 | 1,020.71 | |||||
Administrative Class | 1.12% | |||||||
Actual | $5.98 | $1,000 | $1,116.40 | |||||
Hypothetical (5% return) | 5.70 | 1,000 | 1,019.42 | |||||
Investor Class | 1.24% | |||||||
Actual | $6.61 | $1,000 | $1,115.70 | |||||
Hypothetical (5% return) | 6.31 | 1,000 | 1,018.80 | |||||
Retirement Class | 0.81% | |||||||
Actual | $4.32 | $1,000 | $1,118.10 | |||||
Hypothetical (5% return) | 4.13 | 1,000 | 1,021.02 |
Fees and Expenses Example—Continued
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Small Cap Value Opportunities Fund | ||||||||
Institutional Class | 0.88% | |||||||
Actual*** | $2.23 | $1,000 | $1,007.00 | |||||
Hypothetical (5% return) | 4.48 | 1,000 | 1,020.66 | |||||
Administrative Class | 1.13% | |||||||
Actual*** | $2.86 | $1,000 | $1,006.00 | |||||
Hypothetical (5% return) | 5.75 | 1,000 | 1,019.37 | |||||
Investor Class | 1.25% | |||||||
Actual*** | $3.16 | $1,000 | $1,006.00 | |||||
Hypothetical (5% return) | 6.36 | 1,000 | 1,018.75 | |||||
Retirement Class | 0.80% | |||||||
Actual*** | $2.03 | $1,000 | $1,007.00 | |||||
Hypothetical (5% return) | 4.08 | 1,000 | 1,021.07 |
* | Reflective of all fee waivers and expense reimbursements (excluding interest expense, if any) |
** | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
*** | Fund has less than six months of operating history. Expenses are equal to the Class’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 92/365 (to reflect the period since the commencement of operations). The expense amounts reported under Hypothetical (5% return) are not comparable to the amounts reported using actual fund return. |
Additional Information (Unaudited)
Percentage of Distribution | |
GROWTH FUNDS | |
Harbor Capital Appreciation Fund | 100% |
Harbor Mid Cap Growth Fund | 18 |
Harbor Small Cap Growth Fund | 19 |
Harbor Small Cap Growth Opportunities Fund | 100 |
VALUE FUNDS | |
Harbor Large Cap Value Fund | 100% |
Harbor Mid Cap Value Fund | 64 |
Harbor Small Cap Value Fund | 100 |
Harbor Small Cap Value Opportunities Fund | 37 |
Amount (000s) | |
GROWTH FUNDS | |
Harbor Capital Appreciation Fund | $1,870,930 |
Harbor Mid Cap Growth Fund | 10,864 |
Harbor Small Cap Growth Fund | 20,116 |
Harbor Small Cap Growth Opportunities Fund | 626 |
VALUE FUNDS | |
Harbor Large Cap Value Fund | $ 18,240 |
Harbor Mid Cap Value Fund | 16,761 |
Harbor Small Cap Value Fund | 2,549 |
Additional Information—Continued
• | the nature, extent, and quality of the services expected to be provided by the Adviser and Sapience, including the background, education, expertise and experience of the investment professionals of the Adviser and Sapience to provide services to the Fund; |
• | the favorable history, reputation, qualifications and background of the Adviser and Sapience, as well as the qualifications of their personnel; |
• | the fees proposed to be charged by the Adviser and Sapience for investment advisory and subadvisory services, respectively, including the portion of the fee to be retained by the Adviser, after payment of Sapience’s fee, for the investment advisory and related services the Adviser would provide, including but not limited to, subadviser oversight, administration and manager of managers services; |
• | the proposed fee and expense ratios of the Fund relative to the fees and expense ratios of similar investment companies; |
Additional Information—Continued
• | the investment performance of Sapience in managing other accounts in a style similar to the style to be utilized in managing the Fund relative to the performance of a benchmark index; |
• | information received at regular meetings throughout the year related to services rendered by the Adviser; |
• | the compensation to be received by Harbor Services Group and Harbor Funds Harbor Funds Distributors in consideration of the services each will provide to the Fund; |
• | any “fall out” benefits that might inure to the Adviser and its affiliates as a result of their relationship with the Fund; |
• | information received at regular meetings throughout the year related to the Adviser’s profitability; |
• | the expected profitability of the Adviser with respect to the Fund, including the effect of revenues of Harbor Services Group and Harbor Funds Distributors on such profitability; and |
• | the extent to which economies of scale might be realized as the Fund grows, and the extent to which the Fund’s proposed advisory fee level reflects any economies of scale for the benefit of fund investors. |
Additional Information—Continued
Trustee | For | Withhold | ||
Scott M. Amero | 1,047,869,265 | 14,860,642 | ||
Joseph L. Dowling III | 1,046,335,272 | 16,394,636 | ||
Robert A. Kasdin | 1,047,514,035 | 15,215,872 | ||
Charles F. McCain | 1,047,667,935 | 15,061,973 | ||
Kathryn L. Quirk | 1,046,812,694 | 15,917,214 | ||
Ann M. Spruill | 1,047,274,165 | 15,455,742 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Capital Appreciation Fund | 142,353,929 | 2,957,892 | 1,689,674 | 52,704,661 | ||||
Harbor Mid Cap Growth Fund | 16,799,131 | 101,416 | 126,561 | 2,643,556 | ||||
Harbor Small Cap Growth Fund | 24,028,401 | 1,237,054 | 1,259,855 | 4,414,467 | ||||
Harbor Small Cap Growth Opportunities Funda | 8,633,141 | 88,030 | 3,263 | 5,103,486 | ||||
Harbor Large Cap Value Fund | 19,495,478 | 211,707 | 134,246 | 6,067,830 | ||||
Harbor Mid Cap Value Fundb | 8,355,328 | 2,110,563 | 624,123 | 2,643,556 | ||||
Harbor Small Cap Value Fund | 17,167,909 | 75,221 | 100,517 | 6,359,775 |
Fund Name | For | Against | Abstain | Broker Non-Vote | |||||
Harbor Capital Appreciation Fund | 142,284,847 | 2,976,773 | 1,739,879 | 52,704,661 | |||||
Harbor Mid Cap Growth Fund | 16,780,264 | 103,545 | 143,299 | 2,643,556 | |||||
Harbor Small Cap Growth Fund | 23,959,954 | 1,308,364 | 1,256,993 | 4,414,467 | |||||
Harbor Small Cap Growth Opportunities Funda | 8,631,453 | 89,718 | 3,263 | 5,103,486 | |||||
Harbor Large Cap Value Fund | 19,502,706 | 211,025 | 127,703 | 6,067,830 | |||||
Harbor Mid Cap Value Fundb | 8,335,279 | 2,129,914 | 624,824 | 2,643,556 | |||||
Harbor Small Cap Value Fund | 17,158,984 | 83,086 | 101,574 | 6,359,775 |
a | Meeting held on October 18, 2017 |
b | Meeting held on November 15, 2017 |
Additional Information—Continued
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 (54) Trustee | Since 2014 | Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation nonprofit); Trustee, Berkshire School (2014-Present); 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), BlackRock, Inc., (publicly traded investment management firm). | 32 | None |
Raymond J. Ball (73) 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). | 32 | None |
Donna J. Dean (66) Trustee | Since 2010 | Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present). | 32 | None |
Joseph L. Dowling III (53) Trustee | Since 2017 | Chief Investment Officer, Brown University (2013-Present); Advisory Board Member, Stage Point Capital (private mortgage specialist) (2016-Present); Advisory Board Member, Harbor Funds (2016-2017); and Founder and Managing Member, Narragansett Asset Management (private investment management firm) (1998-2013). | 32 | Director of Integrated Electrical Services (2011-Present). |
Randall A. Hack (70) Trustee | Since 2010 | Founder and Senior Managing Director of Capstone Capital LLC (private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (private equity firm) (2002-2013). | 32 | None |
Robert Kasdin (59) Trustee | Since 2014 | Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee and Co-Chair of the Finance Committee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014). | 32 | Director of Noranda Aluminum Holdings Corporation (2007-2014); and Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present). |
Additional Information—Continued
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—Continued | ||||
Kathryn L. Quirk (65) Trustee | Since 2017 | Retired; Vice President, Senior Compliance Officer and Head, U.S. Regulatory Compliance, Goldman Sachs Asset Management (2013-2017); Deputy Chief Legal Officer, Asset Management, and Vice President and Corporate Counsel, Prudential Insurance Company of America (2010-2012); Co-Chief Legal Officer, Prudential Investment Management, Inc., and Chief Legal Officer, Prudential Investments and Prudential Mutual Funds (2008-2012); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America, and Chief Legal Officer, Prudential Investments (2005-2008); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America (2004-2005); Member, Management Committee (2000-2002), General Counsel and Chief Compliance Officer, Zurich Scudder Investments, Inc. (1997-2002). | 32 | None |
Ann M. Spruill (63) 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). | 32 | None |
INTERESTED TRUSTEE | ||||
Charles F. McCain (48)* Chairman, Trustee and President | Since 2017 | Chief Executive Officer (2017-Present), Director (2007-Present), President and Chief Operating Officer (2017), Executive Vice President and General Counsel (2004-2017), and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-2017), Harbor Services Group, Inc.; and Chief Executive Officer (2017-Present), Director (2007-Present), Chief Compliance Officer and Executive Vice President (2007-2017), Harbor Funds Distributors, Inc. | 32 | None |
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE** | ||
Erik D. Ojala (42) Chief Compliance Officer and Secretary | Since 2017 Since 2007 | Executive Vice President and General Counsel (2017-Present) and Secretary (2010-Present); Senior Vice President and Associate General Counsel (2007-2017), Harbor Capital Advisors, Inc.; Director, Executive Vice President and Chief Compliance Officer (2017-Present), Harbor Funds Distributors, Inc.; and Director (2017-Present) and Assistant Secretary (2014-Present), Harbor Services Group, Inc. |
Anmarie S. Kolinski (46) 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. |
Brian L. Collins (49) Vice President | Since 2005 | Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc. |
Charles P. Ragusa (58) 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) and OFAC Officer (2015-Present), Harbor Funds Distributors, Inc. |
Jodie L. Crotteau (45) Assistant Secretary | Since 2014 | Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Chief Compliance Officer and Secretary (2017-present) and Assistant Secretary (2015-2016), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); and Vice President, Grosvenor Capital Management, L.P. (2010-2014). |
Additional Information—Continued
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE**—Continued | ||
Lana M. Lewandowski (38) AML Compliance Officer and Assistant Secretary | Since 2017 | Legal & Compliance Manager (2016-Present) and Legal Specialist (2012-2015), Harbor Capital Advisors, Inc. |
Lora A. Kmieciak (53) Assistant Treasurer | Since 2017 | Senior Vice President – Fund Administration and Analysis (2017-Present) and Senior Vice President - Business Analysis (2015-2017), Harbor Capital Advisors, Inc.; and Assurance Executive Director (1999-2015), Ernst & Young LLP. |
John M. Paral (49) Assistant Treasurer | Since 2013 | Director of Fund Administration and Analysis (2017-Present), Vice President (2012-Present) and Financial Reporting Manager (2007-2017), Harbor Capital Advisors, Inc. |
1 | Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually. |
* | Mr. McCain 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. |
111 South Wacker Drive, 34th Floor | Chicago, IL 60606-4302 | 800-422-1050 | harborfunds.com |
Chairman, President & Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Treasurer
Chief Compliance Officer
& Secretary
Vice President
Vice President
Assistant Secretary
AML Compliance Officer
& Assistant Secretary
Assistant Treasurer
Assistant Treasurer
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900
Table of Contents
Institutional Class | Administrative Class | Investor Class | Retirement Class |
MVSGX | HSRGX | HISWX | HNGSX |
1 | |
Harbor Strategic Growth Fund | |
3 | |
5 | |
6 | |
7 | |
Financial Statements | |
10 | |
11 | |
12 | |
15 | |
18 | |
27 |
Charles F. McCain Chairman |
Returns For Periods Ended October 31, 2017 | ||||||||
Annualized | ||||||||
Domestic Equities | 1 Year | 5 Years | 10 Years | 30 Years | ||||
Russell 3000® (entire U.S. stock market) | 23.98% | 15.12% | 7.61% | 10.60% | ||||
S&P 500 (large cap stocks) | 23.63 | 15.18 | 7.51 | 10.50 | ||||
Russell Midcap® (mid cap stocks) | 21.09 | 14.87 | 8.09 | 12.11 | ||||
Russell 2000® (small cap stocks) | 27.85 | 14.49 | 7.63 | 10.45 | ||||
Russell 3000® Growth (growth stocks) | 29.80 | 16.71 | 9.05 | 10.16 | ||||
Russell 3000® Value (value stocks) | 18.30 | 13.48 | 6.07 | 10.68 | ||||
International & Global | ||||||||
MSCI EAFE (ND) (foreign stocks) | 23.44% | 8.53% | 1.10% | 5.62% | ||||
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 | 13.03 | 4.18 | N/A | ||||
MSCI World (ND) (global stocks) | 22.77 | 11.56 | 4.10 | 7.44 | ||||
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 | 7.29 | 0.92 | N/A | ||||
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 | 4.83 | 0.60 | N/A | ||||
Strategic Markets | ||||||||
Bloomberg Commodity Index Total ReturnSM (commodities) | 2.35% | -9.37% | -6.93% | N/A | ||||
Fixed Income | ||||||||
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62% | 6.33% | 6.69% | N/A | ||||
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 | 2.04 | 4.19 | 6.43% | ||||
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds) | -0.11 | -0.11 | 3.81 | N/A | ||||
ICE BofAML U.S. 3-Month Treasury Bill (proxy for money market returns) | 0.72 | 0.24 | 0.45 | 3.35 |
Charles F. McCain |
Chairman |
Managers' Commentary (Unaudited)
Since 2017
Since 2017
Since 2017
Fund Performance
* | On March 6, 2017, the Fund acquired all of the assets and substantially all of the liabilities of the Mar Vista Strategic Growth Fund (the “Predecessor Fund”). For the period November 1, 2011 (inception of the Predecessor Fund) to January 20, 2015, Mar Vista served as the Predecessor Fund’s subadviser and for the period January 20, 2015 to March 6, 2017, Mar Vista served as investment adviser to the Predecessor Fund. |
** | Effective July 1, 2017, the Fund changed its fiscal year end date from June 30 to October 31. |
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of net assets) | |
Oracle Corp. | 5.0% |
Berkshire Hathaway Inc. Class B | 4.9% |
Markel Corp. | 4.8% |
American Tower Corp. | 4.7% |
Honeywell International Inc. | 4.4% |
Alphabet Inc. Class C | 4.1% |
Dollar Tree Inc. | 3.8% |
Intuit Inc. | 3.5% |
Unilever NV | 3.3% |
Apple Inc. | 3.2% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2040 |
Cusip | 411512353 |
Ticker | MVSGX |
Inception Date | 11/01/2011 |
Net Expense Ratio | 0.70% a,b |
Total Net Assets (000s) | $56,026 |
ADMINISTRATIVE CLASS | |
Fund # | 2240 |
Cusip | 411512338 |
Ticker | HSRGX |
Inception Date | 03/06/2017 |
Net Expense Ratio | 0.95% a,b |
Total Net Assets (000s) | $12 |
INVESTOR CLASS | |
Fund # | 2440 |
Cusip | 411512361 |
Ticker | HISWX |
Inception Date | 03/06/2017 |
Net Expense Ratio | 1.07% a,b |
Total Net Assets (000s) | $75 |
RETIREMENT CLASS | |
Fund # | 2540 |
Cusip | 411512346 |
Ticker | HNGSX |
Inception Date | 03/06/2017 |
Net Expense Ratio | 0.62% a,b |
Total Net Assets (000s) | $435 |
Portfolio | Benchmark | ||
Weighted Average Market Cap (MM) | $169,318 | $225,048 | |
Price/Earning Ratio (P/E) | 36.1x | 31.8x | |
Price/Book Ratio (P/B) | 5.4x | 7.9x | |
Beta vs. Russell 1000® Growth Index | 0.85 | N/A | |
Portfolio Turnover (Period Ended 10/31/2017) | 9% c | N/A |
a | Annualized |
b | Reflects an expense limitation agreement (excluding acquired fund fees and expenses and interest expense, if any) effective through February 28, 2019 |
c | Unannualized |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | Life of Class | |||||||||||||
Harbor Strategic Growth Fund | ||||||||||||||
Institutional Class | 22.90% | 14.98% | 14.92% | 11/01/2011 | $115,154 | |||||||||
Administrative Class1 | N/A | N/A | 12.29 | 03/06/2017 | 56,146 | |||||||||
Investor Class1 | N/A | N/A | 12.23 | 03/06/2017 | 56,116 | |||||||||
Retirement Class1 | N/A | N/A | 12.53 | 03/06/2017 | 56,265 | |||||||||
Comparative Index | ||||||||||||||
Russell 1000® Growth2 | 29.71% | 16.83% | 16.18% | — | $122,977 |
1 | The “Life of Class” return represents unannualized values. |
2 | The “Life of Class” return and “Final Value of a $50,000 Investment” as shown reflects the period 11/01/2011 through 10/31/2017. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—97.6% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—3.1% | |||
6,272 | TransDigm Group Inc. | $ 1,741 | |
AIR FREIGHT & LOGISTICS—2.6% | |||
20,843 | XPO Logistics Inc.* | 1,446 | |
BANKS—4.4% | |||
8,924 | First Republic Bank | 869 | |
29,604 | U.S. Bancorp. | 1,610 | |
2,479 | |||
BEVERAGES—2.2% | |||
11,291 | PepsiCo Inc. | 1,245 | |
CAPITAL MARKETS—2.5% | |||
9,897 | Moody's Corp. | 1,410 | |
CHEMICALS—4.6% | |||
12,449 | Ecolab Inc. | 1,626 | |
6,719 | Praxair Inc. | 982 | |
2,608 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
DIVERSIFIED FINANCIAL SERVICES—4.9% | |||
14,851 | Berkshire Hathaway Inc. Class B* | $ 2,776 | |
ELECTRICAL EQUIPMENT—2.9% | |||
33,481 | Sensata Technologies Holding NV* | 1,638 | |
ENERGY EQUIPMENT & SERVICES—4.3% | |||
11,716 | Core Laboratories NV | 1,171 | |
19,970 | Schlumberger Ltd. | 1,278 | |
2,449 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—4.7% | |||
18,590 | American Tower Corp. | 2,671 | |
FOOD PRODUCTS—1.9% | |||
26,556 | Mondelez International Inc. | 1,100 | |
HOTELS, RESTAURANTS & LEISURE—2.6% | |||
26,864 | Starbucks Corp. | 1,473 | |
INDUSTRIAL CONGLOMERATES—7.3% | |||
17,226 | Honeywell International Inc. | 2,483 | |
6,438 | Roper Technologies Inc. | 1,662 | |
4,145 | |||
INSURANCE—4.8% | |||
2,506 | Markel Corp.* | 2,717 | |
INTERNET & DIRECT MARKETING RETAIL—2.0% | |||
1,029 | Amazon.com Inc.* | 1,137 | |
INTERNET SOFTWARE & SERVICES—6.3% | |||
2,299 | Alphabet Inc. Class C* | 2,337 | |
6,804 | Facebook Inc.* | 1,225 | |
3,562 | |||
IT SERVICES—2.6% | |||
13,134 | Visa Inc. | 1,445 | |
LIFE SCIENCES TOOLS & SERVICES—2.2% | |||
1,855 | Mettler-Toledo International Inc. (SWS)* | 1,266 | |
MACHINERY—2.3% | |||
18,203 | Fortive Corp. | 1,315 | |
MEDIA—1.8% | |||
10,338 | Walt Disney Co. | 1,011 | |
MULTILINE RETAIL—3.8% | |||
23,351 | Dollar Tree Inc.* | 2,131 | |
PERSONAL PRODUCTS—3.3% | |||
32,180 | Unilever NV (NET) | 1,865 | |
PHARMACEUTICALS—4.2% | |||
3,857 | Allergan plc (IE) | 683 | |
11,933 | Johnson & Johnson | 1,664 | |
2,347 | |||
ROAD & RAIL—1.3% | |||
6,980 | Kansas City Southern | 728 | |
SOFTWARE—10.7% | |||
7,296 | Adobe Systems Inc.* | 1,278 | |
13,048 | Intuit Inc. | 1,970 | |
55,283 | Oracle Corp. | 2,814 | |
6,062 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
SPECIALTY RETAIL—1.1% | |||
2,827 | O'Reilly Automotive Inc.* | $ 596 | |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—3.2% | |||
10,560 | Apple Inc. | 1,785 | |
TOTAL COMMON STOCKS | |||
(Cost $45,156) | 55,148 | ||
SHORT-TERM INVESTMENTS—3.2% | |||
(Cost $1,826) | |||
Principal Amount | |||
REPURCHASE AGREEMENTS | |||
$ | 1,826 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $1,863) | 1,826 |
TOTAL INVESTMENTS—100.8% | |||
(Cost $46,982) | 56,974 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.8)% | (426) | ||
TOTAL NET ASSETS—100.0% | $56,548 |
* | Non-income producing security |
IE | Ireland |
NET | Netherlands |
SWS | Switzerland |
Statement of Assets and Liabilities—October 31, 2017
Harbor Strategic Growth Fund | ||
ASSETS | ||
Investments, at identified cost* | $46,982 | |
Investments, at value | $55,148 | |
Repurchase agreements | 1,826 | |
Cash | 1 | |
Receivables for: | ||
Capital shares sold | 38 | |
Dividends | 8 | |
Withholding tax | 1 | |
Prepaid registration fees | 9 | |
Other assets | 26 | |
Total Assets | 57,057 | |
LIABILITIES | ||
Payables for: | ||
Investments purchased | 369 | |
Capital shares reacquired | 41 | |
Accrued expenses: | ||
Administrative fees | 7 | |
Management fees | 28 | |
Transfer agent fees | 1 | |
Trustees' fees and expenses | 1 | |
Other | 62 | |
Total Liabilities | 509 | |
NET ASSETS | $56,548 | |
Net Assets Consist of: | ||
Paid-in capital | 45,701 | |
Accumulated undistributed net investment income/(loss) | 77 | |
Accumulated net realized gain/(loss) | 778 | |
Unrealized appreciation/(depreciation) of investments | 9,992 | |
56,548 | ||
NET ASSET VALUE PER SHARE BY CLASS | ||
Institutional Class | ||
Net assets | $56,026 | |
Shares of beneficial interest1 | 2,972 | |
Net asset value per share2 | $ 18.85 | |
Administrative Class | ||
Net assets | $ 12 | |
Shares of beneficial interest1 | 1 | |
Net asset value per share2 | $ 18.82 | |
Investor Class | ||
Net assets | $ 75 | |
Shares of beneficial interest1 | 4 | |
Net asset value per share2 | $ 18.81 | |
Retirement Class | ||
Net assets | $ 435 | |
Shares of beneficial interest1 | 23 | |
Net asset value per share2 | $ 18.86 |
* | 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. |
StatementS of Operations
Harbor Strategic Growth Fund | ||
July 1, 2017 through October 31, 2017 | July 1, 2015 through June 30, 2016 | |
Investment Income | ||
Dividends | $ 143 | $ 449 |
Interest. | 1 | — |
Foreign taxes withheld | (3) | (6) |
Total Investment Income | 141 | 443 |
Operating Expenses | ||
Management fees | 85 | 200 |
12b-1 fees: | ||
Administrative Class | — | — |
Investor Class | — | — |
Administrative fees | — | 24 |
Compliance fees | — | 8 |
Shareholder communications | 3 | 3 |
Custodian fees | 3 | 10 |
Transfer agent fees: | ||
Institutional Class | 13 | 30 |
Administrative Class | — | — |
Investor Class | — | — |
Retirement Class | — | — |
Professional fees | 1 | 68 |
Trustees' fees and expenses | — | 7 |
Registration fees | 57 | 62 |
Miscellaneous | 5 | 12 |
Total expenses | 167 | 424 |
Transfer agent fees waived | (1) | (1) |
Other expenses reimbursed | (67) | (185) |
Net expenses | 99 | 238 |
Net Investment Income/(Loss) | 42 | 205 |
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions | ||
Net realized gain/(loss) on: | ||
Investments | 144 | 773 |
Change in net unrealized appreciation/(depreciation) on: | ||
Investments | 2,754 | 3,139 |
Net gain/(loss) on investment transactions | 2,898 | 3,912 |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $2,940 | $4,117 |
Statements of Changes In Net Assets
Harbor Strategic Growth Fund | |||
July 1, 2017 through October 31, 2017 | July 1, 2016 through June 30, 2017 | July 1, 2015 through June 30, 2016 | |
INCREASE/(DECREASE) IN NET ASSETS | |||
Operations: | |||
Net investment income/(loss) | $ 42 | $ 205 | $ 44 |
Net realized gain/(loss) on investments | 144 | 773 | 283 |
Change in net unrealized appreciation/(depreciation) of investments | 2,754 | 3,139 | 874 |
Net increase/(decrease) in assets resulting from operations | 2,940 | 4,117 | 1,201 |
Distributions to Shareholders | |||
Net investment income: | |||
Institutional Class | — | (193) | (16) |
Administrative Class | — | — | N/A |
Investor Class | — | — | N/A |
Retirement Class | — | — | N/A |
Net realized gain on investments: | |||
Institutional Class | — | (205) | (737) |
Administrative Class | — | — | N/A |
Investor Class | — | — | N/A |
Retirement Class | — | — | N/A |
Total distributions to shareholders | — | (398) | (753) |
Net Increase/(Decrease) Derived from Capital Share Transactions | 21,393 | 3,108 | 4,400 |
Net increase/(decrease) in net assets | 24,333 | 6,827 | 4,848 |
Net Assets | |||
Beginning of period | 32,215 | 25,388 | 20,540 |
End of period* | $56,548 | $32,215 | $25,388 |
* Includes accumulated undistributed net investment income/(loss) of: | $ 77 | $ 39 | $ 28 |
Statements of Changes in Net Assets—Capital Stock Activity
Harbor Strategic Growth Fund | |||
July 1, 2017 through October 31, 2017 | July 1, 2016 through June 30, 2017 | July 1, 2016 through June 30, 2017 | |
AMOUNT ($) | |||
Institutional Class | |||
Net proceeds from sale of shares | $22,972 | $ 8,515 | $10,211 |
Net proceeds from redemption fees | — | — | — |
Reinvested distributions | — | 346 | 591 |
Cost of shares reacquired | (1,724) | (6,094) | (6,402) |
Net increase/(decrease) in net assets | $21,248 | $ 2,767 | $ 4,400 |
Administrative Class | |||
Net proceeds from sale of shares | $ 1 | $ 11* | N/A |
Cost of shares reacquired | — | (1)* | N/A |
Net increase/(decrease) in net assets | $ 1 | $ 10* | N/A |
Investor Class | |||
Net proceeds from sale of shares | $ 56 | $ 22* | N/A |
Cost of shares reacquired | (7) | —* | N/A |
Net increase/(decrease) in net assets | $ 49 | $ 22* | N/A |
Retirement Class | |||
Net proceeds from sale of shares | $ 96 | $ 311* | N/A |
Cost of shares reacquired | (1) | (2)* | N/A |
Net increase/(decrease) in net assets | $ 95 | $ 309* | N/A |
* | For the period March 6, 2017 (commencement of operations) through June 30, 2017 |
Harbor Strategic Growth Fund | |||
July 1, 2017 through October 31, 2017 | July 1, 2016 through June 30, 2017 | July 1, 2015 through June 30, 2016 | |
SHARES | |||
Institutional Class | |||
Shares sold | 1,263 | 525 | 693 |
Shares issued due to reinvestment of distributions | — | 22 | 39 |
Shares reacquired | (95) | (377) | (433) |
Net increase/(decrease) in shares outstanding | 1,168 | 170 | 299 |
Beginning of period | 1,804 | 1,634 | 1,335 |
End of period | 2,972 | 1,804 | 1,634 |
Administrative Class | |||
Shares sold | — | 1* | N/A |
Shares issued due to reinvestment of distributions | — | — | N/A |
Shares reacquired | — | — | N/A |
Net increase/(decrease) in shares outstanding | — | 1* | N/A |
Beginning of period | 1 | — | N/A |
End of period | 1 | 1* | N/A |
Investor Class | |||
Shares sold | 3 | 1* | N/A |
Shares issued due to reinvestment of distributions | — | — | N/A |
Shares reacquired | — | — | N/A |
Net increase/(decrease) in shares outstanding | 3 | 1* | N/A |
Beginning of period | 1 | — | N/A |
End of period | 4 | 1* | N/A |
Retirement Class | |||
Shares sold | 5 | 18* | N/A |
Shares issued due to reinvestment of distributions | — | — | N/A |
Shares reacquired | — | — | N/A |
Net increase/(decrease) in shares outstanding | 5 | 18* | N/A |
Beginning of period | 18 | — | N/A |
End of period | 23 | 18* | N/A |
* | For the period March 6, 2017 (commencement of operations) through June 30, 2017 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR STRATEGIC GROWTH FUND | ||||||
Institutional Class | ||||||
4-Month Period Ended October 31, 2017g | Year Ended June 30, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Net asset value beginning of period | $ 17.66 | $ 15.54 | $ 15.39 | $ 15.41 | $ 12.80 | $11.00 |
Income from Investment Operations | ||||||
Net investment income/(loss)a | 0.03 e | 0.12 e | 0.03 e | 0.04 e | 0.08 e | 0.10 e |
Net realized and unrealized gains/(losses) on investments | 1.16 | 2.22 | 0.63 | 1.11 | 3.35 | 1.92 |
Total from investment operations | 1.19 | 2.34 | 0.66 | 1.15 | 3.43 | 2.02 |
Less Distributions | ||||||
Dividends from net investment income | — | (0.11) | (0.01) | (0.06) | (0.15) | (0.13) |
Distributions from net realized capital gains1 | — | (0.11) | (0.50) | (1.11) | (0.67) | (0.09) |
Total distributions | — | (0.22) | (0.51) | (1.17) | (0.82) | (0.22) |
Proceeds from redemption fees | N/A | — * | — * | — * | — * | — * |
Net asset value end of period | 18.85 | 17.66 | 15.54 | 15.39 | 15.41 | 12.80 |
Net assets end of period (000s) | $56,026 | $31,866 | $25,388 | $20,540 | $13,678 | $8,665 |
Ratios and Supplemental Data (%) | ||||||
Total returnb | 6.74% c | 15.21% | 4.44% | 7.67% | 27.71% | 18.55% |
Ratio of total expenses to average net assets2 | 1.18 d | 1.48 | 1.74 | 2.23 | 2.79 | 3.99 |
Ratio of net expenses to average net assetsa | 0.70 d | 0.83 | 0.90 | 0.90 | 0.90 | 0.90 |
Ratio of net investment income to average net assetsa | 0.29 d | 0.71 | 0.19 | 0.18 | 0.58 | 0.82 |
Portfolio turnover | 9 c | 21 | 40 | 33 | 31 | 59 |
Investor Class | ||
4-Month Period Ended October 31, 2017g | Period Ended June 30, 2017f | |
Net asset value beginning of period | $17.64 | $16.76 |
Income from Investment Operations | ||
Net investment income/(loss)a | 0.02 e | 0.01 e |
Net realized and unrealized gains/(losses) on investments | 1.15 | 0.87 |
Total from investment operations | 1.17 | 0.88 |
Less Distributions | ||
Dividends from net investment income | — | — |
Distributions from net realized capital gains1 | — | — |
Total distributions | — | — |
Net asset value end of period | 18.81 | 17.64 |
Net assets end of period (000s) | $ 75 | $ 22 |
Ratios and Supplemental Data (%) | ||
Total returnb | 6.63% c | 5.25% c |
Ratio of total expenses to average net assets2 | 1.55 d | 2.03 d |
Ratio of net expenses to average net assetsa | 1.07 d | 1.07 d |
Ratio of net investment income to average net assetsa | 0.05 d | 0.13 d |
Portfolio turnover | 9 c | 21 c |
Administrative Class | |
4-Month Period Ended October 31, 2017g | Period Ended June 30, 2017f |
$17.65 | $16.76 |
0.01 e | 0.01 e |
1.16 | 0.88 |
1.17 | 0.89 |
— | — |
— | — |
— | — |
— | — |
18.82 | 17.65 |
$ 12 | $ 11 |
6.63% c | 5.31% c |
1.43 d | 1.93 d |
0.95 d | 0.95 d |
0.10 d | 0.19 d |
9 c | 21 c |
Retirement Class | |
4-Month Period Ended October 31, 2017g | Period Ended June 30, 2017f |
$17.67 | $16.76 |
0.05 e | 0.03 e |
1.14 | 0.88 |
1.19 | 0.91 |
— | — |
— | — |
— | — |
18.86 | 17.67 |
$ 435 | $ 316 |
6.73% c | 5.43% c |
1.10 d | 1.52 d |
0.62 d | 0.62 d |
0.42 d | 0.58 d |
9 c | 21 c |
Selected Data for a Share Outstanding for the Periods Presented
* | 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 6, 2017 (commencement of operations) through June 30, 2017 |
g | For the period July 1, 2017 through October 31, 2017 |
Notes to Financial Statements—October 31, 2017
Predecessor Fund’s Shares Outstanding at Valuation Date (000s) | Predecessor Fund’s Net Assets at Valuation Date (000s) | Institutional Class Shares’ Net Asset Value Per Share Issued | Institutional Class Shares Issued in the Reorganization (000s) | Net Unrealized Appreciation (000s) | ||||
1,753 | $29,486 | $16.82 | 1,753 | $6,499 |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
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 the Fund’s own assumptions. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Purchases (000s) | Sales (000s) | ||
Harbor Strategic Growth Fund | $25,120 | $3,560 |
Notes to Financial Statements—Continued
Contractual Rate | |
Harbor Strategic Growth Fund | 0.60% a |
a | Reflects the period March 6, 2017 (date of Reorganization) through October 31, 2017. |
Notes to Financial Statements—Continued
Transfer Agent Feesa | |
Institutional Class | 0.09% of the average daily net assets of all Institutional Class shares |
Administrative Class | 0.09% of the average daily net assets of all Administrative Class shares |
Investor Class | 0.21% of the average daily net assets of all Investor Class shares |
Retirement Class | 0.01% of the average daily net assets of all Retirement Class shares |
a | For the period March 6, 2017 (date of Reorganization) through October 31, 2017. |
Amount (000s) | |
Administration & Fund Accounting | $24 |
Custody | 4 |
Transfer Agencya | 25 |
Chief Compliance Officer | 8 |
a | Does not include out-of-pocket expenses |
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 | |||||||
Harbor Strategic Growth Fund | 1,099,721 | 603 | 603 | 10,133 | 1,111,060 | 37.0% |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Undistributed Net Investment Income/(Loss) (000s) | Accumulated Net Realized Gain/(Loss) (000s) | Paid in Capital (000s) | |||
Harbor Strategic Growth Fund | $(4) | $(67) | $71 |
As of October 31, 2017 | As of June 30, 2017 | ||||||||||
Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | ||||||
Harbor Strategic Growth Fund | $— | $— | $— | $193 | $205 | $398 |
Undistributed Ordinary Income (000s) | Undistributed Long-Term Capital Gains (000s) | Net Unrealized Appreciation/ (Depreciation) (000s) | |||
Harbor Strategic Growth Fund | $132 | $1,034 | $9,682 |
Identified Cost (000s) | Gross Unrealized | Net Unrealized Appreciation/ (Depreciation) (000s) | |||||
Appreciation (000s) | (Depreciation) (000s) | ||||||
Harbor Strategic Growth Fund | $47,292 | $10,099 | $(417) | $9,682 |
Report of Independent Registered Public Accounting Firm
December 21, 2017
Fees and Expenses Example (Unaudited)
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Strategic Growth Fund | ||||||||
Institutional Class | 0.70% | |||||||
Actual | $3.70 | 1,000 | $1,095.90 | |||||
Hypothetical (5% return) | 3.57 | 1,000 | 1,021.59 | |||||
Administrative Class | 0.95% | |||||||
Actual | $5.02 | 1,000 | $1,094.20 | |||||
Hypothetical (5% return) | 4.84 | 1,000 | 1,020.30 | |||||
Investor Class | 1.07% | |||||||
Actual | $5.64 | 1,000 | $1,094.20 | |||||
Hypothetical (5% return) | 5.45 | 1,000 | 1,019.68 | |||||
Retirement Class | 0.62% | |||||||
Actual | $3.28 | 1,000 | $1,096.50 | |||||
Hypothetical (5% return) | 3.16 | 1,000 | 1,022.00 |
* | Reflective of all fee waivers and expense reimbursements |
** | Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Additional Information (Unaudited)
Percentage of Distribution | |
Harbor Strategic Growth Fund | 100% |
Amount (000s) | |
Harbor Strategic Growth Fund | $63 |
Trustee | For | Withhold | ||
Scott M. Amero | 1,047,869,265 | 14,860,642 | ||
Joseph L. Dowling III | 1,046,335,272 | 16,394,636 | ||
Robert A. Kasdin | 1,047,514,035 | 15,215,872 | ||
Charles F. McCain | 1,047,667,935 | 15,061,973 | ||
Kathryn L. Quirk | 1,046,812,694 | 15,917,214 | ||
Ann M. Spruill | 1,047,274,165 | 15,455,742 |
Additional Information—Continued
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Strategic Growth Funda | 910,417 | 12,112 | 6,367 | 630,438 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Strategic Growth Funda | 909,963 | 12,566 | 6,367 | 630,438 |
a | Meeting held on October 18, 2017 |
Additional Information—Continued
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 (54) Trustee | Since 2014 | Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation nonprofit); Trustee, Berkshire School (2014-Present); 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), BlackRock, Inc., (publicly traded investment management firm). | 32 | None |
Raymond J. Ball (73) 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). | 32 | None |
Donna J. Dean (66) Trustee | Since 2010 | Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present). | 32 | None |
Joseph L. Dowling III (53) Trustee | Since 2017 | Chief Investment Officer, Brown University (2013-Present); Advisory Board Member, Stage Point Capital (private mortgage specialist) (2016-Present); Advisory Board Member, Harbor Funds (2016-2017); and Founder and Managing Member, Narragansett Asset Management (private investment management firm) (1998-2013). | 32 | Director of Integrated Electrical Services (2011-Present). |
Randall A. Hack (70) Trustee | Since 2010 | Founder and Senior Managing Director of Capstone Capital LLC (private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (private equity firm) (2002-2013). | 32 | None |
Robert Kasdin (59) Trustee | Since 2014 | Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee and Co-Chair of the Finance Committee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014). | 32 | Director of Noranda Aluminum Holdings Corporation (2007-2014); and Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present). |
Additional Information—Continued
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—Continued | ||||
Kathryn L. Quirk (65) Trustee | Since 2017 | Retired; Vice President, Senior Compliance Officer and Head, U.S. Regulatory Compliance, Goldman Sachs Asset Management (2013-2017); Deputy Chief Legal Officer, Asset Management, and Vice President and Corporate Counsel, Prudential Insurance Company of America (2010-2012); Co-Chief Legal Officer, Prudential Investment Management, Inc., and Chief Legal Officer, Prudential Investments and Prudential Mutual Funds (2008-2012); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America, and Chief Legal Officer, Prudential Investments (2005-2008); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America (2004-2005); Member, Management Committee (2000-2002), General Counsel and Chief Compliance Officer, Zurich Scudder Investments, Inc. (1997-2002). | 32 | None |
Ann M. Spruill (63) 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). | 32 | None |
INTERESTED TRUSTEE | ||||
Charles F. McCain (48)* Chairman, Trustee and President | Since 2017 | Chief Executive Officer (2017-Present), Director (2007-Present), President and Chief Operating Officer (2017), Executive Vice President and General Counsel (2004-2017), and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-2017), Harbor Services Group, Inc.; and Chief Executive Officer (2017-Present), Director (2007-Present), Chief Compliance Officer and Executive Vice President (2007-2017), Harbor Funds Distributors, Inc. | 32 | None |
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE** | ||
Erik D. Ojala (42) Chief Compliance Officer and Secretary | Since 2017 Since 2007 | Executive Vice President and General Counsel (2017-Present) and Secretary (2010-Present); Senior Vice President and Associate General Counsel (2007-2017), Harbor Capital Advisors, Inc.; Director, Executive Vice President and Chief Compliance Officer (2017-Present), Harbor Funds Distributors, Inc.; and Director (2017-Present) and Assistant Secretary (2014-Present), Harbor Services Group, Inc. |
Anmarie S. Kolinski (46) 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. |
Brian L. Collins (49) Vice President | Since 2005 | Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc. |
Charles P. Ragusa (58) 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) and OFAC Officer (2015-Present), Harbor Funds Distributors, Inc. |
Jodie L. Crotteau (45) Assistant Secretary | Since 2014 | Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Chief Compliance Officer and Secretary (2017-present) and Assistant Secretary (2015-2016), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); and Vice President, Grosvenor Capital Management, L.P. (2010-2014). |
Additional Information—Continued
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE**—Continued | ||
Lana M. Lewandowski (38) AML Compliance Officer and Assistant Secretary | Since 2017 | Legal & Compliance Manager (2016-Present) and Legal Specialist (2012-2015), Harbor Capital Advisors, Inc. |
Lora A. Kmieciak (53) Assistant Treasurer | Since 2017 | Senior Vice President – Fund Administration and Analysis (2017-Present) and Senior Vice President - Business Analysis (2015-2017), Harbor Capital Advisors, Inc.; and Assurance Executive Director (1999-2015), Ernst & Young LLP. |
John M. Paral (49) Assistant Treasurer | Since 2013 | Director of Fund Administration and Analysis (2017-Present), Vice President (2012-Present) and Financial Reporting Manager (2007-2017), Harbor Capital Advisors, Inc. |
1 | Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually. |
* | Mr. McCain 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. |
111 South Wacker Drive, 34th Floor | Chicago, IL 60606-4302 | 800-422-1050 | harborfunds.com |
Chairman, President & Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Treasurer
Chief Compliance Officer
& Secretary
Vice President
Vice President
Assistant Secretary
AML Compliance Officer
& Assistant Secretary
Assistant Treasurer
Assistant Treasurer
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900
Table of Contents
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 Growth Fund | HAIGX | HRIGX | HIIGX | HNGFX |
Harbor International Small Cap Fund | HAISX | HRISX | HIISX | HNISX |
Harbor Global Leaders Fund | HGGAX | HRGAX | HGGIX | HNGIX |
Harbor Emerging Markets Equity Fund | HAEMX | HREMX | HIEEX | HNEMX |
1 | |
3 | |
Harbor International Fund | |
5 | |
7 | |
8 | |
9 | |
Harbor Diversified International All Cap Fund | |
13 | |
15 | |
16 | |
17 | |
Harbor International Growth Fund | |
24 | |
26 | |
27 | |
28 | |
Harbor International Small Cap Fund | |
31 | |
34 | |
35 | |
36 | |
Harbor Global Leaders Fund | |
40 | |
42 | |
43 | |
44 | |
Harbor Emerging Markets Equity Fund | |
46 | |
48 | |
49 | |
50 | |
Financial Statements | |
54 | |
55 | |
57 | |
63 | |
76 | |
88 | |
89 | |
Additional Information | |
92 | |
92 | |
92 | |
93 | |
93 | |
94 | |
97 | |
98 |
Annual Report Overview (Unaudited)
Total Return Year Ended October 31, 2017 | |||||||
HARBOR INTERNATIONAL & GLOBAL FUNDS | Institutional Class | Administrative Class | Investor Class | Retirement Class | |||
Harbor International Fund | 18.24% | 17.93% | 17.79% | 18.30% | |||
Harbor Diversified International All Cap Fund | 22.29 | 21.91 | 21.82 | 22.35 | |||
Harbor International Growth Fund | 23.38 | 23.08 | 22.89 | 23.52 | |||
Harbor International Small Cap Fund | 30.59 | 30.25 | 30.10 | 30.67 | |||
Harbor Global Leaders Fund | 24.74 | 24.48 | 24.28 | 24.84 | |||
Harbor Emerging Markets Equity Fund | 27.54 | 27.04 | 27.00 | 27.62 |
COMMONLY USED MARKET INDICES | Total Return Year Ended October 31, 2017 |
MSCI EAFE (ND) (foreign stocks) | 23.44% |
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 |
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 |
MSCI All Country World (ND) (global equity) | 23.20 |
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 |
Annual Report Overview—Continued
EXPENSE RATIOS1 | Morningstar Average2 | ||||||||||
INTERNATIONAL AND GLOBAL FUNDS | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||
Harbor International Fund | |||||||||||
Institutional Class | 0.74% | 0.73% | 0.74% | 0.77% | 0.80% | 0.95% | |||||
Administrative Class | 0.99 | 0.98 | 0.99 | 1.02 | 1.05 | 1.35 | |||||
Investor Class | 1.11 | 1.10 | 1.11 | 1.14 | 1.17 | 1.36 | |||||
Retirement Class | N/A | N/A | N/A | 0.72 a | 0.73 | 0.88 | |||||
Harbor Diversified International All Cap Fund | |||||||||||
Institutional Class | N/A | N/A | N/A | 0.85% b | 0.85% | 0.95% | |||||
Administrative Class | N/A | N/A | N/A | 1.10 b | 1.10 | 1.35 | |||||
Investor Class | N/A | N/A | N/A | 1.22 b | 1.22 | 1.36 | |||||
Retirement Class | N/A | N/A | N/A | 0.80 a | 0.77 | 0.88 | |||||
Harbor International Growth Fund | |||||||||||
Institutional Class | 0.89% | 0.85% | 0.85% | 0.85% | 0.85% | 0.96% | |||||
Administrative Class | 1.14 | 1.10 | 1.10 | 1.10 | 1.10 | 1.34 | |||||
Investor Class | 1.26 | 1.22 | 1.22 | 1.22 | 1.22 | 1.37 | |||||
Retirement Class | N/A | N/A | N/A | 0.80 a | 0.77 | 0.90 | |||||
Harbor International Small Cap Fund | |||||||||||
Institutional Class | N/A | N/A | N/A | 0.95% c | 0.95% | 1.26% | |||||
Administrative Class | N/A | N/A | N/A | 1.20 c | 1.20 | 1.58 | |||||
Investor Class | N/A | N/A | N/A | 1.32 c | 1.32 | 1.60 | |||||
Retirement Class | N/A | N/A | N/A | 0.90 c | 0.87 | 1.22 | |||||
Harbor Global Leaders Fund | |||||||||||
Institutional Class | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.97% | |||||
Administrative Class | 1.15 | 1.15 | 1.15 | 1.15 | 1.15 | 1.25 | |||||
Investor Class | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.31 | |||||
Retirement Class | N/A | N/A | N/A | 0.85 a | 0.83 | 0.91 | |||||
Harbor Emerging Markets Equity Fund | |||||||||||
Institutional Class | N/A | 1.25% | 1.17% | 1.15% | 1.15% | 1.23% | |||||
Administrative Class | N/A | 1.50 | 1.43 | 1.40 | 1.40 | 1.62 | |||||
Investor Class | N/A | 1.62 | 1.55 | 1.52 | 1.52 | 1.62 | |||||
Retirement Class | N/A | N/A | N/A | 1.10 a | 1.08 | 1.20 |
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, 2017 Morningstar Universe with the same investment style as the comparable Harbor Funds 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. |
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 |
Charles F. McCain Chairman |
Returns For Periods Ended October 31, 2017 | ||||||||
Annualized | ||||||||
International & Global | 1 Year | 5 Years | 10 Years | 30 Years | ||||
MSCI EAFE (ND) (foreign stocks) | 23.44% | 8.53% | 1.10% | 5.62% | ||||
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 | 13.03 | 4.18 | N/A | ||||
MSCI World (ND) (global stocks) | 22.77 | 11.56 | 4.10 | 7.44 | ||||
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 | 7.29 | 0.92 | N/A | ||||
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 | 4.83 | 0.60 | N/A | ||||
Domestic Equities | ||||||||
Russell 3000® (entire U.S. stock market) | 23.98% | 15.12% | 7.61% | 10.60% | ||||
S&P 500 (large cap stocks) | 23.63 | 15.18 | 7.51 | 10.50 | ||||
Russell Midcap® (mid cap stocks) | 21.09 | 14.87 | 8.09 | 12.11 | ||||
Russell 2000® (small cap stocks) | 27.85 | 14.49 | 7.63 | 10.45 | ||||
Russell 3000® Growth (growth stocks) | 29.80 | 16.71 | 9.05 | 10.16 | ||||
Russell 3000® Value (value stocks) | 18.30 | 13.48 | 6.07 | 10.68 | ||||
Strategic Markets | ||||||||
Bloomberg Commodity Index Total ReturnSM (commodities) | 2.35% | -9.37% | -6.93% | N/A | ||||
Fixed Income | ||||||||
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62% | 6.33% | 6.69% | N/A | ||||
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 | 2.04 | 4.19 | 6.43% | ||||
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds) | -0.11 | -0.11 | 3.81 | N/A | ||||
ICE BofAML U.S. 3-Month Treasury Bill (proxy for money market returns) | 0.72 | 0.24 | 0.45 | 3.35 |
Charles F. McCain |
Chairman |
Managers' Commentary (Unaudited)
Suite 1410
Since 2009
Since 2009
Since 2009
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of Net Assets) | |
Las Vegas Sands Corp. | 6.4% |
Schlumberger Ltd. | 3.7% |
Alibaba Group Holding Ltd. ADR | 3.4% |
Wynn Resorts Ltd. | 3.2% |
Vivendi SA | 3.0% |
Bayer AG | 2.8% |
Fanuc Corp. | 2.7% |
Reckitt Benckiser Group plc | 2.3% |
Atlas Copco AB Class A | 2.2% |
Heineken NV | 2.2% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2011 |
Cusip | 411511306 |
Ticker | HAINX |
Inception Date | 12/29/1987 |
Net Expense Ratio | 0.80% a |
Total Net Assets (000s) | $27,401,853 |
ADMINISTRATIVE CLASS | |
Fund # | 2211 |
Cusip | 411511652 |
Ticker | HRINX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.05% a |
Total Net Assets (000s) | $398,584 |
INVESTOR CLASS | |
Fund # | 2411 |
Cusip | 411511645 |
Ticker | HIINX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.17% a |
Total Net Assets (000s) | $1,798,228 |
RETIREMENT CLASS | |
Fund # | 2511 |
Cusip | 411512445 |
Ticker | HNINX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.73% a |
Total Net Assets (000s) | $2,657,442 |
Portfolio | Benchmark | ||
Number of Countries | 20 | 24 | |
Weighted Average Market Cap (MM) | $73,780 | $62,944 | |
Price/Earning Ratio (P/E) | 27.4x | 19.6x | |
Price/Book Ratio (P/B) | 3.0x | 2.3x | |
Beta vs. MSCI EAFE (ND) Index | 0.99 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 13% | N/A |
a | Reflects a contractual management fee waiver effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor International Fund | ||||||||||||||
Institutional Class | 18.24% | 6.14% | 1.34% | 12/29/1987 | $57,100 | |||||||||
Administrative Class | 17.93 | 5.87 | 1.08 | 11/01/2002 | 55,681 | |||||||||
Investor Class | 17.79 | 5.75 | 0.96 | 11/01/2002 | 55,023 | |||||||||
Retirement Class1 | 18.30 | 6.16 | 1.35 | 03/01/2016 | 57,148 | |||||||||
Comparative Index | ||||||||||||||
MSCI EAFE (ND) | 23.44% | 8.53% | 1.10% | — | $55,795 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—96.9% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—2.0% | |||
50,948,148 | Rolls-Royce Holdings plc (UK)* | $ 658,402 | |
AUTO COMPONENTS—2.0% | |||
4,533,489 | Cie Generale des Etablissements Michelin (FR) | 656,206 | |
BANKS—6.3% | |||
60,827,865 | Banco Bilbao Vizcaya Argentaria SA (SP) | 531,907 | |
12,909,237 | Bancolombia SA ADR (COL)1 | 487,324 | |
4,157,416 | Bawag Group AG (AUT)*,2 | 220,346 | |
3,455,732 | Erste Group Bank AG (AUT) | 148,337 | |
63,585,684 | Standard Chartered plc (UK)* | 633,305 | |
2,021,219 | |||
BEVERAGES—8.4% | |||
8,761,000 | AmBev SA (BR) | 55,973 | |
8,799,909 | AmBev SA ADR (BR)1 | 55,703 | |
4,922,119 | Anheuser-Busch InBev SA (BEL) | 603,556 | |
2,893,028 | Becle SAB de CV (MEX)* | 4,621 | |
17,616,700 | Diageo plc (UK) | 601,589 | |
7,393,357 | Heineken NV (NET) | 720,355 | |
4,358,853 | Pernod Ricard SA (FR)3 | 653,584 | |
436,900 | Sapporo Holdings Ltd. (JP) | 13,845 | |
2,709,226 | |||
BIOTECHNOLOGY—2.2% | |||
14,339,753 | Shire plc (UK) | 706,313 | |
CAPITAL MARKETS—2.3% | |||
2,600,182 | Deutsche Boerse AG (GER) | 269,287 | |
27,121,382 | UBS Group AG (SWS)* | 461,419 | |
730,706 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
CHEMICALS—4.3% | |||
6,871,396 | Bayer AG (GER) | $ 893,823 | |
2,264,319 | Linde AG (GER)* | 487,823 | |
1,381,646 | |||
CONSTRUCTION MATERIALS—2.5% | |||
85,152,553 | Cementos Argos SA (COL) | 310,709 | |
24,495,290 | Grupo Argos SA (COL) | 159,756 | |
5,777,146 | LafargeHolcim Ltd. (SWS)* | 326,206 | |
796,671 | |||
DIVERSIFIED FINANCIAL SERVICES—2.1% | |||
14,847,660 | Grupo Aval Acciones y Valores SA ADR (COL)1 | 123,532 | |
20,169,521 | Grupo de Inversiones Suramericana SA (COL) | 256,060 | |
6,028,372 | Investor AB (SW) | 298,686 | |
678,278 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—0.5% | |||
45,597,960 | Telecom Italia RSP (IT) | 32,396 | |
142,499,491 | Telecom Italia SpA (IT)* | 123,302 | |
155,698 | |||
ELECTRICAL EQUIPMENT—1.9% | |||
6,977,072 | Schneider Electric SE (FR) | 613,014 | |
ENERGY EQUIPMENT & SERVICES—3.7% | |||
18,813,393 | Schlumberger Ltd. (US) | 1,204,057 | |
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—3.2% | |||
157,838,892 | Fibra Uno Administracion SA de CV (MEX) | 247,645 | |
10,528,928 | Great Portland Estates plc (UK) | 86,976 | |
12,682,720 | Land Securities Group plc (UK) | 162,894 | |
2,174,795 | Unibail-Rodamco SE (FR) | 544,367 | |
1,041,882 | |||
FOOD PRODUCTS—1.5% | |||
5,805,086 | Nestlé SA (SWS) | 488,431 | |
HEALTH CARE EQUIPMENT & SUPPLIES—5.6% | |||
62,421,940 | ConvaTec Group plc (UK)2 | 162,410 | |
4,699,353 | Essilor International SA (FR) | 594,951 | |
9,409,750 | Hoya Corp. (JP) | 511,238 | |
14,126,498 | Olympus Corp. (JP) | 525,713 | |
1,794,312 | |||
HEALTH CARE PROVIDERS & SERVICES—1.4% | |||
5,205,927 | Fresenius SE & Co. KGaA (GER) | 435,820 | |
HOTELS, RESTAURANTS & LEISURE—9.7% | |||
32,666,210 | Las Vegas Sands Corp. (US) | 2,070,384 | |
10,654,156 | MGM China Holdings Ltd. (CHN) | 24,035 | |
7,003,897 | Wynn Resorts Ltd. (US) | 1,033,005 | |
3,127,424 | |||
HOUSEHOLD PRODUCTS—2.3% | |||
8,462,572 | Reckitt Benckiser Group plc (UK) | 757,118 | |
INSURANCE—5.5% | |||
2,487,519 | Allianz SE (GER) | 580,733 | |
17,617,919 | AXA SA (FR) | 531,857 | |
15,468,091 | Tokio Marine Holdings Inc. (JP) | 666,786 | |
1,779,376 | |||
INTERNET SOFTWARE & SERVICES—3.4% | |||
5,940,375 | Alibaba Group Holding Ltd. ADR (CHN)*,1 | 1,098,316 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
MACHINERY—6.2% | |||
16,355,184 | Atlas Copco AB Class A (SW)3 | $ 717,199 | |
3,668,292 | Fanuc Corp. (JP) | 857,734 | |
561,316 | SMC Corp. (JP) | 214,737 | |
8,626,450 | Weir Group plc (UK) | 223,638 | |
2,013,308 | |||
MEDIA—6.3% | |||
6,535,977 | Dentsu Inc. (JP) | 279,569 | |
10,271,955 | Grupo Televisa SAB ADR (MEX)1 | 224,853 | |
5,096,534 | JCDecaux SA (FR) | 194,964 | |
5,723,576 | Liberty Global plc Class A (UK)* | 176,572 | |
5,234,688 | Liberty Global plc Class C (UK)* | 156,465 | |
605,323 | Liberty Global plc LiLAC Class A (UK)* | 13,148 | |
715,996 | Liberty Global plc LiLAC Class C (UK)* | 15,752 | |
39,171,744 | Vivendi SA (FR) | 972,704 | |
2,034,027 | |||
METALS & MINING—0.3% | |||
6,329,002 | Barrick Gold Corp. (CAN) | 91,454 | |
OIL, GAS & CONSUMABLE FUELS—0.7% | |||
10,933,700 | Statoil ASA (NOR)3 | 222,146 | |
PERSONAL PRODUCTS—1.8% | |||
2,534,330 | L'Oreal SA (FR) | 564,049 | |
PHARMACEUTICALS—4.5% | |||
7,514,882 | Novartis AG (SWS) | 619,822 | |
10,913,942 | Novo Nordisk AS (DEN) | 543,392 | |
21,049,470 | Teva Pharmaceutical Industries Ltd. ADR (IL)1 | 290,483 | |
1,453,697 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.9% | |||
3,448,719 | ASML Holding NV (NET) | 622,250 | |
SOFTWARE—1.6% | |||
4,540,541 | SAP SE (GER) | 518,813 | |
TEXTILES, APPAREL & LUXURY GOODS—1.8% | |||
5,525,582 | Cie Financiere Richemont SA (SWS) | 509,383 | |
124,717 | Hermes International (FR) | 64,741 | |
574,124 | |||
TOBACCO—1.0% | |||
9,978,010 | Japan Tobacco Inc. (JP) | 330,274 | |
TOTAL COMMON STOCKS | |||
(Cost $21,990,554) | 31,258,257 | ||
PREFERRED STOCKS—0.4% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—0.0% | |||
2,403,609,204 | Rolls-Royce Holdings plc (UK)* | $ 3,192x | |
CONSTRUCTION MATERIALS—0.2% | |||
12,490,019 | Grupo Argos SA (COL) | 75,547 | |
DIVERSIFIED FINANCIAL SERVICES—0.2% | |||
4,581,621 | Grupo de Inversiones Suramericana SA (COL) | 56,569 | |
TOTAL PREFERRED STOCKS | |||
(Cost $135,952) | 135,308 | ||
SHORT-TERM INVESTMENTS—4.0% | |||
Principal Amount | |||
COMMERCIAL PAPER—1.7% | |||
Exxon Mobil Corp. | |||
$ | 100,000 | 1.060%—11/06/2017 | 100,000 |
General Electric Co. | |||
300,000 | 1.080%—11/01/2017 | 300,000 | |
Toyota Motor Credit | |||
150,000 | 1.110%—11/03/2017 | 150,000 | |
550,000 | |||
REPURCHASE AGREEMENTS—0.9% | |||
279,781 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $285,379) | 279,781 | |
Shares | |||
INVESTMENT COMPANY-SECURITIES LENDING INVESTMENT FUND—1.4% | |||
450,732,932 | State Street Navigator Securities Lending Government Money Market Portfolio (1-day yield of 1.000%)4 | 450,733 | |
TOTAL SHORT-TERM INVESTMENTS | |||
(Cost $1,280,514) | 1,280,514 | ||
TOTAL INVESTMENTS—101.3% | |||
(Cost $23,407,020) | 32,674,079 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(1.3)% | (417,972) | ||
TOTAL NET ASSETS—100.0% | $32,256,107 |
Description | No. of Contracts | Strike Price | Expiration Date | Cost (000s) | Value (000s) | |||||
Genting Bhd | 30,633,782 | MYR$ 9.05 | 12/18/2018 | $ 14,434 | $10,999 |
Portfolio of Investments—Continued
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 | $1,070,105 | $19,050,344 | $20,120,449 | |||||
Latin America | 1,926,177 | — | $ — | 1,926,177 | ||||
Middle East/Central Asia | 290,483 | — | — | 290,483 | ||||
North America | 4,398,900 | — | — | 4,398,900 | ||||
Pacific Basin | 1,098,316 | 3,423,932 | — | 4,522,248 | ||||
Preferred Stocks | ||||||||
Europe | — | 3,192 | 3,192 | |||||
Latin America | 132,116 | — | — | 132,116 | ||||
Short-Term Investments | ||||||||
Commercial Paper | — | 550,000 | — | 550,000 | ||||
Repurchase Agreements | — | 279,781 | — | 279,781 | ||||
Investment Company-Securities Lending Investment Fund | 450,733 | — | — | 450,733 | ||||
Total Investments in Securities | $9,366,830 | $23,304,057 | $3,192 | $32,674,079 | ||||
Financial Derivative Instruments - Assets | ||||||||
Rights/Warrants | $ 10,999 | $ — | $ — | $ 10,999 | ||||
Total Investments | $9,377,829 | $23,304,057 | $3,192 | $32,685,078 |
Valuation Description | Balance Beginning at 11/01/2016 (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 10/31/2017w (000s) | |||||||||
Preferred Stocks | $4,508 | $3,185 | $(4,521) | $— | $— | $20 | $— | $— | $3,192 |
Valuation Descriptions | Ending Balance as of 10/31/2017 (000s) | Valuation Technique | Unobservable Inputs | Input Value(s) | ||||
Investments in Securities | ||||||||
Preferred Stocks | ||||||||
Rolls-Royce Holdings plc (UK)* | $3,192 | Market Approach | Pre-Traded Price | £ 0.001 |
Security Name | Beginning Balance as of 11/01/2016 (000s) | Purchases (000s) | Sales (000s) | Net Realized Gain/(Loss) (000s) | Change in Unrealized Appreciation/ (Depreciation) (000s) | Net Dividend Income (000s) | Ending Balance as of 10/31/2017 (000s) | |||||||
Wynn Resorts Ltd. (US) | $1,015,042 | $ – | $(423,323) | $35,270 | $406,016 | $188,528 | $1,033,005 | |||||||
Cementos Argos SA (COL) | 314,001 | 24,166 | – | – | (27,458) | 6,029 | 310,709 | |||||||
$1,329,043 | $24,166 | $(423,323) | $35,270 | $378,558 | $194,557 | $1,343,714 |
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 | 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, 2017, the aggregate value of these securities was $382,756,000 or 1% of net assets. | ||
3 | All or a portion of this security was out on loan as of October 31, 2017. | ||
4 | Represents the investment of collateral received from securities lending activities. | ||
w | 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 10/31/2017 (000s) | ||
Preferred Stocks | $7 | ||
x | Fair Valued in accordance with Harbor Funds Valuation Procedures using pre-traded price which is a Level 3 input | ||
£ | British Pound | ||
€ | Euro | ||
MYR$ | Malaysian Ringgit |
Managers' Commentary (Unaudited)
London, WC2H 9EA
England
Since 2015
Since 2015
Since 2015
Since 2015
Since 2015
Since 2015
Since 2015
Since 2016
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of Net Assets) | |
Samsung Electronics Co. Ltd. | 1.5% |
Fairfax Financial Holdings Ltd. | 1.1% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1.1% |
Intertek Group plc | 1.0% |
Brookfield Asset Management Inc. | 0.8% |
Nippon Telegraph & Telephone Corp. | 0.8% |
Sampo OYJ | 0.8% |
Vestas Wind Systems AS | 0.8% |
Compass Group plc | 0.7% |
Fresenius Medical Care AG & Co. KGaA | 0.7% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2038 |
Cusip | 411512593 |
Ticker | HAIDX |
Inception Date | 11/02/2015 |
Net Expense Ratio | 0.85% a |
Total Net Assets (000s) | $225,473 |
ADMINISTRATIVE CLASS | |
Fund # | 2238 |
Cusip | 411512585 |
Ticker | HRIDX |
Inception Date | 11/02/2015 |
Net Expense Ratio | 1.10% a |
Total Net Assets (000s) | $310 |
INVESTOR CLASS | |
Fund # | 2438 |
Cusip | 411512577 |
Ticker | HIIDX |
Inception Date | 11/02/2015 |
Net Expense Ratio | 1.22% a |
Total Net Assets (000s) | $5,195 |
RETIREMENT CLASS | |
Fund # | 2538 |
Cusip | 411512437 |
Ticker | HNIDX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.77% a |
Total Net Assets (000s) | $92,442 |
Portfolio | Benchmark | ||
Number of Countries | 38 | 48 | |
Weighted Average Market Cap (MM) | $37,944 | $70,182 | |
Price/Earning Ratio (P/E) | 22.2x | 19.3x | |
Price/Book Ratio (P/B) | 2.6x | 2.4x | |
Beta vs. MSCI All Country World Ex. U.S. (ND) Index | 0.81 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 46% | N/A |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | 5 Years | Annualized | Inception Date | Final Value of a $50,000 Investment | |||||||||
Life of Fund | ||||||||||||||
Harbor Diversified International All Cap Fund | ||||||||||||||
Institutional Class | 22.29% | N/A | 9.35% | 11/02/2015 | $59,771 | |||||||||
Administrative Class | 21.91 | N/A | 9.05 | 11/02/2015 | 59,441 | |||||||||
Investor Class | 21.82 | N/A | 8.94 | 11/02/2015 | 59,325 | |||||||||
Retirement Class1 | 22.35 | N/A | 9.38 | 03/01/2016 | 59,801 | |||||||||
Comparative Index | ||||||||||||||
MSCI All Country World Ex. U.S. (ND)2 | 23.64% | N/A | 11.33% | — | $61,958 |
1 | 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. |
2 | The “Life of Fund” return and “Final Value of a $50,000 Investment” as shown reflects the period 11/02/2015 through 10/31/2017. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—95.7% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—1.6% | |||
14,004 | Airbus SE (FR) | $ 1,437 | |
136,052 | BAE Systems plc (UK) | 1,072 | |
52,378 | Embraer SA (BR)* | 251 | |
87,327 | Rolls-Royce Holdings plc (UK)* | 1,128 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
AEROSPACE & DEFENSE—Continued | |||
5,256 | Thales SA (FR) | $ 548 | |
31,166 | Zodiac Aerospace (FR) | 891 | |
�� | 5,327 | ||
AIR FREIGHT & LOGISTICS—0.3% | |||
7,770 | Oesterreichische Post AG (AUT) | 345 | |
26,100 | Yamato Holdings Co. Ltd. (JP) | 534 | |
879 | |||
AIRLINES—0.2% | |||
27,093 | EasyJet plc (UK) | 482 | |
3,000 | Japan Airlines Co. Ltd. (JP) | 103 | |
585 | |||
AUTO COMPONENTS—0.7% | |||
12,910 | Magna International Inc. (CAN) | 704 | |
421,788 | Nemak SAB de CV (MEX)1 | 318 | |
16,890 | Nokian Renkaat OYJ (FIN) | 774 | |
18,100 | Sumitomo Electric Industries Ltd. (JP) | 308 | |
500 | Toyota Industries Corp. (JP) | 31 | |
2,135 | |||
AUTOMOBILES—1.4% | |||
11,590 | Bayerische Motoren Werke AG (GER) | 1,189 | |
6,681 | Hyundai Motor Co. (S. KOR) | 961 | |
12,700 | Nissan Motor Co. Ltd. (JP) | 124 | |
329,657 | Piaggio & C. SpA (IT) | 1,078 | |
5,100 | Subaru Corp. (JP) | 176 | |
17,500 | Toyota Motor Corp. (JP) | 1,085 | |
4,613 | |||
BANKS—9.5% | |||
116,507 | Alpha Bank AE (GRC)* | 232 | |
134,045 | Axis Bank Ltd. (IND) | 1,088 | |
13,364 | Banco Santander SA (SP) | 91 | |
19,666 | Bancolombia SA ADR (COL) | 742 | |
190,300 | Bangkok Bank PCL (THA) | 1,106 | |
132,459 | Bank of Ireland Group plc (IE)* | 1,038 | |
140,219 | Bankia SA (SP) | 669 | |
402,200 | Barclays plc (UK) | 992 | |
8,646 | BGEO Group plc (UK) | 408 | |
20,336 | BNP Paribas SA (FR) | 1,587 | |
5,916 | Danske Bank AS (DEN) | 226 | |
16,317 | DBS Group Holdings Ltd. (SGP) | 272 | |
24,897 | DNB ASA (NOR) | 480 | |
254,900 | Equity Group Holdings Ltd. (KEN) | 94 | |
22,000 | Fukuoka Financial Group Inc. (JP) | 113 | |
18,403 | Hana Financial Group Inc. (S. KOR) | 788 | |
196,442 | HSBC Holdings plc (HK) | 1,919 | |
75,862 | Intesa Sanpaolo SpA (IT) | 255 | |
60,200 | Kasikornbank PCL (THA) | 399 | |
13,792 | Komercni Banka AS (CZ) | 593 | |
1,171,103 | Lloyds Banking Group plc (UK) | 1,061 | |
28,400 | Mitsubishi UFJ Financial Group Inc. (JP) | 193 | |
469,000 | Mizuho Financial Group Inc. (JP) | 852 | |
41,677 | Nordea Bank AB (SW) | 504 | |
243,400 | Resona Holdings Inc. (JP) | 1,316 | |
11,008 | Royal Bank of Canada (CAN) | 861 | |
31,143 | Sberbank of Russia PJSC ADR (RUS) | 447 | |
51,958 | Shinhan Financial Group Co. Ltd. (S. KOR) | 2,334 | |
78,075 | Standard Bank Group Ltd. (S. AFR) | 907 | |
112,585 | Standard Chartered plc (UK)* | 1,121 | |
41,400 | Sumitomo Mitsui Financial Group Inc. (JP) | 1,659 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
BANKS—Continued | |||
12,100 | Sumitomo Mitsui Trust Holdings Inc. (JP) | $ 478 | |
103,600 | Svenska Handelsbanken AB (SW) | 1,485 | |
15,902 | Toronto-Dominion Bank (CAN) | 904 | |
440,767 | Turkiye Garanti Bankasi AS (TUR) | 1,214 | |
77,378 | Unicredit SpA (IT)* | 1,479 | |
40,415 | United Overseas Bank Ltd. (SGP) | 730 | |
30,637 | |||
BEVERAGES—3.9% | |||
14,414 | Anheuser-Busch InBev SA (BEL) | 1,767 | |
7,229 | Carlsberg AS (DEN) | 826 | |
412,666 | China Resources Beer Holdings Co. Ltd. (CHN)* | 1,191 | |
77,518 | Cia Cervecerias Unidas SA (CL) | 1,104 | |
126,805 | Coca-Cola Amatil Ltd. (AUS) | 792 | |
36,907 | Davide Campari-Milano SpA (IT) | 295 | |
48,723 | Diageo plc (UK) | 1,664 | |
41,400 | East African Breweries Ltd. (KEN) | 98 | |
17,891 | Heineken NV (NET) | 1,743 | |
17,867 | Hite Jinro Co. Ltd. (S. KOR) | 425 | |
87,300 | Kirin Holdings Co. Ltd. (JP) | 2,096 | |
3,000 | Suntory Beverage & Food Ltd. (JP) | 138 | |
128,000 | Tsingtao Brewery Co. Ltd. (CHN) | 536 | |
12,675 | |||
BUILDING PRODUCTS—1.6% | |||
103,291 | Assa Abloy AB Class B (SW) | 2,178 | |
4,773 | Geberit AG (SWS) | 2,161 | |
33,800 | LIXIL Group Corp. (JP) | 931 | |
5,270 | |||
CAPITAL MARKETS—2.7% | |||
118,697 | 3i Group plc (UK) | 1,515 | |
39,743 | Banco Btg Pactual SA (BR)* | 267 | |
63,531 | Brookfield Asset Management Inc. (CAN) | 2,665 | |
8,039 | Close Brothers Group plc (UK) | 148 | |
66,702 | IG Group Holdings plc (UK) | 579 | |
58,574 | Jupiter Fund Management plc (UK) | 462 | |
103,337 | Nex Group plc (UK) | 870 | |
126,100 | Nomura Holdings Inc. (JP) | 722 | |
34,493 | St. James's Place plc (UK) | 539 | |
62,656 | UBS Group AG (SWS)* | 1,066 | |
8,833 | |||
CHEMICALS—3.0% | |||
15,514 | Akzo Nobel NV (NET) | 1,401 | |
16,630 | BASF SE (GER) | 1,818 | |
99,638 | DuluxGroup Ltd. (AUS) | 563 | |
19,556 | Enaex SA (CL) | 260 | |
6,500 | Nissan Chemical Industries Ltd. (JP)* | 242 | |
58,417 | Orica Ltd. (AUS) | 936 | |
40,212 | PhosAgro PJSC GDR (RUS)2 | 553 | |
60,000 | Sumitomo Chemical Co. Ltd. (JP) | 422 | |
6,647 | Symrise AG (GER) | 518 | |
119,160 | Tikkurila OYJ (FIN) | 2,355 | |
74,900 | Toray Industries Inc. (JP) | 758 | |
9,826 | |||
COMMERCIAL SERVICES & SUPPLIES—2.3% | |||
1,300 | AEON Delight Co. Ltd. (JP) | 49 | |
774,444 | Cleanaway Waste Management Ltd. (AUS) | 891 | |
23,078 | Edenred (FR) | 665 | |
14,678 | Elis SA (FR) | 383 | |
302,460 | G4S plc (UK) | 1,129 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
COMMERCIAL SERVICES & SUPPLIES—Continued | |||
122,433 | HomeServe plc (UK) | $ 1,392 | |
5,599 | ISS AS (DEN) | 237 | |
36,185 | Ritchie Bros Auctioneers Inc. (CAN) | 1,015 | |
5,690 | S-1 Corp. (S. KOR) | 466 | |
6,200 | Secom Co. Ltd. (JP) | 472 | |
435,428 | Serco Group plc (UK)* | 674 | |
7,373 | |||
COMMUNICATIONS EQUIPMENT—0.1% | |||
47,435 | Telefonaktiebolaget LM Ericsson (SW) | 298 | |
CONSTRUCTION & ENGINEERING—0.9% | |||
18,793 | Boskalis Westminster NV (NET) | 672 | |
17,500 | Maeda Corp. (JP) | 219 | |
95,400 | Obayashi Corp. (JP) | 1,249 | |
52,300 | Shimizu Corp. (JP) | 616 | |
1,800 | SHO-BOND Holdings Co. Ltd. (JP) | 111 | |
2,867 | |||
CONSTRUCTION MATERIALS—0.4% | |||
4,331 | CRH plc (IE) | 163 | |
1,327 | Imerys SA (FR) | 121 | |
3,048 | Vicat SA (FR) | 236 | |
26,523 | Wienerberger AG (AUT) | 680 | |
1,200 | |||
CONSUMER FINANCE—0.4% | |||
7,700 | AEON Financial Service Co. Ltd. (JP) | 166 | |
106,038 | International Personal Finance plc (UK) | 284 | |
121,887 | Non-Standard Finance plc (UK)1 | 123 | |
31,761 | Provident Financial plc (UK) | 393 | |
16,143 | Shriram Transport Finance Co. Ltd. (IND) | 292 | |
1,258 | |||
CONTAINERS & PACKAGING—0.2% | |||
16,285 | Amcor Ltd. (AUS) | 198 | |
31,539 | Orora Ltd. (AUS) | 82 | |
24,500 | Toyo Seikan Group Holdings Ltd. (JP) | 433 | |
713 | |||
DISTRIBUTORS—0.1% | |||
16,739 | Inchcape plc (UK) | 174 | |
DIVERSIFIED FINANCIAL SERVICES—0.1% | |||
518,000 | First Pacific Co. Ltd. (HK) | 395 | |
DIVERSIFIED TELECOMMUNICATION SERVICES—1.8% | |||
17,766 | BCE Inc. (CAN) | 820 | |
68,444 | Deutsche Telekom AG (GER) | 1,239 | |
270,243 | Koninklijke KPN NV (NET) | 930 | |
52,100 | Nippon Telegraph & Telephone Corp. (JP) | 2,519 | |
73,035 | Spark New Zealand Ltd. (NZ) | 184 | |
72,486 | Telkom SA SOC Ltd. (S. AFR) | 272 | |
5,964 | |||
ELECTRIC UTILITIES—0.2% | |||
59,700 | Tohoku Electric Power Co. Inc. (JP) | 783 | |
ELECTRICAL EQUIPMENT—1.8% | |||
27,807 | Legrand SA (FR) | 2,064 | |
950,850 | TECO Electric and Machinery Co. Ltd. (TW) | 888 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
ELECTRICAL EQUIPMENT—Continued | |||
6,600 | Ushio Inc. (JP) | $ 92 | |
29,613 | Vestas Wind Systems AS (DEN) | 2,614 | |
5,658 | |||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.0% | |||
8,500 | Azbil Corp. (JP) | 371 | |
284,000 | Chroma ATE Inc. (TW) | 1,385 | |
132,735 | Delta Electronics Inc. (TW) | 639 | |
251,000 | Hitachi Ltd. (JP) | 1,999 | |
15,000 | Kyocera Corp. (JP) | 1,003 | |
4,200 | Nippon Signal Co. Ltd. (JP) | 46 | |
3,800 | Omron Corp. (JP) | 213 | |
21,454 | Spectris plc (UK) | 729 | |
2,300 | TDK Corp. (JP) | 177 | |
6,562 | |||
ENERGY EQUIPMENT & SERVICES—0.4% | |||
27,017 | John Wood Group plc (UK) | 255 | |
5,639 | Petrofac Ltd. (UK) | 31 | |
178,309 | Saipem SpA (IT)* | 750 | |
4,295 | Technipfmc plc (FR) | 117 | |
14,863 | Vallourec SA (FR)* | 81 | |
1,234 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—0.4% | |||
110,963 | Grivalia Properties REIC AE (GRC) | 1,158 | |
FOOD & STAPLES RETAILING—2.0% | |||
24,157 | Alimentation Couche-Tard Inc. (CAN) | 1,133 | |
54,491 | Almacenes Exito SA (COL) | 293 | |
20,200 | Dairy Farm International Holdings Ltd. (HK) | 165 | |
42,360 | Koninklijke Ahold Delhaize NV (NET) | 797 | |
28,911 | Loblaw Cos. Ltd. (CAN) | 1,492 | |
2,400 | Matsumotokiyoshi Holdings Co. Ltd. (JP) | 173 | |
149,650 | Metcash Ltd. (AUS)* | 309 | |
74,703 | O'Key Group SA GDR (RUS)*,2 | 179 | |
35,000 | Seven & I Holdings Co. Ltd. (JP) | 1,411 | |
159,191 | Tesco plc (UK) | 383 | |
6,335 | |||
FOOD PRODUCTS—2.0% | |||
403,000 | China Mengniu Dairy Co. Ltd. (CHN) | 1,117 | |
69,845 | Devro plc (UK) | 226 | |
75,620 | Industrias Bachoco SAB de CV (MEX) | 372 | |
3,140 | Lotte Confectionery Co. Ltd. (S. KOR) | 209 | |
7,000 | NH Foods Ltd. (JP) | 201 | |
59,300 | Nippon Suisan Kaisha Ltd. (JP) | 363 | |
12,189 | PGG Wrightson Ltd. (NZ) | 5 | |
678,255 | Tingyi Cayman Islands Holding Corp. (CHN) | 1,069 | |
8,700 | Toyo Suisan Kaisha Ltd. (JP) | 335 | |
66,938 | Ulker Biskuvi Sanayi AS (TUR) | 357 | |
12,634 | Viscofan SA (SP) | 765 | |
1,750,000 | Want Want China Holdings Ltd. (CHN) | 1,433 | |
6,452 | |||
GAS UTILITIES—0.1% | |||
6,500 | Tokyo Gas Co. Ltd. (JP) | 162 | |
HEALTH CARE EQUIPMENT & SUPPLIES—2.2% | |||
25,555 | Coloplast AS (DEN) | 2,249 | |
366,845 | ConvaTec Group plc (UK)*,1 | 955 | |
46,191 | GN Store Nord AS (DEN) | 1,529 | |
174,693 | Sigma Healthcare Ltd. (AUS) | 101 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
HEALTH CARE EQUIPMENT & SUPPLIES—Continued | |||
10,977 | Smith & Nephew plc (UK) | $ 207 | |
3,780 | Sonova Holding AG (SWS) | 682 | |
155,400 | Top Glove Corp. Bhd (MAL) | 235 | |
45,039 | William Demant Holding AS (DEN)* | 1,300 | |
7,258 | |||
HEALTH CARE PROVIDERS & SERVICES—1.0% | |||
36,900 | Alfresa Holdings Corp. (JP) | 705 | |
24,551 | Fresenius Medical Care AG & Co. KGaA (GER) | 2,377 | |
3,082 | |||
HOTELS, RESTAURANTS & LEISURE—3.7% | |||
628,000 | Ajisen China Holdings Ltd. (CHN) | 295 | |
15,046 | Carnival plc (UK) | 992 | |
109,094 | Compass Group plc (UK) | 2,395 | |
240,900 | GL Ltd. (SGP) | 164 | |
48,178 | GVC Holdings plc (UK)* | 600 | |
244,712 | Hongkong & Shanghai Hotels Ltd. (HK) | 397 | |
194,104 | Merlin Entertainments plc (UK)1 | 976 | |
15,755 | OPAP SA (GRC) | 177 | |
12,923 | Paddy Power Betfair plc (UK) | 1,323 | |
157,720 | SSP Group plc (UK) | 1,225 | |
619,940 | Thomas Cook Group plc (UK) | 986 | |
147,513 | Tsogo Sun Holdings Ltd. (S. AFR) | 217 | |
69,099 | TUI AG (US) | 1,249 | |
21,717 | Yum China Holdings Inc. (US) | 876 | |
11,872 | |||
HOUSEHOLD DURABLES—0.9% | |||
23,986 | Barratt Developments plc (UK) | 209 | |
11,000 | Casio Computer Co. Ltd. (JP) | 162 | |
72,086 | GUD Holdings Ltd. (AUS) | 659 | |
42,327 | McCarthy & Stone plc (UK)*,1 | 90 | |
241,000 | MRV Engenharia e Participacoes SA (BR) | 932 | |
42,200 | Nikon Corp. (JP) | 801 | |
8,300 | Sekisui Chemical Co. Ltd. (JP) | 168 | |
3,021 | |||
HOUSEHOLD PRODUCTS—0.7% | |||
24,416 | Reckitt Benckiser Group plc (UK) | 2,184 | |
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—0.1% | |||
355,707 | Energy Development Corp. (PHIL) | 40 | |
1,203,300 | Lopez Holdings Corp. (PHIL) | 135 | |
175 | |||
INDUSTRIAL CONGLOMERATES—2.6% | |||
175,000 | CK Hutchison Holdings Ltd. (HK) | 2,223 | |
11,274 | DCC plc (UK) | 1,069 | |
30,600 | Jardine Matheson Holdings Ltd. (HK) | 1,960 | |
29,564 | Koninklijke Philips NV (NET) | 1,205 | |
9,705 | LG Corp. (S. KOR) | 746 | |
392,306 | Quinenco SA (CL) | 1,214 | |
8,417 | |||
INSURANCE—4.9% | |||
32,486 | Admiral Group plc (UK) | 830 | |
27,945 | AXA SA (FR) | 844 | |
94,300 | Dai-ichi Life Holdings Inc. (JP) | 1,801 | |
6,602 | Fairfax Financial Holdings Ltd. (CAN) | 3,477 | |
49,900 | Great Eastern Holdings Ltd. (SGP) | 960 | |
1,450 | Hannover Rueck SE (GER) | 182 | |
278 | Helvetia Holding AG (SWS) | 149 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
INSURANCE—Continued | |||
47,500 | Japan Post Holdings Co. Ltd. (JP) | $ 550 | |
39,200 | MS&AD Insurance Group Holdings Inc. (JP) | 1,332 | |
150,806 | Old Mutual plc (S. AFR) | 380 | |
116,477 | Porto Seguro SA (BR)* | 1,271 | |
37,205 | QBE Insurance Group Ltd. (AUS) | 305 | |
46,718 | Sampo OYJ (FIN) | 2,445 | |
1,630 | Samsung Fire & Marine Insurance Co. Ltd. (S. KOR) | 398 | |
17,900 | Sompo Holdings Inc. (JP) | 719 | |
6,100 | Tokio Marine Holdings Inc. (JP) | 263 | |
15,906 | |||
INTERNET & CATALOG RETAIL—0.0% | |||
452 | Zooplus AG (GER)* | 75 | |
INTERNET & DIRECT MARKETING RETAIL—0.3% | |||
71,440 | B2W Cia Digital (BR)* | 464 | |
1,739 | CJ O Shopping Co. Ltd. (S. KOR) | 307 | |
1,844 | GS Home Shopping Inc. (S. KOR) | 346 | |
1,117 | |||
INTERNET SOFTWARE & SERVICES—2.7% | |||
35,013 | Auto Trader Group plc (UK)1 | 159 | |
8,949 | Baidu Inc. ADR (CHN)* | 2,183 | |
60,375 | Carsales.Com Ltd. (AUS) | 634 | |
58,465 | Just Eat plc (UK)* | 606 | |
78,640 | Moneysupermarket.com Group plc (UK) | 339 | |
90,520 | Pchome Online Inc. (TW) | 524 | |
36,989 | Rightmove plc (UK) | 2,041 | |
63,917 | Yandex NV (RUS)* | 2,162 | |
8,648 | |||
IT SERVICES—1.0% | |||
15,945 | Genpact Ltd. (US) | 486 | |
114,500 | NTT Data Corp. (JP) | 1,334 | |
2,500 | OBIC Co. Ltd. (JP) | 165 | |
4,400 | SCSK Corp. (JP) | 190 | |
117,755 | Wipro Ltd. (IND) | 536 | |
121,926 | Worldpay Group plc (UK)1 | 657 | |
3,368 | |||
LEISURE PRODUCTS—0.6% | |||
13,247 | Amer Sports OYJ (FIN) | 330 | |
35,200 | Bandai Namco Holdings Inc. (JP) | 1,206 | |
308,000 | Goodbaby International Holdings Ltd. (HK) | 168 | |
2,679 | Spin Master Corp. (CAN)*,1 | 99 | |
1,803 | |||
LIFE SCIENCES TOOLS & SERVICES—0.4% | |||
2,017 | Eurofins Scientific SE (FR) | 1,262 | |
1,880 | Gerresheimer AG (GER) | 150 | |
1,412 | |||
MACHINERY—2.5% | |||
4,299 | Andritz AG (AUT) | 243 | |
149,175 | CNH Industrial NV (IT) | 1,903 | |
3,200 | Daifuku Co. Ltd. (JP) | 156 | |
3,776 | GEA Group AG (GER) | 183 | |
600 | Hoshizaki Corp. (JP) | 57 | |
8,338 | Hyundai Elevator Co. Ltd. (S. KOR)* | 408 | |
4,600 | IMI plc (UK) | 75 | |
10,900 | Kubota Corp. (JP) | 205 | |
16,500 | Mitsubishi Heavy Industries Ltd. (JP) | 646 | |
26,723 | Rotork plc (UK) | 93 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
MACHINERY—Continued | |||
67,132 | Sandvik AB (SW) | $ 1,225 | |
12,860 | Stabilus SA (GER)* | 1,175 | |
7,524 | Wartsila OYJ Abp (FIN) | 484 | |
609,000 | Yungtay Engineering Co. Ltd. (TW) | 1,211 | |
8,064 | |||
MARINE—0.3% | |||
4,293,272 | Cia Sud Americana de Vapores SA (CL)* | 244 | |
176,078 | Grindrod Ltd. (S. AFR)* | 194 | |
64,088 | Irish Continental Group plc (IE) | 427 | |
865 | |||
MEDIA—3.1% | |||
12,351 | Axel Springer SE (GER) | 832 | |
595,900 | Bec World PCL (THA) | 312 | |
12,336 | CTS Eventim AG & Co. KGaA (GER) | 510 | |
43,687 | Daily Mail & General Trust plc (UK) | 402 | |
701,177 | Fairfax Media Ltd. (AUS) | 591 | |
49,600 | Fuji Media Holdings Inc. (JP) | 765 | |
23,470 | Grupo Televisa SAB ADR (MEX) | 514 | |
70,322 | Informa plc (UK) | 651 | |
456,344 | ITV plc (UK) | 997 | |
9,356 | JCDecaux SA (FR) | 358 | |
4,188,421 | Media Nusantara Citra TBK PT (IDR) | 482 | |
34,911 | Mediaset Espana Comunicacion SA (SP) | 379 | |
12,153 | Modern Times Group Mortgage AB Class B (SW) | 464 | |
39,820 | Nippon Television Holdings Inc. (JP) | 719 | |
10,082 | Schibsted ASA Class A (NOR) | 260 | |
10,082 | Schibsted ASA Class B (NOR) | 237 | |
23,236 | Sky plc (UK)* | 291 | |
148,100 | Television Broadcasts Ltd. (HK) | 560 | |
40,785 | WPP plc (UK) | 721 | |
10,045 | |||
METALS & MINING—3.6% | |||
44,395 | Acerinox SA (SP) | 638 | |
561,281 | Alumina Ltd. (AUS) | 1,007 | |
16,618 | Anglo American Platinum Ltd. (S. AFR)* | 462 | |
39,034 | Anglo American plc (S. AFR) | 731 | |
52,147 | Antofagasta plc (UK) | 661 | |
21,211 | ArcelorMittal SA (FR)* | 607 | |
47,344 | Barrick Gold Corp. (CAN) | 684 | |
17,495 | BHP Billiton Ltd. (AUS) | 360 | |
33,029 | BHP Billiton plc (UK) | 598 | |
121,229 | BlueScope Steel Ltd. (AUS) | 1,194 | |
31,834 | Cia de Minas Buenaventura SAA ADR (PER) | 439 | |
8,752 | Franco-Nevada Corp. (CAN) | 696 | |
237,954 | Glencore plc (UK)* | 1,148 | |
32,791 | Iluka Resources Ltd. (AUS) | 236 | |
24,600 | JFE Holdings Inc. (JP) | 529 | |
45,981 | Newcrest Mining Ltd. (AUS) | 786 | |
16,373 | Rio Tinto plc (UK) | 774 | |
11,550 | |||
MULTILINE RETAIL—0.4% | |||
40,400 | Isetan Mitsukoshi Holdings Ltd. (JP) | 440 | |
2,450 | Lotte Shopping Co. Ltd. (S. KOR) | 492 | |
8,400 | Marui Group Co. Ltd. (JP) | 129 | |
400 | Ryohin Keikaku Co. Ltd. (JP) | 118 | |
1,179 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
MULTI-UTILITIES—0.1% | |||
15,244 | Centrica plc (UK) | $ 34 | |
27,792 | National Grid plc (UK) | 335 | |
369 | |||
OIL, GAS & CONSUMABLE FUELS—2.8% | |||
307,967 | BP plc (UK) | 2,089 | |
17,903 | Caltex Australia Ltd. (AUS) | 470 | |
67,917 | Canadian Natural Resources Ltd. (CAN) | 2,370 | |
8,700 | Lukoil PJSC ADR (RUS) | 461 | |
25,278 | PrairieSky Royalty Ltd. (CAN) | 673 | |
55,603 | Royal Dutch Shell plc (UK) | 1,769 | |
29,291 | Santos Ltd. (AUS)* | 101 | |
31,409 | Statoil ASA (NOR) | 638 | |
7,313 | Total SA (FR) | 408 | |
8,979 | |||
PERSONAL PRODUCTS—1.9% | |||
260,608 | Asaleo Care Ltd. (AUS) | 296 | |
93,467 | Hengan International Group Co. Ltd. (CHN) | 922 | |
17,400 | Kao Corp. (JP) | 1,052 | |
146,768 | Natura Cosmeticos SA (BR) | 1,389 | |
9,600 | Shiseido Co. Ltd. (JP) | 396 | |
36,742 | Unilever plc (UK) | 2,082 | |
6,137 | |||
PHARMACEUTICALS—2.0% | |||
38,907 | Haw Par Corp. Ltd. (SGP) | 348 | |
19,438 | Novartis AG (SWS) | 1,603 | |
32,539 | Novo Nordisk AS (DEN) | 1,620 | |
6,600 | Otsuka Holdings Co. Ltd. (JP) | 276 | |
8,454 | Roche Holding AG (SWS) | 1,954 | |
3,324 | Sanofi SA (FR) | 315 | |
2,500 | Sawai Pharmaceutical Co. Ltd. (JP) | 142 | |
15,000 | Sumitomo Dainippon Pharma Co. Ltd. (JP) | 214 | |
211 | Virbac SA (FR)* | 27 | |
6,499 | |||
PROFESSIONAL SERVICES—3.7% | |||
17,968 | Adecco Group AG (SWS) | 1,426 | |
147,832 | ALS Ltd. (AUS) | 888 | |
101,980 | Capita plc (UK) | 710 | |
4,721 | DKSH Holding AG (SWS) | 396 | |
51,876 | Experian plc (UK) | 1,093 | |
417,105 | Hays plc (UK) | 1,032 | |
44,548 | Intertek Group plc (UK) | 3,209 | |
42,167 | IPH Ltd. (AUS) | 189 | |
5,800 | Nomura Co. Ltd. (JP) | 121 | |
25,691 | Pagegroup plc (UK) | 160 | |
7,600 | Persol Holdings Co Ltd. (JP) | 188 | |
2,956 | Randstad Holding NV (NET) | 182 | |
72,206 | RELX plc (UK) | 1,662 | |
2,300 | TechnoPro Holdings Inc. (JP) | 105 | |
3,459 | Teleperformance (FR) | 505 | |
11,866 | |||
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.5% | |||
9,500 | CK Asset Holdings Ltd. (HK) | 78 | |
4,100 | Daiwa House Industry Co. Ltd. (JP) | 150 | |
155,115 | LPS Brasil Consultoria de Imoveis SA (BR)* | 268 | |
35,000 | Mitsubishi Estate Co. Ltd. (JP) | 635 | |
19,283 | New World Development Co. Ltd. (HK) | 29 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT—Continued | |||
43,700 | NTT Urban Development Corp. (JP) | $ 452 | |
31,476 | United Industrial Corp. Ltd. (SGP) | 76 | |
1,688 | |||
ROAD & RAIL—1.6% | |||
6,490 | Canadian Pacific Railway Ltd. (CAN) | 1,125 | |
13,700 | East Japan Railway Co. (JP) | 1,329 | |
50,661 | Globaltrans Investment plc GDR (RUS)2 | 468 | |
24,932 | National Express Group plc (UK) | 122 | |
9,900 | Senko Co. Ltd. (JP) | 72 | |
129,186 | Stagecoach Group plc (UK) | 286 | |
26,300 | West Japan Railway Co. (JP) | 1,854 | |
5,256 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.8% | |||
1,913 | ASML Holding NV (NET) | 345 | |
38,000 | Renesas Electronics Corp. (JP)* | 491 | |
17,698 | SK Hynix Inc. (S. KOR) | 1,305 | |
447,000 | Taiwan Semiconductor Manufacturing Co. Ltd. (TW) | 3,614 | |
1,200 | Tokyo Electron Ltd. (JP) | 211 | |
5,966 | |||
SOFTWARE—0.7% | |||
1,877 | Constellation Software Inc. (CAN) | 1,068 | |
23,565 | Playtech plc (UK) | 308 | |
104,100 | TOTVS SA (BR) | 1,037 | |
2,413 | |||
SPECIALTY RETAIL—1.2% | |||
1,861,300 | Esprit Holdings Ltd. (HK)* | 1,126 | |
3,158 | Fielmann AG (GER) | 278 | |
68,746 | Fourlis Holdings SA (GRC)* | 446 | |
26,302 | JUMBO SA (GRC)* | 423 | |
97,183 | Pets at Home Group plc (UK) | 227 | |
33,737 | WH Smith plc (UK) | 917 | |
108,100 | Yamada Denki Co. Ltd. (JP) | 575 | |
3,992 | |||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—2.6% | |||
42,600 | FUJIFILM Holdings Corp. (JP) | 1,743 | |
28,821 | Logitech International SA (SWS) | 1,030 | |
22,400 | NEC Corp. (JP) | 615 | |
9,580 | Neopost SA (FR) | 353 | |
1,916 | Samsung Electronics Co. Ltd. (S. KOR) | 4,723 | |
8,464 | |||
TEXTILES, APPAREL & LUXURY GOODS—2.5% | |||
5,227 | adidas AG (GER) | 1,163 | |
16,873 | Cie Financiere Richemont SA (SWS) | 1,555 | |
54,253 | Cie Financiere Richemont SA ADR (S. AFR) | 500 | |
13,569 | Gildan Activewear Inc. (CAN) | 415 | |
1,348,500 | Li Ning Co. Ltd. (CHN)* | 1,178 | |
29,010 | Luxottica Group SpA (IT) | 1,663 | |
33,000 | Onward Holdings Co. Ltd. (JP) | 278 | |
278,954 | Ruentex Industries Ltd. (TW)* | 447 | |
71,000 | Shenzhou International Group Holdings Ltd. (CHN) | 607 | |
236,246 | Stella International Holdings Ltd. (HK) | 385 | |
34,000 | Texwinca Holdings Ltd. (HK) | 21 | |
8,212 | |||
TOBACCO—0.2% | |||
1,719 | British American Tobacco plc (UK) | 111 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
TOBACCO—Continued | |||
1,700 | Japan Tobacco Inc. (JP) | $ 56 | |
9,224 | Swedish Match AB (SW) | 348 | |
515 | |||
TRADING COMPANIES & DISTRIBUTORS—1.1% | |||
17,688 | Brenntag AG (GER) | 1,003 | |
61,536 | Bunzl plc (UK) | 1,917 | |
10,100 | ITOCHU Corp. (JP) | 177 | |
25,100 | Mitsubishi Corp. (JP) | 588 | |
3,685 | |||
TRANSPORTATION INFRASTRUCTURE—0.6% | |||
100,144 | China Merchants Port Holdings Co. Ltd. (CHN) | 313 | |
170,950 | Global Ports Investments plc GDR (RUS)*,2 | 650 | |
53,385 | Groupe Eurotunnel SE (FR) | 671 | |
12,300 | Mitsubishi Logistics Corp. (JP) | 318 | |
1,952 | |||
WIRELESS TELECOMMUNICATION SERVICES—1.3% | |||
130,733 | Bharti Airtel Ltd. (IND) | 1,006 | |
6,623 | Millicom International Cellular SA SDR (SW)2 | 424 | |
60,310 | MTN Group Ltd. (S. AFR) | 524 | |
15,887 | Rogers Communications Inc. (CAN) | 824 | |
64,248 | SmarTone Telecommunications Holdings Ltd. (HK) | 80 | |
9,100 | SoftBank Group Corp. (JP) | 806 | |
141,151 | Vodafone Group plc (UK) | 404 | |
4,068 | |||
TOTAL COMMON STOCKS | |||
(Cost $274,641) | 309,468 | ||
PREFERRED STOCKS—1.3% | |||
AEROSPACE & DEFENSE—0.0% | |||
4,017,042 | Rolls-Royce Holdings plc (UK)* | 5 x |
PREFERRED STOCKS—Continued | |||
Shares | Value | ||
AUTOMOBILES—0.4% | |||
6,297 | Volkswagen AG (GER) | $ 1,153 | |
BANKS—0.4% | |||
56,738 | Banco Bradesco SA (BR)* | 602 | |
234,870 | Itausa - Investimentos Itau SA (BR) | 752 | |
1,354 | |||
TEXTILES, APPAREL & LUXURY GOODS—0.5% | |||
337,554 | Alpargatas SA (BR)* | 1,785 | |
TOTAL PREFERRED STOCKS | |||
(Cost $3,393) | 4,297 | ||
SHORT-TERM INVESTMENTS—2.4% | |||
(Cost $7,782) | |||
Principal Amount | |||
REPURCHASE AGREEMENTS | |||
$ | 7,782 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $7,939) | 7,782 |
TOTAL INVESTMENTS—99.4% | |||
(Cost $285,816) | 321,547 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.6% | 1,873 | ||
TOTAL NET ASSETS—100.0% | $323,420 |
Description | No. of Contracts | Strike Price | Expiration Date | Cost (000s) | Value (000s) | |||||
Banco Santander SA | 13,364 | € 4.85 | 11/3/2017 | $ 1 | $ 1 | |||||
Compania Sudamericana de Vapores SA | 824,513 | CLP$ —3 | 11/8/2017 | — | 7 | |||||
Total Rights/Warrants | $ 8 |
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 | ||||||||
Africa | $ — | $ 4,378 | $— | $ 4,378 | ||||
Europe | 4,920 | 152,035 | — | 156,955 | ||||
Latin America | 8,802 | 2,578 | — | 11,380 | ||||
Middle East/Central Asia | — | 2,922 | — | 2,922 | ||||
North America | 22,387 | — | — | 22,387 |
Portfolio of Investments—Continued
Asset Category | Quoted Prices Level 1 (000s) | Other Significant Observable Inputs Level 2 (000s) | Significant Unobservable Inputs Level 3 (000s) | Total (000s) | ||||
Pacific Basin | $ 2,183 | $109,263 | $— | $111,446 | ||||
Preferred Stocks | ||||||||
Europe | — | 1,153 | 5 | 1,158 | ||||
Latin America | 3,139 | — | — | 3,139 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 7,782 | — | 7,782 | ||||
Total Investments in Securities | $41,431 | $280,111 | $ 5 | $321,547 | ||||
Financial Derivative Instruments - Assets | ||||||||
Rights/Warrants | $ 1 | $ 7 | $— | $ 8 | ||||
Total Financial Derivative Instruments - Assets | $ 1 | $ 7 | $— | $ 8 | ||||
Total Investments | $41,432 | $280,118 | $ 5 | $321,555 |
Valuation Description | Balance Beginning at 11/01/2016 (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 10/31/2017w (000s) | |||||||||
Preferred Stocks | $3 | $5 | $(3) | $— | $— | $— | $— | $— | $5 |
Valuation Descriptions | Ending Balance as of 10/31/2017 (000s) | Valuation Technique | Unobservable Inputs | Input Value(s) | ||||
Investments in Securities | ||||||||
Preferred Stocks | ||||||||
Rolls-Royce Holdings plc (UK)* | $5 | 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. NVDR after the name of a holding stands for Non-Voting Depositary Receipts representing ownership of a listed security in the Stock Exchange of Thailand. | ||
3 | Rights redeemable for 1 ordinary share per 142 rights | ||
w | 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 10/31/2017 (000s) | ||
Preferred Stocks | $– | ||
x | Fair Valued in accordance with Harbor Funds Valuation Procedures using pre-traded price which is a Level 3 input | ||
£ | British Pound | ||
€ | Euro | ||
CLP$ | Chilean Peso |
Managers' Commentary (Unaudited)
United Kingdom
EH1 3AN
Since 2013
Since 2013
Since 2013
Since 2014
Since 2014
Since 2014
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of Net Assets) | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 3.0% |
Naspers Ltd. | 2.8% |
Cochlear Ltd. | 2.2% |
Hargreaves Lansdown plc | 2.2% |
Alibaba Group Holding Ltd. ADR | 2.1% |
Mettler-Toledo International Inc. | 2.1% |
MS&AD Insurance Group Holdings Inc. | 2.1% |
Kao Corp. | 2.0% |
Novo Nordisk AS | 2.0% |
Samsung Electronics Co. Ltd. | 2.0% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2017 |
Cusip | 411511801 |
Ticker | HAIGX |
Inception Date | 11/01/1993 |
Net Expense Ratio | 0.85% a |
Total Net Assets (000s) | $362,035 |
ADMINISTRATIVE CLASS | |
Fund # | 2217 |
Cusip | 411511637 |
Ticker | HRIGX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.10% a |
Total Net Assets (000s) | $466 |
INVESTOR CLASS | |
Fund # | 2417 |
Cusip | 411511629 |
Ticker | HIIGX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 1.22% a |
Total Net Assets (000s) | $14,913 |
RETIREMENT CLASS | |
Fund # | 2517 |
Cusip | 411512429 |
Ticker | HNGFX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.77% a |
Total Net Assets (000s) | $24,872 |
Portfolio | Benchmark | ||
Number of Countries | 25 | 48 | |
Weighted Average Market Cap (MM) | $52,835 | $70,182 | |
Price/Earning Ratio (P/E) | 26.2x | 19.3x | |
Price/Book Ratio (P/B) | 5.1x | 2.4x | |
Beta vs. MSCI All Country World Ex. U.S. (ND) Index | 0.98 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 13% | N/A |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor International Growth Fund | ||||||||||||||
Institutional Class | 23.38% | 8.67% | 0.57% | 11/01/1993 | $52,913 | |||||||||
Administrative Class | 23.08 | 8.41 | 0.31 | 11/01/2002 | 51,581 | |||||||||
Investor Class | 22.89 | 8.27 | 0.19 | 11/01/2002 | 50,962 | |||||||||
Retirement Class1 | 23.52 | 8.71 | 0.59 | 03/01/2016 | 53,014 | |||||||||
Comparative Index | ||||||||||||||
MSCI All Country World Ex. U.S. (ND) | 23.64% | 7.29% | 0.92% | — | $54,772 |
1 | 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. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—99.3% | |||
Shares | Value | ||
AUTO COMPONENTS—0.9% | |||
67,400 | Denso Corp. (JP) | $ 3,712 | |
AUTOMOBILES—1.0% | |||
194,971 | Mahindra & Mahindra Ltd. GDR (IND)1 | 4,066 | |
BANKS—4.9% | |||
481,400 | Public Bank BHD (MAL) | 2,326 | |
161,500 | Suruga Bank Ltd. (JP) | 3,677 | |
465,200 | Svenska Handelsbanken AB (SW) | 6,668 | |
390,527 | United Overseas Bank Ltd. (SGP) | 7,055 | |
19,726 | |||
BEVERAGES—4.7% | |||
57,151 | Carlsberg AS (DEN) | 6,529 | |
3,973,900 | Thai Beverage PCL (THA) | 2,856 | |
414,670 | Treasury Wine Estates Ltd. (AUS) | 4,978 | |
1,114,000 | Tsingtao Brewery Co. Ltd. (CHN) | 4,665 | |
19,028 | |||
BIOTECHNOLOGY—0.1% | |||
297,339 | Mesoblast Ltd. (AUS)* | 305 | |
CAPITAL MARKETS—5.2% | |||
428,089 | Hargreaves Lansdown plc (UK) | 8,992 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
CAPITAL MARKETS—Continued | |||
405,800 | Japan Exchange Group Inc. (JP) | $ 7,316 | |
578,142 | Jupiter Fund Management plc (UK) | 4,562 | |
20,870 | |||
CHEMICALS—4.0% | |||
202,491 | Asian Paints Ltd. (IND) | 3,701 | |
120,310 | Johnson Matthey plc (UK) | 5,402 | |
122,804 | Novozymes AS (DEN) | 6,785 | |
15,888 | |||
COMMERCIAL SERVICES & SUPPLIES—1.0% | |||
553,094 | Brambles Ltd. (AUS) | 4,011 | |
DIVERSIFIED FINANCIAL SERVICES—1.5% | |||
124,633 | Investor AB (SW) | 6,175 | |
ELECTRICAL EQUIPMENT—1.5% | |||
83,636 | Legrand SA (FR) | 6,207 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.2% | |||
680,000 | Delta Electronics Inc. (TW) | 3,272 | |
618,853 | Hon Hai Precision Industry Co. Ltd. GDR (TW)1 | 4,630 | |
1,945,000 | PAX Global Technology Ltd. (CHN) | 984 | |
8,886 | |||
ENERGY EQUIPMENT & SERVICES—0.6% | |||
250,588 | John Wood Group plc (UK) | 2,370 | |
FOOD & STAPLES RETAILING—5.8% | |||
409,464 | Clicks Group Ltd. (S. AFR) | 4,586 | |
506,030 | Distribuidora Internacional de Alimentacion SA (SP)2 | 2,475 | |
233,170 | Jeronimo Martins SGPS SA (PT)* | 4,236 | |
59,390 | Magnit PJSC GDR (RUS)*,1 | 1,681 | |
1,880,200 | Puregold Price Club Inc. (PHIL) | 1,858 | |
173,600 | Raia Drogasil SA (BR)* | 4,150 | |
40,900 | Sugi Holdings Co. Ltd. (JP) | 2,076 | |
934,700 | Wal-Mart de Mexico SAB de CV (MEX) | 2,093 | |
23,155 | |||
FOOD PRODUCTS—1.4% | |||
67,996 | Nestlé SA (SWS) | 5,721 | |
HEALTH CARE EQUIPMENT & SUPPLIES—3.3% | |||
64,486 | Cochlear Ltd. (AUS) | 8,687 | |
121,900 | Olympus Corp. (JP) | 4,536 | |
13,223 | |||
HOTELS, RESTAURANTS & LEISURE—0.5% | |||
660,000 | Cafe de Coral Holdings Ltd. (HK) | 2,031 | |
HOUSEHOLD PRODUCTS—1.2% | |||
140,700 | Pigeon Corp. (JP) | 4,993 | |
INDUSTRIAL CONGLOMERATES—1.6% | |||
65,800 | Jardine Matheson Holdings Ltd. (SGP) | 4,215 | |
52,300 | Jardine Strategic Holdings Ltd. (SGP) | 2,194 | |
6,409 | |||
INSURANCE—5.4% | |||
492,800 | AIA Group Ltd. (HK) | 3,713 | |
8,178 | Fairfax Financial Holdings Ltd. (CAN) | 4,307 | |
242,900 | MS&AD Insurance Group Holdings Inc. (JP) | 8,252 | |
21,739 | Samsung Fire & Marine Insurance Co. Ltd. (S. KOR) | 5,305 | |
21,577 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
INTERNET & DIRECT MARKETING RETAIL—6.7% | |||
73,304 | ASOS plc (UK)* | $ 5,545 | |
102,910 | Ctrip.com International Ltd. ADR (CHN)*,3 | 4,928 | |
100,902 | JD.com Inc. ADR (CHN)*,3 | 3,786 | |
55,596 | MakeMyTrip Ltd. (IND)* | 1,518 | |
328,200 | Rakuten Inc. (JP)* | 3,512 | |
153,551 | Zalando SE (GER)*,4 | 7,730 | |
27,019 | |||
INTERNET SOFTWARE & SERVICES—9.0% | |||
44,626 | Alibaba Group Holding Ltd. ADR (CHN)*,3 | 8,251 | |
1,010,716 | Auto Trader Group plc (UK)4 | 4,596 | |
31,716 | Baidu Inc. ADR (CHN)*,3 | 7,737 | |
280,000 | Kakaku.com Inc. (JP) | 3,845 | |
3,500 | Naver Corp. (S. KOR) | 2,797 | |
122,549 | Rightmove plc (UK) | 6,761 | |
20,424 | Shopify Inc. (CAN)* | 2,032 | |
36,019 | |||
LEISURE PRODUCTS—1.1% | |||
33,200 | Shimano Inc. (JP) | 4,543 | |
LIFE SCIENCES TOOLS & SERVICES—2.1% | |||
12,133 | Mettler-Toledo International Inc. (SWS)* | 8,282 | |
MACHINERY—7.3% | |||
75,780 | Atlas Copco AB Class A (SW)2 | 3,323 | |
156,158 | Atlas Copco AB Class B (SW) | 6,199 | |
90,051 | Kone OYJ (FIN) | 4,874 | |
27,991 | Schindler Holding AG (SWS) | 6,343 | |
17,500 | SMC Corp. (JP) | 6,695 | |
78,314 | Weir Group plc (UK) | 2,030 | |
29,464 | |||
MEDIA—2.8% | |||
46,516 | Naspers Ltd. (S. AFR) | 11,333 | |
PERSONAL PRODUCTS—4.5% | |||
130,200 | Kao Corp. (JP) | 7,868 | |
145,700 | Shiseido Co. Ltd. (JP) | 6,010 | |
74,372 | Unilever plc (UK) | 4,215 | |
18,093 | |||
PHARMACEUTICALS—2.1% | |||
165,144 | Novo Nordisk AS (DEN) | 8,222 | |
PROFESSIONAL SERVICES—3.3% | |||
491,586 | Capita plc (UK) | 3,423 | |
76,795 | Intertek Group plc (UK) | 5,532 | |
310,511 | SEEK Ltd. (AUS) | 4,373 | |
13,328 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.3% | |||
128,500 | Advantest Corp. (JP) | 2,935 | |
648,870 | Imagination Technologies Group plc (UK)* | 1,556 | |
177,624 | Infineon Technologies AG (GER) | 4,913 | |
279,917 | Taiwan Semiconductor Manufacturing Co. Ltd. ADR (TW)3 | 11,849 | |
21,253 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
SPECIALTY RETAIL—1.4% | |||
148,170 | Industria de Diseno Textil SA (SP)2 | $ 5,538 | |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—2.0% | |||
3,294 | Samsung Electronics Co. Ltd. (S. KOR) | 8,120 | |
TEXTILES, APPAREL & LUXURY GOODS—4.9% | |||
32,376 | adidas AG (GER) | 7,206 | |
165,539 | Burberry Group plc (UK) | 4,181 | |
55,746 | Cie Financiere Richemont SA (SWS) | 5,139 | |
8,543 | Swatch Group AG (SWS) | 3,349 | |
19,875 | |||
TOTAL COMMON STOCKS | |||
(Cost $332,359) | 399,442 | ||
PREFERRED STOCKS—0.5% | |||
(Cost $1,914) | |||
HEALTH CARE EQUIPMENT & SUPPLIES—0.5% | |||
18,863 | Sartorius AG (GER) | 1,762 | |
SHORT-TERM INVESTMENTS—2.0% | |||
Principal Amount | |||
REPURCHASE AGREEMENTS—0.3% | |||
$ | 1,434 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $1,466) | 1,434 |
Shares | |||
INVESTMENT COMPANY-SECURITIES LENDING INVESTMENT FUND—1.7% | |||
6,723,403 | State Street Navigator Securities Lending Government Money Market Portfolio (1-day yield of 1.000%)5 | 6,723 | |
TOTAL SHORT-TERM INVESTMENTS | |||
(Cost $8,157) | 8,157 | ||
TOTAL INVESTMENTS—101.8% | |||
(Cost $342,430) | 409,361 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(1.8)% | (7,075) | ||
TOTAL NET ASSETS—100.0% | $402,286 |
Portfolio of Investments—Continued
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 | $ — | $ 15,919 | $— | $ 15,919 | ||||
Europe | 8,282 | 168,479 | — | 176,761 | ||||
Latin America | 6,243 | — | — | 6,243 | ||||
Middle East/Central Asia | 1,518 | 7,767 | — | 9,285 | ||||
North America | 6,339 | — | — | 6,339 | ||||
Pacific Basin | 36,551 | 148,344 | — | 184,895 | ||||
Preferred Stocks | ||||||||
Europe | — | 1,762 | — | 1,762 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 1,434 | — | 1,434 | ||||
Investment Company-Securities Lending Investment Fund | 6,723 | — | — | 6,723 | ||||
Total Investments in Securities | $65,656 | $343,705 | $— | $409,361 |
* | 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. NVDR after the name of a holding stands for Non-Voting Depositary Receipts representing ownership of a listed security in the Stock Exchange of Thailand. |
2 | All or a portion of this security was out on loan as of October 31, 2017. |
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 | 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, 2017, the aggregate value of these securities was $12,326,000 or 3% of net assets. |
5 | Represents the investment of collateral received from securities lending activities. |
Managers' Commentary (Unaudited)
United Kingdom
Since 2016
Since 2016
Since 2016
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of Net Assets) | |
Relo Group Inc. | 1.4% |
SSP Group plc | 1.4% |
Kyudenko Corp. | 1.3% |
Nihon M&A Center Inc. | 1.3% |
RPC Group plc | 1.3% |
ASM International NV | 1.2% |
HomeServe plc | 1.2% |
Nabtesco Corp. | 1.2% |
Sophos Group plc | 1.2% |
THK Co. Ltd. | 1.2% |
Managers' Commentary—Continued
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2039 |
Cusip | 411512569 |
Ticker | HAISX |
Inception Date | 02/01/2016 |
Net Expense Ratio | 0.95% a |
Total Net Assets (000s) | $38,818 |
ADMINISTRATIVE CLASS | |
Fund # | 2239 |
Cusip | 411512551 |
Ticker | HRISX |
Inception Date | 02/01/2016 |
Net Expense Ratio | 1.20% a |
Total Net Assets (000s) | $371 |
INVESTOR CLASS | |
Fund # | 2439 |
Cusip | 411512544 |
Ticker | HIISX |
Inception Date | 02/01/2016 |
Net Expense Ratio | 1.32% a |
Total Net Assets (000s) | $540 |
RETIREMENT CLASS | |
Fund # | 2539 |
Cusip | 411512536 |
Ticker | HNISX |
Inception Date | 02/01/2016 |
Net Expense Ratio | 0.87% a |
Total Net Assets (000s) | $7,671 |
Portfolio | Benchmark | ||
Number of Countries | 19 | 25 | |
Weighted Average Market Cap (MM) | $3,385 | $2,861 | |
Price/Earning Ratio (P/E) | 23.3x | 20.9x | |
Price/Book Ratio (P/B) | 3.5x | 2.4x | |
Beta vs. MSCI EAFE Small Cap (ND) Index | 0.77 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 44% | N/A |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | 5 Years | Annualized | Inception Date | Final Value of a $50,000 Investment | |||||||||
Life of Fund | ||||||||||||||
Harbor International Small Cap Fund | ||||||||||||||
Institutional Class | 30.59% | N/A | 21.55% | 02/01/2016 | $70,324 | |||||||||
Administrative Class | 30.25 | N/A | 21.24 | 02/01/2016 | 70,009 | |||||||||
Investor Class | 30.10 | N/A | 21.09 | 02/01/2016 | 69,863 | |||||||||
Retirement Class | 30.67 | N/A | 21.59 | 02/01/2016 | 70,363 | |||||||||
Comparative Index | ||||||||||||||
MSCI EAFE Small Cap (ND) | 27.51% | N/A | 21.94% | — | $70,723 |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—97.5% | |||
Shares | Value | ||
AUTO COMPONENTS—2.8% | |||
8,400 | Nifco Inc. (JP) | $ 548 | |
23,494 | Saf-Holland SA (LUX) | 466 | |
338,000 | Xinyi Glass Holdings Ltd. (HK) | 328 | |
1,342 | |||
BANKS—2.5% | |||
106,000 | Fukuoka Financial Group Inc. (JP) | 547 | |
18,300 | Suruga Bank Ltd. (JP) | 417 | |
10,611 | TBC Bank Group plc (UK)* | 241 | |
1,205 | |||
CAPITAL MARKETS—2.3% | |||
9,299 | Euronext NV (NET) | 553 | |
42,691 | Intermediate Capital Group plc (UK) | 551 | |
1,104 | |||
CHEMICALS—4.3% | |||
93,180 | Incitec Pivot Ltd. (AUS) | 273 | |
10,700 | Kansai Paint Co. Ltd. (JP) | 275 | |
69,851 | Nufarm Ltd. (AUS) | 486 | |
45,000 | Okamoto Industries Inc. (JP) | 490 | |
81,219 | Synthomer plc (UK) | 528 | |
2,052 | |||
COMMERCIAL SERVICES & SUPPLIES—6.0% | |||
14,200 | AEON Delight Co. Ltd. (JP) | 532 | |
62,456 | Bravida Holding AB (SW) | 426 | |
50,813 | HomeServe plc (UK) | 578 | |
14,417 | Intrum Justitia AB (SW) | 505 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
COMMERCIAL SERVICES & SUPPLIES—Continued | |||
104,046 | Prosegur Cash SA (SP)* | $ 339 | |
19,500 | Sato Holdings Corp. (JP) | 475 | |
2,855 | |||
COMMUNICATIONS EQUIPMENT—1.1% | |||
23,479 | Ascom Holding AG (SWS) | 537 | |
CONSTRUCTION & ENGINEERING—3.1% | |||
6,881 | FLSmidth & Co. (DEN) | 472 | |
14,400 | Kyudenko Corp. (JP) | 636 | |
68,068 | Maire Tecnimont SpA (IT) | 381 | |
1,489 | |||
CONSTRUCTION MATERIALS—1.0% | |||
17,616 | Wienerberger AG (AUT) | 452 | |
CONSUMER FINANCE—2.6% | |||
91,739 | Arrow Global Group plc (UK) | 517 | |
3,027 | Cembra Money Bank AG (SWS)* | 271 | |
28,080 | Credit Corp. Group Ltd. (AUS) | 432 | |
1,220 | |||
CONTAINERS & PACKAGING—2.9% | |||
62,139 | DS Smith plc (UK) | 430 | |
119,860 | Orora Ltd. (AUS) | 312 | |
50,248 | RPC Group plc (UK) | 629 | |
1,371 | |||
DIVERSIFIED CONSUMER SERVICES—1.0% | |||
14,585 | Dignity plc (UK) | 470 | |
DIVERSIFIED FINANCIAL SERVICES—0.7% | |||
5,347 | KBC Ancora (BEL)* | 319 | |
DIVERSIFIED TELECOMMUNICATION SERVICES—0.6% | |||
38,621 | Infrastrutture Wireless Italiane SpA (IT)* | 264 | |
ELECTRICAL EQUIPMENT—0.9% | |||
8,100 | Mabuchi Motor Co. Ltd. (JP) | 425 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—2.1% | |||
2,944 | Barco NV (BEL) | 302 | |
7,300 | Iriso Electronics Co. Ltd. (JP) | 412 | |
13,000 | Shimadzu Corp. (JP) | 270 | |
984 | |||
ENERGY EQUIPMENT & SERVICES—0.9% | |||
18,771 | TGS-NOPEC Geophysical Co. (NOR) | 432 | |
FOOD & STAPLES RETAILING—1.0% | |||
18,099 | MARR SpA (IT) | 462 | |
FOOD PRODUCTS—4.0% | |||
6,679 | AAK AB (SW) | 540 | |
105,913 | Costa Group Holdings Ltd. (AUS) | 504 | |
7,900 | Ezaki Glico Co. Ltd. (JP) | 438 | |
50,212 | Tate & Lyle plc (UK) | 431 | |
1,913 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—1.9% | |||
9,901 | Carl Zeiss Meditec AG (GER) | 528 | |
4,209 | Diasorin SpA (IT) | 383 | |
911 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES—3.9% | |||
34,642 | Amplifon SpA (IT) | $ 526 | |
36,578 | Attendo AB (SW) | 430 | |
9,012 | NMC Health plc (UK) | 346 | |
42,991 | UDG Healthcare plc (IE) | 528 | |
1,830 | |||
HEALTH CARE TECHNOLOGY—0.5% | |||
4,286 | CompuGroup Medical SE (GER) | 247 | |
HOTELS, RESTAURANTS & LEISURE—3.0% | |||
84,808 | Dalata Hotel Group plc (IE)* | 529 | |
7,840 | Elior Group SA (FR) | 223 | |
84,952 | SSP Group plc (UK) | 660 | |
1,412 | |||
HOUSEHOLD DURABLES—1.7% | |||
30,939 | GUD Holdings Ltd. (AUS) | 283 | |
31,200 | Sumitomo Forestry Co. Ltd. (JP) | 525 | |
808 | |||
HOUSEHOLD PRODUCTS—2.0% | |||
165,185 | McBride plc (UK)* | 472 | |
13,700 | Pigeon Corp. (JP) | 486 | |
958 | |||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—0.8% | |||
40,600 | Erex Co. Ltd. (JP) | 402 | |
INDUSTRIAL CONGLOMERATES—0.4% | |||
987 | Daetwyler Holding AG (SWS) | 166 | |
INSURANCE—2.2% | |||
78,086 | Beazley plc (UK) | 524 | |
59,730 | Storebrand ASA (NOR)* | 511 | |
1,035 | |||
IT SERVICES—3.2% | |||
80,308 | Link Administration Holdings Ltd. (AUS) | 507 | |
10,900 | SCSK Corp. (JP) | 470 | |
11,186 | Worldline SA (FR)* | 547 | |
1,524 | |||
LEISURE PRODUCTS—1.0% | |||
21,144 | Thule Group AB (SW) | 473 | |
LIFE SCIENCES TOOLS & SERVICES—1.0% | |||
5,827 | Gerresheimer AG (GER) | 466 | |
MACHINERY—11.5% | |||
7,678 | Cargotec OYJ (FIN) | 453 | |
21,300 | CKD Corp. (JP) | 420 | |
8,200 | Daifuku Co. Ltd. (JP) | 400 | |
136,000 | Haitian International Holdings Ltd. (CYM ) | 407 | |
2,900 | Hoshizaki Corp. (JP) | 274 | |
14,800 | Minebea Mitsumi Inc. (JP) | 271 | |
93,121 | Morgan Advanced Materials plc (UK) | 388 | |
15,000 | Nabtesco Corp. (JP) | 596 | |
22,800 | OSG Corp. (JP) | 494 | |
4,014 | SFS Group AG (SWS)* | 476 | |
2,798 | Stabilus SA (GER)* | 256 | |
15,300 | THK Co. Ltd. (JP)* | 558 | |
23,208 | Valmet OYJ (FIN) | 450 | |
5,443 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
MEDIA—2.4% | |||
53,759 | Ascential plc (UK) | $ 240 | |
53,095 | Cineworld Group plc (UK) | 468 | |
6,550 | Kinepolis Group NV (BEL) | 443 | |
1,151 | |||
MULTILINE RETAIL—1.1% | |||
97,226 | B&M European Value Retail SA (LUX) | 513 | |
MULTI-UTILITIES—1.1% | |||
155,667 | Hera SpA (IT) | 501 | |
OIL, GAS & CONSUMABLE FUELS—0.6% | |||
5,650 | Gaztransport Et Technigaz SA (FR) | 277 | |
PERSONAL PRODUCTS—0.9% | |||
11,545 | Ontex Group NV (BEL) | 406 | |
PROFESSIONAL SERVICES—6.0% | |||
34,188 | Applus Services SA (SP) | 478 | |
4,563 | DKSH Holding AG (SWS) | 383 | |
12,600 | Nihon M&A Center Inc. (JP) | 603 | |
22,200 | Persol Holdings Co Ltd. (JP) | 550 | |
12,000 | TechnoPro Holdings Inc. (JP) | 550 | |
1,805 | Teleperformance (FR) | 264 | |
2,828 | |||
REAL ESTATE MANAGEMENT & DEVELOPMENT—2.0% | |||
4,598 | Nexity SA (FR) | 283 | |
27,100 | Relo Group Inc. (JP) | 671 | |
954 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.2% | |||
8,568 | ASM International NV (NET) | 574 | |
SOFTWARE—1.8% | |||
67,080 | Sophos Group plc (UK) | 553 | |
2,660 | Temenos Group AG (SWS) | 307 | |
860 | |||
SPECIALTY RETAIL—3.1% | |||
9,700 | ABC-Mart Inc. (JP) | 489 | |
4,000 | Hikari Tsushin Inc. (JP) | 518 | |
100,473 | JD Sports Fashion plc (UK) | 477 | |
1,484 | |||
TEXTILES, APPAREL & LUXURY GOODS—0.7% | |||
77,700 | Samsonite International SA (HK) | 325 | |
THRIFTS & MORTGAGE FINANCE—1.0% | |||
11,753 | Aareal Bank AG (GER) | 489 | |
TRADING COMPANIES & DISTRIBUTORS—2.7% | |||
33,776 | Ahlsell AB (SW)* | 223 | |
8,743 | IMCD Group NV (NET) | 550 | |
15,600 | Kanamoto Co. Ltd. (JP) | 513 | |
1,286 | |||
TOTAL COMMON STOCKS | |||
(Cost $38,702) | 46,219 | ||
Portfolio of Investments—Continued
PREFERRED STOCKS—0.0% | |||
Shares | Value | ||
(Cost $6) | |||
HOUSEHOLD PRODUCTS—0.0% | |||
4,790,365 | McBride plc (UK)* | $ 6x | |
SHORT-TERM INVESTMENTS—3.4% | |||
(Cost $1,634) | |||
Principal Amount | |||
REPURCHASE AGREEMENTS | |||
$ | 1,634 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (market value $1,669) | 1,634 |
TOTAL INVESTMENTS—100.9% | |||
(Cost $40,342) | 47,859 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.9)% | (459) | ||
TOTAL NET ASSETS—100.0% | $47,400 |
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 | $— | $28,106 | $— | $28,106 | ||||
Latin America | — | 407 | — | 407 | ||||
Pacific Basin | — | 17,706 | — | 17,706 | ||||
Preferred Stocks | ||||||||
Europe | — | — | 6 | 6 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 1,634 | — | 1,634 | ||||
Total Investments in Securities | $— | $47,853 | $ 6 | $47,859 |
Valuation Description | Balance Beginning at 11/01/2016 (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 10/31/2017w (000s) | |||||||||
Preferred Stocks | $2 | $6 | $(2) | $— | $— | $— | $— | $— | $6 |
Portfolio of Investments—Continued
Valuation Descriptions | Ending Balance as of 10/31/2017 (000s) | Valuation Technique | Unobservable Inputs | Input Value(s) | ||||
Investments in Securities | ||||||||
Preferred Stocks | ||||||||
McBride plc (UK)* | $6 | Market Approach | Pre-Traded Price | £ 0.001 |
* | Non-income producing security | ||
w | 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 invesstment type is below: | ||
Valuation Description | Unrealized Gain/(Loss) as of 10/31/2017 (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 |
Manager’s Commentary (Unaudited)
Suite 3000
Since 2017
Fund Performance
Manager’s Commentary—Continued
TOP TEN HOLDINGS (% of Net Assets) | |
Visa Inc. | 4.9% |
TransDigm Group Inc. | 4.5% |
Alibaba Group Holding Ltd. ADR | 4.3% |
HDFC Bank Ltd. ADR | 4.0% |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 4.0% |
Alimentation Couche-Tard Inc. | 3.9% |
Safran SA | 3.8% |
American Tower Corp. | 3.7% |
Starbucks Corp. | 3.5% |
Zoetis Inc. | 3.3% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2030 |
Cusip | 411512874 |
Ticker | HGGAX |
Inception Date | 03/01/2009 |
Net Expense Ratio | 0.90% a |
Total Net Assets (000s) | $29,034 |
ADMINISTRATIVE CLASS | |
Fund # | 2230 |
Cusip | 411512866 |
Ticker | HRGAX |
Inception Date | 03/01/2009 |
Net Expense Ratio | 1.15% a |
Total Net Assets (000s) | $1,204 |
INVESTOR CLASS | |
Fund # | 2430 |
Cusip | 411512858 |
Ticker | HGGIX |
Inception Date | 03/01/2009 |
Net Expense Ratio | 1.27% a |
Total Net Assets (000s) | $11,364 |
RETIREMENT CLASS | |
Fund # | 2530 |
Cusip | 411512411 |
Ticker | HNGIX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.83% a |
Total Net Assets (000s) | $4,376 |
Portfolio | Benchmark | ||
Number of Countries | 11 | 49 | |
Weighted Average Market Cap (MM) | $115,715 | $128,789 | |
Price/Earning Ratio (P/E) | 31.9x | 23.0x | |
Price/Book Ratio (P/B) | 6.6x | 3.2x | |
Beta vs. MSCI All Country World (ND) Index | 0.95 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 123% | N/A |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Global Leaders Fund | ||||||||||||||
Institutional Class | 24.74% | 13.11% | 17.40% | 03/01/2009 | $200,956 | |||||||||
Administrative Class | 24.48 | 12.82 | 17.11 | 03/01/2009 | 196,671 | |||||||||
Investor Class | 24.28 | 12.69 | 16.97 | 03/01/2009 | 194,601 | |||||||||
Retirement Class1 | 24.84 | 13.13 | 17.41 | 03/01/2016 | 201,114 | |||||||||
Comparative Index | ||||||||||||||
MSCI All Country World (ND)2 | 23.20% | 10.80% | 14.31% | — | $159,468 |
1 | 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. |
2 | The “Life of Fund” return and “Final Value of $50,000 Investment” as shown reflects the period 03/01/2009 through 10/31/2017. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—99.2% | |||
Shares | Value | ||
AEROSPACE & DEFENSE—8.2% | |||
16,300 | Safran SA (FR) | $ 1,717 | |
7,465 | TransDigm Group Inc. (US) | 2,071 | |
3,788 | |||
BANKS—4.0% | |||
19,700 | HDFC Bank Ltd. ADR (IND)1 | 1,818 | |
BEVERAGES—2.3% | |||
12,020 | Fomento Economico Mexicano SAB de CV ADR (MEX)1 | 1,055 | |
BIOTECHNOLOGY—1.8% | |||
8,075 | Celgene Corp. (US)* | 815 | |
CAPITAL MARKETS—5.2% | |||
21,200 | Intercontinental Exchange Inc. (US) | 1,401 | |
6,950 | Moody's Corp. (US) | 990 | |
2,391 | |||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—3.0% | |||
2,490 | Keyence Corp. (JP) | 1,382 | |
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—3.7% | |||
11,800 | American Tower Corp. (US) | 1,695 | |
FOOD & STAPLES RETAILING—3.9% | |||
38,675 | Alimentation Couche-Tard Inc. (CAN) | 1,813 | |
HEALTH CARE EQUIPMENT & SUPPLIES—2.3% | |||
8,450 | Essilor International SA (FR) | 1,070 | |
HEALTH CARE PROVIDERS & SERVICES—2.7% | |||
12,800 | Fresenius Medical Care AG & Co. KGaA (GER) | 1,239 | |
HOTELS, RESTAURANTS & LEISURE—5.6% | |||
208,800 | Sands China Ltd. (CHN) | 985 | |
29,295 | Starbucks Corp. (US) | 1,607 | |
2,592 | |||
INTERNET & DIRECT MARKETING RETAIL—2.8% | |||
675 | Priceline Group Inc. (US)* | 1,291 | |
INTERNET SOFTWARE & SERVICES—11.1% | |||
10,650 | Alibaba Group Holding Ltd. ADR (CHN)*,1 | 1,969 | |
1,375 | Alphabet Inc. Class A (US)* | 1,421 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
INTERNET SOFTWARE & SERVICES—Continued | |||
11,850 | Rightmove plc (UK) | $ 654 | |
23,925 | Tencent Holdings Ltd. (CHN) | 1,075 | |
5,119 | |||
IT SERVICES—4.9% | |||
20,339 | Visa Inc. (US) | 2,237 | |
MEDIA—1.3% | |||
13,450 | Live Nation Entertainment Inc. (US)* | 589 | |
MULTILINE RETAIL—3.8% | |||
12,950 | Dollar General Corp. (US) | 1,047 | |
16,375 | Don Quijote Holdings Co. Ltd. (JP) | 687 | |
1,734 | |||
PHARMACEUTICALS—7.3% | |||
5,540 | Allergan plc (US) | 982 | |
14,250 | Bristol-Myers Squibb Co. (US) | 878 | |
23,625 | Zoetis Inc. (US) | 1,508 | |
3,368 | |||
PROFESSIONAL SERVICES—4.4% | |||
38,150 | Recruit Holdings Co. Ltd. (JP) | 935 | |
12,975 | Verisk Analytics Inc. (US)* | 1,104 | |
2,039 | |||
ROAD & RAIL—1.8% | |||
7,190 | Union Pacific Corp. (US) | 833 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—4.0% | |||
43,075 | Taiwan Semiconductor Manufacturing Co. Ltd. ADR (TW)1 | 1,823 | |
SOFTWARE—6.9% | |||
8,190 | Adobe Systems Inc. (US)* | 1,435 | |
9,570 | Dassault Systemes SE (FR) | 1,016 | |
4,625 | Intuit Inc. (US) | 698 | |
3,149 | |||
SPECIALTY RETAIL—3.9% | |||
24,025 | Industria de Diseno Textil SA (SP) | 898 | |
14,200 | Ross Stores Inc. (US) | 902 | |
1,800 | |||
TEXTILES, APPAREL & LUXURY GOODS—4.3% | |||
3,460 | LVMH Moet Hennessy Louis Vuitton SE (FR) | 1,032 | |
16,950 | NIKE Inc. (US) | 932 | |
1,964 | |||
TOTAL COMMON STOCKS | |||
(Cost $38,360) | 45,604 | ||
Portfolio of Investments—Continued
SHORT-TERM INVESTMENTS—0.9% | |||
(Cost $415) | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS | |||
$ | 415 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $426) | $ 415 |
TOTAL INVESTMENTS—100.1% | |||
(Cost $38,775) | 46,019 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.1)% | (41) | ||
TOTAL NET ASSETS—100.0% | $45,978 |
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 | $ — | $ 7,626 | $— | $ 7,626 | ||||
Latin America | 1,055 | — | — | 1,055 | ||||
Middle East/Central Asia | 1,818 | — | — | 1,818 | ||||
North America | 26,249 | — | — | 26,249 | ||||
Pacific Basin | 3,792 | 5,064 | — | 8,856 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 415 | — | 415 | ||||
Total Investments in Securities | $32,914 | $13,105 | $— | $46,019 |
* | 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. |
Managers' Commentary (Unaudited)
28th Floor
Since 2013
Since 2013
Fund Performance
Managers' Commentary—Continued
TOP TEN HOLDINGS (% of Net Assets) | |
Samsung Electronics Co. Ltd. | 6.9% |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 6.1% |
Tencent Holdings Ltd. | 5.1% |
Alibaba Group Holding Ltd. ADR | 4.5% |
Itau Unibanco Holding SA ADR | 3.3% |
China Construction Bank Corp. | 3.1% |
ICICI Bank Ltd. ADR | 2.7% |
Vale SA ADR | 2.7% |
China Overseas Land & Investment Ltd. | 2.4% |
China Pacific Insurance Group Co. Ltd. | 2.1% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2036 |
Cusip | 411512692 |
Ticker | HAEMX |
Inception Date | 11/01/2013 |
Net Expense Ratio | 1.15% a |
Total Net Assets (000s) | $51,849 |
ADMINISTRATIVE CLASS | |
Fund # | 2236 |
Cusip | 411512684 |
Ticker | HREMX |
Inception Date | 11/01/2013 |
Net Expense Ratio | 1.40% a |
Total Net Assets (000s) | $275 |
INVESTOR CLASS | |
Fund # | 2436 |
Cusip | 411512676 |
Ticker | HIEEX |
Inception Date | 11/01/2013 |
Net Expense Ratio | 1.52% a |
Total Net Assets (000s) | $700 |
RETIREMENT CLASS | |
Fund # | 2536 |
Cusip | 411512395 |
Ticker | HNEMX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 1.08% a |
Total Net Assets (000s) | $4,232 |
Portfolio | Benchmark | ||
Number of Countries | 15 | 27 | |
Weighted Average Market Cap (MM) | $117,624 | $97,576 | |
Price/Earning Ratio (P/E) | 16.0x | 18.5x | |
Price/Book Ratio (P/B) | 2.2x | 2.6x | |
Beta vs. MSCI Emerging Markets (ND) Index | 1.08 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 59% | N/A |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | 5 Years | Annualized | Inception Date | Final Value of a $50,000 Investment | |||||||||
Life of Fund | ||||||||||||||
Harbor Emerging Markets Equity Fund | ||||||||||||||
Institutional Class | 27.54% | N/A | 2.70% | 11/01/2013 | $55,614 | |||||||||
Administrative Class | 27.04 | N/A | 2.42 | 11/01/2013 | 55,021 | |||||||||
Investor Class | 27.00 | N/A | 2.30 | 11/01/2013 | 54,769 | |||||||||
Retirement Class1 | 27.62 | N/A | 2.71 | 03/01/2016 | 55,650 | |||||||||
Comparative Index | ||||||||||||||
MSCI Emerging Markets (ND)2 | 26.45% | N/A | 4.41% | — | $59,424 |
1 | 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. |
2 | The “Life of Fund” return and “Final Value of $50,000 Investment” shown reflects the period 11/01/2013 through 10/31/2017. |
Portfolio of Investments—October 31, 2017
COMMON STOCKS—98.3% | |||
Shares | Value | ||
AIRLINES—1.0% | |||
22,694 | Azul SA ADR (BR)*,1 | $ 574 | |
AUTOMOBILES—2.7% | |||
330,000 | Brilliance China Automotive Holdings Ltd. (CHN) | 836 | |
4,976 | Hyundai Motor Co. (S. KOR) | 716 | |
1,552 | |||
BANKS—22.0% | |||
362,948 | Alpha Bank AE (GRC)* | 724 | |
743,100 | Bank Rakyat Indonesia Persero Tbk PT (IDR) | 855 | |
1,978,000 | China Construction Bank Corp. (CHN) | 1,768 | |
194,000 | China Merchants Bank Co. Ltd. (CHN) | 741 | |
93,337 | Grupo Financiero Banorte SAB de CV (MEX)* | 553 | |
27,813 | Hana Financial Group Inc. (S. KOR) | 1,190 | |
169,134 | ICICI Bank Ltd. ADR (IND)1 | 1,548 | |
1,351,000 | Industrial & Commercial Bank of China Ltd. (CHN) | 1,075 | |
149,225 | Itau Unibanco Holding SA ADR (BR)1 | 1,911 | |
10,886 | OTP Bank plc (HUN) | 439 | |
63,197 | Sberbank of Russia PJSC ADR (RUS)1 | 907 | |
208,607 | Turkiye Halk Bankasi AS (TUR) | 609 | |
138,200 | United Bank Ltd. (PAK) | 235 | |
12,555 | |||
BEVERAGES—1.2% | |||
106,227 | AmBev SA ADR (BR)*,1 | 672 | |
CAPITAL MARKETS—0.8% | |||
522,000 | China Galaxy Securities Co. Ltd. (CHN) | 455 | |
CHEMICALS—1.5% | |||
231,334 | Alpek SAB de CV (MEX)* | 243 | |
34,411 | PhosAgro PJSC GDR (RUS)2 | 473 | |
2,684,000 | Tianhe Chemicals Group Ltd. (CHN)*,3 | 151 x | |
867 | |||
CONSTRUCTION & ENGINEERING—1.1% | |||
748,000 | China Railway Group Ltd. (CHN) | 601 |
COMMON STOCKS—Continued | |||
Shares | Value | ||
CONSTRUCTION MATERIALS—3.9% | |||
195,500 | Anhui Conch Cement Co. Ltd. (CHN) | $ 838 | |
77,435 | Cemex SAB de CV ADR (MEX)*,1 | 628 | |
567,700 | Semen Indonesia Persero TBK PT (IDR) | 456 | |
1,829,800 | West China Cement Ltd. (CHN)* | 291 | |
2,213 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—1.8% | |||
2,098,000 | China Telecom Corp. Ltd. (CHN) | 1,052 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—1.5% | |||
57,406 | Delta Electronics Inc. (TW) | 276 | |
161,000 | Hon Hai Precision Industry Co. Ltd. (TW) | 599 | |
875 | |||
ENERGY EQUIPMENT & SERVICES—0.7% | |||
428,000 | China Oilfield Services Ltd. (CHN) | 380 | |
FOOD PRODUCTS—2.8% | |||
78,084 | BRF SA ADR (BR)*,1 | 1,052 | |
732,900 | Charoen Pokphand Foods PCL (THA) | 573 | |
1,625 | |||
HOTELS, RESTAURANTS & LEISURE—2.5% | |||
49,192 | China International Travel Service Corp. Ltd. (CHN) | 307 | |
52,145 | CVC Brasil Operadora e Agencia de Viagens SA (BR) | 689 | |
90,418 | Sands China Ltd. (CHN) | 427 | |
1,423 | |||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—2.5% | |||
690,000 | China Longyuan Power Group Corp. Ltd. (CHN) | 512 | |
1,784,400 | Datang International Power Generation Co. Ltd. (CHN)* | 602 | |
692,000 | Huadian Power International Corp. Ltd. (CHN) | 287 | |
1,401 | |||
INSURANCE—3.3% | |||
191,000 | China Life Insurance Co. Ltd. (CHN) | 633 | |
249,400 | China Pacific Insurance Group Co. Ltd. (CHN) | 1,232 | |
1,865 | |||
INTERNET & DIRECT MARKETING RETAIL—1.1% | |||
12,801 | Ctrip.com International Ltd. ADR (CHN)*,1 | 613 | |
INTERNET SOFTWARE & SERVICES—9.7% | |||
14,025 | Alibaba Group Holding Ltd. ADR (CHN)*,1 | 2,593 | |
2,876 | Sea Ltd. ADR (SGP)*,1 | 43 | |
64,900 | Tencent Holdings Ltd. (CHN) | 2,917 | |
5,553 | |||
IT SERVICES—1.3% | |||
18,560 | Tata Consultancy Services Ltd. (IND) | 751 | |
MEDIA—1.7% | |||
3,952 | Naspers Ltd. (S. AFR) | 963 | |
METALS & MINING—4.3% | |||
63,573 | AngloGold Ashanti Ltd. ADR (S. AFR)1 | 591 | |
1,701 | Polyus PJSC GDR (RUS)2 | 70 | |
7,050 | Polyus PJSC GDR (RUS)*,2,3 | 290 | |
155,318 | Vale SA ADR (BR)*,1 | 1,520 | |
2,471 | |||
OIL, GAS & CONSUMABLE FUELS—8.8% | |||
204,500 | China Shenhua Energy Co. Ltd. (CHN) | 489 | |
4,226 | CNOOC Ltd. ADR (CHN)1 | 578 |
Portfolio of Investments—Continued
COMMON STOCKS—Continued | |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS—Continued | |||
21,193 | Lukoil PJSC ADR (RUS)1 | $ 1,126 | |
118,234 | Petroleo Brasileiro SA ADR (BR)*,1 | 1,212 | |
53,617 | Reliance Industries Ltd. (IND) | 782 | |
151,615 | Rosneft Oil Co PJSC GDR (RUS)2 | 831 | |
5,018 | |||
PERSONAL PRODUCTS—1.6% | |||
3,203 | Amorepacific Corp. (S. KOR) | 899 | |
PROFESSIONAL SERVICES—0.1% | |||
6,435 | L&T Technology Services Ltd. (IND)*,3 | 82 | |
REAL ESTATE MANAGEMENT & DEVELOPMENT—3.0% | |||
424,000 | China Overseas Land & Investment Ltd. (CHN) | 1,377 | |
173,500 | Shimao Property Holdings Ltd. (CHN) | 363 | |
1,740 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—8.1% | |||
81,685 | Taiwan Semiconductor Manufacturing Co. Ltd. ADR (TW)1 | 3,458 | |
2,231,000 | United Microelectronics Corp. (TW) | 1,151 | |
4,609 | |||
SPECIALTY RETAIL—1.0% | |||
45,047 | Mr Price Group Ltd. (S. AFR) | 558 | |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—6.9% | |||
1,587 | Samsung Electronics Co. Ltd. (S. KOR) | 3,912 | |
THRIFTS & MORTGAGE FINANCE—1.1% | |||
31,762 | Indiabulls Housing Finance Ltd. (IND) | 610 | |
WIRELESS TELECOMMUNICATION SERVICES—0.3% | |||
660,300 | Sarana Menara Nusantara TBK PT (IDR)* | 200 | |
TOTAL COMMON STOCKS | |||
(Cost $44,740) | 56,089 | ||
PARTICIPATION (EQUITY LINKED) NOTES—0.2% | |||
Principal Amount | |||
BANKS—0.2% | |||
United Bank Ltd. (PAK)*,3 | |||
$ | 57,045 | $0.01––06/19/2019 | 97 |
OIL, GAS & CONSUMABLE FUELS—0.0% | |||
Reliance Industries Ltd. (IND)* | |||
34 | $0.01––07/10/2019 | 1 | |
TOTAL PARTICIPATION (EQUITY LINKED) NOTES | |||
(Cost $95) | 98 | ||
SHORT-TERM INVESTMENTS—2.1% | |||
(Cost $1,195) | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS | |||
$ | 1,195 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $1,224) | $ 1,195 |
TOTAL INVESTMENTS—100.6% | |||
(Cost $46,030) | 57,382 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.6)% | (326) | ||
TOTAL NET ASSETS—100.0% | $57,056 |
Portfolio of Investments—Continued
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 | $ 591 | $ 1,521 | $ — | $ 2,112 | ||||
Europe | — | 5,468 | — | 5,468 | ||||
Latin America | 9,099 | — | — | 9,099 | ||||
Middle East/Central Asia | 1,548 | 2,460 | — | 4,008 | ||||
Pacific Basin | 7,242 | 28,009 | 151 | 35,402 | ||||
Participation (Equity Linked) Notes | ||||||||
Middle East/Central Asia | — | 98 | — | 98 | ||||
Short-Term Investments | ||||||||
Repurchase Agreements | — | 1,195 | — | 1,195 | ||||
Total Investments in Securities | $18,480 | $38,751 | $151 | $57,382 |
Valuation Description | Balance Beginning at 11/01/2016 (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 10/31/2017w (000s) | |||||||||
Common Stocks | $242 | $— | $— | $— | $— | $(91) | $— | $— | $151 |
Valuation Descriptions | Ending Balance as of 10/31/2017 (000s) | Valuation Technique | Unobservable Inputs | Input Value(s) | ||||
Investments in Securities | ||||||||
Common Stocks | ||||||||
Tianhe Chemicals Group Ltd. (CHN)* | $151 | Market Approach | Liquidity Discount | HK$ 0.44 |
* | 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. NVDR after the name of a holding stands for Non-Voting Depositary Receipts representing ownership of a listed security in the Stock Exchange of Thailand. | ||
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, 2017, the aggregate value of these securities was $620,000 or 1% of net assets. | ||
w | 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 10/31/2017 (000s) | ||
Common Stocks. | $(361) | ||
x | Fair Valued in accordance with Harbor Funds Valuation Procedures using pre-traded price which is a Level 3 input | ||
HK$ | Hong Kong Dollar |
StatementS of Assets and Liabilities—October 31, 2017
Harbor International Fund | Harbor Diversified International All Cap Fund | Harbor International Growth Fund | Harbor International Small Cap Fund | Harbor Global Leaders Fund | Harbor Emerging Markets Equity Fund | |||||||
ASSETS | ||||||||||||
Investments, at identified cost* | $23,407,020 | $285,816 | $342,430 | $40,342 | $38,775 | $46,030 | ||||||
Investments, at value(Including securities loaned of $426,931, $0, $6,410, $0, $0, and $0) | $32,394,298 | $313,765 | $407,927 | $46,225 | $45,604 | $56,187 | ||||||
Repurchase agreements | 279,781 | 7,782 | 1,434 | 1,634 | 415 | 1,195 | ||||||
Cash | 6 | 1 | 1 | — | — | 1 | ||||||
Foreign currency, at value (cost: $30,251,$1,311,$0,$0, $21 and $0) | 30,264 | 1,302 | — | — | 21 | — | ||||||
Receivables for: | ||||||||||||
Investments sold | 114,905 | 18 | — | — | — | — | ||||||
Foreign currency spot contracts | 354 | — | — | — | — | — | ||||||
Capital shares sold | 9,654 | 287 | 58 | 3 | 6 | 1 | ||||||
Dividends | 35,936 | 653 | 679 | 76 | 20 | 49 | ||||||
Interest | 112 | — | — | — | — | — | ||||||
Securities lending income | 24 | — | 5 | — | — | — | ||||||
Purchased options, at value (cost: $14,434,$1,$0,$0,$0 and $0) | 10,999 | 8 | — | — | — | — | ||||||
Withholding tax | 33,917 | 128 | 448 | 17 | 20 | — | ||||||
Prepaid registration fees | 47 | 34 | 33 | 9 | 10 | 35 | ||||||
Other assets | 3,028 | 68 | 115 | — | 53 | 17 | ||||||
Total Assets | 32,913,325 | 324,046 | 410,700 | 47,964 | 46,149 | 57,485 | ||||||
LIABILITIES | ||||||||||||
Payables for: | ||||||||||||
Investments purchased | 121,882 | 115 | — | 490 | 88 | 235 | ||||||
Foreign currency spot contracts | 220 | — | — | 1 | — | — | ||||||
Capital shares reacquired | 49,506 | 58 | 1,107 | — | 15 | 12 | ||||||
Collateral for securities loaned | 450,733 | — | 6,723 | — | — | — | ||||||
Accrued expenses: | ||||||||||||
Management fees | 18,907 | 203 | 251 | 32 | 29 | 46 | ||||||
12b-1 fees | 473 | 1 | 3 | — | 3 | — | ||||||
Transfer agent fees | 2,249 | 17 | 27 | 3 | 4 | 4 | ||||||
Trustees' fees and expenses | 223 | 1 | 2 | — | — | — | ||||||
Other | 13,025 | 231 | 301 | 38 | 32 | 132 | ||||||
Total Liabilities | 657,218 | 626 | 8,414 | 564 | 171 | 429 | ||||||
NET ASSETS | $32,256,107 | $323,420 | $402,286 | $47,400 | $45,978 | $57,056 | ||||||
Net Assets Consist of: | ||||||||||||
Paid-in capital | $21,580,451 | $277,610 | $333,424 | $39,336 | $34,759 | $52,007 | ||||||
Accumulated undistributed net investment income/(loss) | 255,234 | 2,412 | 2,739 | 149 | 15 | 414 | ||||||
Accumulated net realized gain/(loss) | 1,156,655 | 7,705 | (727) | 398 | 3,960 | (6,644) | ||||||
Unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currencies | 9,267,202 | 35,685 | 66,850 | 7,517 | 7,244 | 11,279 | ||||||
Unrealized appreciation/(depreciation) of other financial instruments | (3,435) | 8 | — | — | — | — | ||||||
$32,256,107 | $323,420 | $402,286 | $47,400 | $45,978 | $57,056 | |||||||
NET ASSET VALUE PER SHARE BY CLASS | ||||||||||||
Institutional Class | ||||||||||||
Net assets | $27,401,853 | $225,473 | $362,035 | $38,818 | $29,034 | $51,849 | ||||||
Shares of beneficial interest1 | 392,035 | 19,129 | 23,069 | 2,793 | 1,147 | 4,788 | ||||||
Net asset value per share2 | $ 69.90 | $ 11.79 | $ 15.69 | $ 13.90 | $ 25.31 | $ 10.83 | ||||||
Administrative Class | ||||||||||||
Net assets | $ 398,584 | $ 310 | $ 466 | $ 371 | $ 1,204 | $ 275 | ||||||
Shares of beneficial interest1 | 5,729 | 26 | 30 | 27 | 48 | 25 | ||||||
Net asset value per share2 | $ 69.57 | $ 11.76 | $ 15.67 | $ 13.87 | $ 24.97 | $ 10.80 | ||||||
Investor Class | ||||||||||||
Net assets | $ 1,798,228 | $ 5,195 | $ 14,913 | $ 540 | $11,364 | $ 700 | ||||||
Shares of beneficial interest1 | 26,009 | 444 | 958 | 39 | 460 | 65 | ||||||
Net asset value per share2 | $ 69.14 | $ 11.71 | $ 15.57 | $ 13.86 | $ 24.72 | $ 10.78 | ||||||
Retirement Class | ||||||||||||
Net assets | $ 2,657,442 | $ 92,442 | $ 24,872 | $ 7,671 | $ 4,376 | $ 4,232 | ||||||
Shares of beneficial interest1 | 38,012 | 7,842 | 1,583 | 552 | 173 | 391 | ||||||
Net asset value per share2 | $ 69.91 | $ 11.79 | $ 15.71 | $ 13.90 | $ 25.33 | $ 10.83 |
* | 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. |
StatementS of Operations—Year Ended October 31, 2017
Harbor International Fund | Harbor Diversified International All Cap Fund | Harbor International Growth Fund | Harbor International Small Cap Fund | Harbor Global Leaders Fund | Harbor Emerging Markets Equity Fund | |
Investment Income | ||||||
Dividends | $ 851,906 | $ 5,929 | $ 6,680 | $ 496 | $ 445 | $ 1,245 |
Net securities lending income | 4,130 | 1 | 28 | 1 | 2 | — |
Interest | 5,718 | 4 | 4 | 1 | 1 | 1 |
Foreign taxes withheld | (72,582) | (497) | (654) | (46) | (28) | (144) |
Total Investment Income | 789,172 | 5,437 | 6,058 | 452 | 420 | 1,102 |
Operating Expenses | ||||||
Management fees | 235,554 | 1,689 | 2,555 | 220 | 302 | 449 |
12b-1 fees: | ||||||
Administrative Class | 1,139 | 1 | 1 | 1 | 3 | 1 |
Investor Class | 4,948 | 8 | 35 | 1 | 24 | 2 |
Shareholder communications | 3,533 | 23 | 30 | 5 | 7 | 5 |
Custodian fees | 7,716 | 388 | 124 | 43 | 24 | 86 |
Transfer agent fees: | ||||||
Institutional Class | 26,237 | 170 | 271 | 21 | 23 | 38 |
Administrative Class | 395 | — | — | — | 1 | — |
Investor Class | 4,089 | 7 | 29 | 1 | 19 | 1 |
Retirement Class | 222 | 3 | 2 | — | — | — |
Professional fees | 1,022 | 36 | 18 | 9 | 41 | 20 |
Trustees' fees and expenses | 1,004 | 6 | 9 | 1 | 1 | 1 |
Registration fees | 232 | 60 | 62 | 57 | 65 | 61 |
Miscellaneous | 358 | 13 | 14 | 11 | 11 | 11 |
Total expenses | 286,449 | 2,404 | 3,150 | 370 | 521 | 675 |
Management fees waived | (2,078) | — | — | — | — | — |
Transfer agent fees waived | (3,020) | (18) | (30) | (3) | (3) | (4) |
Other expenses reimbursed | — | (479) | (184) | (120) | (120) | (127) |
Net expenses | 281,351 | 1,907 | 2,936 | 247 | 398 | 544 |
Net Investment Income/(Loss) | 507,821 | 3,530 | 3,122 | 205 | 22 | 558 |
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions | ||||||
Net realized gain/(loss) on: | ||||||
Investments (net of foreign capital gains tax: $0, $43, $2, $0, $0, and $24) | 1,794,073 | 12,678 | 7,691 | 793 | 6,970 | 2,362 |
Purchased options | — | — | — | 11 | — | — |
Foreign currency transactions | (9,684) | (84) | (87) | (7) | (4) | (19) |
Redemption in-kind | 174,061 | — | — | — | — | — |
Change in net unrealized appreciation/(depreciation) on: | ||||||
Investments (net of foreign capital gains tax accrual: $0, $37, $70, $0, $0, and $73) | 3,299,483 | 30,597 | 62,983 | 6,182 | 1,806 | 8,546 |
Purchased options | 1,652 | 8 | — | — | — | — |
Translations of assets and liabilities in foreign currencies | 3,179 | 9 | 18 | 1 | 1 | — |
Net gain/(loss) on investment transactions | 5,262,764 | 43,208 | 70,605 | 6,980 | 8,773 | 10,889 |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $5,770,585 | $46,738 | $73,727 | $7,185 | $8,795 | $11,447 |
Statements of Changes In Net Assets
Harbor International Fund | Harbor Diversified International All Cap Fund | Harbor International Growth Fund | ||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 2, 2015a through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||
INCREASE/(DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income/(loss) | $ 507,821 | $ 647,931 | $ 3,530 | $ 2,348 | $ 3,122 | $ 3,803 | ||
Net realized gain/(loss) on investments | 1,958,450 | (101,090) | 12,594 | (2,906) | 7,604 | (4,939) | ||
Change in net unrealized appreciation/(depreciation) of investments | 3,304,314 | (2,292,960) | 30,614 | 5,079 | 63,001 | 8,148 | ||
Net increase/(decrease) in assets resulting from operations | 5,770,585 | (1,746,119) | 46,738 | 4,521 | 73,727 | 7,012 | ||
Distributions to Shareholders | ||||||||
Net investment income: | ||||||||
Institutional Class | (621,061) | (663,480) | (2,150) | (21) | (3,507) | (2,643) | ||
Administrative Class | (7,902) | (11,261) | (3) | — | (3) | (1) | ||
Investor Class | (31,061) | (39,315) | (23) | — | (119) | (96) | ||
Retirement Class | (16,825) | — | (24) | — | (32) | — | ||
Net realized gain on investments: | ||||||||
Institutional Class | — | (1,087,932) | — | — | — | — | ||
Administrative Class | — | (21,975) | — | — | — | — | ||
Investor Class | — | (89,647) | — | — | — | — | ||
Retirement Class | — | — | — | — | — | — | ||
Total distributions to shareholders | (676,849) | (1,913,610) | (2,200) | (21) | (3,661) | (2,740) | ||
Net Increase/(Decrease) Derived from Capital Share Transactions | (9,478,305) | (5,484,241) | 126,258 | 148,124 | 38,423 | 18,757 | ||
Net increase/(decrease) in net assets | (4,384,569) | (9,143,970) | 170,796 | 152,624 | 108,489 | 23,029 | ||
Net Assets | ||||||||
Beginning of period | 36,640,676 | 45,784,646 | 152,624 | — | 293,797 | 270,768 | ||
End of period* | $32,256,107 | $36,640,676 | $323,420 | $152,624 | $402,286 | $293,797 | ||
* Includes accumulated undistributed net investment income/(loss) of: | $ 255,234 | $ 329,584 | $ 2,412 | $ 1,687 | $ 2,739 | $ 3,291 |
a | Commencement of operations. |
Harbor International Small Cap Fund | Harbor Global Leaders Fund | Harbor Emerging Markets Equity Fund | |||||
November 1, 2016 through October 31, 2017 | February 1, 2016a through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
$ 205 | $ 177 | $ 22 | $ (33) | $ 558 | $ 338 | ||
797 | (338) | 6,966 | (2,275) | 2,343 | (5,773) | ||
6,183 | 1,334 | 1,807 | 738 | 8,546 | 9,206 | ||
7,185 | 1,173 | 8,795 | (1,570) | 11,447 | 3,771 | ||
(197) | — | — | — | (397) | (339) | ||
(2) | — | — | — | (2) | (1) | ||
(2) | — | — | — | (4) | (2) | ||
(7) | — | — | — | (16) | — | ||
— | — | — | (1,124) | — | — | ||
— | — | — | (37) | — | — | ||
— | — | — | (446) | — | — | ||
— | — | — | — | — | — | ||
(208) | — | — | (1,607) | (419) | (342) | ||
21,735 | 17,515 | (1,913) | (7,020) | 7,604 | (7,535) | ||
28,712 | 18,688 | 6,882 | (10,197) | 18,632 | (4,106) | ||
18,688 | — | 39,096 | 49,293 | 38,424 | 42,530 | ||
$47,400 | $18,688 | $45,978 | $ 39,096 | $57,056 | $38,424 | ||
$ 149 | $ 199 | $ 15 | $ (1) | $ 414 | $ 319 |
Statements of Changes in Net Assets—Capital Stock Activity
Harbor International Fund | Harbor Diversified International All Cap Fund | Harbor International Growth Fund | ||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 2, 2015a through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||
AMOUNT ($) | ||||||||
Institutional Class | ||||||||
Net proceeds from sale of shares | $ 3,763,185 | $ 6,472,181 | $ 174,975 | $215,224 | $ 71,320 | $ 57,542 | ||
Reinvested distributions | 537,811 | 1,536,571 | 2,114 | 21 | 3,417 | 2,591 | ||
Cost of shares reacquired | (14,157,214) | (12,709,358) | (141,031) | (69,472) | (53,734) | (40,817) | ||
Cost of shares reacquired through redemption in-kind | (451,183) | — | — | — | — | — | ||
Net increase/(decrease) in net assets | $(10,307,401) | $ (4,700,606) | $ 36,058 | $145,773 | $ 21,003 | $ 19,316 | ||
Administrative Class | ||||||||
Net proceeds from sale of shares | $ 141,969 | $ 120,940 | $ 10 | $ 253 | $ 480 | $ 367 | ||
Reinvested distributions | 7,713 | 31,538 | 3 | — | 3 | 1 | ||
Cost of shares reacquired | (327,979) | (397,568) | — | — | (431) | (375) | ||
Net increase/(decrease) in net assets | $ (178,297) | $ (245,090) | $ 13 | $ 253 | $ 52 | $ (7) | ||
Investor Class | ||||||||
Net proceeds from sale of shares | $ 230,111 | $ 394,564 | $ 4,689 | $ 334 | $ 2,335 | $ 1,793 | ||
Reinvested distributions | 30,486 | 126,893 | 23 | — | 117 | 95 | ||
Cost of shares reacquired | (942,361) | (1,797,732) | (574) | — | (3,837) | (4,556) | ||
Net increase/(decrease) in net assets | $ (681,764) | $ (1,276,275) | $ 4,138 | $ 334 | $ (1,385) | $ (2,668) | ||
Retirement Class | ||||||||
Net proceeds from sale of shares | $ 2,467,439 | $ 785,702 | $ 87,798 | $ 1,780 | $ 20,877 | $ 2,316 | ||
Reinvested distributions | 16,825 | — | 23 | — | 32 | — | ||
Cost of shares reacquired | (795,107) | (47,972) | (1,773) | (16) | (2,156) | (200) | ||
Net increase/(decrease) in net assets | $ 1,689,157 | $ 737,730 | $ 86,048 | $ 1,764 | $ 18,753 | $ 2,116 |
a | Commencement of operations |
Harbor International Small Cap Fund | Harbor Global Leaders Fund | Harbor Emerging Markets Equity Fund | |||||
November 1, 2016 through October 31, 2017 | February 1, 2016a through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
$16,678 | $16,564 | $ 2,658 | $ 2,664 | $12,422 | $ 4,774 | ||
197 | — | — | 1,101 | 397 | 339 | ||
(1,932) | (184) | (5,092) | (10,475) | (7,659) | (13,818) | ||
— | — | — | — | — | — | ||
$14,943 | $16,380 | $(2,434) | $ (6,710) | $ 5,160 | $ (8,705) | ||
$ 27 | $ 245 | $ 142 | $ 297 | $ — | $ — | ||
2 | — | — | 37 | 2 | 1 | ||
— | — | (450) | (193) | — | — | ||
$ 29 | $ 245 | $ (308) | $ 141 | $ 2 | $ 1 | ||
$ 135 | $ 473 | $ 2,647 | $ 1,793 | $ 637 | $ 1,116 | ||
2 | — | — | 446 | 4 | 2 | ||
(1) | (198) | (3,934) | (4,323) | (566) | (1,092) | ||
$ 136 | $ 275 | $(1,287) | $ (2,084) | $ 75 | $ 26 | ||
$ 6,743 | $ 615 | $ 2,512 | $ 1,732 | $ 2,375 | $ 1,162 | ||
7 | — | — | — | 15 | — | ||
(123) | — | (396) | (99) | (23) | (19) | ||
$ 6,627 | $ 615 | $ 2,116 | $ 1,633 | $ 2,367 | $ 1,143 |
Statements of Changes in Net Assets—Capital Stock Activity—Continued
Harbor International Fund | Harbor Diversified International All Cap Fund | Harbor International Growth Fund | ||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 2, 2015a through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||
SHARES | ||||||||
Institutional Class | ||||||||
Shares sold | 58,718 | 109,758 | 16,414 | 22,533 | 5,171 | 4,573 | ||
Shares issued due to reinvestment of distributions | 9,241 | 26,048 | 220 | 2 | 282 | 212 | ||
Shares reacquired | (219,793) | (212,523) | (12,889) | (7,151) | (3,920) | (3,274) | ||
Shares reacquired through redemption in-kind | (6,735) | — | — | — | — | — | ||
Net increase/(decrease) in shares outstanding | (158,569) | (76,717) | 3,745 | 15,384 | 1,533 | 1,511 | ||
Beginning of period | 550,604 | 627,321 | 15,384 | — | 21,536 | 20,025 | ||
End of period | 392,035 | 550,604 | 19,129 | 15,384 | 23,069 | 21,536 | ||
Administrative Class | ||||||||
Shares sold | 2,183 | 2,042 | 1 | 25 | 34 | 30 | ||
Shares issued due to reinvestment of distributions | 133 | 536 | — | — | — | — | ||
Shares reacquired | (5,098) | (6,804) | — | — | (30) | (30) | ||
Net increase/(decrease) in shares outstanding | (2,782) | (4,226) | 1 | 25 | 4 | — | ||
Beginning of period | 8,511 | 12,737 | 25 | — | 26 | 26 | ||
End of period | 5,729 | 8,511 | 26 | 25 | 30 | 26 | ||
Investor Class | ||||||||
Shares sold | 3,644 | 6,701 | 462 | 34 | 169 | 145 | ||
Shares issued due to reinvestment of distributions | 528 | 2,169 | 3 | — | 10 | 8 | ||
Shares reacquired | (14,877) | (30,082) | (55) | — | (274) | (368) | ||
Net increase/(decrease) in shares outstanding | (10,705) | (21,212) | 410 | 34 | (95) | (215) | ||
Beginning of period | 36,714 | 57,926 | 34 | — | 1,053 | 1,268 | ||
End of period | 26,009 | 36,714 | 444 | 34 | 958 | 1,053 | ||
Retirement Class | ||||||||
Shares sold | 37,073 | 13,062 | 7,818 | 185 | 1,542 | 198 | ||
Shares issued due to reinvestment of distributions | 289 | — | 2 | — | 2 | — | ||
Shares reacquired | (11,616) | (796) | (161) | (2) | (144) | (15) | ||
Net increase/(decrease) in shares outstanding | 25,746 | 12,266 | 7,659 | 183 | 1,400 | 183 | ||
Beginning of period | 12,266 | — | 183 | 0 | 183 | — | ||
End of period | 38,012 | 12,266 | 7,842 | 183 | 1,583 | 183 |
a | Commencement of operations |
Harbor International Small Cap Fund | Harbor Global Leaders Fund | Harbor Emerging Markets Equity Fund | |||||
November 1, 2016 through October 31, 2017 | February 1, 2016a through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
1,303 | 1,644 | 120 | 130 | 1,328 | 653 | ||
19 | — | — | 52 | 48 | 46 | ||
(155) | (18) | (228) | (503) | (823) | (1,780) | ||
— | — | — | — | — | — | ||
1,167 | 1,626 | (108) | (321) | 553 | (1,081) | ||
1,626 | — | 1,255 | 1,576 | 4,235 | 5,316 | ||
2,793 | 1,626 | 1,147 | 1,255 | 4,788 | 4,235 | ||
2 | 25 | 6 | 14 | — | — | ||
— | — | — | 2 | — | — | ||
— | — | (20) | (9) | — | — | ||
2 | 25 | (14) | 7 | — | — | ||
25 | — | 62 | 55 | 25 | 25 | ||
27 | 25 | 48 | 62 | 25 | 25 | ||
12 | 47 | 111 | 89 | 64 | 154 | ||
— | — | — | 21 | 1 | — | ||
— | (20) | (187) | (211) | (56) | (150) | ||
12 | 27 | (76) | (101) | 9 | 4 | ||
27 | — | 536 | 637 | 56 | 52 | ||
39 | 27 | 460 | 536 | 65 | 56 | ||
504 | 58 | 106 | 89 | 237 | 157 | ||
1 | — | — | — | 2 | — | ||
(11) | — | (17) | (5) | (3) | (2) | ||
494 | 58 | 89 | 84 | 236 | 155 | ||
58 | — | 84 | — | 155 | — | ||
552 | 58 | 173 | 84 | 391 | 155 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR INTERNATIONAL FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 60.30 | $ 65.67 | $ 68.09 | $ 70.79 | $ 59.12 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.97 e | 0.99 e | 1.22 e | 1.25 | 1.24 |
Net realized and unrealized gains/(losses) on investments | 9.79 | (3.51) | (2.22) | (2.45) | 11.69 |
Total from investment operations | 10.76 | (2.52) | (1.00) | (1.20) | 12.93 |
Less Distributions | |||||
Dividends from net investment income | (1.16) | (1.08) | (1.42) | (1.50) | (1.26) |
Distributions from net realized capital gains1 | — | (1.77) | — | — | — |
Total distributions | (1.16) | (2.85) | (1.42) | (1.50) | (1.26) |
Proceeds from redemption fees | — | — | — | — | — * |
Net asset value end of period | 69.90 | 60.30 | 65.67 | 68.09 | 70.79 |
Net assets end of period (000s) | $27,401,853 | $33,201,899 | $41,195,827 | $43,385,100 | $39,828,959 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 18.24% | (3.74)% | (1.48)% | (1.69)% | 22.19% |
Ratio of total expenses to average net assets2 | 0.81 | 0.79 | 0.76 | 0.76 | 0.76 |
Ratio of net expenses to average net assetsa | 0.80 | 0.77 | 0.74 | 0.73 | 0.74 |
Ratio of net investment income to average net assetsa | 1.51 | 1.66 | 1.80 | 1.78 | 1.96 |
Portfolio turnover | 13 | 14 | 25 | 11 | 10 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 59.61 | $ 64.86 | $ 67.23 | $ 69.92 | $ 58.42 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.72 e | 0.73 e | 0.96 e | 1.07 | 1.01 |
Net realized and unrealized gains/(losses) on investments | 9.71 | (3.43) | (2.19) | (2.51) | 11.54 |
Total from investment operations | 10.43 | (2.70) | (1.23) | (1.44) | 12.55 |
Less Distributions | |||||
Dividends from net investment income | (0.90) | (0.78) | (1.14) | (1.25) | (1.05) |
Distributions from net realized capital gains1 | — | (1.77) | — | — | — |
Total distributions | (0.90) | (2.55) | (1.14) | (1.25) | (1.05) |
Proceeds from redemption fees | — | — | — | — | — * |
Net asset value end of period | 69.14 | 59.61 | 64.86 | 67.23 | 69.92 |
Net assets end of period (000s) | $ 1,798,228 | $ 2,188,360 | $ 3,756,852 | $ 4,786,270 | $ 5,279,866 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 17.79% | (4.09)% | (1.84)% | (2.05)% | 21.76% |
Ratio of total expenses to average net assets2 | 1.18 | 1.16 | 1.13 | 1.13 | 1.13 |
Ratio of net expenses to average net assetsa | 1.17 | 1.14 | 1.11 | 1.10 | 1.11 |
Ratio of net investment income to average net assetsa | 1.13 | 1.23 | 1.43 | 1.46 | 1.60 |
Portfolio turnover | 13 | 14 | 25 | 11 | 10 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 59.99 | $ 65.32 | $ 67.48 | $ 70.18 | $ 58.63 |
0.79 e | 0.79 e | 1.04 e | 1.91 i | 1.03 |
9.77 | (3.44) | (2.20) | (3.27) | 11.63 |
10.56 | (2.65) | (1.16) | (1.36) | 12.66 |
(0.98) | (0.91) | (1.00) | (1.34) | (1.11) |
— | (1.77) | — | — | — |
(0.98) | (2.68) | (1.00) | (1.34) | (1.11) |
— | — | — | — | — * |
69.57 | 59.99 | 65.32 | 67.48 | 70.18 |
$398,584 | $510,575 | $831,967 | $961,478 | $2,896,387 |
17.93% | (3.97)% | (1.73)% | (1.93)% | 21.87% |
1.06 | 1.04 | 1.01 | 1.01 | 1.01 |
1.05 | 1.02 | 0.99 | 0.98 | 0.99 |
1.22 | 1.33 | 1.54 | 1.85 | 1.66 |
13 | 14 | 25 | 11 | 10 |
Retirement Class | |
2017 | 2016 f |
$ 60.32 | $ 57.14 |
0.94 e | 0.68 e |
9.85 | 2.50 |
10.79 | 3.18 |
(1.20) | — |
— | — |
(1.20) | — |
— | — |
69.91 | 60.32 |
$2,657,442 | $739,842 |
18.30% | 5.57% c |
0.74 | 0.75 d |
0.73 | 0.72 d |
1.42 | 1.68 d |
13 | 14 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR DIVERSIFIED INTERNATIONAL ALL CAP FUND | |||||
Institutional Class | Administrative Class | ||||
Year Ended October 31, | 2017 | 2016 g | 2017 | 2016 g | |
Net asset value beginning of period | $ 9.77 | $ 10.00 | $ 9.75 | $10.00 | |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.17 e | 0.20 e | 0.14 e | 0.13 e | |
Net realized and unrealized gains/(losses) on investments | 1.98 | (0.42) | 1.97 | (0.38) | |
Total from investment operations | 2.15 | (0.22) | 2.11 | (0.25) | |
Less Distributions | |||||
Dividends from net investment income | (0.13) | (0.01) | (0.10) | — * | |
Distributions from net realized capital gains1 | — | — | — | — | |
Total distributions | (0.13) | (0.01) | (0.10) | — * | |
Net asset value end of period | 11.79 | 9.77 | 11.76 | 9.75 | |
Net assets end of period (000s) | $225,473 | $150,263 | $ 310 | $ 246 | |
Ratios and Supplemental Data (%) | |||||
Total returnb | 22.29% | (2.25)% c | 21.91% | (2.49)% c | |
Ratio of total expenses to average net assets2 | 1.07 | 1.22 d | 1.32 | 1.46 d | |
Ratio of net expenses to average net assetsa | 0.85 | 0.85 d | 1.10 | 1.10 d | |
Ratio of net investment income to average net assetsa | 1.59 | 2.13 d | 1.29 | 1.39 d | |
Portfolio turnover | 46 | 68 c | 46 | 68 c |
Investor Class | Retirement Class | ||||
Year Ended October 31, | 2017 | 2016 g | 2017 | 2016 f | |
Net asset value beginning of period | $ 9.74 | $ 10.00 | $ 9.77 | $ 9.21 | |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.14 e | 0.12 e | 0.14 e | 0.06 e | |
Net realized and unrealized gains/(losses) on investments | 1.96 | (0.38) | 2.01 | 0.50 | |
Total from investment operations | 2.10 | (0.26) | 2.15 | 0.56 | |
Less Distributions | |||||
Dividends from net investment income | (0.13) | — | (0.13) | — | |
Distributions from net realized capital gains1 | — | — | — | — | |
Total distributions | (0.13) | — | (0.13) | — | |
Net asset value end of period | 11.71 | 9.74 | 11.79 | 9.77 | |
Net assets end of period (000s) | $ 5,195 | $ 329 | $92,442 | $1,786 | |
Ratios and Supplemental Data (%) | |||||
Total returnb | 21.82% | (2.60)% c | 22.35% | 6.08% c | |
Ratio of total expenses to average net assets2 | 1.44 | 1.59 d | 0.99 | 1.17 d | |
Ratio of net expenses to average net assetsa | 1.22 | 1.22 d | 0.77 | 0.80 d | |
Ratio of net investment income to average net assetsa | 1.31 | 1.28 d | 1.27 | 0.97 d | |
Portfolio turnover | 46 | 68 c | 46 | 68 c |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR INTERNATIONAL GROWTH FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 j |
Net asset value beginning of period | $ 12.89 | $ 12.71 | $ 12.75 | $ 13.01 | $ 11.60 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.13 e | 0.17 e | 0.15 e | 0.16 | 0.44 |
Net realized and unrealized gains/(losses) on investments | 2.84 | 0.14 | — * | (0.23) | 1.67 |
Total from investment operations | 2.97 | 0.31 | 0.15 | (0.07) | 2.11 |
Less Distributions | |||||
Dividends from net investment income | (0.17) | (0.13) | (0.19) | (0.19) | (0.70) |
Distributions from net realized capital gains1 | — | — | — | — | — |
Total distributions | (0.17) | (0.13) | (0.19) | (0.19) | (0.70) |
Proceeds from redemption fees | — | — | — | — | — * |
Net asset value end of period | 15.69 | 12.89 | 12.71 | 12.75 | 13.01 |
Net assets end of period (000s) | $362,035 | $277,638 | $254,461 | $196,062 | $196,412 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 23.38% | 2.46% | 1.22% | (0.54)% | 19.09% |
Ratio of total expenses to average net assets2 | 0.91 | 0.90 | 0.89 | 0.88 | 0.93 |
Ratio of net expenses to average net assetsa | 0.85 | 0.85 | 0.85 | 0.85 | 0.89 |
Ratio of net investment income to average net assetsa | 0.92 | 1.36 | 1.19 | 1.23 | 1.38 |
Portfolio turnover | 13 | 19 | 20 | 30 | 166 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 j |
Net asset value beginning of period | $ 12.79 | $ 12.60 | $ 12.64 | $ 12.89 | $ 11.50 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.07 e | 0.12 e | 0.10 e | — * | 0.06 |
Net realized and unrealized gains/(losses) on investments | 2.82 | 0.15 | — * | (0.11) | 1.99 |
Total from investment operations | 2.89 | 0.27 | 0.10 | (0.11) | 2.05 |
Less Distributions | |||||
Dividends from net investment income | (0.11) | (0.08) | (0.14) | (0.14) | (0.66) |
Distributions from net realized capital gains1 | — | — | — | — | — |
Total distributions | (0.11) | (0.08) | (0.14) | (0.14) | (0.66) |
Proceeds from redemption fees | — | — | — | — | — * |
Net asset value end of period | 15.57 | 12.79 | 12.60 | 12.64 | 12.89 |
Net assets end of period (000s) | $ 14,913 | $ 13,466 | $ 15,978 | $ 17,429 | $ 20,458 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 22.89% | 2.15% | 0.81% | (0.85)% | 18.60% |
Ratio of total expenses to average net assets2 | 1.28 | 1.27 | 1.26 | 1.25 | 1.30 |
Ratio of net expenses to average net assetsa | 1.22 | 1.22 | 1.22 | 1.22 | 1.26 |
Ratio of net investment income to average net assetsa | 0.54 | 0.99 | 0.79 | 0.87 | 0.98 |
Portfolio turnover | 13 | 19 | 20 | 30 | 166 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 j |
$12.87 | $12.63 | $12.66 | $12.93 | $11.52 |
0.09 e | 0.16 e | 0.15 e | (0.08) | 0.01 |
2.84 | 0.12 | (0.03) | (0.03) | 2.07 |
2.93 | 0.28 | 0.12 | (0.11) | 2.08 |
(0.13) | (0.04) | (0.15) | (0.16) | (0.67) |
— | — | — | — | — |
(0.13) | (0.04) | (0.15) | (0.16) | (0.67) |
— | — | — | — | — * |
15.67 | 12.87 | 12.63 | 12.66 | 12.93 |
$ 466 | $ 333 | $ 329 | $ 675 | $ 919 |
23.08% | 2.21% | 0.96% | (0.83)% | 18.89% |
1.16 | 1.15 | 1.14 | 1.13 | 1.18 |
1.10 | 1.10 | 1.10 | 1.10 | 1.14 |
0.66 | 1.25 | 1.20 | 1.08 | 1.09 |
13 | 19 | 20 | 30 | 166 |
Retirement Class | |
2017 | 2016 f |
$ 12.90 | $11.76 |
0.17 e | 0.09 e |
2.81 | 1.05 |
2.98 | 1.14 |
(0.17) | — |
— | — |
(0.17) | — |
— | — |
15.71 | 12.90 |
$24,872 | $2,360 |
23.52% | 9.69% c |
0.84 | 0.86 d |
0.77 | 0.80 d |
1.19 | 1.06 d |
13 | 19 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR INTERNATIONAL SMALL CAP FUND | |||||
Institutional Class | Administrative Class | ||||
Year Ended October 31, | 2017 | 2016 h | 2017 | 2016 h | |
Net asset value beginning of period | $ 10.77 | $ 10.00 | $10.75 | $10.00 | |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.10 e | 0.11 e | 0.07 e | 0.09 e | |
Net realized and unrealized gains/(losses) on investments | 3.15 | 0.66 | 3.15 | 0.66 | |
Total from investment operations | 3.25 | 0.77 | 3.22 | 0.75 | |
Less Distributions | |||||
Dividends from net investment income | (0.12) | — | (0.10) | — | |
Distributions from net realized capital gains1 | — | — | — | — | |
Total distributions | (0.12) | — | (0.10) | — | |
Net asset value end of period | 13.90 | 10.77 | 13.87 | 10.75 | |
Net assets end of period (000s) | $38,818 | $17,509 | $ 371 | $ 263 | |
Ratios and Supplemental Data (%) | |||||
Total returnb | 30.59% | 7.70% c | 30.25% | 7.50% c | |
Ratio of total expenses to average net assets2 | 1.42 | 2.55 d | 1.67 | 2.80 d | |
Ratio of net expenses to average net assetsa | 0.95 | 0.95 d | 1.20 | 1.20 d | |
Ratio of net investment income to average net assetsa | 0.81 | 1.40 d | 0.59 | 1.16 d | |
Portfolio turnover | 44 | 35 c | 44 | 35 c |
Investor Class | Retirement Class | ||||
Year Ended October 31, | 2017 | 2016 h | 2017 | 2016 h | |
Net asset value beginning of period | $ 10.74 | $ 10.00 | $10.77 | $10.00 | |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.06 e | 0.10 e | 0.08 e | 0.06 e | |
Net realized and unrealized gains/(losses) on investments | 3.14 | 0.64 | 3.18 | 0.71 | |
Total from investment operations | 3.20 | 0.74 | 3.26 | 0.77 | |
Less Distributions | |||||
Dividends from net investment income | (0.08) | — | (0.13) | — | |
Distributions from net realized capital gains1 | — | — | — | — | |
Total distributions | (0.08) | — | (0.13) | — | |
Net asset value end of period | 13.86 | 10.74 | 13.90 | 10.77 | |
Net assets end of period (000s) | $ 540 | $ 287 | $7,671 | $ 629 | |
Ratios and Supplemental Data (%) | |||||
Total returnb | 30.10% | 7.40% c | 30.67% | 7.70% c | |
Ratio of total expenses to average net assets2 | 1.79 | 2.92 d | 1.35 | 2.50 d | |
Ratio of net expenses to average net assetsa | 1.32 | 1.32 d | 0.87 | 0.90 d | |
Ratio of net investment income to average net assetsa | 0.53 | 1.33 d | 0.60 | 0.73 d | |
Portfolio turnover | 44 | 35 c | 44 | 35 c |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR GLOBAL LEADERS FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 k | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 20.29 | $ 21.83 | $ 23.79 | $ 23.78 | $ 17.99 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.03 e | 0.01 e | (0.01) e | 0.05 | 0.08 |
Net realized and unrealized gains/(losses) on investments | 4.99 | (0.83) | 0.65 | 2.18 | 6.26 |
Total from investment operations | 5.02 | (0.82) | 0.64 | 2.23 | 6.34 |
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 | 25.31 | 20.29 | 21.83 | 23.79 | 23.78 |
Net assets end of period (000s) | $29,034 | $25,471 | $34,402 | $26,601 | $24,734 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 24.74% | (3.90)% | 2.97% | 10.08% | 36.24% |
Ratio of total expenses to average net assets2 | 1.21 | 1.04 | 1.01 | 1.08 | 1.24 |
Ratio of net expenses to average net assetsa | 0.90 | 0.90 | 0.90 | 0.90 | 0.90 |
Ratio of net investment income to average net assetsa | 0.14 | 0.04 | (0.06) | 0.22 | 0.44 |
Portfolio turnover | 123 | 76 | 106 | 141 | 110 |
Investor Class | |||||
Year Ended October 31, | 2017 k | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 19.89 | $ 21.49 | $ 23.51 | $ 23.54 | $ 17.83 |
Income from Investment Operations | |||||
Net investment income/(loss)a | (0.06) e | (0.07) e | (0.10) e | (0.03) | 0.01 |
Net realized and unrealized gains/(losses) on investments | 4.89 | (0.81) | 0.65 | 2.15 | 6.20 |
Total from investment operations | 4.83 | (0.88) | 0.55 | 2.12 | 6.21 |
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) |
Net asset value end of period | 24.72 | 19.89 | 21.49 | 23.51 | 23.54 |
Net assets end of period (000s) | $11,364 | $10,659 | $13,693 | $ 8,584 | $ 5,988 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 24.28% | (4.25)% | 2.57% | 9.68% | 35.76% |
Ratio of total expenses to average net assets2 | 1.58 | 1.41 | 1.38 | 1.45 | 1.61 |
Ratio of net expenses to average net assetsa | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 |
Ratio of net investment income to average net assetsa | (0.25) | (0.35) | (0.44) | (0.17) | 0.04 |
Portfolio turnover | 123 | 76 | 106 | 141 | 110 |
Administrative Class | ||||
2017 k | 2016 | 2015 | 2014 | 2013 |
$20.06 | $21.65 | $23.63 | $23.65 | $17.90 |
(0.04) e | (0.05) e | (0.07) e | 0.01 | 0.04 |
4.95 | (0.82) | 0.66 | 2.14 | 6.22 |
4.91 | (0.87) | 0.59 | 2.15 | 6.26 |
— | — | — | (0.02) | (0.02) |
— | (0.72) | (2.57) | (2.15) | (0.49) |
— | (0.72) | (2.57) | (2.17) | (0.51) |
— | — | — | — | — * |
24.97 | 20.06 | 21.65 | 23.63 | 23.65 |
$1,204 | $1,253 | $1,198 | $ 802 | $ 562 |
24.48% | (4.17)% | 2.74% | 9.77% | 35.89% |
1.46 | 1.29 | 1.26 | 1.33 | 1.49 |
1.15 | 1.15 | 1.15 | 1.15 | 1.15 |
(0.13) | (0.23) | (0.31) | (0.01) | 0.17 |
123 | 76 | 106 | 141 | 110 |
Retirement Class | |
2017 k | 2016 f |
$20.29 | $19.79 |
0.08 e | (0.03) e |
4.96 | 0.53 |
5.04 | 0.50 |
— | — |
— | — |
— | — |
25.33 | 20.29 |
$4,376 | $1,713 |
24.84% | 2.53% c |
1.13 | 1.00 d |
0.83 | 0.85 d |
0.32 | (0.18) d |
123 | 76 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR EMERGING MARKETS EQUITY FUND | ||||
Institutional Class | ||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 |
Net asset value beginning of period | $ 8.59 | $ 7.89 | $ 10.05 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income/(loss)a | 0.11 e | 0.07 e | 0.08 e | 0.05 |
Net realized and unrealized gains/(losses) on investments | 2.22 | 0.71 | (2.19) | — * |
Total from investment operations | 2.33 | 0.78 | (2.11) | 0.05 |
Less Distributions | ||||
Dividends from net investment income | (0.09) | (0.08) | (0.05) | — |
Distributions from net realized capital gains1 | — | — | — | — |
Total distributions | (0.09) | (0.08) | (0.05) | — |
Net asset value end of period | 10.83 | 8.59 | 7.89 | 10.05 |
Net assets end of period (000s) | $51,849 | $36,390 | $41,927 | $27,294 |
Ratios and Supplemental Data (%) | ||||
Total returnb | 27.54% | 9.99% | (21.10)% | 0.50% |
Ratio of total expenses to average net assets2 | 1.43 | 1.49 | 1.47 | 2.34 d |
Ratio of net expenses to average net assetsa | 1.15 | 1.15 | 1.17 | 1.25 d |
Ratio of net investment income to average net assetsa | 1.13 | 0.93 | 0.90 | 0.78 d |
Portfolio turnover | 59 | 49 | 58 | 50 c |
Investor Class | ||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 |
Net asset value beginning of period | $ 8.56 | $ 7.85 | $ 10.01 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income/(loss)a | 0.07 e | 0.05 e | 0.04 e | 0.03 |
Net realized and unrealized gains/(losses) on investments | 2.22 | 0.70 | (2.18) | (0.02) |
Total from investment operations | 2.29 | 0.75 | (2.14) | 0.01 |
Less Distributions | ||||
Dividends from net investment income | (0.07) | (0.04) | (0.02) | — |
Distributions from net realized capital gains1 | — | — | — | — |
Total distributions | (0.07) | (0.04) | (0.02) | — |
Net asset value end of period | 10.78 | 8.56 | 7.85 | 10.01 |
Net assets end of period (000s) | $ 700 | $ 482 | $ 406 | $ 454 |
Ratios and Supplemental Data (%) | ||||
Total returnb | 27.00% | 9.69% | (21.45)% | 0.10% |
Ratio of total expenses to average net assets2 | 1.80 | 1.86 | 1.84 | 2.71 d |
Ratio of net expenses to average net assetsa | 1.52 | 1.52 | 1.55 | 1.62 d |
Ratio of net investment income to average net assetsa | 0.75 | 0.69 | 0.40 | 0.45 d |
Portfolio turnover | 59 | 49 | 58 | 50 c |
Administrative Class | |||
2017 | 2016 | 2015 | 2014 |
$ 8.58 | $ 7.87 | $ 10.03 | $10.00 |
0.08 e | 0.05 e | 0.04 e | 0.05 |
2.22 | 0.71 | (2.18) | (0.02) |
2.30 | 0.76 | (2.14) | 0.03 |
(0.08) | (0.05) | (0.02) | — |
— | — | — | — |
(0.08) | (0.05) | (0.02) | — |
10.80 | 8.58 | 7.87 | 10.03 |
$ 275 | $ 217 | $ 197 | $ 250 |
27.04% | 9.81% | (21.36)% | 0.30% |
1.68 | 1.74 | 1.72 | 2.59 d |
1.40 | 1.40 | 1.43 | 1.50 d |
0.85 | 0.69 | 0.49 | 0.47 d |
59 | 49 | 58 | 50 c |
Retirement Class | |
2017 | 2016 f |
$ 8.59 | $ 6.90 |
0.13 e | 0.05 e |
2.21 | 1.64 |
2.34 | 1.69 |
(0.10) | — |
— | — |
(0.10) | — |
10.83 | 8.59 |
$4,232 | $1,335 |
27.62% | 24.49% c |
1.35 | 1.45 d |
1.08 | 1.10 d |
1.32 | 0.95 d |
59 | 49 |
Selected Data for a Share Outstanding for the Periods Presented
* | 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 on average shares outstanding during the period. |
f | For the period March 1, 2016 (inception) 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. |
k | Effective March 1, 2017, Harbor Global Leaders Fund appointed Sands Capital Management, LLC as its subadviser. |
Notes to Financial Statements—October 31, 2017
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
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. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Purchases (000s) | Sales (000s) | ||
Harbor International Fund | $4,344,219 | $13,904,329* | |
Harbor Diversified International All Cap Fund | 222,269 | 99,489 | |
Harbor International Growth Fund | 83,508 | 42,386 | |
Harbor International Small Cap Fund | 32,525 | 11,075 | |
Harbor Global Leaders Fund | 48,668 | 49,924 | |
Harbor Emerging Markets Equity Fund | 34,418 | 27,047 |
* | Sales for this Fund include $428,982 in connection with an in-kind redemption of the Fund’s capital shares. |
Notes to Financial Statements—Continued
Contractual Rate | Actual Rate | ||
Harbor International Fund | 0.75%, 0.65%a | 0.68% | |
Harbor Diversified International All Cap Fund | 0.75 | 0.75 | |
Harbor International Growth Fund | 0.75 | 0.75 | |
Harbor International Small Cap Fund | 0.85 | 0.85 | |
Harbor Global Leaders Fund | 0.75 | 0.75 | |
Harbor Emerging Markets Equity Fund | 0.95 | 0.95 |
a | 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, 2018. |
• | Harbor Diversified International All Cap Fund. For the period March 1, 2017 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.85%, 1.10%, 1.22% and 0.77% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. For the period November 1, 2016 through February 28, 2017, 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, 2018. |
Notes to Financial Statements—Continued
• | Harbor International Growth Fund. For the period March 1, 2017 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.85%, 1.10%, 1.22% and 0.77% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. For the period November 1, 2016 through February 28, 2017, 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, 2018. |
• | Harbor International Small Cap Fund. For the period March 1, 2017 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.95%, 1.20%, 1.32% and 0.87% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. For the period November 1, 2016 through February 28, 2017, 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, 2018. |
• | Harbor Global Leaders Fund. For the period March 1, 2017 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.90%, 1.15%, 1.27% and 0.82% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. For the period November 1, 2016 through February 28, 2017, 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, 2018. |
• | Harbor Emerging Markets Equity Fund. For the period March 1, 2017 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 1.15%, 1.40%, 1.52% and 1.07% for the Institutional Class, Administrative Class, Investor Class and Retirement Class, respectively. For the period November 1, 2016 through February 28, 2017, 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, 2018. |
Notes to Financial Statements—Continued
Transfer Agent Feesa | |
Institutional Class | 0.09% of the average daily net assets of all Institutional Class shares |
Administrative Class | 0.09% of the average daily net assets of all Administrative Class shares |
Investor Class | 0.21% of the average daily net assets of all Investor Class shares |
Retirement Class | 0.01% of the average daily net assets of all Retirement Class shares |
a | For the period November 1, 2016 through February 28, 2017, the Transfer Agent Fees were 0.08% for the Institutional and Administrative Class shares, 0.20% for the Investor Class shares, and 0.03% for the Retirement Class shares. |
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 | |||||||
Harbor International Fund | — | — | — | 19,129 | 19,129 | 0.0% | |||||
Harbor Diversified International All Cap Fund | 4,005,004 | 25,272 | 25,331 | 65,240 | 4,120,487 | 15.0 | |||||
Harbor International Growth Fund | — | — | — | 81,211 | 81,211 | 0.3 | |||||
Harbor International Small Cap Fund | 1,467,200 | 24,733 | 24,699 | 37,506 | 1,554,138 | 45.6 | |||||
Harbor Global Leaders Fund | 428,748 | 23,629 | 23,617 | 35,245 | 511,239 | 28.0 | |||||
Harbor Emerging Markets Equity Fund | 1,283,805 | 25,473 | 25,403 | 91,568 | 1,426,249 | 27.1 |
Notes to Financial Statements—Continued
Undistributed Net Investment Income/(Loss) (000s) | Accumulated Net Realized Gain/(Loss) (000s) | Paid in Capital (000s) | |||
Harbor International Fund | $94,678 | $(436,914) | $ 342,236 | ||
Harbor Diversified International All Cap Fund | (605) | (2,281) | 2,886 | ||
Harbor International Growth Fund | (13) | 163,057 | (163,044) | ||
Harbor International Small Cap Fund | (47) | (39) | 86 | ||
Harbor Global Leaders Fund | (6) | (484) | 490 | ||
Harbor Emerging Markets Equity Fund | (44) | 44 | — |
As of October 31, 2017 | As of October 31, 2016 | ||||||||||
Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | ||||||
Harbor International Fund | $676,849 | $— | $676,849 | $714,056 | $1,199,554 | $1,913,610 | |||||
Harbor Diversified International All Cap Fund | 2,200 | — | 2,200 | 21 | — | 21 | |||||
Harbor International Growth Fund | 3,661 | — | 3,661 | 2,740 | — | 2,740 | |||||
Harbor International Small Cap Fund | 208 | — | 208 | — | — | — | |||||
Harbor Global Leaders Fund | — | — | — | — | 1,607 | 1,607 | |||||
Harbor Emerging Markets Equity Fund | 419 | — | 419 | 342 | — | 342 |
Undistributed Ordinary Income (000s) | Undistributed Long-Term Capital Gains (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||
Harbor International Fund | $546,283 | $1,331,544 | $8,803,481 | ||
Harbor Diversified International All Cap Fund | 3,754 | 10,352 | 31,797 | ||
Harbor International Growth Fund | 4,567 | — | 64,463 | ||
Harbor International Small Cap Fund | 315 | 399 | 7,356 | ||
Harbor Global Leaders Fund | 16 | 4,064 | 7,141 | ||
Harbor Emerging Markets Equity Fund | 493 | — | 10,474 |
Notes to Financial Statements—Continued
Capital Loss Carryforward | |||||
Short-Term (000s) | Long-Term (000s) | Total (000s) | |||
Harbor Emerging Markets Equity Fund | $3,240 | $2,599 | $5,839 |
Identified Cost (000s) | Gross Unrealized | Net Unrealized Appreciation/ (Depreciation) (000s) | |||||
Appreciation (000s) | (Depreciation) (000s) | ||||||
Harbor International Fund | $23,911,989 | $10,037,617 | $(1,234,136) | $8,803,481 | |||
Harbor Diversified International All Cap Fund | 291,025 | 35,951 | (4,154) | 31,797 | |||
Harbor International Growth Fund | 344,816 | 81,424 | (16,961) | 64,463 | |||
Harbor International Small Cap Fund | 40,503 | 7,469 | (113) | 7,356 | |||
Harbor Global Leaders Fund | 38,899 | 7,922 | (781) | 7,141 | |||
Harbor Emerging Markets Equity Fund* | 46,835 | 11,572 | (1,098) | 10,474 |
* | Capital loss carryforwards are available which may reduce taxable income from future net realized gain on investments. |
Statement of Assets and Liabilities Caption | Equity Contracts (000s) | |
Purchased options (rights/warrants) | $10,999 |
Statement of Assets and Liabilities Caption | Equity Contracts (000s) | |
Purchased options (rights/warrants) | $8 |
Notes to Financial Statements—Continued
Change in Unrealized Appreciation/(Depreciation) on Derivatives | Equity Contracts (000s) | |
Purchased options (rights/warrants) | $1,652 |
Change in Unrealized Appreciation/(Depreciation) on Derivatives | Equity Contracts (000s) | |
Purchased options (rights/warrants) | $8 |
Net Realized Gain/(Loss) on Derivatives | Equity Contracts (000s) | |
Purchased options (rights/warrants) | $11 |
Report of Independent Registered Public Accounting Firm
December 21, 2017
Fees and Expenses Example (Unaudited)
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor International Fund | ||||||||
Institutional Class | 0.80% | |||||||
Actual | $4.17 | $1,000 | $1,067.80 | |||||
Hypothetical (5% return) | 4.08 | 1,000 | 1,021.07 | |||||
Administrative Class | 1.05% | |||||||
Actual | $5.47 | $1,000 | $1,066.40 | |||||
Hypothetical (5% return) | 5.35 | 1,000 | 1,019.78 | |||||
Investor Class | 1.17% | |||||||
Actual | $6.09 | $1,000 | $1,065.80 | |||||
Hypothetical (5% return) | 5.95 | 1,000 | 1,019.16 | |||||
Retirement Class | 0.73% | |||||||
Actual | $3.81 | $1,000 | $1,068.10 | |||||
Hypothetical (5% return) | 3.72 | 1,000 | 1,021.43 |
Fees and Expenses Example—Continued
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Diversified International All Cap Fund | ||||||||
Institutional Class | 0.85% | |||||||
Actual | $4.50 | $1,000 | $1,100.80 | |||||
Hypothetical (5% return) | 4.33 | 1,000 | 1,020.81 | |||||
Administrative Class | 1.10% | |||||||
Actual | $5.83 | $1,000 | $1,099.10 | |||||
Hypothetical (5% return) | 5.60 | 1,000 | 1,019.52 | |||||
Investor Class | 1.22% | |||||||
Actual | $6.45 | $1,000 | $1,098.50 | |||||
Hypothetical (5% return) | 6.21 | 1,000 | 1,018.90 | |||||
Retirement Class | 0.77% | |||||||
Actual | $4.08 | $1,000 | $1,101.90 | |||||
Hypothetical (5% return) | 3.92 | 1,000 | 1,021.23 | |||||
Harbor International Growth Fund | ||||||||
Institutional Class | 0.85% | |||||||
Actual | $4.56 | $1,000 | $1,128.80 | |||||
Hypothetical (5% return) | 4.33 | 1,000 | 1,020.81 | |||||
Administrative Class | 1.10% | |||||||
Actual | $5.90 | $1,000 | $1,127.30 | |||||
Hypothetical (5% return) | 5.60 | 1,000 | 1,019.52 | |||||
Investor Class | 1.22% | |||||||
Actual | $6.54 | $1,000 | $1,126.60 | |||||
Hypothetical (5% return) | 6.21 | 1,000 | 1,018.90 | |||||
Retirement Class | 0.77% | |||||||
Actual | $4.13 | $1,000 | $1,129.40 | |||||
Hypothetical (5% return) | 3.92 | 1,000 | 1,021.23 | |||||
Harbor International Small Cap Fund | ||||||||
Institutional Class | 0.95% | |||||||
Actual | $5.16 | $1,000 | $1,155.40 | |||||
Hypothetical (5% return) | 4.84 | 1,000 | 1,020.30 | |||||
Administrative Class | 1.20% | |||||||
Actual | $6.52 | $1,000 | $1,153.90 | |||||
Hypothetical (5% return) | 6.11 | 1,000 | 1,019.00 | |||||
Investor Class | 1.32% | |||||||
Actual | $7.16 | $1,000 | $1,153.10 | |||||
Hypothetical (5% return) | 6.72 | 1,000 | 1,018.38 | |||||
Retirement Class | 0.87% | |||||||
Actual | $4.73 | $1,000 | $1,155.40 | |||||
Hypothetical (5% return) | 4.43 | 1,000 | 1,020.71 |
Fees and Expenses Example—Continued
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Global Leaders Fund | ||||||||
Institutional Class | 0.90% | |||||||
Actual | $4.80 | $1,000 | $1,116.00 | |||||
Hypothetical (5% return) | 4.58 | 1,000 | 1,020.55 | |||||
Administrative Class | 1.15% | |||||||
Actual | $6.13 | $1,000 | $1,114.70 | |||||
Hypothetical (5% return) | 5.85 | 1,000 | 1,019.26 | |||||
Investor Class | 1.27% | |||||||
Actual | $6.76 | $1,000 | $1,114.00 | |||||
Hypothetical (5% return) | 6.46 | 1,000 | 1,018.64 | |||||
Retirement Class | 0.83% | |||||||
Actual | $4.42 | $1,000 | $1,116.40 | |||||
Hypothetical (5% return) | 4.23 | 1,000 | 1,020.92 | |||||
Harbor Emerging Markets Equity Fund | ||||||||
Institutional Class | 1.15% | |||||||
Actual | $6.22 | $1,000 | $1,146.00 | |||||
Hypothetical (5% return) | 5.85 | 1,000 | 1,019.26 | |||||
Administrative Class | 1.40% | |||||||
Actual | $7.57 | $1,000 | $1,144.10 | |||||
Hypothetical (5% return) | 7.12 | 1,000 | 1,017.97 | |||||
Investor Class | 1.52% | |||||||
Actual | $8.21 | $1,000 | $1,144.40 | |||||
Hypothetical (5% return) | 7.73 | 1,000 | 1,017.35 | |||||
Retirement Class | 1.08% | |||||||
Actual | $5.84 | $1,000 | $1,147.20 | |||||
Hypothetical (5% return) | 5.50 | 1,000 | 1,019.62 |
* | Reflective of all fee waivers and expense reimbursements (excluding interest expense, if any) |
** | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Additional Information (Unaudited)
Percentage of Distribution | |
Harbor International Fund | 18% |
Harbor Global Leaders Fund | 100 |
Amount (000s) | |
Harbor International Fund | $129,773 |
Harbor Diversified International All Cap Fund | 2,032 |
Harbor International Small Cap Fund | 45 |
Harbor Global Leaders Fund | 488 |
Foreign Taxes Paid (000s) | Foreign Source Earned Income (000s) | ||
Harbor International Fund | $52,386 | $605,327 | |
Harbor Diversified International All Cap Fund | 483 | 6,196 | |
Harbor International Growth Fund | 513 | 6,303 | |
Harbor International Small Cap Fund | 40 | 480 | |
Harbor Emerging Markets Equity Fund | 107 | 1,407 |
Additional Information—Continued
Trustee | For | Withhold | ||
Scott M. Amero | 1,047,869,265 | 14,860,642 | ||
Joseph L. Dowling III | 1,046,335,272 | 16,394,636 | ||
Robert A. Kasdin | 1,047,514,035 | 15,215,872 | ||
Charles F. McCain | 1,047,667,935 | 15,061,973 | ||
Kathryn L. Quirk | 1,046,812,694 | 15,917,214 | ||
Ann M. Spruill | 1,047,274,165 | 15,455,742 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor International Fund | 228,652,198 | 3,642,933 | 1,613,958 | 62,567,089 | ||||
Harbor Diversified International All Cap Fund | 10,314,719 | 1,632 | 392,336 | 1,670,443 | ||||
Harbor International Growth Fund | 10,654,250 | 1,129,867 | 98,743 | 3,352,577 | ||||
Harbor International Small Cap Fund | 1,744,039 | - | 768 | 159,666 | ||||
Harbor Global Leaders Fund | 960,681 | 9,796 | 9,144 | 379,449 | ||||
Harbor Emerging Markets Equity Fund | 3,516,287 | 1,431 | - | 407,794 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor International Fund | 228,660,850 | 3,611,426 | 1,636,813 | 62,567,089 | ||||
Harbor Diversified International All Cap Fund | 10,314,719 | 1,632 | 392,336 | 1,670,443 | ||||
Harbor International Growth Fund | 10,689,133 | 1,127,410 | 66,315 | 3,352,577 | ||||
Harbor International Small Cap Fund | 1,744,039 | - | 768 | 159,666 | ||||
Harbor Global Leaders Fund | 960,681 | 10,642 | 8,298 | 379,449 | ||||
Harbor Emerging Markets Equity Fund | 3,516,287 | 1,431 | - | 407,794 |
Additional Information—Continued
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 (54) Trustee | Since 2014 | Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation nonprofit); Trustee, Berkshire School (2014-Present); 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), BlackRock, Inc., (publicly traded investment management firm). | 32 | None |
Raymond J. Ball (73) 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). | 32 | None |
Donna J. Dean (66) Trustee | Since 2010 | Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present). | 32 | None |
Joseph L. Dowling III (53) Trustee | Since 2017 | Chief Investment Officer, Brown University (2013-Present); Advisory Board Member, Stage Point Capital (private mortgage specialist) (2016-Present); Advisory Board Member, Harbor Funds (2016-2017); and Founder and Managing Member, Narragansett Asset Management (private investment management firm) (1998-2013). | 32 | Director of Integrated Electrical Services (2011-Present). |
Randall A. Hack (70) Trustee | Since 2010 | Founder and Senior Managing Director of Capstone Capital LLC (private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (private equity firm) (2002-2013). | 32 | None |
Robert Kasdin (59) Trustee | Since 2014 | Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee and Co-Chair of the Finance Committee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014). | 32 | Director of Noranda Aluminum Holdings Corporation (2007-2014); and Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present). |
Additional Information—Continued
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—Continued | ||||
Kathryn L. Quirk (65) Trustee | Since 2017 | Retired; Vice President, Senior Compliance Officer and Head, U.S. Regulatory Compliance, Goldman Sachs Asset Management (2013-2017); Deputy Chief Legal Officer, Asset Management, and Vice President and Corporate Counsel, Prudential Insurance Company of America (2010-2012); Co-Chief Legal Officer, Prudential Investment Management, Inc., and Chief Legal Officer, Prudential Investments and Prudential Mutual Funds (2008-2012); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America, and Chief Legal Officer, Prudential Investments (2005-2008); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America (2004-2005); Member, Management Committee (2000-2002), General Counsel and Chief Compliance Officer, Zurich Scudder Investments, Inc. (1997-2002). | 32 | None |
Ann M. Spruill (63) 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). | 32 | None |
INTERESTED TRUSTEE | ||||
Charles F. McCain (48)* Chairman, Trustee and President | Since 2017 | Chief Executive Officer (2017-Present), Director (2007-Present), President and Chief Operating Officer (2017), Executive Vice President and General Counsel (2004-2017), and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-2017), Harbor Services Group, Inc.; and Chief Executive Officer (2017-Present), Director (2007-Present), Chief Compliance Officer and Executive Vice President (2007-2017), Harbor Funds Distributors, Inc. | 32 | None |
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE** | ||
Erik D. Ojala (42) Chief Compliance Officer and Secretary | Since 2017 Since 2007 | Executive Vice President and General Counsel (2017-Present) and Secretary (2010-Present); Senior Vice President and Associate General Counsel (2007-2017), Harbor Capital Advisors, Inc.; Director, Executive Vice President and Chief Compliance Officer (2017-Present), Harbor Funds Distributors, Inc.; and Director (2017-Present) and Assistant Secretary (2014-Present), Harbor Services Group, Inc. |
Anmarie S. Kolinski (46) 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. |
Brian L. Collins (49) Vice President | Since 2005 | Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc. |
Charles P. Ragusa (58) 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) and OFAC Officer (2015-Present), Harbor Funds Distributors, Inc. |
Jodie L. Crotteau (45) Assistant Secretary | Since 2014 | Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Chief Compliance Officer and Secretary (2017-present) and Assistant Secretary (2015-2016), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); and Vice President, Grosvenor Capital Management, L.P. (2010-2014). |
Additional Information—Continued
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE**—Continued | ||
Lana M. Lewandowski (38) AML Compliance Officer and Assistant Secretary | Since 2017 | Legal & Compliance Manager (2016-Present) and Legal Specialist (2012-2015), Harbor Capital Advisors, Inc. |
Lora A. Kmieciak (53) Assistant Treasurer | Since 2017 | Senior Vice President – Fund Administration and Analysis (2017-Present) and Senior Vice President - Business Analysis (2015-2017), Harbor Capital Advisors, Inc.; and Assurance Executive Director (1999-2015), Ernst & Young LLP. |
John M. Paral (49) Assistant Treasurer | Since 2013 | Director of Fund Administration and Analysis (2017-Present), Vice President (2012-Present) and Financial Reporting Manager (2007-2017), Harbor Capital Advisors, Inc. |
1 | Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually. |
* | Mr. McCain 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. |
111 South Wacker Drive, 34th Floor | Chicago, IL 60606-4302 | 800-422-1050 | harborfunds.com |
Chairman, President & Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Treasurer
Chief Compliance Officer
& Secretary
Vice President
Vice President
Assistant Secretary
AML Compliance Officer
& Assistant Secretary
Assistant Treasurer
Assistant Treasurer
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900
Table of Contents
Institutional Class | Administrative Class | |
Harbor Commodity Real Return Strategy Fund | HACMX | HCMRX |
1 | |
Strategic Markets Funds | |
Harbor Commodity Real Return Strategy Fund | |
3 | |
6 | |
7 | |
Financial Statements | |
25 | |
26 | |
27 | |
29 | |
31 | |
33 | |
50 | |
51 | |
Additional Information | |
52 | |
52 | |
52 | |
52 | |
52 | |
54 | |
57 | |
58 |
Charles F. McCain Chairman |
Returns For Periods Ended October 31, 2017 | ||||||||
Annualized | ||||||||
Strategic Markets | 1 Year | 5 Years | 10 Years | 30 Years | ||||
Bloomberg Commodity Index Total ReturnSM (commodities) | 2.35% | -9.37% | -6.93% | N/A | ||||
Domestic Equities | ||||||||
Russell 3000® (entire U.S. stock market) | 23.98% | 15.12% | 7.61% | 10.60% | ||||
S&P 500 (large cap stocks) | 23.63 | 15.18 | 7.51 | 10.50 | ||||
Russell Midcap® (mid cap stocks) | 21.09 | 14.87 | 8.09 | 12.11 | ||||
Russell 2000® (small cap stocks) | 27.85 | 14.49 | 7.63 | 10.45 | ||||
Russell 3000® Growth (growth stocks) | 29.80 | 16.71 | 9.05 | 10.16 | ||||
Russell 3000® Value (value stocks) | 18.30 | 13.48 | 6.07 | 10.68 | ||||
International & Global | ||||||||
MSCI EAFE (ND) (foreign stocks) | 23.44% | 8.53% | 1.10% | 5.62% | ||||
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 | 13.03 | 4.18 | N/A | ||||
MSCI World (ND) (global stocks) | 22.77 | 11.56 | 4.10 | 7.44 | ||||
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 | 7.29 | 0.92 | N/A | ||||
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 | 4.83 | 0.60 | N/A | ||||
Fixed Income | ||||||||
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62% | 6.33% | 6.69% | N/A | ||||
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 | 2.04 | 4.19 | 6.43% | ||||
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds) | -0.11 | -0.11 | 3.81 | N/A | ||||
ICE BofAML U.S. 3-Month Treasury Bill (proxy for money market returns) | 0.72 | 0.24 | 0.45 | 3.35 |
Charles F. McCain |
Chairman |
Managers' Commentary (Unaudited)
Newport Beach, CA
92660
Since 2008
Since 2015
Since 2015
Fund Performance
Managers' Commentary—Continued
TOP TEN ISSUERS (% of net assets) | |
U.S. Treasury | 100.5% |
U.K. Gilt Inflation Linked | 6.1% |
Brazil Letras Do Tesouro Nacional | 4.3% |
Federal National Mortgage Association TBA | 4.0% |
UBS Group Funding Jersey Ltd. | 2.0% |
New Zealand Government Bond | 1.7% |
Federal National Mortgage Association | 1.5% |
People’s Choice Home Loan Securities Trust | 1.1% |
Deutsche Bank AG | 0.8% |
Petrobras Global Finance BV | 0.8% |
• | Implementation of commodity alpha strategies which seek to exploit mispricings across commodity markets |
• | A modest allocation to non-agency mortgages as non-agency mortgage backed securities (MBS) performed well amid continued favorable market technicals and stable residential real estate fundamentals |
• | Positions in the U.K. interest rate markets that benefitted as rates rose over the period |
• | An allocation to TIPS, or treasury inflation-protected securities, as inflation expectations rose, causing TIPS to outperform. |
• | We seek relative value opportunities within commodities while balancing the economic outlook with supply trends; we look to take advantage of relative value opportunities on commodity forward curves and inter-commodity spreads |
Managers' Commentary—Continued
• | Long iron ore versus base metals: we like iron ore for its roll yield, as we believe that the back of the curve is anchored by producer hedging; and tactically look to take advantage of any notable dislocations from the broader base metals complex as we expect mean reversion |
• | Long higher protein (premium) wheats: these wheats have been priced cheaper relative to other, similar commodities, especially given that supply issues this year are predominantly in the high protein grades |
• | Short calendar spreads in crude oil: crude oil has flipped into backwardation as OPEC policy is showing signs of success with supply situation continuing to improve; however, we feel the curve is too aggressive in pricing the speed of balances improvement |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2029 |
Cusip | 411511397 |
Ticker | HACMX |
Inception Date | 09/02/2008 |
Net Expense Ratio | 0.94% a |
Total Net Assets (000s) | $50,771 |
ADMINISTRATIVE CLASS | |
Fund # | 2229 |
Cusip | 411511389 |
Ticker | HCMRX |
Inception Date | 09/02/2008 |
Net Expense Ratio | 1.19% a |
Total Net Assets (000s) | $392 |
Portfolio Statistics | |
Average Market Coupon | 1.45% |
Yield to Maturity | 2.40% |
Weighted Average Maturity | 2.80 years |
Weighted Average Duration | 2.75 years |
Portfolio Turnover (Year Ended 10/31/2017) | 1,331% |
MATURITY PROFILE | ||
Years to Maturity | % of Investments | |
0 to 1 yr. | 12.48% | |
>1 to 5 | 73.78% | |
>5 to 10 | 20.39% | |
>10 to 15 | -6.65% | |
>15 to 20 | 0.49% | |
>20 to 25 | 0.06% | |
>25 yrs. | -0.55% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Commodity Real Return Strategy Fund | ||||||||||||||
Institutional Class | 3.13% | -10.39% | -6.24% | 09/02/2008 | $5,541 | |||||||||
Administrative Class | 2.87 | -10.64 | -6.49 | 09/02/2008 | 5,406 | |||||||||
Comparative Index | ||||||||||||||
Bloomberg Commodity Index Total ReturnSM | 2.35% | -9.37% | -8.07% | — | $4,626 |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Consolidated Portfolio of Investments—October 31, 2017
ASSET-BACKED SECURITIES—4.9% | |||
Principal Amount | Value | ||
Bear Stearns Asset Backed Securities Trust | |||
Series 2006-2 Cl. M1 | |||
$ | 200 | 1.658% (1 Month USD Libor + 0.420) 07/25/20361 | $ 200 |
Countrywide Asset-Backed Certificates | |||
Series 2005-15 Cl. 1AF6 | |||
15 | 4.001%—04/25/20363 | 15 | |
MASTR Asset Backed Securities Trust | |||
Series 2006-HE2 Cl. A4 | |||
196 | 1.478% (1 Month USD Libor + 0.240) 06/25/20361 | 119 | |
Morgan Stanley ABS Capital I Inc. Trust | |||
Series 2006-HE8 Cl. A2FP | |||
103 | 1.308% (1 Month USD Libor + 0.070) 10/25/20361 | 61 | |
Series 2006-HE8 Cl. A1 | |||
313 | 1.368% (1 Month USD Libor + 0.130) 10/25/20361 | 290 | |
351 | |||
Navient Student Loan Trust | |||
Series 2016-7A Cl.A | |||
90 | 2.388% (1 Month USD Libor + 1.150) 03/25/20661,2 | 91 | |
People's Choice Home Loan Securities Trust | |||
Series 2005-1 Cl. M4 | |||
578 | 2.587% (1 Month USD Libor + 0.900) 01/25/20351 | 570 | |
SLM Student Loan Trust | |||
Series 2003-2 Cl. A5 | |||
€ | 329 | 0.000%—12/15/20233 | 383 |
Small Business Administration Participation Certificates | |||
Series 2007-20K Cl. 1 | |||
$ | 202 | 5.510%—11/01/2027 | 216 |
Soundview Home Loan Trust | |||
Series 2006-OPT2 Cl. A4 | |||
200 | 1.518% (1 Month USD Libor + 0.280) 05/25/20361 | 182 | |
Student Loan Marketing Association | |||
Series 2013-B Cl. A2A | |||
93 | 1.850%—06/17/20302 | 93 | |
Venture CDO Ltd | |||
Series 2006-7A Cl. A1A | |||
308 | 1.593% (3 Month USD Libor + 0.230) 01/20/20221,2 | 307 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $2,327) | 2,527 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—0.2% | |||
Bear Stearns Adjustable Rate Mortgage Trust | |||
Series 2005-12 Cl. 23A1 | |||
26 | 3.314%—02/25/20363 | 26 | |
First Horizon Alternative Mortgage Securities Trust | |||
Series 2006-FA8 Cl. 1A7 | |||
12 | 6.000%—02/25/2037 | 10 |
COLLATERALIZED MORTGAGE OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
Morgan Stanley Mortgage Loan Trust | |||
Series 2006-8AR Cl. 6A1 | |||
$ | 97 | 3.150%—06/25/20363 | $ 98 |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $129) | 134 | ||
CORPORATE BONDS & NOTES—9.0% | |||
AUTOMOBILES—0.2% | |||
American Honda Finance Corp. MTN4 | |||
100 | 1.741% (3 Month USD Libor + 0.350) 11/05/20211 | 100 | |
BANKS—0.9% | |||
ING Bank NV MTN4 | |||
100 | 2.625%—12/05/20222 | 101 | |
Macquarie Bank Ltd. MTN4 | |||
100 | 1.686% (3 Month USD Libor + 0.350) 04/04/20191,2 | 100 | |
Nordea Kredit Realkreditaktieselskab | |||
DKK$ | 1 | 2.500%—10/01/2047 | — |
Nykredit Realkredit AS | |||
108 | 2.500%—10/01/2047 | 18 | |
72 | 3.000%—10/01/2047 | 12 | |
30 | |||
Royal Bank of Scotland plc MTN4 | |||
€ | 200 | 6.934%—04/09/2018 | 240 |
471 | |||
CAPITAL MARKETS—3.6% | |||
Credit Suisse Group Funding Guernsey Ltd. | |||
$ | 250 | 3.800%—09/15/2022 | 260 |
Deutsche Bank AG | |||
400 | 4.250%—10/14/2021 | 419 | |
Goldman Sachs Group Inc. | |||
100 | 2.876% (3 Month USD Libor + 0.821) 10/31/20221 | 100 | |
UBS Group Funding Jersey Ltd. | |||
1,000 | 3.139% (3 Month USD Libor + 1.780) 04/14/20211,2 | 1,038 | |
1,817 | |||
CONSUMER FINANCE—0.6% | |||
Ally Financial Inc. | |||
200 | 3.600%—05/21/2018 | 202 | |
Navient Corp. MTN4 | |||
100 | 5.500%—01/15/2019 | 103 | |
305 | |||
DIVERSIFIED FINANCIAL SERVICES—0.1% | |||
Brfkredit AS | |||
DKK$ | 10 | 2.500%—10/01/2047 | 2 |
200 | 4.000%—01/01/2018 | 31 | |
33 | |||
Realkredit Danmark AS | |||
200 | 1.000%—04/01/2018 | 32 | |
Realkredit Danmark AS MTN4 | |||
67 | 2.500%—07/01/2047 | 11 | |
76 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—0.2% | |||
AT&T Inc. | |||
$ | 100 | 2.009% (3 Month USD Libor + 0.650) 01/15/20201 | 101 |
Consolidated Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—0.4% | |||
Unibail-Rodamco SE MTN4 | |||
$ | 200 | 2.129%—04/16/20193 | $ 201 |
MACHINERY—0.4% | |||
John Deere Capital Corp. MTN4 | |||
200 | 1.613% (3 Month USD Libor + 0.290) 06/22/20201 | 200 | |
OIL, GAS & CONSUMABLE FUELS—1.9% | |||
BG Energy Capital plc | |||
£ | 100 | 6.500%—11/30/20723 | 133 |
Enbridge Inc. | |||
$ | 200 | 2.020% (3 Month USD Libor + 0.700) 06/15/20201 | 202 |
Petrobras Global Finance BV | |||
200 | 4.375%—05/20/2023 | 199 | |
200 | 6.125%—01/17/2022 | 217 | |
416 | |||
Spectra Energy Partners LP | |||
200 | 2.016% (3 Month USD Libor + 0.700) 06/05/20201 | 201 | |
952 | |||
TOBACCO—0.2% | |||
BAT Capital Corp | |||
100 | 1.905% (3 Month USD Libor + 0.590) 08/14/20201,2 | 101 | |
TRADING COMPANIES & DISTRIBUTORS—0.5% | |||
International Lease Finance Corp. | |||
200 | 8.250%—12/15/2020 | 233 | |
TOTAL CORPORATE BONDS & NOTES | |||
(Cost $4,470) | 4,557 | ||
FOREIGN GOVERNMENT OBLIGATIONS—13.4% | |||
Argentina Pom Politica Monetaria | |||
ARG$ | 1,300 | 27.095%—06/21/20203 | 81 |
Argentine Republic Government International Bond | |||
200 | 6.875%—01/26/2027 | 218 | |
Australia Government Bond | |||
AUD$ | 100 | 3.000%—09/20/20255 | 107 |
Autonomous Community of Catalonia | |||
€ | 100 | 4.950%—02/11/2020 | 123 |
Brazil Letras Do Tesouro Nacional | |||
R$ | 7,200 | 0.000%—01/01/20186 | 2,176 |
New Zealand Government Bond | |||
NZD$ | 1,200 | 2.000%—09/20/20255 | 895 |
Peru Government Bond | |||
PER$ | 400 | 6.150%—08/12/20322 | 128 |
U.K. Gilt Inflation Linked5 | |||
£ | 1,906 | 0.125%—03/22/2026-11/22/2065 | 3,092 |
TOTAL FOREIGN GOVERNMENT OBLIGATIONS | |||
(Cost $6,873) | 6,820 | ||
MORTGAGE PASS-THROUGH—5.5% | |||
Federal National Mortgage Association | |||
$ | 732 | 4.000%—02/01/2041-12/13/2046 | 768 |
MORTGAGE PASS-THROUGH—Continued | |||
Principal Amount | Value | ||
Federal National Mortgage Association TBA7 | |||
$ | 2,000 | 3.500%—11/13/2047-12/13/2047 | $ 2,053 |
TOTAL MORTGAGE PASS-THROUGH | |||
(Cost $2,807) | 2,821 | ||
U.S. GOVERNMENT OBLIGATIONS—100.5% | |||
U.S. Treasury Bonds | |||
850 | 2.750%—08/15/2047 | 828 | |
U.S. Treasury Inflation Indexed Bonds5 | |||
21,825 | 0.125%—04/15/2019-07/15/2024 | 21,849 | |
1,959 | 0.250%—01/15/2025 | 1,938 | |
4,197 | 0.375%—07/15/2023-07/15/2025 | 4,234 | |
1,933 | 0.625%—07/15/2021-01/15/2024 | 1,971 | |
336 | 0.875%—02/15/2047 | 332 | |
3,832 | 1.250%—07/15/2020 | 3,985 | |
2,823 | 1.375%—07/15/2018-02/15/20448 | 2,868 | |
7,358 | 1.875%—07/15/2019 | 7,654 | |
3,466 | 2.375%—01/15/2025 | 3,951 | |
549 | 2.500%—01/15/20298 | 662 | |
49,444 | |||
U.S. Treasury Notes | |||
100 | 1.875%—04/30/2022 | 100 | |
100 | 2.000%—02/15/2025 | 98 | |
500 | 2.125%—03/31/2024-07/31/20248 | 497 | |
410 | 3.000%—05/15/2047 | 420 | |
1,115 | |||
TOTAL U.S. GOVERNMENT OBLIGATIONS | |||
(Cost $50,412) | 51,387 | ||
SHORT-TERM INVESTMENTS—22.0% | |||
CERTIFICATES OF DEPOSIT—0.6% | |||
Barclays plc | |||
200 | 1.710% (3 Month USD Libor + 0.460) 03/16/20181 | 200 | |
100 | 1.827% (3 Month USD Libor + 0.470) 05/17/20181 | 100 | |
300 | |||
REPURCHASE AGREEMENTS—21.4% | |||
1,500 | Repurchase Agreement with Barclays Capital Inc. dated October 31, 2017 due November 01, 2017 at 1.210% collateralized by U.S. Treasury Notes (value $1,527) | 1,500 | |
4,100 | Repurchase Agreement with Citigroup Global Markets Inc. dated October 31, 2017 due November 01, 2017 at 1.210% collateralized by U.S. Treasury Notes (value $4,170) | 4,100 |
Consolidated Portfolio of Investments—Continued
SHORT-TERM INVESTMENTS—Continued | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS—Continued | |||
$ | 1,293 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $1,323) | $ 1,293 |
4,100 | Repurchase Agreement with JPMorgan Securities LLC dated October 31, 2017 due November 01, 2017 at 1.220% collateralized by Government National Mortgage Association (value $7,009) | 4,100 | |
10,993 | |||
TOTAL SHORT-TERM INVESTMENTS | |||
(Cost $11,293) | 11,293 | ||
TOTAL INVESTMENTS—155.5% | |||
(Cost $78,311) | 79,539 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(55.5)% | (28,376) | ||
TOTAL NET ASSETS—100.0% | $ 51,163 |
Description | Number of Contracts | Expiration Date | Current Notional Value (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||
Euro-Bund Futures (Short) | 1 | 12/07/2017 | € 163 | $ — | ||||
United Kingdom GILT Futures 90 day (Short) | 13 | 12/27/2017 | £ 1,616 | 46 | ||||
Brent Crude Oil Futures (Long) | 3 | 01/31/2018 | $ 123 | 4 | ||||
Brent Crude Oil Futures (Long) | 1 | 02/28/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 03/29/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 04/30/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 05/31/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 06/29/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 07/31/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 08/31/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 09/28/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 10/31/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 11/30/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 1 | 12/31/2018 | 2 | — | ||||
Brent Crude Oil Futures (Long) | 11 | 10/31/2019 | 624 | 45 | ||||
Brent Crude Oil Futures (Short) | 1 | 11/30/2017 | 61 | — | ||||
Brent Crude Oil Futures (Short) | 1 | 04/30/2018 | 60 | (3) | ||||
Brent Crude Oil Futures (Short) | 1 | 07/31/2018 | 59 | (7) | ||||
Brent Crude Oil Futures (Short) | 1 | 10/31/2018 | 58 | (3) | ||||
Brent Crude Oil Futures (Short) | 2 | 01/31/2019 | 116 | (10) | ||||
Brent Crude Oil Futures (Short) | 4 | 04/30/2019 | 230 | (23) | ||||
Brent Crude Oil Futures (Short) | 6 | 05/14/2020 | 338 | (26) | ||||
Brent Crude Oil Futures (Short) | 1 | 10/30/2020 | 56 | (4) | ||||
Chicago Ethanol Swap Futures (Long) | 1 | 12/29/2017 | 60 | — | ||||
Coffee Futures (Long) | 1 | 03/19/2018 | 48 | (2) | ||||
Coffee Futures (Short) | 1 | 12/18/2017 | 47 | 2 | ||||
Copper Futures (Long) | 1 | 12/18/2017 | 171 | 1 | ||||
Copper Futures (Short) | 2 | 12/27/2017 | 155 | — | ||||
Corn Futures (Long) | 1 | 12/14/2018 | 20 | — | ||||
Corn Futures (Short) | 2 | 12/14/2017 | 35 | 2 | ||||
Corn Futures (Short) | 1 | 09/14/2018 | 19 | 1 | ||||
Gasoil Futures (Long) | 10 | 12/12/2018 | 534 | 30 | ||||
Gasoil Futures (Short) | 5 | 06/12/2018 | 270 | (11) | ||||
Gasoil Futures (Short) | 5 | 06/12/2019 | 264 | (17) | ||||
Gasoline Futures (Short) | 1 | 12/29/2017 | 72 | (6) | ||||
Gasoline Futures (Short) | 1 | 02/28/2018 | 72 | (1) | ||||
Gold Futures (Long) | 1 | 12/27/2018 | 129 | 3 | ||||
Gold Futures (Short) | 1 | 12/27/2017 | 127 | (1) |
Consolidated Portfolio of Investments—Continued
Description | Number of Contracts | Expiration Date | Current Notional Value (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 12/27/2017 | $ 30 | $ (1) | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 01/29/2018 | 30 | (1) | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 02/26/2018 | 30 | (1) | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 03/27/2018 | 29 | 1 | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 04/26/2018 | 28 | 1 | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 05/29/2018 | 29 | 1 | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 06/27/2018 | 29 | — | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 07/27/2018 | 29 | — | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 08/29/2018 | 29 | — | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 09/26/2018 | 29 | — | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 10/29/2018 | 30 | — | ||||
Henry Hub Natural Gas Futures (Short) | 4 | 11/28/2018 | 31 | (2) | ||||
Light Sweet Crude Oil Futures (Long) | 2 | 12/18/2017 | 109 | 1 | ||||
Light Sweet Crude Oil Futures (Long) | 1 | 05/22/2018 | 54 | 2 | ||||
Light Sweet Crude Oil Futures (Long) | 5 | 08/21/2018 | 268 | 21 | ||||
Light Sweet Crude Oil Futures (Long) | 4 | 10/30/2018 | 212 | 5 | ||||
Light Sweet Crude Oil Futures (Long) | 1 | 02/20/2019 | 52 | 2 | ||||
Light Sweet Crude Oil Futures (Long) | 5 | 05/21/2019 | 259 | 7 | ||||
Light Sweet Crude Oil Futures (Long) | 2 | 11/20/2019 | 102 | 4 | ||||
Light Sweet Crude Oil Futures (Long) | 1 | 05/19/2020 | 51 | (2) | ||||
Light Sweet Crude Oil Futures (Short) | 4 | 02/20/2018 | 219 | (11) | ||||
Light Sweet Crude Oil Futures (Short) | 8 | 11/19/2018 | 424 | (23) | ||||
Light Sweet Crude Oil Futures (Short) | 3 | 11/20/2020 | 151 | 4 | ||||
Natural Gas Futures (Long) | 4 | 11/28/2017 | 116 | (10) | ||||
Natural Gas Futures (Long) | 3 | 01/29/2018 | 91 | (8) | ||||
Natural Gas Futures (Long) | 1 | 02/26/2018 | 30 | (3) | ||||
Natural Gas Futures (Long) | 2 | 04/26/2018 | 57 | — | ||||
Natural Gas Futures (Short) | 6 | 12/27/2017 | 182 | 17 | ||||
Natural Gas Futures (Short) | 3 | 03/27/2018 | 86 | — | ||||
Natural Gas Swap Futures (Long) | 12 | 01/29/2018 | 91 | (3) | ||||
Natural Gas Swap Futures (Long) | 8 | 03/27/2018 | 57 | 1 | ||||
Natural Gas Swap Futures (Long) | 4 | 04/26/2018 | 29 | (1) | ||||
Natural Gas Swap Futures (Long) | 4 | 05/29/2018 | 29 | (1) | ||||
Natural Gas Swap Futures (Long) | 4 | 06/27/2018 | 29 | — | ||||
Natural Gas Swap Futures (Long) | 4 | 07/27/2018 | 29 | — | ||||
Natural Gas Swap Futures (Long) | 4 | 08/29/2018 | 29 | — | ||||
Natural Gas Swap Futures (Long) | 4 | 09/26/2018 | 29 | — | ||||
Natural Gas Swap Futures (Long) | 4 | 10/29/2018 | 30 | — | ||||
Natural Gas Swap Futures (Long) | 4 | 11/28/2018 | 31 | 2 | ||||
Natural Gas Swap Futures (Short) | 4 | 12/27/2017 | 30 | 2 | ||||
Platinum Futures (Long) | 2 | 01/29/2018 | 92 | (6) | ||||
Soybean Oil Futures (Long) | 1 | 12/14/2018 | 21 | — | ||||
Soybean Oil Futures (Short) | 1 | 12/14/2017 | 21 | — | ||||
Sugar Futures (Short) | 3 | 02/28/2018 | 50 | — | ||||
U.S. Treasury Bond Futures 30 year (Short) | 3 | 12/19/2017 | 457 | 5 | ||||
U.S. Treasury Note Futures 2 year (Short) | 10 | 12/29/2017 | 2,154 | 9 | ||||
U.S. Treasury Note Futures 5 year (Short) | 40 | 12/29/2017 | 4,687 | 19 | ||||
U.S. Treasury Note Futures 10 year (Long) | 21 | 12/19/2017 | 2,624 | (12) | ||||
Wheat Futures (Long) | 4 | 03/14/2018 | 87 | (15) | ||||
Wheat Futures (Short) | 4 | 03/14/2018 | 87 | 15 | ||||
White Sugar Futures (Long) | 3 | 02/13/2018 | 58 | 2 | ||||
Total Futures Contracts | $ 41 |
Description | Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||
Euro-Bund Futures (Put) | Eurex | € 159.00 | 11/24/2017 | 15 | $ 2 | $ 1 | ||||||
Euro-Bund Futures (Call) | Eurex | 165.00 | 11/24/2017 | 5 | — | — | ||||||
Total Purchased Options that Require Periodic Settlement of Variation Margin | $ 2 | $ 1 |
Consolidated Portfolio of Investments—Continued
Description | Counterparty/Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||
Commodity - Natural Gas Futures (Call) | New York Mercantile Exchange | $ 0.50 | 02/23/2018 | 3 | $ 11 | $ 2 | ||||||
Commodity - Natural Gas Futures (Call) | New York Mercantile Exchange | 1.00 | 02/23/2018 | 3 | 8 | 1 | ||||||
Commodity - WTI-Brent Crude Oil Spread Futures (Call) | New York Mercantile Exchange | 2.00 | 10/30/2018 | 1 | 1 | — | ||||||
Eurodollar Futures (Put) | CME Group | 98.25 | 03/19/2018 | 30 | 3 | 2 | ||||||
Federal National Mortgage Assocation Futures 30 year (Call) | Credit Suisse International | 120.00 | 12/06/2017 | 1,500,000 | — | — | ||||||
Federal National Mortgage Assocation Futures 30 year (Put) | Credit Suisse International | 85.00 | 12/06/2017 | 3,500,000 | — | — | ||||||
USD ICE Swap Rate Index 10 year - Cap (Put) | Deutsche Bank AG | 0.260 j | 03/29/2018 | 2,500,000 | 1 | 1 | ||||||
USD ICE Swap Rate Index 10 year - Cap (Put) | Morgan Stanley Capital Services LLC | 0.260 j | 04/03/2018 | 2,600,000 | 1 | 1 | ||||||
U.S. Treasury Bond Option 30 year (Call) | Chicago Board of Trade | $ 182.00 | 12/22/2017 | 2 | — | — | ||||||
U.S. Treasury Bond Option 30 year (Call) | Chicago Board of Trade | 184.00 | 12/22/2017 | 2 | — | — | ||||||
U.S. Treasury Bond Option 30 year (Put) | Chicago Board of Trade | 106.00 | 12/22/2017 | 2 | — | — | ||||||
U.S. Treasury Note Option 2 year (Call) | Chicago Board of Trade | 109.50 | 11/24/2017 | 3 | — | — | ||||||
U.S. Treasury Note Option 2 year (Call) | Chicago Board of Trade | 109.63 | 11/24/2017 | 1 | — | — | ||||||
U.S. Treasury Note Option 2 year (Call) | Chicago Board of Trade | 109.75 | 11/24/2017 | 6 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 122.50 | 12/22/2017 | 16 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 123.00 | 12/22/2017 | 4 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 123.75 | 11/24/2017 | 1 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 124.00 | 11/24/2017 | 2 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 124.25 | 11/24/2017 | 13 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 124.25 | 12/22/2017 | 4 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 124.75 | 11/24/2017 | 4 | — | — | ||||||
U.S. Treasury Note Option 5 year (Call) | Chicago Board of Trade | 125.00 | 12/22/2017 | 1 | — | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 114.50 | 11/24/2017 | 29 | — | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 109.00 | 12/22/2017 | 2 | — | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 115.50 | 11/24/2017 | 4 | — | — | ||||||
Total Purchased Options Not Settled Through Variation Margin | $ 25 | $ 7 |
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Index/ Rate | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 10 year (Put) | Morgan Stanley Capital Services LLC | 3-Month USD-LIBOR | Receive | 2.720% | 07/16/2018 | 150,000 | $ 2 | $ 2 | ||||||||
Interest Rate Swap Option 10 year (Put) | Morgan Stanley Capital Services LLC | 3-Month USD-LIBOR | Receive | 2.770 | 07/16/2018 | 1,000,000 | 12 | 10 | ||||||||
Interest Rate Swap Option 30 year (Call) | Deutsche Bank AG | 3-Month USD-LIBOR | Pay | 2.150 | 06/15/2018 | 250,000 | 25 | 3 | ||||||||
Interest Rate Swap Option 30 year (Put) | Deutsche Bank AG | 3-Month USD-LIBOR | Receive | 2.150 | 06/15/2018 | 250,000 | 25 | 30 | ||||||||
Total Purchased Swap Options Not Settled Through Variation Margin | $64 | $45 | ||||||||||||||
Total Purchased Options | $91 | $53 |
Description | Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Euro-Bund Futures (Call) | Eurex | € 164.00 | 11/24/2017 | 5 | $1 | $— | ||||||
Euro-Bund Futures (Put) | Eurex | 158.00 | 11/24/2017 | 16 | 1 | (1) | ||||||
Total Written Options that Require Periodic Settlement of Variation Margin | $2 | $ (1) |
Description | Counterparty/Exchange | Strike Index/ Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Commodity - Natural Gas Futures (Call) | New York Mercantile Exchange | $ 0.75 | 02/23/2018 | 6 | $17 | $ (4) | ||||||
Commodity - WTI-Brent Crude Oil Spread Futures (Call) | New York Mercantile Exchange | — | 10/30/2018 | 1 | 1 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Cap (Call) | JP Morgan Chase Bank NA | 244.170 j | 05/16/2024 | 200,000 | 1 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | JP Morgan Chase Bank NA | 234.810 j | 03/24/2020 | 1,600,000 | 18 | (4) |
Consolidated Portfolio of Investments—Continued
Description | Counterparty/Exchange | Strike Index/ Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Eurodollar Futures (Call) | CME Group | $ 98.75 | 03/19/2018 | 30 | $ 4 | $ — | ||||||
Eurozone HICP Ex. Tobacco Index - Cap (Call) | Goldman Sachs Bank USA | 120.720 j | 06/22/2035 | 400,000 | 18 | (4) | ||||||
USD ICE Swap Rate Index 30 year - Cap (Put) | Deutsche Bank AG | 0.230 j | 03/29/2018 | 2,500,000 | 1 | (1) | ||||||
USD ICE Swap Rate Index 30 year - Cap (Put) | Morgan Stanley Capital Services LLC | 0.230 j | 04/03/2018 | 2,600,000 | 1 | (1) | ||||||
U.S. Treasury Bond Option 30 year (Call) | Chicago Board of Trade | $ 155.00 | 11/24/2017 | 1 | 1 | — | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 125.00 | 11/24/2017 | 3 | 1 | (2) | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 125.50 | 11/24/2017 | 4 | 1 | (1) | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 126.50 | 11/24/2017 | 3 | 1 | — | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 127.50 | 11/24/2017 | 4 | 2 | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 123.50 | 11/24/2017 | 4 | 1 | (1) | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 124.00 | 11/24/2017 | 4 | 2 | (1) | ||||||
Total Written Options Not Settled Through Variation Margin | $70 | $(19) |
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 5 year (Call) | Royal Bank of Scotland plc | 3-Month USD-LIBOR | Receive | 1.800% | 11/07/2017 | 400,000 | $ 4 | $ — | ||||||||
Interest Rate Swap Option 5 year (Put) | Royal Bank of Scotland plc | 3-Month USD-LIBOR | Pay | 2.600 | 11/07/2017 | 400,000 | 4 | (1) | ||||||||
Total Written Swap Options Not Settled Through Variation Margin | $ 8 | $ (1) | ||||||||||||||
Total Written Options | $80 | $(21) |
Counterparty | Amount to be Delivered (000s) | Amount to be Received (000s) | Settlement Date | Unrealized Appreciation/ (Depreciation) (000s) | ||||
Bank of America NA | $ 100 | ARG$ 1,860 | 02/14/2018 | $ (1) | ||||
Citibank NA | $ 11 | ARG$ 194 | 12/20/2017 | — | ||||
Goldman Sachs Bank USA | $ 48 | ARG$ 885 | 01/12/2018 | — | ||||
HSBC Bank USA | $ 55 | ARG$ 1,027 | 02/14/2018 | — | ||||
BNP Paribas SA | ARG$ 398 | $ 21 | 02/14/2018 | — | ||||
JP Morgan Chase Bank | ARG$ 265 | $ 14 | 02/14/2018 | — | ||||
JP Morgan Chase Bank NA | AUD$ 528 | $ 412 | 11/02/2017 | 8 | ||||
Citibank NA | $ 65 | R$ 211 | 11/03/2017 | — | ||||
Citibank NA | $ 66 | R$ 211 | 12/04/2017 | (2) | ||||
Deutsche Bank AG | $ 102 | R$ 320 | 11/03/2017 | (4) | ||||
Société Générale | $ 33 | R$ 108 | 11/03/2017 | — | ||||
BNP Paribas SA | R$ 420 | $ 116 | 01/03/2018 | (11) | ||||
Citibank NA | R$ 211 | $ 66 | 11/03/2017 | 2 | ||||
Deutsche Bank AG | R$ 320 | $ 98 | 11/03/2017 | — | ||||
Deutsche Bank AG | R$ 5,900 | $ 1,641 | 01/03/2018 | (149) | ||||
JP Morgan Chase Bank | R$ 880 | $ 243 | 01/03/2018 | (24) | ||||
Société Générale | R$ 108 | $ 34 | 11/03/2017 | 1 | ||||
UBS AG | $ 3,223 | £ 2,462 | 11/02/2017 | 47 | ||||
Citibank NA | £ 246 | $ 325 | 11/02/2017 | (2) | ||||
JP Morgan Chase Bank NA | £ 2,216 | $ 2,970 | 11/02/2017 | 27 | ||||
UBS AG | £ 2,462 | $ 3,226 | 12/04/2017 | (47) | ||||
Citibank NA | $ 128 | CAD$ 165 | 11/15/2017 | — | ||||
Goldman Sachs Bank USA | CAD$ 165 | $ 130 | 11/15/2017 | 2 | ||||
Goldman Sachs Bank USA | $ 98 | DKK$ 615 | 01/02/2018 | (1) | ||||
JP Morgan Chase Bank NA | $ 52 | DKK$ 325 | 01/02/2018 | (1) | ||||
Bank of America NA | DKK$ 811 | $ 130 | 01/02/2018 | 3 | ||||
Goldman Sachs Bank USA | DKK$ 208 | $ 30 | 01/02/2018 | (2) | ||||
Goldman Sachs Bank USA | DKK$ 202 | $ 31 | 04/03/2018 | (1) | ||||
JP Morgan Chase Bank NA | DKK$ 350 | $ 56 | 01/02/2018 | 1 | ||||
BNP Paribas SA | $ 902 | € 775 | 11/02/2017 | 1 | ||||
Citibank NA | $ 6 | € 5 | 11/15/2017 | — | ||||
JP Morgan Chase Bank NA | $ 1,101 | € 936 | 11/02/2017 | (11) | ||||
Bank of America NA | € 1,593 | $ 1,872 | 11/02/2017 | 16 |
Consolidated Portfolio of Investments—Continued
Counterparty | Amount to be Delivered (000s) | Amount to be Received (000s) | Settlement Date | Unrealized Appreciation/ (Depreciation) (000s) | ||||
BNP Paribas SA | € 775 | $ 903 | 12/04/2017 | $ (1) | ||||
JP Morgan Chase Bank NA | € 118 | $ 139 | 11/02/2017 | 1 | ||||
UBS AG | € 6 | $ 7 | 11/15/2017 | — | ||||
Credit Suisse International | $ 189 | ₹ 12,358 | 12/04/2017 | 2 | ||||
BNP Paribas SA | ₹ 2,407 | $ 37 | 12/04/2017 | — | ||||
Citibank NA | ₹ 1,518 | $ 23 | 12/04/2017 | — | ||||
JP Morgan Chase Bank | ₹ 1,451 | $ 22 | 12/04/2017 | — | ||||
Citibank NA | $ 113 | ¥ 12,700 | 11/02/2017 | (2) | ||||
Citibank NA | $ 52 | MEX$ 990 | 12/15/2017 | (1) | ||||
Citibank NA | MEX$ 275 | $ 15 | 12/15/2017 | — | ||||
Bank of America NA | $ 892 | NZD$ 1,303 | 11/02/2017 | — | ||||
Bank of America NA | NZD$ 1,303 | $ 891 | 12/04/2017 | — | ||||
JP Morgan Chase Bank NA | NZD$ 1,303 | $ 937 | 11/02/2017 | 45 | ||||
Citibank NA | $ 50 | RUS$ 2,936 | 02/16/2018 | (1) | ||||
BNP Paribas SA | ₩ 51,219 | $ 45 | 12/04/2017 | (1) | ||||
Deutsche Bank AG | ₩ 95,642 | $ 84 | 12/04/2017 | (2) | ||||
Total Forward Currency Contracts | $(108) |
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
CME Group | Brazil Cetip Interbank Deposit | Pay | 9.650% | At maturity | 01/02/2025 | R$ 1,700 | $ (4) | $ (1) | $ (3) | |||||||||
LCH Group | Eurostat Eurozone HICP Ex Tobacco NSA | Receive | 1.165 | At maturity | 12/15/2021 | € 140 | 1 | — | 1 | |||||||||
LCH Group | Eurostat Eurozone HICP Ex Tobacco NSA | Pay | 1.385 | At maturity | 12/15/2026 | 150 | (1) | 1 | (2) | |||||||||
LCH Group | French Consumer Price Index Ex Tobacco | Pay | 1.438 | At maturity | 06/15/2027 | 240 | (1) | (1) | — | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Pay | 1.500 | Semiannual | 03/21/2028 | £ 1,390 | (13) | (48) | 35 | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Pay | 1.750 | Semiannual | 03/21/2048 | 200 | (9) | (5) | (4) | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.400 | At maturity | 06/15/2030 | 800 | 13 | 20 | (7) | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.300 | At maturity | 12/15/2030 | 100 | (3) | (5) | 2 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.470 | At maturity | 09/15/2032 | 1,450 | (12) | 2 | (14) | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.585 | At maturity | 10/15/2046 | 130 | (7) | (8) | 1 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Receive | 3.585 | At maturity | 10/15/2046 | 90 | 5 | 5 | — | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Receive | 3.427 | At maturity | 03/15/2047 | 100 | 7 | — | 7 | |||||||||
LCH Group | British Bankers' Association LIBOR JPY 6-Month | Receive | 0.300 | Semiannual | 09/20/2027 | ¥ 60,000 | (1) | (1) | — | |||||||||
LCH Group | British Bankers' Association LIBOR JPY 6-Month | Receive | 0.450 | Semiannual | 03/20/2029 | 150,000 | (7) | (9) | 2 | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 7.200 | Lunar | 06/05/2024 | MEX$ 2,200 | (1) | — | (1) | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 8.040 | Lunar | 12/17/2026 | 500 | 1 | — | 1 |
Consolidated Portfolio of Investments—Continued
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 8.280% | Lunar | 11/28/2036 | MEX$ 400 | $ 1 | $ 2 | $ (1) | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 8.310 | Lunar | 11/28/2036 | 400 | 1 | 2 | (1) | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 7.480 | Lunar | 06/18/2037 | 4,180 | (6) | — | (6) | |||||||||
CME Group | New Zeland 90 Day Bank Bill Futures Rate Agreement | Pay | 3.250 | Semiannual | 03/21/2028 | NZD$ 500 | — | 2 | (2) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 1.250 | Semiannual | 06/21/2019 | $ 2,500 | 13 | 15 | (2) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.250 | Semiannual | 12/16/2022 | 4,500 | 63 | 10 | 53 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.660 | Semiannual | 10/19/2023 | 400 | 7 | — | 7 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.680 | Semiannual | 10/25/2023 | 1,000 | 19 | — | 19 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.670 | Semiannual | 11/19/2023 | 300 | 6 | 1 | 5 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.680 | Semiannual | 12/12/2023 | 300 | 6 | — | 6 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.400 | Semiannual | 03/16/2026 | 5,790 | 37 | (38) | 75 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.300 | Semiannual | 04/21/2026 | 1,400 | 16 | (8) | 24 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.300 | Semiannual | 04/27/2026 | 1,800 | 20 | (7) | 27 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.000 | Semiannual | 07/27/2026 | 1,100 | 28 | 32 | (4) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.400 | Semiannual | 12/07/2026 | 3,000 | 28 | 24 | 4 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.250 | Semiannual | 12/21/2046 | 1,260 | 93 | 125 | (32) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.750 | Semiannual | 12/20/2047 | 200 | 5 | 3 | 2 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.950 | Semiannual | 10/19/2048 | 50 | (3) | — | (3) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.970 | Semiannual | 10/25/2048 | 100 | (6) | — | (6) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.950 | Semiannual | 11/19/2048 | 100 | (6) | — | (6) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.950 | Semiannual | 12/12/2048 | 100 | (6) | — | (6) | |||||||||
LCH Group | British Bankers' Association LIBOR USD 3-Month | Pay | 1.750 | Semiannual | 12/21/2026 | 900 | 38 | 42 | (4) |
Consolidated Portfolio of Investments—Continued
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
LCH Group | Federal Funds Effective Rate US | Pay | 2.000% | Annual | 12/15/2047 | $ 150 | $ 8 | $ — | $ 8 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.710 | At maturity | 04/27/2018 | 500 | (1) | — | (1) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.580 | At maturity | 05/23/2018 | 2,900 | 7 | 1 | 6 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.935 | At maturity | 04/27/2019 | 500 | 1 | — | 1 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 2.026 | At maturity | 11/23/2020 | 300 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 2.021 | At maturity | 11/25/2020 | 300 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.550 | At maturity | 07/26/2021 | 200 | 5 | 7 | (2) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.602 | At maturity | 09/12/2021 | 150 | 3 | 5 | (2) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.730 | At maturity | 07/26/2026 | 200 | (7) | (10) | 3 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.762 | At maturity | 08/30/2026 | 400 | (13) | (20) | 7 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.800 | At maturity | 09/12/2026 | 200 | (6) | (2) | (4) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.801 | At maturity | 09/12/2026 | 150 | (4) | (7) | 3 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.805 | At maturity | 09/12/2026 | 100 | (3) | (5) | 2 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.780 | At maturity | 09/15/2026 | 100 | (3) | (5) | 2 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.102 | At maturity | 07/20/2027 | 500 | (2) | — | (2) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.080 | At maturity | 07/25/2027 | 200 | (1) | — | (1) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.122 | At maturity | 08/01/2027 | 400 | (1) | — | (1) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.180 | At maturity | 09/20/2027 | 90 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.150 | At maturity | 09/25/2027 | 100 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.156 | At maturity | 10/17/2027 | 200 | — | — | — | |||||||||
Interest Rate Swaps | $186 |
Consolidated Portfolio of Investments—Continued
Counterparty | Reference Entity | Buy/ Sellb,c | Pay/Receive Fixed Rate | Expiration Date | Implied Credit Spreadd | Payment Frequency | Notional Amounte (000s) | Value f (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||||||||
ICE Group | iTraxx Europe Series 28 Version 1 | Buy | 1.000% | 12/20/2022 | 0.500% | Quarterly | € 800 | $(25) | $(21) | $ (4) | ||||||||||
ICE Group | Markit iTraxx Europe Indices Series 26 Version 1 | Buy | 1.000 | 12/20/2021 | 0.360 | Quarterly | € 300 | (10) | (5) | (5) | ||||||||||
ICE Group | Canadian Natural Resources Ltd. 3.450% due 11/15/2021 | Buy | 1.000 | 03/20/2018 | 0.121 | Quarterly | $ 100 | — | — | — | ||||||||||
ICE Group | Markit CDX North America High Yield Index Series 29 | Buy | 5.000 | 12/20/2022 | 3.102 | Quarterly | $ 600 | (54) | (48) | (6) | ||||||||||
Credit Default Swaps | $(15) |
Counterparty | Floating Rate Index | Pay/Receive Fixed Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Morgan Stanley Capital Services LLC | US Consumer Price Index Urban Consumers NSA | Receive | 1.810% | At maturity | 07/19/2026 | $ 400 | $(11) | $— | $(11) | |||||||||
Morgan Stanley Capital Services LLC | US Consumer Price Index Urban Consumers NSA | Receive | 1.800 | At maturity | 07/20/2026 | 200 | (6) | — | (6) | |||||||||
Morgan Stanley Capital Services LLC | US Consumer Price Index Urban Consumers NSA | Receive | 1.805 | At maturity | 09/20/2026 | 100 | (3) | — | (3) | |||||||||
Interest Rate Swaps | $(20) |
Counterparty | Reference Rate | Pay/Receive Fixed Rate | Index | Expiration Date | Payment Frequency | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Citibank NA | 0.17% | Pay | Bloomberg Commodity Index SM | 02/15/2018 | Monthly | $ 6 | $ 2 | $ — | $ 2 | |||||||||
Citibank NA | 0.17 | Pay | Bloomberg Commodity Index SM | 02/15/2018 | Monthly | 5 | (1) | — | (1) | |||||||||
Canadian Imperial Bank of Commerce | — | Pay | Bloomberg Commodity Index SM | 02/15/2018 | Monthly | 5 | 11 | — | 11 | |||||||||
JP Morgan Chase Bank NA | 0.30 | Pay | Bloomberg Commodity Index SM | 02/15/2018 | Monthly | 6 | 17 | — | 17 | |||||||||
JP Morgan Chase Bank NA | 0.17 | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 4 | 12 | — | 12 | |||||||||
BNP Paribas SA | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 2,197 | (6) | — | (6) | |||||||||
BNP Paribas SA | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 2 | 2 | — | 2 | |||||||||
Citibank NA | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 47 | 16 | — | 16 |
Consolidated Portfolio of Investments—Continued
Counterparty | Reference Rate | Pay/Receive Fixed Rate | Index | Expiration Date | Payment Frequency | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Credit Suisse International | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | $12 | $ 5 | $ — | $ 5 | |||||||||
Goldman Sachs International | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 7,471 | (17) | — | (17) | |||||||||
Goldman Sachs International | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 32 | 25 | — | 25 | |||||||||
JP Morgan Chase Bank NA | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 6,581 | (17) | — | (17) | |||||||||
JP Morgan Chase Bank NA | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 7 | 5 | — | 5 | |||||||||
Merrill Lynch International | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | — | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 211 | 88 | — | 88 | |||||||||
Société Générale Paris | U.S. Treasury Bills | Pay | Bloomberg Commodity Index Total Return SM | 02/15/2018 | Monthly | 9 | 4 | — | 4 | |||||||||
JP Morgan Chase Bank NA | 0.35% | Pay | JP Morgan FNJ Commodity Index | 02/15/2018 | Monthly | 28 | 27 | (3) | 30 | |||||||||
Goldman Sachs International | 0.25 | Pay | S&P GSCI | 02/15/2018 | Monthly | 5 | 34 | — | 34 | |||||||||
BNP Paribas SA | -0.05 | Pay | S&P GSCI Industrial Metals Index Excess Return | 02/15/2018 | Monthly | 359 | 5 | — | 5 | |||||||||
Goldman Sachs International | -0.05 | Pay | S&P GSCI Industrial Metals Index Excess Return | 02/15/2018 | Monthly | 198 | 2 | — | 2 | |||||||||
Total Return Swaps on Indices | $217 |
Counterparty | Reference Assets | Pay/Receive Fixed Rate | Fixed Price per Unit | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
BNP Paribas SA | Calendar Swap on Iron Ore | Receive | $69.20 | At Maturity | 03/31/2018 | $ 1 | $ (6) | $— | $ (6) | |||||||||
Goldman Sachs International | Calendar Swap on Iron Ore | Receive | 72.30 | At Maturity | 03/31/2018 | — | 4 | — | 4 | |||||||||
Goldman Sachs International | Calendar Swap on Iron Ore | Receive | 58.40 | At Maturity | 03/31/2019 | — | (1) | — | (1) | |||||||||
Goldman Sachs International | Calendar Swap on Iron Ore | Receive | 54.70 | At Maturity | 12/31/2019 | — | — | — | — | |||||||||
JP Morgan Chase Bank NA | Calendar Swap on Iron Ore | Receive | 69.70 | At Maturity | 03/31/2018 | — | 3 | — | 3 | |||||||||
JP Morgan Chase Bank NA | Calendar Swap on Iron Ore | Receive | 55.90 | At Maturity | 03/31/2019 | — | — | — | — | |||||||||
JP Morgan Chase Bank NA | Hard Red Winter Wheat February 2018 Futures | Receive | 1.00 | At Maturity | 02/23/2018 | 1 | — | — | — |
Consolidated Portfolio of Investments—Continued
Counterparty | Reference Assets | Pay/Receive Fixed Rate | Fixed Price per Unit | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Receive | $1,266.20 | At Maturity | 11/29/2018 | $ — | $ (3) | $— | $ (3) | |||||||||
BNP Paribas SA | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.85 | At Maturity | 12/31/2017 | — | — | — | — | |||||||||
BNP Paribas SA | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 6.97 | At Maturity | 12/31/2017 | — | — | — | — | |||||||||
BNP Paribas SA | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 7.55 | At Maturity | 03/31/2018 | — | — | — | — | |||||||||
BNP Paribas SA | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 12.70 | At Maturity | 12/31/2018 | 2 | (1) | (1) | — | |||||||||
JP Morgan Chase Bank NA | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 7.10 | At Maturity | 12/31/2017 | — | — | — | — | |||||||||
JP Morgan Chase Bank NA | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.10 | At Maturity | 03/31/2018 | — | 1 | — | 1 | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.78 | At Maturity | 12/31/2017 | — | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.90 | At Maturity | 12/31/2017 | — | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 4.85 | At Maturity | 12/31/2017 | — | 1 | — | 1 | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 4.74 | At Maturity | 12/31/2017 | — | 1 | — | 1 | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 6.79 | At Maturity | 12/31/2017 | — | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.82 | At Maturity | 12/31/2017 | — | — | — | — |
Consolidated Portfolio of Investments—Continued
Counterparty | Reference Assets | Pay/Receive Fixed Rate | Fixed Price per Unit | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | $ 5.80 | At Maturity | 12/31/2017 | $ — | $— | $— | $— | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.30 | At Maturity | 03/31/2018 | 1 | 1 | — | 1 | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 4.45 | At Maturity | 03/31/2018 | — | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 6.22 | At Maturity | 03/31/2018 | 1 | (1) | — | (1) | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 7.48 | At Maturity | 03/31/2018 | — | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.81 | At Maturity | 12/31/2018 | — | 1 | — | 1 | |||||||||
Morgan Stanley Capital Services LLC | Naphtha, Euro-Bob Gasoline, Ultra-Low Sulphur Diesel, Fuel Oil vs. Brent Crude Oil | Receive | 5.77 | At Maturity | 12/31/2018 | — | 1 | — | 1 | |||||||||
BNP Paribas SA | Platnium London PM Fix/USD vs. LBMA India Gold Price PM USD | Receive | (317.20) | At Maturity | 07/09/2018 | — | (8) | (1) | (7) | |||||||||
Goldman Sachs International | Platnium London PM Fix/USD vs. LBMA India Gold Price PM USD | Receive | (318.90) | At Maturity | 07/06/2018 | — | (4) | — | (4) | |||||||||
Total Return Swaps on Commodities | $ (9) |
Counterparty | Reference Assets | Pay/Receive Varianceg | Initial Volatility Strike | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Goldman Sachs International | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | $ 0.07 | At Maturity | 07/29/2020 | $ 377 | $16 | $— | $16 |
Consolidated Portfolio of Investments—Continued
Counterparty | Reference Assets | Pay/Receive Varianceg | Initial Volatility Strike | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Goldman Sachs International | Intercontinental Exchange LIBOR USD 3-month | Receive | $ — | At Maturity | 03/20/2018 | $ 100 | $ (2) | $— | $ (2) | |||||||||
Goldman Sachs International | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.01% | At Maturity | 01/10/2018 | 44 | — | — | — | |||||||||
JP Morgan Chase Bank NA | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.04 | At Maturity | 07/29/2020 | 21 | — | — | — | |||||||||
JP Morgan Chase Bank NA | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.04 | At Maturity | 07/29/2020 | 356 | (5) | — | (5) | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.02 | At Maturity | 12/04/2017 | 102 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.02 | At Maturity | 12/04/2017 | 72 | 1 | — | 1 | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.02 | At Maturity | 04/12/2018 | 39 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.02 | At Maturity | 10/25/2018 | 35 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.02 | At Maturity | 10/31/2018 | 281 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.03 | At Maturity | 07/17/2019 | 55 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.03 | At Maturity | 07/26/2019 | 43 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Gold Market Fixing Ltd-LBMA PM Fixing Price/USD | Pay | 0.03 | At Maturity | 10/08/2019 | 29 | — | — | — | |||||||||
Goldman Sachs International | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.04 | At Maturity | 01/10/2018 | 25 | — | — | — | |||||||||
JP Morgan Chase Bank NA | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.05 | At Maturity | 10/31/2018 | 22 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.05 | At Maturity | 04/12/2018 | 23 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.05 | At Maturity | 10/25/2018 | 22 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.10 | At Maturity | 10/31/2018 | 194 | — | — | — |
Consolidated Portfolio of Investments—Continued
Counterparty | Reference Assets | Pay/Receive Varianceg | Initial Volatility Strike | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Morgan Stanley Capital Services LLC | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.07% | At Maturity | 07/17/2019 | $ 37 | $— | $— | $— | |||||||||
Morgan Stanley Capital Services LLC | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.07 | At Maturity | 07/26/2019 | 29 | — | — | — | |||||||||
Morgan Stanley Capital Services LLC | London Silver Market Fixing Ltd-LBMA Fixing Price/USD | Pay | 0.07 | At Maturity | 10/08/2019 | 19 | — | — | — | |||||||||
Goldman Sachs International | S&P GSCI Aluminum Index Excess Return | Pay | 0.03 | At Maturity | 08/01/2018 | 29 | — | — | — | |||||||||
Goldman Sachs International | S&P GSCI Copper Index Total Return(SM) | Pay | 0.04 | At Maturity | 08/01/2018 | 3 | — | — | — | |||||||||
JP Morgan Chase Bank NA | S&P GSCI Copper Index Total Return(SM) | Pay | 0.04 | At Maturity | 08/01/2018 | 11 | — | — | — | |||||||||
Société Générale Paris | Soybean Futures October 2018 | Pay | 0.03 | At Maturity | 10/26/2018 | 30 | — | — | — | |||||||||
Variance Swaps on Indices | $ (6) |
Counterparty | Reference Entity | Buy/ Sellb,c | Pay/Receive Fixed Rate | Expiration Date | Implied Credit Spreadd | Payment Frequency | Notional Amounte (000s) | Value f (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||||||||
Deutsche Bank AG | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000% | 06/20/2021 | 1.160% | Quarterly | $ 100 | $(1) | $ (9) | $ 8 | ||||||||||
Goldman Sachs International | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000 | 06/20/2021 | 1.605 | Quarterly | 200 | (1) | (14) | 13 | ||||||||||
HSBC Bank USA NA | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000 | 06/20/2022 | 1.527 | Quarterly | 100 | (2) | (6) | 4 | ||||||||||
Credit Default Swaps | $ 25 | |||||||||||||||||||
Total Swaps | $394 |
Principal Amount (000s) | Security | Proceeds (000s) | Value (000s) | |||
$ 300 | Federal National Mortgage Association TBA1 3.000%—12/13/2047 | $301 | $(300) |
Consolidated Portfolio of Investments—Continued
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 | ||||||||
Asset-Backed Securities | $ — | $ 2,527 | $— | $ 2,527 | ||||
Collateralized Mortgage Obligations | — | 134 | — | 134 | ||||
Corporate Bonds & Notes | — | 4,557 | — | 4,557 | ||||
Foreign Government Obligations | — | 6,820 | — | 6,820 | ||||
Mortgage Pass-Through | — | 2,821 | — | 2,821 | ||||
U.S. Government Obligations | — | 51,387 | — | 51,387 | ||||
Short-Term Investments | ||||||||
Certificates Of Deposit | — | 300 | — | 300 | ||||
Repurchase Agreements | — | 10,993 | — | 10,993 | ||||
Total Investments in Securities | $ — | $79,539 | $— | $79,539 | ||||
Financial Derivative Instruments - Assets | ||||||||
Forward Currency Contracts | $ — | $ 156 | $— | $ 156 | ||||
Futures Contracts | 255 | — | — | 255 | ||||
Purchased Options | 6 | 47 | — | 53 | ||||
Swap Agreements | — | 616 | — | 616 | ||||
Total Financial Derivative Instruments - Assets | $ 261 | $ 819 | $— | $ 1,080 | ||||
Liability Category | ||||||||
Fixed Income Investments Sold Short | $ — | $ (300) | $— | $ (300) | ||||
Financial Derivative Instruments - Liabilities | ||||||||
Forward Currency Contracts | $ — | $ (264) | $— | $ (264) | ||||
Futures Contracts | (214) | — | — | (214) | ||||
Swap Agreements | — | (222) | — | (222) | ||||
Written Options | (10) | (11) | — | (21) | ||||
Total Financial Derivative Instruments - Liabilities | $(224) | $ (497) | $— | $ (721) | ||||
Total Investments | $ 37 | $79,561 | $— | $79,598 |
Overnight and Continuous (000s) | Up to 30 days (000s) | 31-90 days (000s) | Greater Than 90 days (000s) | Total (000s) | |||||
Sale-Buyback Transactions | |||||||||
U.S. Government Obligations | $— | $26,678 | $7,069 | $— | $33,747 |
Consolidated Portfolio of Investments—Continued
1 | Variable rate security, the stated rate represents the rate in effect at October 31, 2017. |
2 | 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, 2017, the aggregate value of these securities was $1,959,000 or 4% of net assets. |
3 | Floating rate security, the stated rate represents the rate in effect at October 31, 2017. |
4 | MTN after the name of a security stands for Medium Term Note. |
5 | Inflation-protected securities (“IPS”) are securities in which the principal amount is adjusted for inflation and interest payments are applied to the inflation-adjusted principal. |
6 | Zero coupon bond |
7 | TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after October 31, 2017. Although the unit price for the trades has been established, the principal value has not been finalized. However, the amount of the commitments will not fluctuate more than 2% from the principal amount. Income on TBAs is not earned until settlement date (see Note 2 of the accompanying Notes to Financial Statements). |
8 | At October 31, 2017, a portion of securities held by the Fund were pledged to cover margin requirements for open future contracts, written options on futures contracts and swap options (see Note 2 of the accompanying Notes to Financial Statements). The securities pledged had an aggregate value of $333,000 or less than 1% of net assets. |
b | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
c | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
d | Implied credit spreads, represented in absolute terms, utilized in determining the value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. |
e | The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
f | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
g | At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price variance of the underlying asset and the strike price multiplied by the notional amount. As a receiver of the realized price variance, the Fund would receive the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would owe the payoff amount when the variance is less than the strike price. As a payer of the realized price variance, the Fund would owe the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would receive the payoff amount when the variance is less than the strike price. |
j | Amount represents Index Value |
ARG$ | Argentine Peso |
AUD$ | Australian Dollar |
R$ | Brazilian Real |
£ | British Pound |
CAD$ | Canadian Dollar |
DKK$ | Denmark Krone |
€ | Euro |
₹ | Indian Rupee |
¥ | Japanese Yen |
MEX$ | Mexican Peso |
PER$ | Peruvian Nuevo Sol |
NZD$ | New Zealand Dollar |
RUS$ | Russian Ruble |
₩ | South Korean Won |
TRD$ | Turkish Lira |
Statement of Assets and Liabilities—October 31, 2017
Harbor Commodity Real Return Strategy Fund (Consolidated) | ||
ASSETS | ||
Investments, at identified cost* | $ 78,311 | |
Investments, at value | $ 68,546 | |
Repurchase agreements | 10,993 | |
Cash-restricted | 105 | |
Cash | 106 | |
Foreign currency, at value (cost: $152) | 148 | |
Receivables for: | ||
Investments sold | 11,638 | |
Capital shares sold | 11 | |
Interest | 189 | |
Unrealized appreciation on open forward currency contracts | 156 | |
Unrealized appreciation on OTC swap agreements | 313 | |
Variation margin on options and futures contracts | 35 | |
Variation margin on centrally cleared swap agreements | 115 | |
Purchased options not settled through variation margin, at value (premiums paid: $89) | 52 | |
Options sold | 23 | |
Prepaid registration fees | 5 | |
Other assets | 42 | |
Total Assets | 92,477 | |
LIABILITIES | ||
Payables for: | ||
Due to broker | 25 | |
Investments purchased | 6,616 | |
Capital shares reacquired | 26 | |
Investments sold short, at value (proceeds: $301) | 300 | |
Written options not settled through variation margin, at value (premiums received: $78) | 20 | |
Swap premiums received | 34 | |
Unrealized depreciation on OTC swap agreements | 90 | |
Sale-buyback financing transactions | 33,747 | |
Variation margin on options and futures contracts | 27 | |
Unrealized depreciation on open forward currency contracts | 264 | |
Accrued expenses: | ||
Management fees | 35 | |
Transfer agent fees | 3 | |
Trustees' fees and expenses | 1 | |
Other | 126 | |
Total Liabilities | 41,314 | |
NET ASSETS | $ 51,163 | |
Net Assets Consist of: | ||
Paid-in capital | $ 74,630 | |
Accumulated undistributed net investment income/(loss) | 377 | |
Accumulated net realized gain/(loss) | (24,656) | |
Unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currencies | 464 | |
Unrealized appreciation/(depreciation) of other financial instruments | 348 | |
$ 51,163 | ||
NET ASSET VALUE PER SHARE BY CLASS | ||
Institutional Class | ||
Net assets | $ 50,771 | |
Shares of beneficial interest1 | 13,449 | |
Net asset value per share2 | $ 3.78 | |
Administrative Class | ||
Net assets | $ 392 | |
Shares of beneficial interest1 | 104 | |
Net asset value per share2 | $ 3.76 |
* | 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. |
Statement of Operations—Year Ended October 31, 2017
Harbor Commodity Real Return Strategy Fund (Consolidated) | |
Investment Income | |
Interest | $2,113 |
Total Investment Income | 2,113 |
Operating Expenses | |
Management fees | 505 |
12b-1 fees: | |
Administrative Class | 1 |
Shareholder communications | 35 |
Custodian fees | 181 |
Transfer agent fees: | |
Institutional Class | 53 |
Administrative Class | 1 |
Professional fees | 5 |
Trustees' fees and expenses | 2 |
Registration fees | 37 |
Miscellaneous | 7 |
Expenses before interest expense | 827 |
Interest expense | 282 |
Total expenses | 1,109 |
Transfer agent fees waived | (6) |
Other expenses reimbursed | (234) |
Net expenses | 869 |
Net Investment Income/(Loss) | 1,244 |
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions | |
Net realized gain/(loss) on: | |
Investments | (404) |
Foreign currency transactions | (449) |
Investments sold short | 31 |
Swap agreements | (743) |
Futures contracts | 101 |
Purchased options | (38) |
Written options | 65 |
Change in net unrealized appreciation/(depreciation) on: | |
Investments | (708) |
Forwards currency contracts | 233 |
Investments sold short | 1 |
Swap agreements | 2,403 |
Futures contracts | (126) |
Purchased options | 101 |
Written options | (66) |
Translations of assets and liabilities in foreign currencies | 2 |
Net gain/(loss) on investment transactions | 403 |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $1,647 |
Statements of Changes In Net Assets
Harbor Commodity Real Return Strategy Fund (Consolidated) | ||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |
INCREASE/(DECREASE) IN NET ASSETS | ||
Operations: | ||
Net investment income/(loss) | $ 1,244 | $ 1,404 |
Net realized gain/(loss) on investments | (1,437) | (11,279) |
Change in net unrealized appreciation/(depreciation) of investments | 1,840 | 6,587 |
Net increase/(decrease) in assets resulting from operations | 1,647 | (3,288) |
Distributions to Shareholders | ||
Net investment income: | ||
Institutional Class | (631) | (1,967) |
Administrative Class | (4) | (13) |
Net realized gain on investments: | ||
Institutional Class | — | — |
Administrative Class | — | — |
Return of capitala: | ||
Institutional Class | — | (596) |
Administrative Class | — | (3) |
Total distributions to shareholders | (635) | (2,579) |
Net Increase/(Decrease) Derived from Capital Share Transactions | (26,260) | (26,750) |
Net increase/(decrease) in net assets | (25,248) | (32,617) |
Net Assets | ||
Beginning of period | 76,411 | 109,028 |
End of period* | $ 51,163 | $ 76,411 |
* Includes accumulated undistributed net investment income/(loss) of: | $ 377 | $ 164 |
a | Determined in accordance with federal income tax regulations (see Note 5 in the Notes to Financial Statements) |
Statements of Changes in Net Assets—Capital Stock Activity
Harbor Commodity Real Return Strategy Fund (Consolidated) | ||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |
AMOUNT ($) | ||
Institutional Class | ||
Net proceeds from sale of shares | $ 10,628 | $ 19,388 |
Reinvested distributions | 624 | 2,495 |
Cost of shares reacquired | (37,395) | (48,420) |
Net increase/(decrease) in net assets | $(26,143) | $(26,537) |
Administrative Class | ||
Net proceeds from sale of shares | $ 111 | $ 74 |
Reinvested distributions | 3 | 16 |
Cost of shares reacquired | (231) | (303) |
Net increase/(decrease) in net assets | $ (117) | $ (213) |
SHARES | ||
Institutional Class | ||
Shares sold | 2,844 | 5,503 |
Shares issued due to reinvestment of distributions | 175 | 740 |
Shares reacquired | (10,051) | (13,954) |
Net increase/(decrease) in shares outstanding | (7,032) | (7,711) |
Beginning of period | 20,481 | 28,192 |
End of period | 13,449 | 20,481 |
Administrative Class | ||
Shares sold | 30 | 21 |
Shares issued due to reinvestment of distributions | 1 | 5 |
Shares reacquired | (63) | (89) |
Net increase/(decrease) in shares outstanding | (32) | (63) |
Beginning of period | 136 | 199 |
End of period | 104 | 136 |
Statement of Cash Flows— Year Ended October 31, 2017
Harbor Commodity Real Return Strategy Fund (Consolidated) | |
Cash flows provided by operating activities: | |
Net increase in net assets resulting from operations | $ 1,647 |
Adjustments to reconcile net increase in net assets from operations to net cash used for operating activities: | |
Purchases of long-term securities | (1,168,504) |
Proceeds from sales of long-term securities | 1,192,439 |
Proceeds from short-term portfolio investments, net | 9,672 |
Decrease in receivable for investments sold | 6,288 |
Decrease in foreign spot contracts receivable | 2 |
Decrease in interest receivable | 73 |
Decrease in variation margin on options and futures contracts | 39 |
Increase in variation margin on swap agreements | (84) |
Decrease in options sold | 2 |
Increase in other assets | (26) |
Decrease in payable for investments purchased | (7,480) |
Increase in investments sold short | 301 |
Decrease in foreign currency spot contracts payable | (2) |
Decrease in premiums from written options not settled through variation margin | (185) |
Increase in swap premiums received | 27 |
Decrease in management fees payable | (18) |
Decrease in transfer agent fees payable | (2) |
Increase in other liabilities | 32 |
Net change in unrealized appreciation/(depreciation) on investments | 707 |
Net change in unrealized appreciation/(depreciation) on forwards | (233) |
Net change in unrealized appreciation/(depreciation) on OTC swaps | (2,098) |
Net change in unrealized appreciation/(depreciation) on written options not settled through variation margin | 66 |
Net change in unrealized appreciation/(depreciation) on purchased options not settled through variation margin | (86) |
Net realized loss on investments | 373 |
Net realized loss on purchased options not settled through variation margin | 38 |
Net accretion and earned inflation component .. | (31) |
Net cash provided by operating activities | 32,957 |
Cash flows used for financing activities: | |
Proceeds from shares sold | 10,738 |
Payment on shares redeemed | (37,706) |
Cash dividends paid | (8) |
Decrease in sale-buyback financing transactions | (6,291) |
Increase in due to broker and cash-restricted | (33) |
Net cash used for financing activities | (33,300) |
Net decrease in cash and foreign currency | (343) |
Cash and foreign currency: | |
Beginning of period | $ 597 |
End of period | 254 |
Reinvestment of dividends | $ 627 |
Supplemental disclosure of cash flow information: | |
Interest paid during the year | $ 282 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR COMMODITY REAL RETURN STRATEGY FUND (CONSOLIDATED) | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 3.71 | $ 3.84 | $ 5.58 | $ 6.13 | $ 7.38 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.07 c | 0.06 c | 0.02 c | 0.14 | 0.02 |
Net realized and unrealized gains/(losses) on investments | 0.04 | (0.09) | (1.56) | (0.55) | (1.17) |
Total from investment operations | 0.11 | (0.03) | (1.54) | (0.41) | (1.15) |
Less Distributions | |||||
Dividends from net investment income | (0.04) | (0.07) | (0.20) | (0.01) | (0.08) |
Distributions from net realized capital gains1 | — | — | — | (0.13) | (0.02) |
Return of capitald | — | (0.03) | — | — | — |
Total distributions | (0.04) | (0.10) | (0.20) | (0.14) | (0.10) |
Proceeds from redemption fees | — | — | — | — | — * |
Net asset value end of period | 3.78 | 3.71 | 3.84 | 5.58 | 6.13 |
Net assets end of period (000s) | $50,771 | $75,908 | $108,267 | $208,996 | $318,937 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 3.13% | (0.38)% | (28.36)% | (6.82)% | (15.76)% |
Ratio of total expenses to average net assets2 | 1.78 | 1.52 | 1.28 | 1.04 | 1.03 |
Ratio of net expenses to average net assetsa | 1.39 | 1.24 | 1.08 | 0.98 | 0.98 |
Ratio of net expenses excluding interest expense to average net assetsa | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 |
Ratio of net investment income to average net assetsa | 1.99 | 1.73 | 0.36 | 1.23 | 0.45 |
Portfolio turnover | 1,331 | 1,069 | 784 | 635 | 532 |
* | 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 | Amounts are allocated based upon average shares outstanding during the period. |
d | Determined in accordance with federal income tax regulations (see Note 5 of the accompanying Notes to Financial Statements) |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 3.69 | $ 3.82 | $ 5.56 | $ 6.12 | $ 7.37 |
0.06 c | 0.05 c | 0.01 c | 0.03 | 0.02 |
0.04 | (0.09) | (1.56) | (0.45) | (1.18) |
0.10 | (0.04) | (1.55) | (0.42) | (1.16) |
(0.03) | (0.07) | (0.19) | (0.01) | (0.07) |
— | — | — | (0.13) | (0.02) |
— | (0.02) | — | — | — |
(0.03) | (0.09) | (0.19) | (0.14) | (0.09) |
— | — | — | — | — * |
3.76 | 3.69 | 3.82 | 5.56 | 6.12 |
$ 392 | $ 503 | $ 761 | $1,236 | $ 1,142 |
2.87% | (0.85)% | (28.52)% | (7.06)% | (15.93)% |
2.03 | 1.78 | 1.53 | 1.29 | 1.27 |
1.64 | 1.49 | 1.33 | 1.23 | 1.23 |
1.19 | 1.19 | 1.19 | 1.19 | 1.19 |
1.72 | 1.39 | 0.18 | 1.40 | 0.11 |
1,331 | 1,069 | 784 | 635 | 532 |
Notes to Financial Statements—October 31, 2017
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
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 the Fund’s own assumptions. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Date of Incorporation | 08/04/2008 |
Subscription Agreement | 09/02/2008 |
Consolidated Fund Total Assets | $92,477 |
Subsidary % of Fund Total Assets | 19% |
Subsidiary Financial Statement Information | |
Total assets | $18,024 |
Total liabilities | 1,568 |
Net assets | 16,456 |
Total income | 222 |
Net investment income/(loss) | (66) |
Net realized gain/(loss) | (524) |
Net change in unrealized appreciation/(depreciation) | 1,392 |
Increase/(decrease) in net asset resulting from operations | 802 |
Notes to Financial Statements—Continued
Purchases (000s) | Sales (000s) | ||||||
U.S. Government | Other | U.S. Government | Other | ||||
Harbor Commodity Real Return Strategy Fund (Consolidated) | $1,158,258 | $10,246 | $1,160,433 | $32,006 |
Notes to Financial Statements—Continued
Contractual Rate | Actual Rate | ||
Harbor Commodity Real Return Strategy Fund (Consolidated) | 0.81% | 0.81% |
Transfer Agent Feesa | |
Institutional Class | 0.09% of the average daily net assets of all Institutional Class shares |
Administrative Class | 0.09% of the average daily net assets of all Administrative Class shares |
a | For the period November 1, 2016 through February 28, 2017, the Transfer Agent Fees were 0.08% for the Institutional and Administrative Class shares. |
Notes to Financial Statements—Continued
Number of Shares Owned by Harbor Capital, Harbor Funds Distributors, and Harbor Services Group | Percentage of Outstanding Shares | ||||||
Institutional Class | Administrative Class | Total | |||||
Harbor Commodity Real Return Strategy Fund (Consolidated) | 81,867 | — | 81,867 | 0.6% |
Notes to Financial Statements—Continued
Undistributed Net Investment Income/(Loss) (000s) | Accumlated Net Realized Gain/(Loss) (000s) | Paid-In Capital (000s) | |||
Harbor Commodity Real Return Strategy Fund (Consolidated) | $(396) | $985 | $(589) |
As of October 31, 2017 | As of October 31, 2016 | ||||||||||||
Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | Ordinary Income (000s) | Long-Term Capital Gains (000s) | Return of Capital (000s) | Total (000s) | |||||||
Harbor Commodity Real Return Strategy Fund (Consolidated) | $635 | $— | $635 | $1,980 | $— | $599 | $2,579 |
Undistributed Ordinary Income (000s) | Undistributed Long-Term Capital Gains (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||
Harbor Commodity Real Return Strategy Fund (Consolidated) | $1,747 | $— | $(1,346) |
Capital Loss Carryforwards | |||||
Short-Term (000s) | Long- Term (000s) | Total (000s) | |||
Harbor Commodity Real Return Strategy Fund (Consolidated) | $7,928 | $15,928 | $23,856 |
Identified Cost (000s) | Gross Unrealized | Net Unrealized Appreciation/ (Depreciation) (000s) | |||||
Appreciation (000s) | (Depreciation) (000s) | ||||||
Harbor Commodity Real Return Strategy Fund (Consolidated)* | $81,719 | $538 | $(1,884) | $(1,346) |
* | Capital loss carryforwards are available which may reduce taxable income from future net realized gain on investments. |
Notes to Financial Statements—Continued
Statement of Assets and Liabilities Caption | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Commodity Contracts (000s) | Total (000s) | ||||||||||
Assets | |||||||||||||||
Unrealized appreciation on open forward currency contracts | $ — | $ 156 | $ — | $ — | $ 156 | ||||||||||
Unrealized appreciation on OTC swap agreementsb | — | — | 25 | 288 | 313 | ||||||||||
Variation margin on centrally cleared swap agreementsa,b | 303 | — | — | — | 303 | ||||||||||
Variation margin on options and futures contracts (futures)a | 79 | — | — | 176 | 255 | ||||||||||
Variation margin on options and futures contracts (options)a | 1 | — | — | — | 1 | ||||||||||
Purchased options, at value | 49 | — | — | 3 | 52 | ||||||||||
Liabilities | |||||||||||||||
Unrealized depreciation on open forward currency contracts | $ — | $(264) | $ — | $ — | $(264) | ||||||||||
Unrealized depreciation on OTC swap agreementsb | (22) | — | — | (68) | (90) | ||||||||||
Variation margin on centrally cleared swap agreementsa,b | (117) | — | (15) | — | (132) | ||||||||||
Variation margin on options and futures contracts (futures)a | (12) | — | — | (202) | (214) | ||||||||||
Variation margin on options and futures contracts (options)a | (1) | — | — | — | (1) | ||||||||||
Written options, at value | (16) | — | — | (4) | (20) |
a | Includes cumulative appreciation/depreciation of contracts as reported in the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
b | Net of premiums received of $34,000. |
Net Realized Gain/(Loss) on Derivatives | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Commodity Contracts (000s) | Total (000s) | |||||
Forward currency contracts | $ — | $(421) | $ — | $ — | $ (421) | |||||
Futures contracts | (6) | — | — | 107 | 101 | |||||
Purchased options | (38) | — | — | — | (38) | |||||
Written options | 35 | 30 | — | — | 65 | |||||
Swaps agreements | 23 | — | (78) | (688) | (743) | |||||
Net realized gain/(loss) on derivatives | $ 14 | $(391) | $(78) | $(581) | $(1,036) |
Change in Unrealized Appreciation/(Depreciation) on Derivatives | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Commodity Contracts (000s) | Total (000s) | |||||
Forward currency contracts | $ — | $233 | $ — | $ — | $ 233 | |||||
Futures contracts | (89) | — | — | (37) | (126) | |||||
Purchased options | 99 | — | — | 2 | 101 | |||||
Written options | (54) | — | (11) | (1) | (66) | |||||
Swaps agreements | 838 | — | 13 | 1,552 | 2,403 | |||||
Change in unrealized appreciation/(depreciation) on derivatives | $794 | $233 | $ 2 | $1,516 | $2,545 |
Notes to Financial Statements—Continued
Counterparty | Repurchase Agreement Proceeds to be Received (000s) | Payable for Reverse Repurchase Agreements (000s) | Payable for Sale-Buyback Transactions (000s) | Payable for Short Sale (000s) | Total Borrowings and Other Financing Transactions (000s) | Collateral (Received)/ Pledged (000s) | Net Exposure (000s) | ||||||||||||||
Harbor Commodity Real Return Strategy Funda | |||||||||||||||||||||
Master/Global Repurchase Agreement | |||||||||||||||||||||
Fixed Income Clearing Corp. | $ 1,293 | $— | $ — | $ — | $ 1,293 | $(1,293) | $ — | ||||||||||||||
Master Securities Forward Transactions Agreements | |||||||||||||||||||||
Barclays Capital Inc. | — | — | (14,156) | — | (14,156) | — | (14,156) | ||||||||||||||
BNP Paribas NY | — | — | (19,591) | — | (19,591) | — | (19,591) | ||||||||||||||
Credit Suisse Securities LLC | — | — | — | (100) | (100) | — | (100) | ||||||||||||||
Morgan Stanley Co. Inc. | — | — | — | (200) | (200) | — | (200) | ||||||||||||||
Harbor Cayman Commodity Fund Ltd. (Subsidiary)a | |||||||||||||||||||||
Master/Global Repurchase Agreement | |||||||||||||||||||||
Barclays Capital Inc. | 1,500 | — | — | — | 1,500 | (1,500) | — | ||||||||||||||
Citigroup Global Markets Inc. | 4,100 | — | — | — | 4,100 | (4,100) | — | ||||||||||||||
JPMorgan Securities LLC | 4,100 | — | — | — | 4,100 | (4,100) | — | ||||||||||||||
Total Borrowings and Other Financing Transactions | $10,993 | $— | $(33,747) | $(300) |
a | The Harbor Commodity Real Return Strategy Fund and its subsidiary, Harbor Cayman Commodity Fund Ltd. are recognized as two separate legal entities. As such, exposure cannot be netted. |
Notes to Financial Statements—Continued
Financial Derivative Assets | Financial Derivative Liabilities | Net Value of OTC Derivatives (000s) | Collateral (Received)/ Pledged* (000s) | Net Exposure (000s) | |||||||||||||||||||||||||||||
Counterparty | Forward Currency Contracts (000s) | Purchased Options (000s) | Swap Agreements (000s) | Total Over-the- Counter (000s) | Forward Currency Contracts (000s) | Written Options (000s) | Swap Agreements (000s) | Total Over-the- Counter (000s) | |||||||||||||||||||||||||
Harbor Commodity Real Return Strategy Funda | |||||||||||||||||||||||||||||||||
Bank of America NA | $ 19 | $— | $ — | $ 19 | $ (1) | $ — | $ — | $ (1) | $ 18 | $ — | $ 18 | ||||||||||||||||||||||
BNP Paribas SA | 1 | — | — | 1 | (13) | — | — | (13) | (12) | — | (12) | ||||||||||||||||||||||
Citibank NA | 2 | — | — | 2 | (8) | — | — | (8) | (6) | — | (6) | ||||||||||||||||||||||
Credit Suisse International | 2 | — | — | 2 | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||||
Deutsche Bank AG | — | 34 | 8 | 42 | (155) | (1) | — | (156) | (114) | — | (114) | ||||||||||||||||||||||
Goldman Sachs Bank USA | 2 | — | — | 2 | (4) | (4) | — | (8) | (6) | — | (6) | ||||||||||||||||||||||
Goldman Sachs International | — | — | 13 | 13 | — | — | (2) | (2) | 11 | — | 11 | ||||||||||||||||||||||
HSBC Bank USA NA | — | — | 4 | 4 | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||
JP Morgan Chase Bank | — | — | — | — | (24) | — | — | (24) | (24) | — | (24) | ||||||||||||||||||||||
JP Morgan Chase Bank NA | 82 | — | — | 82 | (12) | (4) | — | (16) | 66 | — | 66 | ||||||||||||||||||||||
Morgan Stanley Capital Services LLC | — | 13 | — | 13 | — | (1) | (20) | (21) | (8) | — | (8) | ||||||||||||||||||||||
Royal Bank of Scotland plc | — | — | — | — | — | (1) | — | (1) | (1) | — | (1) | ||||||||||||||||||||||
Société Générale | 1 | — | — | 1 | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||
UBS AG | 47 | — | — | 47 | (47) | — | — | (47) | — | — | — | ||||||||||||||||||||||
Harbor Cayman Commodity Fund Ltd. (Subsidiary)a | |||||||||||||||||||||||||||||||||
BNP Paribas SA | — | — | 7 | 7 | — | — | (19) | (19) | (12) | — | (12) | ||||||||||||||||||||||
Canadian Imperial Bank of Commerce | — | — | 11 | 11 | — | — | — | — | 11 | — | 11 | ||||||||||||||||||||||
Citibank NA | — | — | 18 | 18 | — | — | (1) | (1) | 17 | — | 17 | ||||||||||||||||||||||
Credit Suisse International | — | — | 5 | 5 | — | — | — | — | 5 | — | 5 | ||||||||||||||||||||||
Goldman Sachs International | — | — | 81 | 81 | — | — | (22) | (22) | 59 | — | 59 | ||||||||||||||||||||||
JP Morgan Chase Bank NA | — | — | 68 | 68 | — | — | (22) | (22) | 46 | — | 46 | ||||||||||||||||||||||
Morgan Stanley Capital Services LLC | — | — | 94 | 94 | — | — | (4) | (4) | 90 | (90) | — | ||||||||||||||||||||||
Société Générale Paris | — | — | 4 | 4 | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||
Total Over-the-Counter Exposure | $156 | $ 47 | $313 | $516 | $(264) | $(11) | $(90) | $(366) |
* | Of the total collateral received and/or pledged listed in the table above, cash of $90 has been received as collateral. |
a | The Harbor Commodity Real Return Strategy Fund and its subsidiary, Harbor Cayman Commodity Fund Ltd. are recognized as two separate legal entities. As such, exposure cannot be netted. |
Report of Independent Registered Public Accounting Firm
December 21, 2017
Fees and Expenses Example (Unaudited)
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Commodity Real Return Strategy Fund | ||||||||
Institutional Class | 0.94% | |||||||
Actual | $4.82 | $1,000 | $1,034.10 | |||||
Hypothetical (5% return) | 4.79 | 1,000 | 1,020.35 | |||||
Administrative Class | 1.19% | |||||||
Actual | $6.09 | $1,000 | $1,031.50 | |||||
Hypothetical (5% return) | 6.06 | 1,000 | 1,019.06 |
* | Reflective of all fee waivers and expense reimbursements (excluding interest expense, if any) |
** | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Additional Information (Unaudited)
Trustee | For | Withhold | ||
Scott M. Amero | 1,047,869,265 | 14,860,642 | ||
Joseph L. Dowling III | 1,046,335,272 | 16,394,636 | ||
Robert A. Kasdin | 1,047,514,035 | 15,215,872 | ||
Charles F. McCain | 1,047,667,935 | 15,061,973 | ||
Kathryn L. Quirk | 1,046,812,694 | 15,917,214 | ||
Ann M. Spruill | 1,047,274,165 | 15,455,742 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Commodity Real Return Strategy Funda | 5,206,476 | 628,422 | 114,556 | 5,056,638 |
Additional Information—Continued
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Commodity Real Return Strategy Funda | 5,192,936 | 641,547 | 114,971 | 5,056,638 |
a | Meeting held on November 15, 2017 |
Additional Information—Continued
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 (54) Trustee | Since 2014 | Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation nonprofit); Trustee, Berkshire School (2014-Present); 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), BlackRock, Inc., (publicly traded investment management firm). | 32 | None |
Raymond J. Ball (73) 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). | 32 | None |
Donna J. Dean (66) Trustee | Since 2010 | Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present). | 32 | None |
Joseph L. Dowling III (53) Trustee | Since 2017 | Chief Investment Officer, Brown University (2013-Present); Advisory Board Member, Stage Point Capital (private mortgage specialist) (2016-Present); Advisory Board Member, Harbor Funds (2016-2017); and Founder and Managing Member, Narragansett Asset Management (private investment management firm) (1998-2013). | 32 | Director of Integrated Electrical Services (2011-Present). |
Randall A. Hack (70) Trustee | Since 2010 | Founder and Senior Managing Director of Capstone Capital LLC (private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (private equity firm) (2002-2013). | 32 | None |
Robert Kasdin (59) Trustee | Since 2014 | Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee and Co-Chair of the Finance Committee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014). | 32 | Director of Noranda Aluminum Holdings Corporation (2007-2014); and Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present). |
Additional Information—Continued
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—Continued | ||||
Kathryn L. Quirk (65) Trustee | Since 2017 | Retired; Vice President, Senior Compliance Officer and Head, U.S. Regulatory Compliance, Goldman Sachs Asset Management (2013-2017); Deputy Chief Legal Officer, Asset Management, and Vice President and Corporate Counsel, Prudential Insurance Company of America (2010-2012); Co-Chief Legal Officer, Prudential Investment Management, Inc., and Chief Legal Officer, Prudential Investments and Prudential Mutual Funds (2008-2012); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America, and Chief Legal Officer, Prudential Investments (2005-2008); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America (2004-2005); Member, Management Committee (2000-2002), General Counsel and Chief Compliance Officer, Zurich Scudder Investments, Inc. (1997-2002). | 32 | None |
Ann M. Spruill (63) 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). | 32 | None |
INTERESTED TRUSTEE | ||||
Charles F. McCain (48)* Chairman, Trustee and President | Since 2017 | Chief Executive Officer (2017-Present), Director (2007-Present), President and Chief Operating Officer (2017), Executive Vice President and General Counsel (2004-2017), and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-2017), Harbor Services Group, Inc.; and Chief Executive Officer (2017-Present), Director (2007-Present), Chief Compliance Officer and Executive Vice President (2007-2017), Harbor Funds Distributors, Inc. | 32 | None |
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE** | ||
Erik D. Ojala (42) Chief Compliance Officer and Secretary | Since 2017 Since 2007 | Executive Vice President and General Counsel (2017-Present) and Secretary (2010-Present); Senior Vice President and Associate General Counsel (2007-2017), Harbor Capital Advisors, Inc.; Director, Executive Vice President and Chief Compliance Officer (2017-Present), Harbor Funds Distributors, Inc.; and Director (2017-Present) and Assistant Secretary (2014-Present), Harbor Services Group, Inc. |
Anmarie S. Kolinski (46) 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. |
Brian L. Collins (49) Vice President | Since 2005 | Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc. |
Charles P. Ragusa (58) 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) and OFAC Officer (2015-Present), Harbor Funds Distributors, Inc. |
Jodie L. Crotteau (45) Assistant Secretary | Since 2014 | Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Chief Compliance Officer and Secretary (2017-present) and Assistant Secretary (2015-2016), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); and Vice President, Grosvenor Capital Management, L.P. (2010-2014). |
Additional Information—Continued
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE**—Continued | ||
Lana M. Lewandowski (38) AML Compliance Officer and Assistant Secretary | Since 2017 | Legal & Compliance Manager (2016-Present) and Legal Specialist (2012-2015), Harbor Capital Advisors, Inc. |
Lora A. Kmieciak (53) Assistant Treasurer | Since 2017 | Senior Vice President – Fund Administration and Analysis (2017-Present) and Senior Vice President - Business Analysis (2015-2017), Harbor Capital Advisors, Inc.; and Assurance Executive Director (1999-2015), Ernst & Young LLP. |
John M. Paral (49) Assistant Treasurer | Since 2013 | Director of Fund Administration and Analysis (2017-Present), Vice President (2012-Present) and Financial Reporting Manager (2007-2017), Harbor Capital Advisors, Inc. |
1 | Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually. |
* | Mr. McCain 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. |
111 South Wacker Drive, 34th Floor | Chicago, IL 60606-4302 | 800-422-1050 | harborfunds.com |
Chairman, President & Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Treasurer
Chief Compliance Officer
& Secretary
Vice President
Vice President
Assistant Secretary
AML Compliance Officer
& Assistant Secretary
Assistant Treasurer
Assistant Treasurer
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900
Table of Contents
Institutional Class | Administrative Class | Investor Class | Retirement Class | |
Harbor Convertible Securities Fund | HACSX | HRCSX | HICSX | HNCVX |
Harbor High-Yield Bond Fund | HYFAX | HYFRX | HYFIX | HNHYX |
Harbor Bond Fund | HABDX | HRBDX | – | – |
Harbor Real Return Fund | HARRX | HRRRX | – | – |
Harbor Money Market Fund | HARXX | HRMXX | – | – |
1 | |
2 | |
Fixed Income Funds | |
Harbor Convertible Securities Fund | |
4 | |
6 | |
7 | |
8 | |
Harbor High-Yield Bond Fund | |
12 | |
14 | |
15 | |
16 | |
Harbor Bond Fund | |
27 | |
30 | |
31 | |
Harbor Real Return Fund | |
46 | |
48 | |
49 | |
Harbor Money Market Fund | |
60 | |
62 | |
63 | |
Financial Statements | |
64 | |
66 | |
68 | |
74 | |
76 | |
84 | |
104 | |
105 | |
Additional Information | |
107 | |
107 | |
107 | |
107 | |
108 | |
109 | |
112 | |
113 |
Annual Report Overview (Unaudited)
Total Return Year Ended October 31, 2017 | |||||||
HARBOR FIXED INCOME FUNDS | Institutional Class | Administrative Class | Investor Class | Retirement Class | |||
Harbor Convertible Securities Fund | 8.74% | 8.37% | 8.26% | 8.81% | |||
Harbor High-Yield Bond Fund | 8.16 | 7.98 | 7.79 | 8.23 | |||
Harbor Bond Fund | 2.82 | 2.56 | N/A | N/A | |||
Harbor Real Return Fund | 0.92 | 0.62 | N/A | N/A | |||
Harbor Money Market Fund | 0.73 | 0.73 | N/A | N/A |
COMMONLY USED MARKET INDICES | Total Return Year Ended October 31, 2017 |
ICE BofAML U.S. Convertible Ex Mandatory (domestic convertible bonds) | 20.69% |
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62 |
ICE BofAML U.S. High Yield (domestic high-yield bonds) | 9.14 |
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 |
Bloomberg Barclays U.S. TIPS (domestic bonds) | -0.11 |
ICE BofAML U.S. 3-Month Treasury Bill (domestic short-term) | 0.72 |
EXPENSE RATIOS1 | Morningstar Average2 | ||||||||||
FIXED INCOME FUNDS | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||
Harbor Convertible Securities Fund | |||||||||||
Institutional Class | 0.79% | 0.74% | 0.75% | 0.76% | 0.76% | 0.98% | |||||
Administrative Class | 1.04 | 0.99 | 1.00 | 1.01 | 1.00 | 1.31 | |||||
Investor Class | 1.16 | 1.11 | 1.12 | 1.13 | 1.12 | 1.65 | |||||
Retirement Class | N/A | N/A | N/A | 0.71 a | 0.67 | 0.92 | |||||
Harbor High-Yield Bond Fund | |||||||||||
Institutional Class | 0.64% | 0.64% | 0.65% | 0.66% | 0.67% | 0.78% | |||||
Administrative Class | 0.89 | 0.89 | 0.90 | 0.91 | 0.92 | 1.17 | |||||
Investor Class | 1.01 | 1.01 | 1.02 | 1.03 | 1.04 | 1.18 | |||||
Retirement Class | N/A | N/A | N/A | 0.61 a | 0.61 | 0.74 | |||||
Harbor Bond Fund | |||||||||||
Institutional Class | 0.53% | 0.54% | 0.52% | 0.51% | 0.51% | 0.65% | |||||
Administrative Class | 0.78 | 0.79 | 0.77 | 0.76 | 0.76 | 0.98 | |||||
Harbor Real Return Fund | |||||||||||
Institutional Class | 0.59% | 0.60% | 0.58% | 0.55% | 0.54% | 0.52% | |||||
Administrative Class | 0.84 | 0.85 | 0.83 | 0.80 | 0.77 | 0.91 | |||||
Harbor Money Market Fund | |||||||||||
Institutional Class | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.75% | |||||
Administrative Class | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 |
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, 2017 Morningstar Universe with the same investment style as the comparable Harbor Fund 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. |
a | Annualized figures for the period March 1, 2016 (commencement of operations) through October 31, 2016 |
Charles F. McCain Chairman |
Returns For Periods Ended October 31, 2017 | ||||||||
Annualized | ||||||||
Fixed Income | 1 Year | 5 Years | 10 Years | 30 Years | ||||
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62% | 6.33% | 6.69% | N/A | ||||
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 | 2.04 | 4.19 | 6.43% | ||||
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds) | -0.11 | -0.11 | 3.81 | N/A | ||||
ICE BofAML U.S. 3-Month Treasury Bill (proxy for money market returns) | 0.72 | 0.24 | 0.45 | 3.35 | ||||
Domestic Equities | ||||||||
Russell 3000® (entire U.S. stock market) | 23.98% | 15.12% | 7.61% | 10.60% | ||||
S&P 500 (large cap stocks) | 23.63 | 15.18 | 7.51 | 10.50 | ||||
Russell Midcap® (mid cap stocks) | 21.09 | 14.87 | 8.09 | 12.11 | ||||
Russell 2000® (small cap stocks) | 27.85 | 14.49 | 7.63 | 10.45 | ||||
Russell 3000® Growth (growth stocks) | 29.80 | 16.71 | 9.05 | 10.16 | ||||
Russell 3000® Value (value stocks) | 18.30 | 13.48 | 6.07 | 10.68 | ||||
International & Global | ||||||||
MSCI EAFE (ND) (foreign stocks) | 23.44% | 8.53% | 1.10% | 5.62% | ||||
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 | 13.03 | 4.18 | N/A | ||||
MSCI World (ND) (global stocks) | 22.77 | 11.56 | 4.10 | 7.44 | ||||
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 | 7.29 | 0.92 | N/A | ||||
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 | 4.83 | 0.60 | N/A | ||||
Strategic Markets | ||||||||
Bloomberg Commodity Index Total ReturnSM (commodities) | 2.35% | -9.37% | -6.93% | N/A |
Charles F. McCain |
Chairman |
Managers' Commentary (Unaudited)
22nd Floor
Since 2011
Since 2017
Since 2011
Since 2016
Fund Performance
Managers' Commentary—Continued
TOP TEN ISSUERS (% of net assets) | |
Microchip Technology Inc. | 2.3% |
NRG Yield Inc. | 2.3% |
On Semiconductor Corp. | 2.1% |
Ares Capital Corp. | 2.0% |
BioMarin Pharmaceutical Inc. | 2.0% |
Macquarie Infrastructure Corp. | 2.0% |
Two Harbors Investment Corp. | 2.0% |
Priceline Group Inc. | 1.9% |
ServiceNow Inc. | 1.9% |
Citrix Systems Inc. | 1.8% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2034 |
Cusip | 411512734 |
Ticker | HACSX |
Inception Date | 05/01/2011 |
Net Expense Ratio | 0.76% a |
Total Net Assets (000s) | $87,391 |
ADMINISTRATIVE CLASS | |
Fund # | 2234 |
Cusip | 411512726 |
Ticker | HRCSX |
Inception Date | 05/01/2011 |
Net Expense Ratio | 1.00% a |
Total Net Assets (000s) | $395 |
INVESTOR CLASS | |
Fund # | 2434 |
Cusip | 411512718 |
Ticker | HICSX |
Inception Date | 05/01/2011 |
Net Expense Ratio | 1.12% a |
Total Net Assets (000s) | $2,015 |
RETIREMENT CLASS | |
Fund # | 2534 |
Cusip | 411512387 |
Ticker | HNCVX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.67% a |
Total Net Assets (000s) | $24,585 |
Portfolio | Benchmark | ||
Average Market Coupon | 1.88% | 2.71% | |
Yield to Maturity | -0.86% | -1.75% | |
Current 30-Day Yield (Institutional Class) | 0.33% | 2.20% | |
Weighted Average Maturity | 5.94 years | 22.77 years | |
Weighted Average Duration | 2.01 years | 3.40 years | |
Portfolio Turnover (Year Ended 10/31/2017) | 102% | N/A |
Years to Maturity | % of Investments | |
0 to 1 yr. | 6.92% | |
>1 to 5 | 67.51% | |
>5 to 10 | 23.28% | |
>10 to 15 | 0.75% | |
>15 to 20 | 1.54% | |
>20 to 25 | 0.00% | |
>25 yrs. | 0.00% |
a | Reflects a contractual management fee waiver effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Convertible Securities Fund | ||||||||||||||
Institutional Class | 8.74% | 5.85% | 4.99% | 05/01/2011 | $68,643 | |||||||||
Administrative Class | 8.37 | 5.59 | 4.72 | 05/01/2011 | 67,507 | |||||||||
Investor Class | 8.26 | 5.45 | 4.60 | 05/01/2011 | 66,993 | |||||||||
Retirement Class1 | 8.81 | 5.87 | 5.01 | 03/01/2016 | 68,723 | |||||||||
Comparative Index | ||||||||||||||
ICE BofAML U.S. Convertible Ex Mandatory2 | 20.69% | 12.09% | 9.16% | — | $88,432 |
1 | 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. |
2 | The “Life of Fund” return and “Final Value of $50,000 Investment” as shown reflects the period 05/01/2011 through 10/31/2017. |
Portfolio of Investments—October 31, 2017
CONVERTIBLE BONDS—98.3% | |||
Principal Amount | Value | ||
AUTOMOBILES—1.8% | |||
Solarcity Corp. | |||
$ | 630 | 1.625%—11/01/2019 | $ 596 |
Tesla Motors Inc. | |||
816 | 1.250%—03/01/2021 | 912 | |
495 | 2.375%—03/15/2022 | 602 | |
1,514 | |||
2,110 | |||
BIOTECHNOLOGY—2.9% | |||
BioMarin Pharmaceutical Inc. | |||
1,775 | 0.599%—08/01/2024 | 1,701 | |
478 | 1.500%—10/15/2020 | 544 | |
2,245 |
CONVERTIBLE BONDS—Continued | |||
Principal Amount | Value | ||
BIOTECHNOLOGY—Continued | |||
Ligand Pharmaceuticals Inc. | |||
$ | 196 | 0.750%—08/15/2019 | $ 381 |
Neurocrine Biosciences Inc. | |||
610 | 2.250%—05/15/20241 | 700 | |
3,326 | |||
CAPITAL MARKETS—2.0% | |||
Ares Capital Corp. | |||
1,183 | 3.750%—02/01/20221 | 1,209 | |
1,046 | 4.375%—01/15/2019 | 1,074 | |
2,283 | |||
COMMUNICATIONS EQUIPMENT—1.5% | |||
Ciena Corp. | |||
261 | 3.750%—10/15/2018 | 309 | |
Finisar Corp. | |||
815 | 0.500%—12/15/20361 | 781 | |
Lumentum Holdings Inc. | |||
500 | 0.250%—03/15/20241 | 636 | |
1,726 | |||
CONSTRUCTION & ENGINEERING—1.7% | |||
Dycom Industries Inc. | |||
577 | 0.750%—09/15/2021 | 673 | |
Tutor Perini Corp. | |||
534 | 2.875%—06/15/2021 | 614 | |
Vinci SA | |||
600 | 0.375%—02/16/2022 | 674 | |
1,961 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—1.1% | |||
Inmarsat plc | |||
1,200 | 3.875%—09/09/2023 | 1,287 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—0.6% | |||
OSI Systems Inc. | |||
644 | 1.250%—09/01/20221 | 680 | |
ENERGY EQUIPMENT & SERVICES—1.9% | |||
Ensco Jersey Finance Ltd. | |||
820 | 3.000%—01/31/20241 | 695 | |
Nabors Industries Inc. | |||
810 | 0.750%—01/15/20241 | 599 | |
Weatherford International Ltd. | |||
870 | 5.875%—07/01/2021 | 880 | |
2,174 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—4.6% | |||
Empire State Realty OP LP | |||
219 | 2.625%—08/15/20191 | 240 | |
Extra Space Storage LP | |||
1,276 | 3.125%—10/01/20351 | 1,393 | |
National Health Investors Inc. | |||
494 | 3.250%—04/01/2021 | 565 | |
Spirit Realty Capital Inc. | |||
622 | 2.875%—05/15/2019 | 622 | |
Starwood Waypoint Homes | |||
35 | 3.000%—07/01/2019 | 43 | |
1,385 | 3.500%—01/15/20221 | 1,557 | |
1,600 |
Portfolio of Investments—Continued
CONVERTIBLE BONDS—Continued | |||
Principal Amount | Value | ||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—Continued | |||
VEREIT Inc. | |||
$ | 850 | 3.000%—08/01/2018 | $ 853 |
5,273 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—2.7% | |||
Dexcom Inc. | |||
895 | 0.750%—05/15/20221 | 796 | |
Nuvasive Inc. | |||
800 | 2.250%—03/15/2021 | 930 | |
Wright Medical Group Inc. | |||
1,219 | 2.000%—02/15/2020 | 1,326 | |
3,052 | |||
HEALTH CARE PROVIDERS & SERVICES—1.5% | |||
Brookdale Senior Living Inc. | |||
585 | 2.750%—06/15/2018 | 584 | |
Molina Healthcare Inc. | |||
906 | 1.625%—08/15/2044 | 1,123 | |
1,707 | |||
HEALTH CARE TECHNOLOGY—2.7% | |||
Allscripts Healthcare Solutions Inc. | |||
1,750 | 1.250%—07/01/2020 | 1,820 | |
Medidata Solutions Inc. | |||
979 | 1.000%—08/01/2018 | 1,305 | |
3,125 | |||
HOTELS, RESTAURANTS & LEISURE—1.4% | |||
Caesars Entertainment Corp. | |||
161 | 5.000%—10/01/2024 | 317 | |
China Lodging Group Ltd. | |||
725 | 0.375%—11/01/2022 | 732 | |
Marriott Vacations Worldwide Corp. | |||
530 | 1.500%—09/15/20221 | 574 | |
1,623 | |||
HOUSEHOLD DURABLES—1.2% | |||
CalAtlantic Group Inc. | |||
816 | 0.250%—06/01/2019 | 819 | |
362 | 1.625%—05/15/2018 | 571 | |
1,390 | |||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—3.6% | |||
Nextera Energy Partners LP | |||
1,497 | 1.500%—09/15/20201 | 1,460 | |
NRG Yield Inc. | |||
1,449 | 3.250%—06/01/20201 | 1,453 | |
1,119 | 3.500%—02/01/20191 | 1,144 | |
2,597 | |||
4,057 | |||
INDUSTRIAL CONGLOMERATES—0.8% | |||
Siemens Financieringsmaatschappij NV | |||
750 | 1.650%—08/16/2019 | 929 | |
INTERNET & DIRECT MARKETING RETAIL—5.9% | |||
Ctrip.Com International Ltd. | |||
517 | 1.250%—09/15/2022 | 540 | |
1,101 | 1.990%—07/01/2025 | 1,279 | |
1,819 | |||
Liberty Expedia Holdings Inc. | |||
1,095 | 1.000%—06/30/20471 | 1,122 |
CONVERTIBLE BONDS—Continued | |||
Principal Amount | Value | ||
INTERNET & DIRECT MARKETING RETAIL—Continued | |||
Priceline Group Inc. | |||
$ | 580 | 0.350%—06/15/2020 | $ 864 |
1,033 | 0.900%—09/15/2021 | 1,235 | |
2,099 | |||
Vipshop Holdings Ltd. | |||
851 | 1.500%—03/15/2019 | 838 | |
Wayfair Inc. | |||
900 | 0.375%—09/01/20221 | 881 | |
6,759 | |||
INTERNET SOFTWARE & SERVICES—6.7% | |||
Akamai Technologies Inc. | |||
594 | 0.000%—02/15/20192 | 585 | |
Altaba Inc. | |||
267 | 0.000%—12/01/20182 | 368 | |
Envestnet Inc. | |||
604 | 1.750%—12/15/2019 | 651 | |
Gogo Inc. | |||
979 | 3.750%—03/01/2020 | 874 | |
IAC Financeco Inc. | |||
870 | 0.875%—10/01/20221 | 941 | |
Twitter Inc. | |||
2,127 | 1.000%—09/15/2021 | 1,966 | |
Web.com Group Inc. | |||
244 | 1.000%—08/15/2018 | 244 | |
Weibo Corp. | |||
770 | 1.250%—11/15/20221 | 804 | |
Zillow Group Inc. | |||
1,088 | 2.000%—12/01/20211 | 1,198 | |
7,631 | |||
IT SERVICES—2.9% | |||
Blackhawk Network Holdings Inc. | |||
1,507 | 1.500%—01/15/2022 | 1,514 | |
Euronet Worldwide Inc. | |||
432 | 1.500%—10/01/2044 | 591 | |
Square Inc. | |||
700 | 0.375%—03/01/20221 | 1,187 | |
3,292 | |||
LIFE SCIENCES TOOLS & SERVICES—0.9% | |||
Qiagen NV | |||
800 | 0.375%—03/19/2019 | 976 | |
MACHINERY—2.1% | |||
Chart Industries Inc. | |||
500 | 2.000%—08/01/2018 | 502 | |
Greenbrier Companies Inc. | |||
545 | 2.875%—02/01/20241 | 640 | |
Navistar International Corp. | |||
1,163 | 4.750%—04/15/2019 | 1,267 | |
2,409 | |||
MEDIA—6.2% | |||
Dish Network Corp. | |||
633 | 2.375%—03/15/20241 | 610 | |
1,276 | 3.375%—08/15/2026 | 1,379 | |
1,989 | |||
Liberty Interactive LLC | |||
830 | 1.750%—09/30/20461 | 941 | |
Liberty Media Corp. | |||
625 | 1.000%—01/30/20231 | 749 |
Portfolio of Investments—Continued
CONVERTIBLE BONDS—Continued | |||
Principal Amount | Value | ||
MEDIA—Continued | |||
$ | 517 | 1.375%—10/15/2023 | $ 622 |
1,061 | 2.250%—09/30/2046 | 1,116 | |
2,487 | |||
Live Nation Entertainment Inc. | |||
1,264 | 2.500%—05/15/2019 | 1,677 | |
7,094 | |||
METALS & MINING—0.8% | |||
Royal Gold Inc. | |||
867 | 2.875%—06/15/2019 | 954 | |
MORTGAGE REAL ESTATE INVESTMENT TRUSTS (REITs)—3.8% | |||
Starwood Property Trust Inc. | |||
2,022 | 4.375%—04/01/2023 | 2,062 | |
Two Harbors Investment Corp. | |||
2,184 | 6.250%—01/15/2022 | 2,288 | |
4,350 | |||
OIL, GAS & CONSUMABLE FUELS—3.3% | |||
Chesapeake Energy Corp. | |||
1,014 | 5.500%—09/15/20261 | 903 | |
Oasis Petroleum Inc. | |||
347 | 2.625%—09/15/2023 | 383 | |
PDC Energy Inc. | |||
303 | 1.125%—09/15/2021 | 298 | |
SM Energy Co. | |||
357 | 1.500%—07/01/2021 | 344 | |
Total SA MTN3 | |||
1,200 | 0.500%—12/02/2022 | 1,241 | |
Whiting Petroleum Corp. | |||
715 | 1.250%—04/01/2020 | 645 | |
3,814 | |||
PHARMACEUTICALS—2.1% | |||
Jazz Investments I Ltd. | |||
1,685 | 1.875%—08/15/2021 | 1,740 | |
Pacira Pharmaceuticals Inc. | |||
565 | 2.375%—04/01/20221 | 526 | |
Teva Pharmaceutical Finance Co. LLC | |||
91 | 0.250%—02/01/2026 | 80 | |
2,346 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—12.7% | |||
Advanced Micro Devices Inc. | |||
192 | 2.125%—09/01/2026 | 303 | |
Inphi Corp. | |||
596 | 0.750%—09/01/2021 | 622 | |
Integrated Device Technology Inc. | |||
1,369 | 0.875%—11/15/2022 | 1,580 | |
Intel Corp. | |||
1,046 | 3.493%—12/15/2035 | 1,757 | |
Lam Research Corp. | |||
213 | 1.250%—05/15/2018 | 737 | |
Microchip Technology Inc. | |||
365 | 1.625%—02/15/2025 | 673 | |
1,515 | 1.625%—02/15/20271 | 1,915 | |
2,588 | |||
Micron Technology Inc. | |||
547 | 3.000%—11/15/2043 | 851 | |
ON Semiconductor Corp. | |||
1,819 | 1.000%—12/01/2020 | 2,354 |
CONVERTIBLE BONDS—Continued | |||
Principal Amount | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—Continued | |||
Silicon Laboratories Inc. | |||
$ | 1,040 | 1.375%—03/01/20221 | $ 1,252 |
Stmicroelectronics NV | |||
1,400 | 0.250%—07/03/2024 | 1,806 | |
Teradyne Inc. | |||
450 | 1.250%—12/15/20231 | 651 | |
14,501 | |||
SOFTWARE—15.3% | |||
Citrix Systems Inc. | |||
1,709 | 0.500%—04/15/2019 | 2,100 | |
FireEye Inc. | |||
1,609 | 1.625%—06/01/2035 | 1,505 | |
Hubspot Inc. | |||
861 | 0.250%—06/01/20221 | 973 | |
Nice Systems Inc. | |||
538 | 1.250%—01/15/20241 | 622 | |
Nuance Communications Inc. | |||
1,781 | 1.000%—12/15/2035 | 1,644 | |
Proofpoint Inc. | |||
1,281 | 0.750%—06/15/2020 | 1,657 | |
Red Hat Inc. | |||
626 | 0.250%—10/01/2019 | 1,041 | |
Rovi Corp. | |||
833 | 0.500%—03/01/2020 | 813 | |
Salesforce.com Inc. | |||
737 | 0.250%—04/01/2018 | 1,134 | |
ServiceNow Inc. | |||
169 | 0.000%—11/01/20182 | 290 | |
1,645 | 0.000%—06/01/20221,2 | 1,853 | |
2,143 | |||
Verint Systems Inc. | |||
2,083 | 1.500%—06/01/2021 | 2,050 | |
Workday Inc. | |||
1,175 | 0.250%—10/01/20221 | 1,191 | |
410 | 1.500%—07/15/2020 | 601 | |
1,792 | |||
17,474 | |||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—0.7% | |||
Electronics For Imaging Inc. | |||
837 | 0.750%—09/01/2019 | 818 | |
THRIFTS & MORTGAGE FINANCE—0.9% | |||
Lendingtree Inc. | |||
700 | 0.625%—06/01/20221 | 994 | |
TRANSPORTATION INFRASTRUCTURE—2.0% | |||
Macquarie Infrastructure Corp. | |||
1,176 | 2.000%—10/01/2023 | 1,134 | |
1,073 | 2.875%—07/15/2019 | 1,133 | |
2,267 | |||
TOTAL CONVERTIBLE BONDS | |||
(Cost $108,200) | 112,382 | ||
CORPORATE BONDS & NOTES—1.0% | |||
HEALTH CARE PROVIDERS & SERVICES—1.0% | |||
Centene Corp. | |||
655 | 5.625%—02/15/2021 | 681 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
HEALTH CARE PROVIDERS & SERVICES—Continued | |||
HCA Inc. | |||
$ | 463 | 6.500%—02/15/2020 | $ 500 |
TOTAL CORPORATE BONDS & NOTES | |||
(Cost $1,178) | 1,181 | ||
SHORT-TERM INVESTMENTS—1.2% | |||
(Cost $1,368) | |||
REPURCHASE AGREEMENTS | |||
1,368 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $1,397) | 1,368 | |
TOTAL INVESTMENTS—100.5% | |||
(Cost $110,746) | 114,931 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(0.5)% | (545) | ||
TOTAL NET ASSETS—100.0% | $114,386 |
1 | 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, 2017, the aggregate value of these securities was $33,870,000 or 30% of net assets. |
2 | Zero coupon bond. |
3 | MTN after the name of a security stands for Medium Term Note. |
Managers' Commentary (Unaudited)
22nd Floor
Since 2002
Since 2012
Since 2012
Since 2012
Since 2015
Since 2017
Fund Performance
Managers' Commentary—Continued
TOP TEN ISSUERS (% of net assets) | |
HCA Inc. | 1.6% |
Numericable-SFR SA | 1.1% |
Sprint Corp. | 1.1% |
Valeant Pharmaceuticals International Inc. | 1.1% |
Navient Corp. | 1.0% |
Tenet Healthcare Corp. | 1.0% |
CCO Holdings LLC | 0.9% |
Chesapeake Energy Corp. | 0.9% |
DISH DBS Corp. | 0.9% |
Cequel Communications Holdings I LLC | 0.8% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2024 |
Cusip | 411511553 |
Ticker | HYFAX |
Inception Date | 12/01/2002 |
Net Expense Ratio | 0.67% a |
Total Net Assets (000s) | $1,387,213 |
ADMINISTRATIVE CLASS | |
Fund # | 2224 |
Cusip | 411511546 |
Ticker | HYFRX |
Inception Date | 12/01/2002 |
Net Expense Ratio | 0.92% a |
Total Net Assets (000s) | $1,753 |
INVESTOR CLASS | |
Fund # | 2424 |
Cusip | 411511538 |
Ticker | HYFIX |
Inception Date | 12/01/2002 |
Net Expense Ratio | 1.04% a |
Total Net Assets (000s) | $42,753 |
RETIREMENT CLASS | |
Fund # | 2524 |
Cusip | 411512379 |
Ticker | HNHYX |
Inception Date | 03/01/2016 |
Net Expense Ratio | 0.61% a |
Total Net Assets (000s) | $41,975 |
Portfolio | Benchmark | ||
Average Market Coupon | 6.18% | 6.42% | |
Yield to Maturity | 5.57% | 6.02% | |
Current 30-Day Yield (Institutional Class) | 4.01% | 6.32% | |
Weighted Average Maturity | 5.89 years | 6.32 years | |
Weighted Average Duration | 2.94 years | 3.62 years | |
Beta vs. ICE BofAML U.S. Non-Distressed High Yield Index | 1.16 | N/A | |
Portfolio Turnover (Year Ended 10/31/2017) | 56% | N/A |
Years to Maturity | % of Investments | |
0 to 1 yr. | 1.90% | |
>1 to 5 | 40.84% | |
>5 to 10 | 54.70% | |
>10 to 15 | 1.09% | |
>15 to 20 | 0.28% | |
>20 to 25 | 1.19% | |
>25 yrs. | 0.00% |
a | Reflects a contractual management fee waiver effective through February 28, 2018 |
Fund Performance Summary (Unaudited)
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $50,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor High-Yield Bond Fund | ||||||||||||||
Institutional Class | 8.16% | 4.85% | 6.15% | 12/01/2002 | $ 90,812 | |||||||||
Administrative Class | 7.98 | 4.61 | 5.90 | 12/01/2002 | 88,705 | |||||||||
Investor Class | 7.79 | 4.47 | 5.76 | 12/01/2002 | 87,564 | |||||||||
Retirement Class1 | 8.23 | 4.89 | 6.17 | 03/01/2016 | 90,998 | |||||||||
Comparative Indices | ||||||||||||||
ICE BofAML U.S. Non-Distressed High Yield | 8.62% | 6.33% | 6.69% | — | $ 95,535 | |||||||||
ICE BofAML U.S. High Yield | 9.14 | 6.29 | 7.69 | — | 104,922 |
1 | 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. |
Portfolio of Investments—October 31, 2017
BANK LOAN OBLIGATIONS—4.1% | |||
Principal Amount | Value | ||
CHEMICALS—0.3% | |||
Solenis International LP | |||
Second-Lien Term Loan | |||
$ | 5,000 | 8.131% (3 Month USD Libor + 6.750) 07/31/20221 | $ 4,998 |
COMMERCIAL SERVICES & SUPPLIES—0.9% | |||
Brand Energy & Infrastructure Services Inc. | |||
9,416 | 5.631% (3 Month USD Libor + 4.250) 06/21/20241 | 9,480 | |
Granite Acquisition Inc. | |||
Term Loan B | |||
3,662 | 5.381% (3 Month USD Libor + 4.000) 12/17/20211 | 3,708 | |
Term Loan C | |||
91 | 5.381% (3 Month USD Libor + 4.000) 12/17/20211 | 92 | |
3,800 | |||
13,280 | |||
ELECTRICAL EQUIPMENT—0.4% | |||
Cortes NP Acquisition Corp. | |||
Term Loan B | |||
5,322 | 5.381% (3 Month USD Libor + 4.000) 11/30/20231 | 5,347 | |
FOOD & STAPLES RETAILING—0.1% | |||
Clover Merger Sub Inc. | |||
Initial Term Loans | |||
2,235 | 9.131% (3 Month USD Libor + 7.750) 08/15/20251 | 2,179 | |
HOTELS, RESTAURANTS & LEISURE—0.2% | |||
Amaya Holdings BV | |||
2,687 | 4.881% (3 Month USD Libor + 3.500) 08/01/20211 | 2,708 | |
Second-Lien Term Loan B | |||
591 | 8.381% (3 Month USD Libor + 7.000) 08/01/20221 | 597 | |
3,305 | |||
INTERNET SOFTWARE & SERVICES—0.2% | |||
Ancestry.com Inc. | |||
1,168 | 4.631% (3 Month USD Libor + 3.250) 10/19/20231 | 1,180 | |
1,422 | 9.631% (3 Month USD Libor + 8.250) 10/19/20241 | 1,458 | |
2,638 | |||
OIL, GAS & CONSUMABLE FUELS—0.8% | |||
California Resources Corporation | |||
Term Loan | |||
3,050 | 11.756% (3 Month USD Libor + 10.375) 12/31/20211 | 3,274 | |
Chesapeake Energy Corp. | |||
8,000 | 8.881% (3 Month USD Libor + 7.500) 08/23/20211 | 8,614 | |
11,888 |
Portfolio of Investments—Continued
BANK LOAN OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
SOFTWARE—0.3% | |||
Greeneden US Holdings II LLC | |||
Term Loan B 2 | |||
$ | 4,020 | 5.381% (3 Month USD Libor + 3.750) 12/01/20231 | $ 4,045 |
SPECIALTY RETAIL—0.9% | |||
Ascena Retail Group Inc. | |||
Term Loan B | |||
7,653 | 5.881% (3 Month USD Libor + 4.500) 08/21/20221 | 6,675 | |
Bass Pro Group LLC | |||
6,150 | 6.381% (3 Month USD Libor + 5.000) 09/25/20241 | 5,992 | |
12,667 | |||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $59,735) | 60,347 | ||
CORPORATE BONDS & NOTES—92.7% | |||
AEROSPACE & DEFENSE—2.2% | |||
Bombardier Inc. | |||
6,550 | 6.000%—10/15/20222 | 6,484 | |
2,000 | 6.125%—01/15/20232 | 2,004 | |
8,488 | |||
KLX Inc. | |||
225 | 5.875%—12/01/20222 | 236 | |
Moog Inc. | |||
10,000 | 5.250%—12/01/20222 | 10,400 | |
Orbital ATK Inc. | |||
2,000 | 5.500%—10/01/2023 | 2,135 | |
TransDigm Inc. | |||
6,820 | 6.500%—07/15/2024-05/15/2025 | 7,058 | |
Triumph Group Inc. | |||
3,670 | 5.250%—06/01/2022 | 3,652 | |
615 | 7.750%—08/15/20252 | 659 | |
4,311 | |||
32,628 | |||
AIR FREIGHT & LOGISTICS—0.5% | |||
Park Aerospace Holdings Ltd. | |||
225 | 5.250%—08/15/20222 | 235 | |
325 | 5.500%—02/15/20242 | 338 | |
573 | |||
XPO Logistics Inc. | |||
6,000 | 6.500%—06/15/20222 | 6,323 | |
6,896 | |||
AUTO COMPONENTS—1.3% | |||
American Axle & Manufacturing Inc. | |||
925 | 6.500%—04/01/20272 | 947 | |
5,000 | 6.625%—10/15/2022 | 5,184 | |
6,131 | |||
American Tire Distributors Inc. | |||
2,700 | 10.250%—03/01/20222 | 2,828 | |
Delphi Jersey Holdings plc | |||
3,495 | 5.000%—10/01/20252 | 3,530 | |
Goodyear Tire & Rubber Co. | |||
3,155 | 4.875%—03/15/2027 | 3,218 | |
ZF North America Capital Inc. | |||
3,000 | 4.000%—04/29/20202 | 3,109 | |
18,816 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
AUTOMOBILES—0.4% | |||
Jaguar Land Rover Automotive plc | |||
$ | 2,020 | 4.500%—10/01/20272 | $ 2,005 |
Tesla Inc. | |||
4,115 | 5.300%—08/15/20252 | 3,976 | |
5,981 | |||
BANKS—0.6% | |||
Royal Bank of Scotland Group plc | |||
5,000 | 5.125%—05/28/2024 | 5,357 | |
3,320 | 6.000%—12/19/2023 | 3,703 | |
9,060 | |||
BEVERAGES—0.2% | |||
Cott Holdings Inc. | |||
2,500 | 5.500%—04/01/20252 | 2,584 | |
BIOTECHNOLOGY—0.1% | |||
Avantor Inc. | |||
1,785 | 6.000%—10/01/20242 | 1,823 | |
BUILDING PRODUCTS—1.9% | |||
Griffon Corp. | |||
7,500 | 5.250%—03/01/2022 | 7,648 | |
2,660 | 5.250%—03/01/20222 | 2,712 | |
10,360 | |||
Masonite International Corp. | |||
600 | 5.625%—03/15/20232 | 632 | |
RSI Home Products Inc. | |||
1,660 | 6.500%—03/15/20232 | 1,747 | |
Standard Industries Inc. | |||
230 | 5.125%—02/15/20212 | 238 | |
5,000 | 5.500%—02/15/20232 | 5,288 | |
5,526 | |||
Summit Materials LLC | |||
7,870 | 6.125%—07/15/2023 | 8,205 | |
310 | 8.500%—04/15/2022 | 348 | |
8,553 | |||
USG Corp. | |||
1,700 | 4.875%—06/01/20272 | 1,768 | |
28,586 | |||
CHEMICALS—2.7% | |||
A Schulman Inc. | |||
4,240 | 6.875%—06/01/2023 | 4,489 | |
Alpha 3 BV / Alpha US BidCo Inc. | |||
2,000 | 6.250%—02/01/20252 | 2,060 | |
Consolidated Energy Finance SA | |||
965 | 6.750%—10/15/20192 | 983 | |
Koppers Inc. | |||
1,135 | 6.000%—02/15/20252 | 1,220 | |
Nova Chemicals Corp. | |||
1,325 | 5.250%—06/01/20272 | 1,351 | |
3,100 | 4.875%—06/01/20242 | 3,166 | |
3,000 | 5.250%—08/01/20232 | 3,105 | |
7,622 | |||
Platform Specialty Products Corp. | |||
7,140 | 6.500%—02/01/20222 | 7,417 | |
1,150 | 10.375%—05/01/20212 | 1,250 | |
8,667 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
CHEMICALS—Continued | |||
PQ Corp. | |||
$ | 4,500 | 6.750%—11/15/20222 | $ 4,883 |
Tronox Finance LLC | |||
4,255 | 7.500%—03/15/20222 | 4,484 | |
Univar USA Inc. | |||
5,000 | 6.750%—07/15/20232 | 5,288 | |
39,696 | |||
COMMERCIAL SERVICES & SUPPLIES—3.3% | |||
Advanced Disposal Services Inc. | |||
4,050 | 5.625%—11/15/20242 | 4,222 | |
Brand Energy & Infrastructure Services Inc. | |||
2,200 | 8.500%—07/15/20252 | 2,332 | |
Brink's Co. | |||
2,445 | 4.625%—10/15/20272 | 2,439 | |
Carlson Travel Inc. | |||
1,350 | 6.750%—12/15/20232 | 1,340 | |
Clean Harbors Inc. | |||
5,000 | 5.125%—06/01/2021 | 5,081 | |
Covanta Holding Corp. | |||
1,025 | 5.875%—07/01/2025 | 1,017 | |
6,500 | 6.375%—10/01/2022 | 6,728 | |
7,745 | |||
Garda World Security Corp. | |||
5,000 | 7.250%—11/15/20212 | 5,131 | |
GFL Environmental Inc. | |||
2,000 | 5.625%—05/01/20222 | 2,085 | |
2,300 | 9.875%—02/01/20212 | 2,458 | |
4,543 | |||
GW Honos Security Corp. | |||
1,550 | 8.750%—05/15/20252 | 1,655 | |
Harland Clarke Holdings Corp. | |||
1,415 | 8.375%—08/15/20222 | 1,495 | |
Kar Auction Services Inc. | |||
1,425 | 5.125%—06/01/20252 | 1,478 | |
LSC Communications Inc. | |||
2,235 | 8.750%—10/15/20232 | 2,305 | |
NuStar Logistics LP | |||
2,000 | 6.750%—02/01/2021 | 2,180 | |
RR Donnelley & Sons Co. | |||
4,125 | 6.000%—04/01/2024 | 3,867 | |
1,250 | 6.500%—11/15/2023 | 1,206 | |
5,073 | |||
Wrangler Buyer Corp. | |||
1,555 | 6.000%—10/01/20252 | 1,598 | |
48,617 | |||
COMMUNICATIONS EQUIPMENT—1.0% | |||
Commscope Inc. | |||
400 | 5.000%—06/15/20212 | 410 | |
Commscope Technologies LLC | |||
570 | 5.000%—03/15/20272 | 556 | |
Hughes Satellite Systems Corp. | |||
1,500 | 6.500%—06/15/2019 | 1,597 | |
2,500 | 6.625%—08/01/2026 | 2,644 | |
4,250 | 7.625%—06/15/2021 | 4,786 | |
9,027 | |||
Telesat Canada | |||
2,000 | 8.875%—11/15/20242 | 2,245 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
COMMUNICATIONS EQUIPMENT—Continued | |||
Viasat Inc. | |||
$ | 2,035 | 5.625%—09/15/20252 | $ 2,067 |
14,305 | |||
CONSTRUCTION & ENGINEERING—0.5% | |||
AECOM | |||
2,650 | 5.125%—03/15/2027 | 2,733 | |
5,000 | 5.750%—10/15/2022 | 5,244 | |
7,977 | |||
CONSUMER FINANCE—2.3% | |||
Ally Financial Inc. | |||
800 | 4.125%—03/30/2020 | 828 | |
3,015 | 4.625%—05/19/2022 | 3,196 | |
750 | 4.750%—09/10/2018 | 767 | |
880 | 5.750%—11/20/2025 | 976 | |
2,230 | 7.500%—09/15/2020 | 2,517 | |
1,883 | 8.000%—11/01/2031 | 2,498 | |
10,782 | |||
Navient Corp. | |||
2,500 | 5.000%—10/26/2020 | 2,581 | |
1,335 | 6.750%—06/25/2025 | 1,400 | |
2,000 | 7.250%—09/25/2023 | 2,176 | |
6,157 | |||
Navient Corp. MTN3 | |||
2,655 | 5.500%—01/25/2023 | 2,698 | |
5,005 | 7.250%—01/25/2022 | 5,449 | |
8,147 | |||
OneMain Financial Holdings Inc. | |||
2,000 | 6.750%—12/15/20192 | 2,078 | |
Springleaf Finance Corp. | |||
1,500 | 6.000%—06/01/2020 | 1,577 | |
1,000 | 6.125%—05/15/2022 | 1,058 | |
3,000 | 7.750%—10/01/2021 | 3,382 | |
6,017 | |||
33,181 | |||
CONTAINERS & PACKAGING—2.9% | |||
Ard Finance SA | |||
4,500 | 7.125%—09/15/2023 | 4,804 | |
Ardagh Packaging Finance plc | |||
2,970 | 6.000%—06/30/2021-02/15/20252 | 3,129 | |
Berry Plastics Corp. | |||
2,650 | 5.500%—05/15/2022 | 2,753 | |
Bway Holding Co. | |||
1,600 | 5.500%—04/15/20242 | 1,670 | |
6,035 | 7.250%—04/15/20252 | 6,276 | |
7,946 | |||
Cascades Inc. | |||
7,025 | 5.500%—07/15/20222 | 7,271 | |
4,050 | 5.750%—07/15/20232 | 4,273 | |
11,544 | |||
Flex Acquisition Co. Inc. | |||
2,950 | 6.875%—01/15/20252 | 3,055 | |
Reynolds Group Issuer Inc. | |||
1,000 | 5.750%—10/15/2020 | 1,019 | |
Signode Industrial Group Lux SA | |||
7,500 | 6.375%—05/01/20222 | 7,828 | |
42,078 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
DIVERSIFIED FINANCIAL SERVICES—0.7% | |||
Dae Funding LLC | |||
$ | 470 | 4.000%—08/01/20202 | $ 478 |
3,960 | 4.500%—08/01/20222 | 4,025 | |
4,260 | 5.000%—08/01/20242 | 4,361 | |
8,864 | |||
Virtu Financial | |||
1,700 | 6.750%—06/15/20222 | 1,772 | |
10,636 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—4.1% | |||
Altice Financing SA | |||
550 | 6.500%—01/15/20222 | 570 | |
2,100 | 7.500%—05/15/20262 | 2,313 | |
2,883 | |||
CenturyLink Inc. | |||
3,000 | 5.625%—04/01/2020 | 3,139 | |
2,150 | 5.800%—03/15/2022 | 2,190 | |
1,675 | 7.500%—04/01/2024 | 1,784 | |
7,113 | |||
Frontier Communications Corp. | |||
3,725 | 7.125%—01/15/2023 | 2,879 | |
210 | 7.625%—04/15/2024 | 162 | |
1,170 | 10.500%—09/15/2022 | 1,029 | |
1,640 | 11.000%—09/15/2025 | 1,396 | |
5,466 | |||
GCI Inc. | |||
7,000 | 6.750%—06/01/2021 | 7,184 | |
2,460 | 6.875%—04/15/2025 | 2,675 | |
9,859 | |||
Inmarsat Finance plc | |||
9,700 | 4.875%—05/15/20222 | 9,944 | |
725 | 6.500%—10/01/20242 | 783 | |
10,727 | |||
Intelsat Jackson Holdings SA | |||
1,000 | 5.500%—08/01/2023 | 856 | |
1,625 | 7.250%—10/15/2020 | 1,572 | |
5,915 | 7.500%—04/01/2021 | 5,634 | |
8,062 | |||
Level 3 Communications Inc. | |||
1,925 | 5.750%—12/01/2022 | 1,983 | |
Level 3 Financing Inc. | |||
1,100 | 6.125%—01/15/2021 | 1,123 | |
Telecom Italia Capital SA | |||
625 | 6.000%—09/30/2034 | 703 | |
775 | 6.375%—11/15/2033 | 903 | |
1,606 | |||
Telecom Italia SpA | |||
2,875 | 5.303%—05/30/20242 | 3,109 | |
Zayo Group LLC | |||
8,000 | 6.000%—04/01/2023 | 8,450 | |
60,381 | |||
ELECTRIC UTILITIES—0.3% | |||
Talen Energy Supply LLC | |||
1,000 | 6.500%—06/01/2025 | 870 | |
3,000 | 9.500%—07/15/20222 | 3,098 | |
3,968 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS—0.7% | |||
Anixter Inc. | |||
$ | 9,000 | 5.125%—10/01/2021 | $ 9,630 |
750 | 5.500%—03/01/2023 | 822 | |
10,452 | |||
ENERGY EQUIPMENT & SERVICES—1.9% | |||
Archrock Partners LP | |||
3,000 | 6.000%—04/01/2021-10/01/2022 | 2,997 | |
Hornbeck Offshore Services Inc. | |||
3,940 | 5.000%—03/01/2021 | 2,108 | |
Precision Drilling Corp. | |||
1,405 | 6.625%—11/15/2020 | 1,423 | |
Pride International LLC | |||
1,000 | 7.875%—08/15/2040 | 840 | |
1,100 | 8.500%—06/15/2019 | 1,171 | |
2,011 | |||
Transocean Inc. | |||
1,565 | 6.800%—03/15/2038 | 1,279 | |
1,335 | 7.500%—01/15/20262 | 1,380 | |
2,659 | |||
Trinidad Drilling Ltd. | |||
2,375 | 6.625%—02/15/20252 | 2,322 | |
Unit Corp. | |||
4,900 | 6.625%—05/15/2021 | 4,943 | |
Weatherford International Ltd. | |||
2,000 | 7.750%—06/15/2021 | 2,068 | |
5,900 | 8.250%—06/15/2023 | 5,944 | |
1,000 | 9.875%—02/15/2024 | 1,075 | |
9,087 | |||
27,550 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—3.1% | |||
Communications Sales & Leasing Inc. | |||
1,035 | 7.125%—12/15/20242 | 960 | |
1,195 | 8.250%—10/15/2023 | 1,153 | |
2,113 | |||
Corecivic Inc. | |||
2,080 | 4.750%—10/15/2027 | 2,091 | |
CyrusOne LP | |||
1,555 | 5.000%—03/15/20242 | 1,635 | |
440 | 5.375%—03/15/20272 | 471 | |
2,106 | |||
Equinix Inc. | |||
2,740 | 5.375%—05/15/2027 | 2,942 | |
FelCor Lodging LP | |||
5,650 | 5.625%—03/01/2023 | 5,869 | |
2,315 | 6.000%—06/01/2025 | 2,506 | |
8,375 | |||
GEO Group Inc. | |||
2,650 | 5.875%—01/15/2022 | 2,753 | |
Iron Mountain Inc. | |||
1,345 | 4.875%—09/15/20272 | 1,375 | |
5,000 | 5.750%—08/15/2024 | 5,150 | |
6,525 | |||
Kennedy-Wilson Inc. | |||
5,000 | 5.875%—04/01/2024 | 5,194 | |
Ladder Capital Finance LLC | |||
2,510 | 5.250%—10/01/20252 | 2,507 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—Continued | |||
MPT Operating Partnership LP | |||
$ | 1,430 | 5.000%—10/15/2027 | $ 1,473 |
1,500 | 6.375%—03/01/2024 | 1,629 | |
3,102 | |||
Qualitytech LP | |||
1,505 | 4.750%—11/15/20252 | 1,540 | |
RHP Hotel Properties LP | |||
3,000 | 5.000%—04/15/2021 | 3,090 | |
Sabra Health Care LP | |||
1,800 | 5.500%—02/01/2021 | 1,857 | |
SBA Communications Corp. | |||
1,745 | 4.000%—10/01/20222 | 1,780 | |
45,975 | |||
FOOD & STAPLES RETAILING—1.0% | |||
Albertsons Companies LLC | |||
7,700 | 5.750%—03/15/2025 | 6,815 | |
2,250 | 6.625%—06/15/2024 | 2,126 | |
8,941 | |||
Rite Aid Corp. | |||
5,620 | 6.125%—04/01/20232 | 5,262 | |
14,203 | |||
FOOD PRODUCTS—0.6% | |||
Dean Foods Co. | |||
215 | 6.500%—03/15/20232 | 216 | |
Dole Food Co. Inc. | |||
3,725 | 7.250%—06/15/20252 | 4,041 | |
Post Holdings Inc. | |||
4,500 | 6.000%—12/15/20222 | 4,731 | |
8,988 | |||
GAS UTILITIES—1.1% | |||
Amerigas Partners LP | |||
950 | 5.500%—05/20/2025 | 976 | |
2,850 | 5.750%—05/20/2027 | 2,925 | |
3,901 | |||
Ferrellgas LP | |||
6,550 | 6.500%—05/01/2021 | 6,239 | |
4,005 | 6.750%—06/15/2023 | 3,745 | |
9,984 | |||
Suburban Propane Partners LP | |||
1,600 | 5.875%—03/01/2027 | 1,596 | |
15,481 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—0.3% | |||
Hill-Rom Holdings Inc. | |||
1,700 | 5.000%—02/15/20252 | 1,747 | |
Hologic Inc. | |||
2,590 | 5.250%—07/15/20222 | 2,713 | |
4,460 | |||
HEALTH CARE PROVIDERS & SERVICES—7.6% | |||
Acadia Healthcare Co. Inc. | |||
1,000 | 5.125%—07/01/2022 | 1,025 | |
5,200 | 6.500%—03/01/2024 | 5,505 | |
6,530 | |||
Air Medical Merger Sub Corp. | |||
4,330 | 6.375%—05/15/20232 | 4,200 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
HEALTH CARE PROVIDERS & SERVICES—Continued | |||
Centene Corp. | |||
$ | 2,000 | 4.750%—01/15/2025 | $ 2,070 |
7,750 | 5.625%—02/15/2021 | 8,060 | |
10,130 | |||
Community Health Systems Inc. | |||
1,000 | 5.125%—08/01/2021 | 972 | |
5,750 | 6.250%—03/31/2023 | 5,542 | |
6,514 | |||
DaVita HealthCare Partners Inc. | |||
3,425 | 5.000%—05/01/2025 | 3,382 | |
DaVita Inc. | |||
250 | 5.125%—07/15/2024 | 251 | |
3,730 | 5.750%—08/15/2022 | 3,849 | |
4,100 | |||
Envision Healthcare Corp. | |||
7,150 | 5.125%—07/01/20222 | 7,293 | |
HCA Holdings Inc. | |||
2,500 | 6.250%—02/15/2021 | 2,694 | |
HCA Inc. | |||
2,600 | 4.500%—02/15/2027 | 2,633 | |
2,700 | 4.750%—05/01/2023 | 2,832 | |
6,770 | 5.500%—06/15/2047 | 6,905 | |
6,050 | 5.875%—05/01/2023-02/15/2026 | 6,478 | |
2,350 | 6.500%—02/15/2020 | 2,538 | |
21,386 | |||
MEDNAX Inc. | |||
625 | 5.250%—12/01/20232 | 652 | |
Molina Healthcare Inc. | |||
2,500 | 4.875%—06/15/20252 | 2,487 | |
2,000 | 5.375%—11/15/2022 | 2,091 | |
4,578 | |||
RegionalCare Hospital Partners Holdings Inc. | |||
6,400 | 8.250%—05/01/20232 | 6,752 | |
Sterigenics-Nordion Topco LLC | |||
7,025 | 8.125%—11/01/20212 | 7,174 | |
TeamHealth Holdings Inc. | |||
3,010 | 6.375%—02/01/20252 | 2,784 | |
Tenet Healthcare Corp. | |||
750 | 4.375%—10/01/2021 | 751 | |
5,876 | 4.625%—07/15/20242 | 5,803 | |
1,390 | 6.875%—11/15/2031 | 1,181 | |
1,150 | 7.500%—01/01/20222 | 1,215 | |
4,740 | 8.125%—04/01/2022 | 4,764 | |
13,714 | |||
Thc Escrow Corp. III | |||
770 | 5.125%—05/01/20252 | 753 | |
Wellcare Health Plans Inc. | |||
4,875 | 5.250%—04/01/2025 | 5,143 | |
West Street Merger Sub Inc. | |||
4,100 | 6.375%—09/01/20252 | 4,177 | |
111,956 | |||
HOTELS, RESTAURANTS & LEISURE—2.1% | |||
Brinker International Inc. | |||
2,500 | 3.875%—05/15/2023 | 2,469 | |
1,075 | 5.000%—10/01/20242 | 1,077 | |
3,546 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
HOTELS, RESTAURANTS & LEISURE—Continued | |||
CRC Escrow Issuer LLC | |||
$ | 2,130 | 5.250%—10/15/20252 | $ 2,149 |
Eldorado Resorts Inc. | |||
1,005 | 6.000%—04/01/2025 | 1,065 | |
ESH Hospitality Inc. | |||
4,050 | 5.250%—05/01/20252 | 4,197 | |
Hilton Worldwide Finance LLC | |||
300 | 4.625%—04/01/2025 | 310 | |
Landry's Inc. | |||
2,935 | 6.750%—10/15/20242 | 2,994 | |
Melco Resorts Finance Ltd. | |||
3,525 | 4.875%—06/06/20252 | 3,566 | |
MGM Growth Properties Operating Partnership LP | |||
695 | 4.500%—01/15/20282 | 695 | |
New Red Finance Inc. | |||
2,000 | 5.000%—10/15/20252 | 2,040 | |
Pinnacle Entertainment Inc. | |||
1,750 | 5.625%—05/01/2024 | 1,816 | |
Scientific Games International Inc. | |||
1,330 | 5.000%—10/15/20252 | 1,353 | |
850 | 6.250%—09/01/2020 | 862 | |
3,000 | 6.625%—05/15/2021 | 3,116 | |
565 | 7.000%—01/01/20222 | 599 | |
5,930 | |||
Viking Cruises Ltd. | |||
2,025 | 5.875%—09/15/20272 | 2,045 | |
30,353 | |||
HOUSEHOLD DURABLES—1.5% | |||
Calatlantic Group Inc. | |||
1,075 | 5.000%—06/15/2027 | 1,131 | |
475 | 5.250%—06/01/2026 | 508 | |
400 | 5.875%—11/15/2024 | 447 | |
1,270 | 8.375%—05/15/2018 | 1,315 | |
3,401 | |||
Kronos Acquisition Holdings Inc. | |||
6,050 | 9.000%—08/15/20232 | 5,844 | |
Lennar Corp. | |||
500 | 4.125%—12/01/2018 | 509 | |
6,410 | 4.500%—11/15/2019-04/30/2024 | 6,646 | |
7,155 | |||
M/I Homes Inc. | |||
1,205 | 5.625%—08/01/2025 | 1,231 | |
Tri Pointe Group Inc. | |||
1,400 | 4.875%—07/01/2021 | 1,470 | |
2,125 | 5.250%—06/01/2027 | 2,175 | |
3,645 | |||
21,276 | |||
HOUSEHOLD PRODUCTS—1.2% | |||
Energizer Holdings Inc. | |||
4,000 | 5.500%—06/15/20252 | 4,210 | |
First Quality Finance Co. Inc. | |||
10,000 | 4.625%—05/15/20212 | 10,150 | |
Prestige Brands Inc. | |||
3,650 | 5.375%—12/15/20212 | 3,768 | |
18,128 | |||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—2.1% | |||
AES Corp. | |||
1,950 | 5.125%—09/01/2027 | 2,007 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS—Continued | |||
$ | 4,500 | 5.500%—04/15/2025 | $ 4,781 |
300 | 6.000%—05/15/2026 | 325 | |
7,113 | |||
Calpine Corp. | |||
1,670 | 5.500%—02/01/2024 | 1,605 | |
3,395 | 5.750%—01/15/2025 | 3,240 | |
4,845 | |||
Dynegy Inc. | |||
4,750 | 7.375%—11/01/2022 | 5,100 | |
3,175 | 8.000%—01/15/20252 | 3,488 | |
150 | 8.125%—01/30/20262 | 167 | |
8,755 | |||
Nextera Energy Operating Partners LP | |||
1,450 | 4.250%—09/15/20242 | 1,468 | |
1,000 | 4.500%—09/15/20272 | 1,009 | |
2,477 | |||
NRG Energy Inc. | |||
5,600 | 6.250%—07/15/2022-05/01/2024 | 5,963 | |
1,475 | 6.625%—01/15/2027 | 1,578 | |
7,541 | |||
30,731 | |||
INSURANCE—0.8% | |||
AssuredPartners Inc. | |||
2,205 | 7.000%—08/15/20252 | 2,304 | |
NFP Corp. | |||
5,100 | 6.875%—07/15/20252 | 5,317 | |
Usis Merger Sub Inc. | |||
4,375 | 6.875%—05/01/20252 | 4,550 | |
12,171 | |||
INTERNET & DIRECT MARKETING RETAIL—0.2% | |||
NetFlix Inc. | |||
3,035 | 4.875%—04/15/20282 | 3,020 | |
INTERNET SOFTWARE & SERVICES—0.1% | |||
Verisign Inc. | |||
1,575 | 4.750%—07/15/2027 | 1,636 | |
IT SERVICES—1.4% | |||
Alliance Data Systems Corp. | |||
2,500 | 5.375%—08/01/20222 | 2,562 | |
2,600 | 6.375%—04/01/20202 | 2,636 | |
5,198 | |||
Alliance Data Systems Corp. MTN3 | |||
3,175 | 5.875%—11/01/20212 | 3,294 | |
First Data Corp. | |||
1,995 | 5.375%—08/15/20232 | 2,080 | |
1,850 | 5.750%—01/15/20242 | 1,943 | |
4,023 | |||
WEX Inc. | |||
7,805 | 4.750%—02/01/20232 | 8,039 | |
20,554 | |||
LEISURE PRODUCTS—0.1% | |||
Vista Outdoor Inc. | |||
1,500 | 5.875%—10/01/2023 | 1,556 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
LIFE SCIENCES TOOLS & SERVICES—0.7% | |||
Eagle Holding Co. II LLC | |||
$ | 3,000 | 7.625%—05/15/20222 | $ 3,105 |
inVentiv Group Holdings Inc. | |||
1,200 | 7.500%—10/01/20242 | 1,329 | |
Jaguar Holding Co. II | |||
2,500 | 6.375%—08/01/20232 | 2,616 | |
Quintiles IMS Inc. | |||
495 | 5.000%—10/15/20262 | 527 | |
Quintiles Transnational Corp. | |||
2,350 | 4.875%—05/15/20232 | 2,456 | |
10,033 | |||
MACHINERY—0.2% | |||
Allison Transmission Inc. | |||
1,200 | 4.750%—10/01/20272 | 1,215 | |
CNH Industrial Capital LLC | |||
150 | 4.375%—04/05/2022 | 159 | |
EnPro Industries Inc. | |||
1,925 | 5.875%—09/15/20222 | 2,024 | |
3,398 | |||
MEDIA—12.8% | |||
Altice Luxembourg SA | |||
3,800 | 7.750%—05/15/20222 | 4,028 | |
AMC Entertainment Holdings Inc. | |||
1,125 | 5.750%—06/15/2025 | 1,100 | |
1,925 | 5.875%—11/15/2026 | 1,884 | |
2,984 | |||
AMC Networks Inc. | |||
2,990 | 4.750%—08/01/2025 | 2,994 | |
Block Communications Inc. | |||
2,550 | 6.875%—02/15/20252 | 2,767 | |
Cable One Inc. | |||
2,885 | 5.750%—06/15/20222 | 3,022 | |
Cablevision Systems Corp. | |||
8,850 | 8.000%—04/15/2020 | 9,823 | |
CBS Radio Inc. | |||
1,750 | 7.250%—11/01/20242 | 1,840 | |
CCO Holdings LLC | |||
2,000 | 5.000%—02/01/20282 | 1,995 | |
8,200 | 5.125%—05/01/2023-05/01/20272 | 8,400 | |
5,250 | 5.250%—03/15/2021-09/30/2022 | 5,415 | |
3,500 | 5.875%—04/01/20242 | 3,736 | |
19,546 | |||
Cequel Communications Holdings I LLC | |||
6,000 | 5.125%—12/15/20212 | 6,135 | |
6,000 | 6.375%—09/15/20202 | 6,136 | |
12,271 | |||
Clear Channel Worldwide Holdings Inc. | |||
5,700 | 7.625%—03/15/2020 | 5,714 | |
CSC Holdings LLC | |||
1,250 | 5.250%—06/01/2024 | 1,248 | |
630 | 10.875%—10/15/20252 | 773 | |
2,021 | |||
DISH DBS Corp. | |||
5,000 | 5.000%—03/15/2023 | 4,850 | |
6,330 | 5.875%—11/15/2024 | 6,362 | |
3,325 | 6.750%—06/01/2021 | 3,499 | |
14,711 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
MEDIA—Continued | |||
MDC Partners Inc. | |||
$ | 3,485 | 6.500%—05/01/20242 | $ 3,572 |
Mediacom Broadband LLC | |||
2,800 | 5.500%—04/15/2021 | 2,873 | |
2,000 | 6.375%—04/01/2023 | 2,090 | |
4,963 | |||
Midcontinent Finance Corp. | |||
4,370 | 6.875%—08/15/20232 | 4,709 | |
Nexstar Broadcasting Inc. | |||
5,000 | 6.125%—02/15/20222 | 5,213 | |
Outfront Media Capital LLC | |||
1,400 | 5.875%—03/15/2025 | 1,488 | |
Radiate HoldCo LLC | |||
5,300 | 6.625%—02/15/20252 | 5,221 | |
Regal Entertainment Group | |||
510 | 5.750%—02/01/2025 | 523 | |
SFR Group SA | |||
11,050 | 6.000%—05/15/20222 | 11,533 | |
200 | 6.250%—05/15/20242 | 210 | |
4,250 | 7.375%—05/01/20262 | 4,585 | |
16,328 | |||
Sinclair Television Group Inc. | |||
4,000 | 6.125%—10/01/2022 | 4,140 | |
Sirius XM Radio Inc. | |||
7,500 | 6.000%—07/15/20242 | 8,025 | |
Time Inc. | |||
8,000 | 5.750%—04/15/20222 | 8,110 | |
1,515 | 7.500%—10/15/20252 | 1,524 | |
9,634 | |||
Townsquare Media Inc. | |||
5,000 | 6.500%—04/01/20232 | 5,100 | |
Tribune Media Co. | |||
11,300 | 5.875%—07/15/2022 | 11,780 | |
Univision Communications Inc. | |||
4,775 | 5.125%—02/15/20252 | 4,757 | |
1,509 | 6.750%—09/15/20222 | 1,568 | |
6,325 | |||
UPCB Finance IV Ltd. | |||
7,500 | 5.375%—01/15/20252 | 7,706 | |
Virgin Media Secured Finance plc | |||
1,070 | 5.500%—08/15/20262 | 1,122 | |
WMG Acquisition Corp. | |||
1,700 | 5.625%—04/15/20222 | 1,770 | |
5,000 | 6.750%—04/15/20222 | 5,280 | |
7,050 | |||
Ziggo Bond Finance BV | |||
3,255 | 5.875%—01/15/20252 | 3,365 | |
187,985 | |||
METALS & MINING—5.2% | |||
AK Steel Corp. | |||
825 | 6.375%—10/15/2025 | 815 | |
2,050 | 7.000%—03/15/2027 | 2,075 | |
2,890 | |||
Alcoa Nederland Holding BV | |||
2,000 | 6.750%—09/30/20242 | 2,233 | |
975 | 7.000%—09/30/20262 | 1,116 | |
3,349 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
METALS & MINING—Continued | |||
Alliance Resource Operating Partners | |||
$ | 2,825 | 7.500%—05/01/20252 | $ 2,994 |
Anglo American Capital plc | |||
2,550 | 4.750%—04/10/20272 | 2,700 | |
2,650 | 9.375%—04/08/20192 | 2,920 | |
5,620 | |||
ArcelorMittal SA | |||
1,690 | 7.250%—03/01/2041 | 2,083 | |
Big River Steel LLC | |||
2,050 | 7.250%—09/01/20252 | 2,204 | |
BlueScope Steel Finance Ltd. | |||
3,000 | 6.500%—05/15/20212 | 3,143 | |
Commercial Metals Co. | |||
1,070 | 5.375%—07/15/2027 | 1,107 | |
Constellium NV | |||
5,285 | 5.750%—05/15/20242 | 5,351 | |
4,040 | 6.625%—03/01/20252 | 4,202 | |
9,553 | |||
FMG Resources August 2006 Pty Ltd. | |||
3,810 | 4.750%—05/15/20222 | 3,905 | |
3,075 | 5.125%—05/15/20242 | 3,175 | |
3,985 | 9.750%—03/01/20222 | 4,463 | |
11,543 | |||
Freeport-McMoRan Inc. | |||
5,000 | 3.875%—03/15/2023 | 4,956 | |
2,430 | 5.400%—11/14/2034 | 2,382 | |
1,435 | 5.450%—03/15/2043 | 1,356 | |
8,694 | |||
Grinding Media Inc. | |||
3,375 | 7.375%—12/15/20232 | 3,679 | |
Hudbay Minerals Inc. | |||
1,600 | 7.250%—01/15/20232 | 1,732 | |
700 | 7.625%—01/15/20252 | 775 | |
2,507 | |||
Kinross Gold Corp. | |||
1,230 | 4.500%—07/15/20272 | 1,248 | |
Novelis Corp. | |||
1,120 | 5.875%—09/30/20262 | 1,157 | |
3,105 | 6.250%—08/15/20242 | 3,284 | |
4,441 | |||
Steel Dynamics Inc. | |||
300 | 5.125%—10/01/2021 | 309 | |
SunCoke Energy Partners LP | |||
2,975 | 7.500%—06/15/20252 | 3,139 | |
Teck Resources Ltd. | |||
7,800 | 4.750%—01/15/2022 | 8,268 | |
76,771 | |||
MORTGAGE REAL ESTATE INVESTMENT TRUSTS (REITs)—0.1% | |||
Starwood Property Trust Inc. | |||
2,000 | 5.000%—12/15/2021 | 2,100 | |
OIL, GAS & CONSUMABLE FUELS—10.3% | |||
Ascent Resources Utica Holdings LLC | |||
1,950 | 10.000%—04/01/20222 | 2,126 | |
Baytex Energy Corp. | |||
550 | 5.125%—06/01/20212 | 524 | |
6,025 | 5.625%—06/01/20242 | 5,633 | |
6,157 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
OIL, GAS & CONSUMABLE FUELS—Continued | |||
Cheniere Corpus Christi Holdings LLC | |||
$ | 2,075 | 5.125%—06/30/20272 | $ 2,145 |
3,910 | 5.875%—03/31/2025 | 4,247 | |
6,392 | |||
Cheniere Energy Partners LP | |||
3,485 | 5.250%—10/01/20252 | 3,598 | |
Chesapeake Energy Corp. | |||
3,939 | 8.000%—12/15/2022-06/15/20272 | 4,091 | |
Consol Mining Corp. | |||
1,800 | 11.000%—11/15/20252 | 1,854 | |
Continental Resources Inc. | |||
2,010 | 4.500%—04/15/2023 | 2,040 | |
1,405 | 4.900%—06/01/2044 | 1,316 | |
3,356 | |||
Crestwood Midstream Partners LP | |||
1,050 | 5.750%—04/01/2025 | 1,082 | |
Crownrock Finance Inc. | |||
1,920 | 5.625%—10/15/20252 | 1,954 | |
Denbury Resources Inc. | |||
4,900 | 5.500%—05/01/2022 | 3,099 | |
4,450 | 9.000%—05/15/20212 | 4,372 | |
7,471 | |||
Energy Transfer Equity LP | |||
1,000 | 7.500%—10/15/2020 | 1,130 | |
Extraction Oil & Gas Holdings LLC | |||
1,665 | 7.375%—05/15/20242 | 1,782 | |
1,515 | 7.875%—07/15/20212 | 1,613 | |
3,395 | |||
Genesis Energy LP | |||
2,050 | 5.750%—02/15/2021 | 2,092 | |
750 | 6.000%—05/15/2023 | 755 | |
455 | 6.500%—10/01/2025 | 463 | |
4,500 | 6.750%—08/01/2022 | 4,669 | |
7,979 | |||
Global Partners LP | |||
1,450 | 7.000%—06/15/2023 | 1,475 | |
Great Western Petroleum LLC | |||
1,000 | 9.000%—09/30/20212 | 1,030 | |
Gulfport Energy Corp. | |||
1,500 | 6.000%—10/15/2024 | 1,508 | |
1,205 | 6.375%—01/15/20262 | 1,219 | |
2,727 | |||
Jonah Energy LLC | |||
420 | 7.250%—10/15/20252 | 421 | |
Jupiter Resources Inc. | |||
3,500 | 8.500%—10/01/20222 | 2,511 | |
Murphy Oil Corp. | |||
6,165 | 4.700%—12/01/2022 | 6,227 | |
1,900 | 6.125%—12/01/2042 | 1,883 | |
8,110 | |||
NGL Energy Partners LP | |||
2,535 | 5.125%—07/15/2019 | 2,542 | |
1,215 | 6.875%—10/15/2021 | 1,227 | |
4,425 | 7.500%—11/01/2023 | 4,436 | |
8,205 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
OIL, GAS & CONSUMABLE FUELS—Continued | |||
NGPL Pipeco LLC | |||
$ | 555 | 4.375%—08/15/20222 | $ 573 |
2,085 | 4.875%—08/15/20272 | 2,163 | |
2,736 | |||
Oasis Petroleum Inc. | |||
3,890 | 6.875%—03/15/2022-01/15/2023 | 3,999 | |
QEP Resources Inc. | |||
50 | 5.250%—05/01/2023 | 49 | |
500 | 6.875%—03/01/2021 | 534 | |
583 | |||
Range Resources Corp. | |||
4,565 | 5.875%—07/01/2022 | 4,702 | |
Rockies Express Pipeline LLC | |||
2,830 | 6.000%—01/15/20192 | 2,943 | |
1,365 | 6.875%—04/15/20402 | 1,529 | |
4,472 | |||
Rose Rock Midstream LP | |||
5,500 | 5.625%—07/15/2022-11/15/2023 | 5,423 | |
Sanchez Energy Corp. | |||
200 | 6.125%—01/15/2023 | 168 | |
8,650 | 7.750%—06/15/2021 | 8,088 | |
8,256 | |||
SemGroup Corp. | |||
2,750 | 6.375%—03/15/20252 | 2,723 | |
SM Energy Co. | |||
350 | 6.125%—11/15/2022 | 354 | |
Southwestern Energy Co. | |||
1,025 | 7.500%—04/01/2026 | 1,065 | |
1,005 | 7.750%—10/01/2027 | 1,046 | |
2,111 | |||
Summit Midstream Holdings LLC | |||
2,150 | 5.750%—04/15/2025 | 2,204 | |
Sunoco LP | |||
6,500 | 6.250%—04/15/2021 | 6,825 | |
Tallgrass Energy Finance Corp. | |||
4,500 | 5.500%—09/15/20242 | 4,674 | |
Targa Resources Partners LP | |||
660 | 5.000%—01/15/20282 | 665 | |
Tesoro Logistics LP | |||
5,390 | 5.500%—10/15/2019 | 5,700 | |
Whiting Petroleum Corp. | |||
3,525 | 5.000%—03/15/2019 | 3,573 | |
4,083 | 5.750%—03/15/2021 | 4,124 | |
7,697 | |||
Wildhorse Resource Development Corp. | |||
3,725 | 6.875%—02/01/20252 | 3,706 | |
Williams Cos. Inc. | |||
670 | 8.750%—03/15/2032 | 886 | |
WPX Energy Inc. | |||
7,950 | 8.250%—08/01/2023 | 8,993 | |
151,773 | |||
PHARMACEUTICALS—1.6% | |||
Endo Finance LLC | |||
2,500 | 5.375%—01/15/20232 | 2,025 | |
500 | 7.250%—01/15/20222 | 462 | |
2,487 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
PHARMACEUTICALS—Continued | |||
Mallinckrodt International Finance SA | |||
$ | 2,000 | 4.750%—04/15/2023 | $ 1,695 |
1,000 | 5.625%—10/15/20232 | 939 | |
800 | 5.750%—08/01/20222 | 787 | |
3,421 | |||
Valeant Pharmaceuticals International Inc. | |||
4,195 | 5.375%—03/15/20202 | 4,148 | |
3,225 | 5.500%—11/01/20252 | 3,302 | |
2,300 | 5.625%—12/01/20212 | 2,107 | |
3,365 | 6.375%—10/15/20202 | 3,352 | |
1,775 | 6.500%—03/15/20222 | 1,888 | |
3,500 | 7.500%—07/15/20212 | 3,461 | |
18,258 | |||
24,166 | |||
PROFESSIONAL SERVICES—1.1% | |||
Camelot Finance SA | |||
8,565 | 7.875%—10/15/20242 | 9,229 | |
Nielsen Co. Luxembourg Sarl | |||
1,625 | 5.500%—10/01/20212 | 1,678 | |
Nielsen Finance LLC. | |||
1,500 | 4.500%—10/01/2020 | 1,524 | |
1,850 | 5.000%—04/15/20222 | 1,910 | |
3,434 | |||
Tempo Acquisition LLC | |||
2,125 | 6.750%—06/01/20252 | 2,157 | |
16,498 | |||
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.4% | |||
Realogy Group LLC | |||
5,500 | 5.250%—12/01/20212 | 5,699 | |
ROAD & RAIL—1.1% | |||
Avis Budget Car Rental LLC | |||
2,000 | 5.125%—06/01/20222 | 2,018 | |
1,000 | 5.250%—03/15/20252 | 981 | |
1,000 | 5.500%—04/01/2023 | 1,016 | |
4,015 | |||
Herc Rentals Inc. | |||
2,340 | 7.500%—06/01/20222 | 2,545 | |
2,911 | 7.750%—06/01/20242 | 3,209 | |
5,754 | |||
Hertz Corp. | |||
1,300 | 5.875%—10/15/2020 | 1,298 | |
4,475 | 7.625%—06/01/20222 | 4,677 | |
5,975 | |||
15,744 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—0.6% | |||
Advanced Micro Devices Inc. | |||
2,850 | 7.000%—07/01/2024 | 3,028 | |
2,300 | 7.500%—08/15/2022 | 2,608 | |
5,636 | |||
Micron Technology Inc. | |||
3,500 | 5.250%—01/15/20242 | 3,697 | |
125 | 5.500%—02/01/2025 | 133 | |
3,830 | |||
9,466 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
SOFTWARE—1.3% | |||
CDK Global Inc. | |||
$ | 500 | 3.800%—10/15/2019 | $ 514 |
Infor Software Parent LLC | |||
6,286 | 7.125%—05/01/20212 | 6,490 | |
Infor US Inc. | |||
3,500 | 6.500%—05/15/2022 | 3,674 | |
Informatica LLC | |||
2,305 | 7.125%—07/15/20232 | 2,357 | |
Nuance Communications Inc. | |||
28 | 5.375%—08/15/20202 | 28 | |
2,275 | 5.625%—12/15/20262 | 2,429 | |
3,000 | 6.000%—07/01/2024 | 3,252 | |
5,709 | |||
Symantec Corp. | |||
1,000 | 5.000%—04/15/20252 | 1,048 | |
19,792 | |||
SPECIALTY RETAIL—1.2% | |||
Asbury Automotive Group Inc. | |||
200 | 6.000%—12/15/2024 | 212 | |
Lithia Motors Inc. | |||
995 | 5.250%—08/01/20252 | 1,046 | |
Penske Automotive Group Inc. | |||
4,000 | 5.750%—10/01/2022 | 4,129 | |
PetSmart Inc. | |||
4,625 | 5.875%—06/01/20252 | 4,047 | |
10,250 | 7.125%—03/15/20232 | 7,841 | |
11,888 | |||
17,275 | |||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—0.6% | |||
Diamond 1 Finance Corp. | |||
1,965 | 5.875%—06/15/20212 | 2,063 | |
EMC Corp. | |||
345 | 2.650%—06/01/2020 | 341 | |
NCR Corp. | |||
3,500 | 5.875%—12/15/2021 | 3,631 | |
900 | 6.375%—12/15/2023 | 961 | |
4,592 | |||
Seagate HDD Cayman | |||
2,000 | 4.875%—03/01/20242 | 2,028 | |
9,024 | |||
TEXTILES, APPAREL & LUXURY GOODS—0.1% | |||
Hanesbrands Inc. | |||
1,175 | 4.625%—05/15/20242 | 1,215 | |
THRIFTS & MORTGAGE FINANCE—1.1% | |||
Nationstar Mortgage LLC | |||
4,750 | 6.500%—08/01/2018-07/01/2021 | 4,821 | |
747 | 7.875%—10/01/2020 | 764 | |
5,585 | |||
Quicken Loans Inc. | |||
10,000 | 5.750%—05/01/20252 | 10,650 | |
16,235 | |||
TRADING COMPANIES & DISTRIBUTORS—0.8% | |||
Aircastle Ltd. | |||
1,940 | 6.250%—12/01/2019 | 2,081 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
TRADING COMPANIES & DISTRIBUTORS—Continued | |||
CD&R Waterworks Merger Sub LLC | |||
$ | 1,835 | 6.125%—08/15/20252 | $ 1,862 |
United Rentals North America Inc. | |||
495 | 4.625%—10/15/2025 | 508 | |
1,975 | 4.875%—01/15/2028 | 1,990 | |
1,325 | 5.500%—05/15/2027 | 1,421 | |
3,950 | 5.750%—11/15/2024 | 4,202 | |
8,121 | |||
12,064 | |||
WIRELESS TELECOMMUNICATION SERVICES—2.7% | |||
Softbank Corp. | |||
1,210 | 4.500%—04/15/20202 | 1,252 | |
Sprint Capital Corp. | |||
2,635 | 6.875%—11/15/2028 | 2,818 | |
Sprint Communications Inc. | |||
6,500 | 6.000%—11/15/2022 | 6,841 | |
2,210 | 7.000%—08/15/2020 | 2,393 | |
1,050 | 9.000%—11/15/20182 | 1,114 | |
10,348 | |||
Sprint Corp. | |||
4,990 | 7.125%—06/15/2024 | 5,406 | |
4,250 | 7.250%—09/15/2021 | 4,643 | |
2,975 | 7.625%—02/15/2025 | 3,288 | |
2,375 | 7.875%—09/15/2023 | 2,660 | |
15,997 | |||
T-Mobile USA Inc. | |||
600 | 4.000%—04/15/2022 | 622 | |
850 | 5.125%—04/15/2025 | 892 | |
850 | 5.375%—04/15/2027 | 922 | |
1,000 | 6.000%—03/01/2023 | 1,056 | |
300 | 6.125%—01/15/2022 | 313 | |
5,500 | 6.500%—01/15/2024-01/15/2026 | 6,041 | |
9,846 | |||
40,261 | |||
TOTAL CORPORATE BONDS & NOTES | |||
(Cost $1,324,583) | 1,365,202 | ||
SHORT-TERM INVESTMENTS—0.7% | |||
(Cost $10,568) | |||
REPURCHASE AGREEMENTS | |||
10,568 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $10,784) | 10,568 | |
TOTAL INVESTMENTS—97.5% | |||
(Cost $1,394,886) | 1,436,117 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—2.5% | 37,577 | ||
TOTAL NET ASSETS—100.0% | $1,473,694 |
Portfolio of Investments—Continued
1 | Variable rate security, the stated rate represents the rate in effect at October 31, 2017. |
2 | 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, 2017, the aggregate value of these securities was $705,939,000 or 48% of net assets. |
3 | MTN after the name of a security stands for Medium Term Note. |
Managers' Commentary (Unaudited)
Newport Beach, CA
92660
Since 2014
Since 2014
Since 2014
Fund Performance
Managers' Commentary—Continued
TOP TEN ISSUERS (% of net assets) | |
Federal National Mortgage Association TBA | 32.6% |
U.S. Treasury | 26.8% |
Japan Treasury Discount Bill | 10.0% |
Federal National Mortgage Association | 7.2% |
Nykredit Realkredit AS | 5.9% |
Federal National Mortgage Association REMIC | 3.6% |
Federal Home Loan Mortgage Corp. TBA | 3.3% |
Brazil Letras Do Tesouro Nacional | 3.0% |
Nordea Kredit Realkreditaktieselskab | 1.7% |
Government National Mortgage Association TBA | 1.6% |
• | Tactical exposure to non-agency mortgage-backed securities, which continued to provide attractive yield and price appreciation amid strong investor demand and a recovery in the housing sector |
• | An allocation to high-yield bonds, as the sector outperformed over the fiscal year |
• | An allocation to TIPS, or treasury inflation-protected securities, as inflation expectations rose, causing TIPS to outperform |
• | A long exposure to a basket of developed market currencies, particularly the euro and the yen, as both currencies appreciated during the fiscal year, |
• | An underweight to investment grade credit as this sector outperformed given continued spread tightening |
• | A short to a basket of Asian emerging market currencies, including the South Korean won and the Singapore dollar, as they appreciated over the period. |
• | We are modestly underweight duration overall. The Fund is overweight to U.S. duration and has short duration exposure in other developed regions, including the eurozone, the U.K. and Japan. We expect rates in the U.S. to be relatively range bound but positioning in Japan serves as a cheap hedge against global rates moving higher. U.K. and eurozone rates may also face pressure as their central banks shift towards reducing accommodation. |
• | We continue to have a favorable view of TIPS but have tactically moderated positioning to reflect some technical headwinds. TIPS are still attractive as inflation expectations embedded in markets remain low. They are attractively-priced hedges against upside surprises in inflation over the medium-term. |
• | We remain underweight investment grade corporates but have more diversified credit exposures in other sectors and are more focused on security selection over generic beta exposure, while holding positions in mortgage credit and select high-yield issues. |
Managers' Commentary—Continued
• | We remain tactical with currency positioning. While we expect to maintain net long developed market currency positioning versus a basket of Asian emerging market currencies, the composition of relative value exposures may change tactically as market conditions evolve. The Fund also has long exposures to the Brazilian real and the Mexican peso, which are benefitting from higher central bank policy rates, improving commodity prices, and declining inflation pressures. |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2014 |
Cusip | 411511108 |
Ticker | HABDX |
Inception Date | 12/29/1987 |
Net Expense Ratio | 0.51% a |
Total Net Assets (000s) | $2,159,390 |
ADMINISTRATIVE CLASS | |
Fund # | 2214 |
Cusip | 411511686 |
Ticker | HRBDX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 0.76% a |
Total Net Assets (000s) | $30,376 |
Portfolio Statistics | |||
Portfolio | Benchmark | ||
Average Market Coupon | 2.49% | 3.06% | |
Yield to Maturity | 3.74% | 2.57% | |
Current 30-Day Yield (Institutional Class) | 2.37% | 2.60% | |
Weighted Average Maturity | 7.20 years | 8.25 years | |
Weighted Average Duration | 5.00 years | 5.96 years | |
Portfolio Turnover (Year Ended 10/31/2017) | 654% | N/A |
MATURITY PROFILE | ||
Years to Maturity | % of Investments | |
0 to 1 yr. | -14.60% | |
>1 to 5 | 83.98% | |
>5 to 10 | 21.32% | |
>10 to 15 | 0.29% | |
>15 to 20 | 0.00% | |
>20 to 25 | 3.25% | |
>25 yrs. | 5.76% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Bond Fund | ||||||||||||||
Institutional Class | 2.82% | 2.43% | 5.16% | 12/29/1987 | $16,543 | |||||||||
Administrative Class | 2.56 | 2.17 | 4.90 | 11/01/2002 | 16,140 | |||||||||
Comparative Index | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 4.19% | — | $15,070 |
a | Reflects a contractual management fee waiver and an expense limitation agreement (excluding interest expense, if any), each effective through February 28, 2018 |
Portfolio of Investments—October 31, 2017
ASSET-BACKED SECURITIES—9.7% | |||
Principal Amount | Value | ||
Allegro CLO I Ltd.1 | |||
Series 2013 Cl. 1A | |||
$ | 6,500 | 2.531% (3 Month USD Libor + 1.220) 01/30/20262,3 | $ 6,529 |
Apidos CLO XVIII1 | |||
Series 2014 Cl. 18A | |||
4,000 | 2.483% (3 Month USD Libor + 1.120) 07/22/20262,3 | 4,010 | |
Arbor Realty Commercial Real Estate Notes Ltd. | |||
Series 2017-FL1 Cl. A | |||
6,800 | 2.539% (1 Month USD Libor + 1.300) 04/15/20272,3 | 6,909 | |
Argent Securities Inc. | |||
Series 2006-W4 Cl. A2C | |||
6,778 | 1.398% (1 Month USD Libor + 0.160) 05/25/20362 | 2,676 | |
Series 2005-W2 Cl. A2C | |||
2,823 | 1.598% (1 Month USD Libor + 0.360) 10/25/20352 | 2,837 | |
Series 2004-W11 Cl. M3 | |||
939 | 2.363% (1 Month USD Libor + 0.750) 11/25/20342 | 921 | |
6,434 | |||
Asset Backed Securities Corp. Home Equity Loan Trust | |||
Series 2003-HE4 Cl. M1 | |||
6,034 | 2.479% (1 Month USD Libor + 0.830) 08/15/20332 | 6,075 | |
Cent CLO 21 Ltd.1 | |||
Series 2014 Cl. A1BR | |||
5,700 | 2.527% (3 Month USD Libor + 1.210) 07/27/20262,3 | 5,722 | |
Countrywide Asset-Backed Certificates | |||
Series 2006-21 Cl. 2A3 | |||
2,418 | 1.388% (1 Month USD Libor + 0.150) 05/25/20372 | 2,357 | |
Series 2006-ABC1 Cl. A3 | |||
4,649 | 1.478% (1 Month USD Libor + 0.240) 05/25/20362 | 2,616 | |
Series 2006-2 Cl. M1 | |||
1,200 | 1.638% (1 Month USD Libor + 0.400) 06/25/20362 | 1,176 | |
Series 2001-BC3 Cl. A | |||
171 | 1.718% (1 Month USD Libor + 0.240) 12/25/20312 | 138 | |
6,287 | |||
Dryden XXV Senior Loan Fund | |||
Series 2012-25A Cl. APR | |||
5,500 | 2.259% (3 Month USD Libor + 0.900) 10/15/20272,3 | 5,500 |
ASSET-BACKED SECURITIES—Continued | |||
Principal Amount | Value | ||
First Franklin Mortgage Loan Trust | |||
Series 2006-FF10 Cl. A4 | |||
$ | 636 | 1.388% (1 Month USD Libor + 0.150) 07/25/20362 | $ 635 |
Flagship VII Ltd. | |||
Series 2013 Cl. 7A | |||
4,600 | 2.427% (3 Month USD Libor + 1.120) 01/20/20262,3 | 4,624 | |
Ford Credit Auto Lease Trust | |||
Series 2017-A Cl. A2B | |||
4,600 | 1.379% (1 Month USD Libor + 0.140) 11/15/20192 | 4,602 | |
Series 2017-A Cl. A2A | |||
3,300 | 1.560%—11/15/2019 | 3,300 | |
7,902 | |||
Fortress Credit BSL II Ltd. | |||
Series 2013-2A Cl. A1FR | |||
6,800 | 2.456% (3 Month USD Libor + 1.150) 10/19/20252,3 | 6,831 | |
GM Financial Consumer Automobiles Receivables Trust | |||
Series 2017-1A Cl. A2A | |||
5,500 | 1.510%—03/16/20203 | 5,497 | |
GSAA Trust | |||
Series 2006-20 Cl. 1A2 | |||
5,124 | 1.418% (1 Month USD Libor + 0.180) 12/25/20462 | 3,126 | |
Series 2007-9 Cl. A1A | |||
2,048 | 6.000%—08/25/2047 | 1,904 | |
5,030 | |||
GSAMP Trust | |||
Series 2007-FM1 Cl. 2A2 | |||
123 | 1.308% (1 Month USD Libor + 0.070) 12/25/20362 | 66 | |
Home Equity Asset Trust | |||
Series 2005-2 Cl. M4 | |||
3,044 | 1.937% (1 Month USD Libor + 0.700) 07/25/20352 | 3,069 | |
HSI Asset Securitization Corp. Trust | |||
Series 2006-HE2 Cl. 2A3 | |||
5,645 | 1.408% (1 Month USD Libor + 0.170) 12/25/20362 | 2,552 | |
IXIS Real Estate Capital Trust | |||
Series 2005-HE1 Cl. M4 | |||
3,333 | 2.288% (1 Month USD Libor + 1.050) 06/25/20352 | 3,131 | |
JPMorgan Mortgage Acquisition Corp. | |||
Series 2006-HE1 Cl.A4 | |||
4,531 | 1.528% (1 Month USD Libor + 0.290) 01/25/20362 | 4,471 | |
JPMorgan Mortgage Acquisition Trust | |||
Series 2007-HE1 Cl. AF3 | |||
1,068 | 6.174%—05/25/20354 | 794 | |
Kitty Hawk CLO LLC1 | |||
Series 2015 Cl. 1A | |||
4,000 | 2.569% (3 Month USD Libor + 1.210) 04/15/20272,3 | 4,020 | |
MASTR Asset Backed Securities Trust | |||
Series 2006-HE2 Cl. A4 | |||
6,213 | 1.478% (1 Month USD Libor + 0.240) 06/25/20362 | 3,773 | |
Mid-State Trust | |||
Series 2004-1 Cl. A | |||
1,337 | 6.005%—08/15/2037 | 1,455 |
Portfolio of Investments—Continued
ASSET-BACKED SECURITIES—Continued | |||
Principal Amount | Value | ||
Morgan Stanley ABS Capital I Inc. Trust | |||
Series 2006-HE8 Cl. A1 | |||
$ | 2,239 | 1.368% (1 Month USD Libor + 0.130) 10/25/20362 | $ 2,074 |
Series 2007-HE1 Cl. A2C | |||
2,407 | 1.388% (1 Month USD Libor + 0.150) 11/25/20362 | 1,631 | |
3,705 | |||
Morgan Stanley Dean Witter Capital I | |||
Series 2002-HE1 Cl. M1 | |||
1,403 | 2.138% (1 Month USD Libor + 0.600) 07/25/20322 | 1,416 | |
Navient Student Loan Trust | |||
Series 2017-3A Cl. A1 | |||
5,504 | 1.538% (1 Month USD Libor + 0.300) 07/26/20662,3 | 5,513 | |
Novastar Mortgage Funding Trust | |||
Series 2007-2 Cl. A2C | |||
6,105 | 1.418% (1 Month USD Libor + 0.180) 09/25/20372 | 5,108 | |
OneMain Financial Issuance Trust | |||
Series 2017-1A Cl. A1 | |||
5,500 | 2.370%—09/14/20323 | 5,491 | |
Option One Mortgage Loan Trust | |||
Series 2007-6 Cl. 2A4 | |||
4,987 | 1.488% (1 Month USD Libor + 0.250) 07/25/20372 | 3,228 | |
OZLM Funding V Ltd. | |||
Series 2013 Cl. 5A | |||
5,700 | 2.483% (3 Month USD Libor + 1.130) 01/17/20262,3 | 5,730 | |
Park Place Securities Inc. | |||
Series 2005-WCW3 Cl. M1 | |||
8,274 | 1.718% (1 Month USD Libor + 0.480) 08/25/20352 | 8,261 | |
People's Financial Realty Mortgage Securities Trust | |||
Series 2006-1 Cl. 1A2 | |||
4,891 | 1.368% (1 Month USD Libor + 0.130) 09/25/20362 | 1,578 | |
RAMP Trust | |||
Series 2004-RS8 Cl. MII1 | |||
750 | 2.137% (1 Month USD Libor + 0.600) 08/25/20342 | 736 | |
RASC Trust | |||
Series 2005-EMX3 Cl. M5 | |||
3,400 | 1.888% (1 Month USD Libor + 0.650) 09/25/20352 | 3,230 | |
Securitized Asset Backed Receivables LLC Trust | |||
Series 2005-FR5 Cl. M1 | |||
13,852 | 1.898% (1 Month USD Libor + 0.440) 08/25/20352 | 8,886 | |
SG Mortgage Securities Trust | |||
Series 2006-OPT2 Cl. A3D | |||
6,900 | 1.448% (1 Month USD Libor + 0.210) 10/25/20362 | 4,840 | |
Small Business Administration Participation Certificates | |||
Series 2003-20I Cl. 1 | |||
65 | 5.130%—09/01/2023 | 69 | |
Series 2009-20A Cl. 1 | |||
2,942 | 5.720%—01/01/2029 | 3,209 | |
Series 2008-20H Cl. 1 | |||
5,968 | 6.020%—08/01/2028 | 6,557 |
ASSET-BACKED SECURITIES—Continued | |||
Principal Amount | Value | ||
Series 2001-20A Cl. 1 | |||
$ | 80 | 6.290%—01/01/2021 | $ 84 |
9,919 | |||
Soundview Home Loan Trust | |||
Series 2006-WF2 Cl. A1 | |||
1,400 | 1.368% (1 Month USD Libor + 0.130) 12/25/20362 | 1,399 | |
Specialty Underwriting & Residential Finance Trust | |||
Series 2006-BC4 Cl. A2B | |||
3,267 | 1.348% (1 Month USD Libor + 0.110) 09/25/20372 | 1,598 | |
Structured Asset Securities Co. | |||
Series 2007-MN1A Cl. A1 | |||
24,705 | 1.468% (1 Month USD Libor + 0.230) 01/25/20372,3 | 17,231 | |
Student Loan Marketing Association Student Loan Marketing Association | |||
Series 2013-B Cl. A2A | |||
6,162 | 1.850%—06/17/20303 | 6,160 | |
Telos CLO Ltd.1 | |||
Series 2014 Cl. 6A | |||
4,500 | 2.623% (3 Month USD Libor + 1.270) 01/17/20272,3 | 4,518 | |
Venture XVI CLO Ltd.1 | |||
Series 2014 Cl. 16A | |||
6,800 | 2.424% (3 Month USD Libor + 1.120) 04/15/20262,3 | 6,820 | |
Volt LXI LLC | |||
Series 2017-NPL8 Cl. A1 | |||
5,131 | 3.125%—06/25/20473,4 | 5,158 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $200,784) | 211,841 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—8.0% | |||
Adjustable Rate Mortgage Trust | |||
Series 2006-3 Cl. 4A2 | |||
3,404 | 1.358% (1 Month USD Libor + 0.120) 08/25/20362 | 2,192 | |
Alba plc | |||
Series 2007-1 Cl. A3 | |||
£ | 3,072 | 0.503%—03/17/20395 | 3,935 |
Banc of America Funding Corp. | |||
Series 2007-C Cl. 7A5 | |||
$ | 1,397 | 1.539% (1 Month USD Libor + 0.300) 05/20/20472 | 1,272 |
Banc of America Merrill Lynch Commercial Mortgage Securities Trust | |||
Series 2016-ASHF Cl. A | |||
7,000 | 3.139% (1 Month USD Libor + 1.900) 12/15/20332,3 | 7,047 | |
BCAP LLC Trust | |||
Series 2007-AA2 Cl. 12A1 | |||
9,250 | 1.448% (1 Month USD Libor + 0.210) 05/25/20472 | 8,729 | |
Series 2011-RR5 Cl. 12A1 | |||
649 | 5.028%—03/26/20373,4 | 640 | |
Series 2011-RR4 Cl. 8A1 | |||
2,738 | 5.250%—02/26/20363,5 | 2,329 | |
Series 2011-RR5 Cl. 5A1 | |||
3,377 | 5.250%—08/26/20373,5 | 3,480 | |
15,178 |
Portfolio of Investments—Continued
COLLATERALIZED MORTGAGE OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
Bear Stearns Adjustable Rate Mortgage Trust | |||
Series 2000-2 Cl. A1 | |||
$ | 20 | 2.779%—11/25/20305 | $ 19 |
Series 2004-10 Cl. 12A3 | |||
44 | 3.346%—01/25/20355 | 45 | |
Series 2004-1 Cl. 12A5 | |||
420 | 3.633%—04/25/20345 | 422 | |
Series 2006-4 Cl. 1A1 | |||
658 | 3.676%—10/25/20365 | 635 | |
1,121 | |||
Bear Stearns Alt-A Trust | |||
Series 2005-4 Cl. 1A1 | |||
300 | 1.678% (1 Month USD Libor + 0.220) 07/25/20352 | 302 | |
BX Trust | |||
Series 2017 Cl. A | |||
6,800 | 2.159%—07/15/20343,5 | 6,829 | |
Chase Mortgage Finance Corp. | |||
Series 2006-A1 Cl. 4A1 | |||
2,364 | 3.551%—09/25/20365 | 2,322 | |
Countrywide Alternative Loan Trust | |||
Series 2005-59 Cl. 1A1 | |||
8,391 | 1.569% (1 Month USD Libor + 0.330) 11/20/20352 | 7,962 | |
Series 2006-6BC Cl. 1A2 | |||
4,407 | 1.637% (1 Month USD Libor + 0.400) 05/25/20362 | 3,556 | |
Series 2005-84 Cl. 1A1 | |||
3,632 | 3.269%—02/25/20365 | 3,121 | |
Series 2005-20CB Cl. 2A5 | |||
2,900 | 5.500%—07/25/2035 | 2,682 | |
Series 2006-36T2 Cl. 1A4 | |||
1,397 | 5.750%—12/25/2036 | 1,035 | |
Series 2006-39CB Cl. 1A20 | |||
5,873 | 6.000%—01/25/2037 | 5,743 | |
24,099 | |||
Countrywide Home Loan Mortgage Pass Through Trust | |||
Series 2007-HY5 Cl. 1A1 | |||
1,309 | 3.780%—09/25/20475 | 1,277 | |
Credit Suisse First Boston Mortgage Securities Corp. | |||
Series 2006-C2 Cl. A3 | |||
450 | 6.000%—11/25/2035 | 382 | |
Deutsche Alt-A Securities Inc. Mortgage Loan Trust | |||
Series 2007-AR2 Cl. A1 | |||
6,451 | 1.388% (1 Month USD Libor + 0.150) 03/25/20372 | 5,881 | |
DSLA Mortgage Loan Trust | |||
Series 2006-AR1 Cl. 1A1A | |||
3,024 | 1.809% (Fed 12 Month Treasury Average CMT + 0.920) 03/19/20462 | 2,763 | |
Eurohome UK Mortgages plc | |||
Series 2007-1 Cl. A | |||
£ | 2,804 | 0.477%—06/15/20445 | 3,612 |
First Horizon Asset Securities Inc. | |||
Series 2005-AR6 Cl. 4A1 | |||
$ | 1,721 | 3.125%—02/25/20365 | 1,678 |
First Nationwide Trust | |||
Series 2001-3 Cl. 1A1 | |||
1 | 6.750%—08/21/2031 | — |
COLLATERALIZED MORTGAGE OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
GS Mortgage Securities Corp. Trust | |||
Series 2016-RENT Cl. A | |||
$ | 6,900 | 3.203%—02/10/20293 | $ 7,033 |
GSMPS Mortgage Loan Trust | |||
Series 2006-RP2 Cl. 1AF1 | |||
6,270 | 1.637% (1 Month USD Libor + 0.400) 04/25/20362,3 | 5,525 | |
GSR Mortgage Loan Trust | |||
Series 2005-AR7 Cl. 6A1 | |||
472 | 3.407%—11/25/20355 | 468 | |
Series 2005-AR3 Cl. 3A1 | |||
795 | 3.630%—05/25/20355 | 754 | |
Series 2006-2F Cl. 2A13 | |||
2,279 | 5.750%—02/25/2036 | 2,231 | |
3,453 | |||
HarborView Mortgage Loan Trust | |||
Series 2004-8 Cl. 2A3 | |||
1,001 | 2.058% (1 Month USD Libor + 0.410) 11/19/20342 | 894 | |
HomeBanc Mortgage Trust | |||
Series 2006-H2 Cl. A2 | |||
5,426 | 1.418% (1 Month USD Libor + 0.180) 12/25/20362 | 5,353 | |
Homestar Mortgage Acceptance Corp. | |||
Series 2004-5 Cl. M3 | |||
1,532 | 2.963% (1 Month USD Libor + 1.150) 10/25/20342 | 1,521 | |
IndyMac ARM Trust | |||
Series 2001-H2 Cl. A2 | |||
7 | 2.557%—01/25/20325 | 6 | |
IndyMac IMSC Mortgage Loan Trust | |||
Series 2007-F2 Cl. 2A1 | |||
3,018 | 6.500%—07/25/2037 | 2,002 | |
IndyMac INDX Mortgage Loan Trust | |||
Series 2005-AR31 Cl. 1A1 | |||
1,643 | 3.269%—01/25/20365 | 1,496 | |
Series 2007-AR13 Cl. 4A1 | |||
16,350 | 3.314%—07/25/20375 | 13,957 | |
15,453 | |||
JP Morgan Chase Commercial Mortgage Securities Corp. | |||
Series 2016-WPT Cl. A | |||
5,000 | 2.677% (1 Month USD Libor + 1.450) 10/15/20332,3 | 5,025 | |
JP Morgan Mortgage Trust | |||
Series 2006-A6 Cl. 1A4L | |||
3,767 | 3.558%—10/25/20365 | 3,351 | |
Series 2006-S1 Cl. 3A1 | |||
1,005 | 5.500%—04/25/2036 | 1,029 | |
4,380 | |||
JP Morgan Re-REMIC6 | |||
Series 2009-7 Cl. 11A1 | |||
89 | 3.611%—09/27/20363,5 | 92 | |
Mansard Mortgages plc | |||
Series 2007-2X Cl. A1 | |||
£ | 1,342 | 0.977%—12/15/20495 | 1,755 |
Merrill Lynch Alternative Note Asset Trust | |||
Series 2007-F1 Cl. 2A6 | |||
$ | 701 | 6.000%—03/25/2037 | 572 |
Merrill Lynch Mortgage Investors Inc. | |||
Series 2005-3 Cl. 4A | |||
65 | 1.487% (1 Month USD Libor + 0.250) 11/25/20352 | 62 |
Portfolio of Investments—Continued
COLLATERALIZED MORTGAGE OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
Morgan Stanley Bank of America Merrill Lynch Trust | |||
Series 2015-C22 Cl. ASB | |||
$ | 6,000 | 3.040%—04/15/2048 | $ 6,136 |
Provident Funding Mortgage Loan Trust | |||
Series 2005-2 Cl. 3A | |||
3,678 | 3.687%—10/25/20355 | 3,688 | |
Residential Accredit Loans Inc. | |||
Series 2006-QA7 Cl. 2A1 | |||
5,178 | 1.423% (1 Month USD Libor + 0.185) 08/25/20362 | 4,762 | |
Series 2007-QS4 Cl. 3A9 | |||
2,565 | 6.000%—03/25/2037 | 2,299 | |
7,061 | |||
Residential Asset Securitization Trust | |||
Series 2007-A8 Cl. 2A1 | |||
19,123 | 6.250%—08/25/2037 | 9,810 | |
Residential Funding Mortgage Securities I | |||
Series 2007-SA1 Cl. 2A2 | |||
356 | 4.032%—02/25/20375 | 288 | |
Series 2006-SA1 Cl. 2A1 | |||
363 | 4.412%—02/25/20365 | 332 | |
620 | |||
RMAC Securities plc | |||
Series 2006-NS4X Cl. A3A | |||
£ | 2,020 | 0.462%—06/12/20445 | 2,596 |
Structured Adjustable Rate Mortgage Loan Trust | |||
Series 2007-1 Cl. 1A1 | |||
$ | 2,865 | 1.388% (1 Month USD Libor + 0.150) 02/25/20372 | 2,413 |
Series 2001-21A Cl. 3A1 | |||
771 | 3.584%—04/25/20355 | 772 | |
3,185 | |||
Structured Asset Mortgage Investments Inc. | |||
Series 2005-AR5 Cl. A2 | |||
595 | 1.487% (1 Month USD Libor + 0.250) 07/19/20352 | 584 | |
Suntrust Adjustable Rate Mortgage Loan Trust | |||
Series 2007-S1 Cl. 1A | |||
930 | 3.675%—01/25/20375 | 885 | |
Washington Mutual Mortgage Pass Through Certificates Trust | |||
Series 2005-AR13 Cl. A1A1 | |||
287 | 1.528% (1 Month USD Libor + 0.290) 10/25/20452 | 289 | |
Series 2005-AR6 Cl. 2A1A | |||
596 | 1.698% (1 Month USD Libor + 0.230) 04/25/20452 | 587 | |
Series 2006-AR11 Cl. 3A1A | |||
2,565 | 1.809% (Fed 12 Month Treasury Average CMT + 0.920) 09/25/20462 | 2,379 | |
3,255 | |||
Wells Fargo Mortgage Backed Securities Trust | |||
Series 2006-AR10 Cl. 1A1 | |||
3,951 | 3.304%—07/25/20365 | 3,855 | |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $157,458) | 174,691 | ||
CORPORATE BONDS & NOTES—28.6% | |||
Principal Amount | Value | ||
AUTOMOBILES—1.1% | |||
Ford Motor Credit Co. LLC | |||
$ | 5,000 | 2.551%—10/05/2018 | $ 5,032 |
1,550 | 3.200%—01/15/2021 | 1,586 | |
10,050 | 8.125%—01/15/2020 | 11,268 | |
17,886 | |||
General Motors Financial Co. Inc. | |||
2,800 | 3.150%—01/15/2020 | 2,853 | |
800 | 3.200%—07/13/2020 | 818 | |
1,400 | 6.750%—06/01/2018 | 1,439 | |
5,110 | |||
Volkswagen Group of America Finance LLC | |||
1,700 | 1.650%—05/22/20183 | 1,698 | |
24,694 | |||
BANKS—14.2% | |||
Banco Espirito Santo SA MTN7 | |||
€ | 3,500 | 0.000%—01/15/2018* | 1,182 |
Bank of America Corp. MTN7 | |||
$ | 18,300 | 2.393% (3 Month USD Libor + 1.070) 03/22/20182 | 18,363 |
4,030 | 5.650%—05/01/2018 | 4,108 | |
7,800 | 6.875%—04/25/2018 | 7,991 | |
30,462 | |||
Barclays Bank plc | |||
1,700 | 7.750% (USD Swap Semi 30/360 5Y + 6.833) 04/10/20232 | 1,740 | |
£ | 3,600 | 14.000%—06/15/20195,8 | 5,636 |
7,376 | |||
Barclays plc | |||
$ | 6,300 | 3.419% (3 Month USD Libor + 2.110) 08/10/20212 | 6,612 |
5,200 | 3.684%—01/10/2023 | 5,316 | |
€ | 2,300 | 6.500%—09/15/20195,8 | 2,887 |
£ | 2,400 | 7.000%—06/15/20495,8 | 3,374 |
18,189 | |||
BB&T Corp. MTN7 | |||
$ | 19,500 | 2.180% (3 Month USD Libor + 0.860) 06/15/20182 | 19,584 |
BBVA Bancomer SA | |||
1,200 | 6.500%—03/10/20213 | 1,316 | |
CIT Group Inc. | |||
600 | 3.875%—02/19/2019 | 611 | |
100 | 5.375%—05/15/2020 | 107 | |
334 | 5.500%—02/15/20193 | 350 | |
1,068 | |||
Citigroup Inc. | |||
3,500 | 1.700%—04/27/2018 | 3,499 | |
3,000 | 2.350%—08/02/2021 | 2,987 | |
4,000 | 2.746% (3 Month USD Libor + 1.430) 09/01/20232 | 4,111 | |
6,800 | 2.750%—04/25/2022 | 6,827 | |
17,424 | |||
JP Morgan Chase & Co. | |||
5,500 | 2.400%—06/07/2021 | 5,511 | |
4,500 | 2.550%—03/01/2021 | 4,530 | |
5,000 | 2.750%—06/23/2020 | 5,079 | |
15,120 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
BANKS—Continued | |||
KBC Bank NV | |||
$ | 3,600 | 8.000%—01/25/20235 | $ 3,654 |
Lloyds Bank plc | |||
7,300 | 12.000% (3 Month USD Libor + 11.756) 12/16/20242,3,8 | 9,887 | |
Lloyds Banking Group plc | |||
£ | 4,200 | 7.000%—12/29/20495,8 | 5,948 |
National Australia Bank Ltd. | |||
$ | 950 | 2.250%—03/16/20213 | 948 |
Nordea Kredit Realkreditaktieselskab | |||
DKK$ | 239,648 | 1.000%—10/01/2018 | 38,058 |
Nykredit Realkredit AS | |||
590,600 | 1.000%—04/01/2018-10/01/2018 | 93,546 | |
80,700 | 2.000%—04/01/2018-10/01/2018 | 12,830 | |
106,376 | |||
Royal Bank of Canada | |||
$ | 4,300 | 2.300%—03/22/2021 | 4,311 |
Sumitomo Mitsui Financial Group Inc. | |||
6,900 | 2.997% (3 Month USD Libor + 1.680) 03/09/20212 | 7,121 | |
Sumitomo Mitsui Trust Bank Ltd. | |||
8,100 | 1.764% (1 Month USD Libor + 0.440) 09/19/20192,3 | 8,109 | |
Wells Fargo & Co. | |||
3,100 | 2.610% (3 Month USD Libor + 1.230) 10/31/20232 | 3,191 | |
11,500 | 7.980% (3 Month USD Libor + 3.770) 03/15/20182,8 | 11,751 | |
14,942 | |||
311,075 | |||
BIOTECHNOLOGY—0.2% | |||
Baxalta Inc. | |||
5,200 | 2.875%—06/23/2020 | 5,278 | |
BUILDING PRODUCTS—0.0% | |||
Owens Corning | |||
300 | 4.200%—12/01/2024 | 316 | |
CAPITAL MARKETS—4.9% | |||
Blackstone CQP Holdco LP | |||
3,900 | 6.000%—08/18/20213 | 3,906 | |
8,000 | 6.500%—03/20/20213 | 8,101 | |
12,007 | |||
BM & FBOVESPA SA | |||
1,300 | 5.500%—07/16/2020 | 1,373 | |
Credit Suisse Group Funding Guernsey Ltd. | |||
8,900 | 3.750%—03/26/2025 | 9,155 | |
3,445 | 3.800%—09/15/2022 | 3,583 | |
12,738 | |||
Deutsche Bank AG | |||
3,500 | 2.329% (3 Month USD Libor + 0.970) 07/13/20202 | 3,515 | |
Deutsche Bank AG MTN7 | |||
13,700 | 2.850%—05/10/2019 | 13,824 | |
E*Trade Financial Corp. | |||
5,100 | 2.950%—08/24/2022 | 5,107 | |
Goldman Sachs Group Inc. | |||
7,700 | 2.160% (3 Month USD Libor + 0.780) 10/31/20222 | 7,701 | |
Morgan Stanley MTN7 | |||
1,700 | 2.125%—04/25/2018 | 1,703 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
CAPITAL MARKETS—Continued | |||
$ | 11,700 | 2.647% (3 Month USD Libor + 1.280) 04/25/20182 | $ 11,763 |
8,508 | 5.625%—09/23/2019 | 9,051 | |
22,517 | |||
Piper Jaffray Cos. | |||
2,000 | 5.060%—10/09/20183 | 2,041 | |
UBS AG | |||
8,000 | 1.897% (3 Month USD Libor + 0.580) 06/08/20202,3 | 8,041 | |
UBS AG MTN7 | |||
6,800 | 1.637% (3 Month USD Libor + 0.320) 12/07/20182,3 | 6,815 | |
1,800 | 2.166% (3 Month USD Libor + 0.850) 06/01/20202 | 1,823 | |
8,638 | |||
UBS Group Funding Jersey Ltd. | |||
8,500 | 3.000%—04/15/20213 | 8,634 | |
106,136 | |||
CONSUMER FINANCE—1.0% | |||
Capital One Financial Corp. | |||
5,500 | 1.832% (3 Month USD Libor + 0.450) 10/30/20202 | 5,506 | |
5,400 | 2.400%—10/30/2020 | 5,401 | |
10,907 | |||
Discover Bank | |||
2,900 | 2.600%—11/13/2018 | 2,918 | |
Discover Financial Services | |||
5,000 | 5.500% (3 Month USD Libor + 3.076) 12/31/20992,8 | 5,106 | |
OneMain Financial Holdings Inc. | |||
1,600 | 6.750%—12/15/20193 | 1,662 | |
1,500 | 7.250%—12/15/20213 | 1,562 | |
3,224 | |||
22,155 | |||
DIVERSIFIED FINANCIAL SERVICES—2.7% | |||
Brfkredit AS | |||
DKK$ | 12,300 | 1.000%—04/01/2018 | 1,938 |
Cantor Fitzgerald LP | |||
$ | 5,400 | 6.500%—06/17/20223 | 6,050 |
Depository Trust & Clearing Corp. | |||
3,000 | 4.875% (3 Month USD Libor + 3.167) 06/15/20202,3,8 | 3,120 | |
Leaseplan Corp. NV | |||
7,300 | 2.875%—01/22/20193 | 7,312 | |
Nykredit Realkredit AS | |||
DKK$ | 137,900 | 2.000%—04/01/2018 | 21,819 |
Realkredit Danmark AS | |||
66,600 | 1.000%—04/01/2018 | 10,495 | |
Rio Oil Finance Trust | |||
$ | 1,791 | 9.250%—07/06/20243 | 1,945 |
6,665 | 9.750%—01/06/20273 | 7,190 | |
9,135 | |||
59,869 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—1.5% | |||
AT&T Inc. | |||
6,400 | 2.800%—02/17/2021 | 6,496 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
DIVERSIFIED TELECOMMUNICATION SERVICES—Continued | |||
$ | 5,000 | 3.600%—02/17/2023 | $ 5,175 |
5,000 | 4.450%—05/15/2021 | 5,355 | |
17,026 | |||
Verizon Communications Inc. | |||
2,070 | 2.946%—03/15/2022 | 2,103 | |
12,695 | 3.376%—02/15/20253 | 12,792 | |
14,895 | |||
31,921 | |||
ELECTRIC UTILITIES—0.3% | |||
FirstEnergy Corp. | |||
5,840 | 4.250%—03/15/2023 | 6,187 | |
ENERGY EQUIPMENT & SERVICES—0.2% | |||
Odebrecht Drilling Norbe VIII/IX Ltd. | |||
5,291 | 0.000%—06/30/2022*,3 | 3,212 | |
Odebrecht Offshore Drilling Finance Ltd. | |||
3,774 | 0.000%—10/1/2023*,3 | 1,391 | |
165 | 0.000%—10/01/2023*,3 | 64 | |
1,455 | |||
4,667 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITs)—0.2% | |||
AvalonBay Communities Inc. MTN7 | |||
4,400 | 3.450%—06/01/2025 | 4,537 | |
FOOD & STAPLES RETAILING—0.0% | |||
CVS Pass-Through Trust | |||
585 | 6.943%—01/10/2030 | 696 | |
HEALTH CARE EQUIPMENT & SUPPLIES—0.2% | |||
Boston Scientific Corp. | |||
4,900 | 2.850%—05/15/2020 | 4,972 | |
MORTGAGE REAL ESTATE INVESTMENT TRUSTS (REITs)—0.5% | |||
ERP Operating LP | |||
5,500 | 3.375%—06/01/2025 | 5,630 | |
Simon Property Group LP | |||
6,000 | 2.500%—09/01/2020 | 6,058 | |
11,688 | |||
OIL, GAS & CONSUMABLE FUELS—0.4% | |||
Enbridge Inc. | |||
5,500 | 1.750% (3 Month USD Libor + 0.400) 01/10/20202 | 5,495 | |
Genesis Energy LP | |||
2,100 | 5.625%—06/15/2024 | 2,090 | |
7,585 | |||
PHARMACEUTICALS—0.2% | |||
Teva Pharmaceutical Finance Netherlands III BV | |||
4,334 | 1.400%—07/20/2018 | 4,312 | |
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.2% | |||
Tesco Property Finance 5 plc | |||
£ | 2,268 | 5.661%—10/13/2041 | 3,558 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS—0.2% | |||
Dell International LLC | |||
$ | 4,000 | 5.450%—06/15/20233 | 4,387 |
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
TOBACCO—0.5% | |||
BAT Capital Corp | |||
$ | 1,500 | 1.905% (3 Month USD Libor + 0.590) 08/14/20202,3 | $ 1,508 |
6,500 | 2.195% (3 Month USD Libor + 0.880) 08/15/20222,3 | 6,565 | |
8,073 | |||
Imperial Brands Finance plc | |||
2,000 | 2.050%—02/11/20183 | 2,001 | |
10,074 | |||
WIRELESS TELECOMMUNICATION SERVICES—0.1% | |||
Sprint Capital Corp. | |||
1,700 | 6.900%—05/01/2019 | 1,798 | |
TOTAL CORPORATE BONDS & NOTES | |||
(Cost $625,914) | 625,905 | ||
ESCROW— 0.0% | |||
(Cost $15) | |||
Shares | |||
AUTOMOBILES—0.0% | |||
36,000 | General Motors Co. Escrow | — x | |
FOREIGN GOVERNMENT OBLIGATIONS—17.0% | |||
Principal Amount | |||
Brazil Letras Do Tesouro Nacional | |||
R$ | 217,300 | 0.000%—01/01/2018-07/01/20189 | 63,723 |
Brazil Notas Do Tesouro Nacional Série F | |||
79,600 | 10.000%—01/01/2023 | 25,562 | |
Bundesrepublik Deutschland | |||
€ | 2,100 | 2.500%—07/04/2044 | 3,214 |
3,100 | 3.250%—07/04/2042 | 5,316 | |
8,530 | |||
Hellenic Railways Organization SA | |||
3,500 | 5.014%—12/27/2017 | 4,062 | |
Japan Bank For International Cooperation | |||
$ | 6,800 | 2.375%—07/21/2022 | 6,799 |
Japan Finance Organization For Municipalities MTN7 | |||
6,800 | 2.625%—04/20/20223 | 6,824 | |
Japan International Cooperation Agency | |||
6,900 | 2.750%—04/27/2027 | 6,860 | |
Japan Treasury Discount Bill | |||
¥ | 24,750,000 | 0.000%—11/06/2017-01/29/20189 | 217,699 |
Province of Ontario Canada | |||
$ | 6,100 | 1.650%—09/27/2019 | 6,074 |
CAD$ | 5,600 | 3.150%—06/02/2022 | 4,555 |
$ | 3,800 | 4.000%—10/07/2019 | 3,949 |
2,300 | 4.400%—04/14/2020 | 2,431 | |
17,009 |
Portfolio of Investments—Continued
FOREIGN GOVERNMENT OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
Province of Quebec Canada | |||
CAD$ | 4,700 | 3.500%—07/29/2020-12/01/2022 | $ 4,082 |
13,900 | 4.250%—12/01/2021 | 11,741 | |
15,823 | |||
TOTAL FOREIGN GOVERNMENT OBLIGATIONS | |||
(Cost $385,853) | 372,891 | ||
MORTGAGE PASS-THROUGH—52.0% | |||
Federal Home Loan Mortgage Corp. | |||
$ | 9 | 3.050% (US Treasury Yield Curve Rate T Note 1 Year CMT + 2.209) 06/01/20242 | 10 |
46 | 3.339% (US Treasury Yield Curve Rate T Note 1 Year CMT + 2.250) 08/01/20352 | 49 | |
368 | 4.500%—12/01/2040-09/01/2041 | 394 | |
1,259 | 5.500%—02/01/2038-07/01/2038 | 1,402 | |
4,842 | 6.000%—01/01/2029-05/01/2040 | 5,466 | |
7,321 | |||
Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates | |||
19,141 | 1.278%—08/25/20225 | 969 | |
Federal Home Loan Mortgage Corp. REMIC6 | |||
7,158 | 1.634% (1 Month USD Libor + 0.400) 06/15/20412 | 7,183 | |
28 | 1.684% (1 Month USD Libor + 0.450) 11/15/20302 | 28 | |
58 | 8.000%—08/15/2022 | 64 | |
8 | 9.000%—12/15/2020 | 8 | |
7,283 | |||
Federal Home Loan Mortgage Corp. Structured Pass Through Securities | |||
Series T-63 Cl. 1A1 | |||
130 | 2.089% (Fed 12 Month Treasury Average CMT + 1.200) 02/25/20452 | 132 | |
Series E3 Cl. A | |||
107 | 3.269%—08/15/20325 | 111 | |
243 | |||
Federal Home Loan Mortgage Corp. TBA10 | |||
38,000 | 3.500%—12/13/2046 | 38,991 | |
14,000 | 4.000%—11/14/2046 | 14,693 | |
15,000 | 4.500%—11/12/2045-12/13/2046 | 16,016 | |
69,700 | |||
Federal Housing Authority Project | |||
1 | 7.400%—02/01/2021 | 1 y | |
Federal National Mortgage Association | |||
241 | 2.289% (Fed 12 Month Treasury Average CMT + 1.400) 10/01/20402 | 245 | |
5,300 | 2.310%—08/01/2022 | 5,304 | |
10,938 | 2.475%—04/01/2019 | 11,003 | |
6,000 | 2.870%—09/01/2027 | 6,025 | |
1,203 | 3.000%—02/01/2021-11/01/2025 | 1,234 | |
446 | 3.330%—11/01/2021 | 462 | |
75 | 3.387% (12 Month USD Libor + 1.674) 05/01/20352 | 79 | |
1,277 | 3.448% (12 Month USD Libor + 1.693) 08/01/20352 | 1,343 | |
162 | 3.500%—03/01/2026-05/01/2027 | 169 | |
1,166 | 3.580% (12 Month USD Libor + 1.715) 06/01/20352 | 1,228 | |
88,697 | 4.000%—04/01/2018-12/13/2046 | 92,930 | |
11,388 | 4.500%—01/01/2018-10/01/2042 | 11,988 |
MORTGAGE PASS-THROUGH—Continued | |||
Principal Amount | Value | ||
$ | 6,897 | 5.000%—12/01/2022-07/01/2044 | $ 7,515 |
36,373 | 5.500%—02/01/2023-09/01/2041 | 40,516 | |
10,887 | 6.000%—03/01/2023-06/01/2040 | 12,320 | |
192,361 | |||
Federal National Mortgage Association REMIC6 | |||
Series 2015-38 Cl. DF | |||
7,834 | 1.542% (1 Month USD Libor + 0.310) 06/25/20552 | 7,827 | |
Series 2006-5 Cl. 3A2 | |||
104 | 3.288%—05/25/20355 | 109 | |
Series 2011-98 Cl. ZL | |||
69,036 | 3.500%—10/25/2041 | 69,192 | |
Series 2003-25 Cl. KP | |||
644 | 5.000%—04/25/2033 | 704 | |
Series 2003-W1 Cl. 1A1 | |||
202 | 6.500%—12/25/20425 | 218 | |
78,050 | |||
Federal National Mortgage Association TBA10 | |||
274,000 | 3.000%—01/17/2028-12/13/2047 | 273,859 | |
236,000 | 3.500%—12/19/2031-12/13/2047 | 242,697 | |
106,000 | 4.000%—11/13/2047 | 111,234 | |
82,000 | 4.500%—12/13/2046-11/13/2047 | 87,649 | |
715,439 | |||
Government National Mortgage Association | |||
28,373 | 5.000%—08/15/2033-11/20/2047 | 30,813 | |
Government National Mortgage Association II | |||
159 | 2.125% (US Treasury Yield Curve Rate T Note 1 Year CMT + 7.500) 08/20/2022-07/20/20272 | 163 | |
120 | 2.250% (US Treasury Yield Curve Rate T Note 1 Year CMT + 7.500) 10/20/2025-11/20/20292 | 124 | |
354 | 2.375% (US Treasury Yield Curve Rate T Note 1 Year CMT + 3.000) 01/20/2025-02/20/20322 | 368 | |
23 | 2.500% (US Treasury Yield Curve Rate T Note 1 Year CMT + 1.500) 12/20/20242 | 23 | |
27 | 2.625% (US Treasury Yield Curve Rate T Note 1 Year CMT + 1.500) 05/20/20242 | 27 | |
705 | |||
Government National Mortgage Association TBA10 | |||
2,000 | 3.000%—11/21/2046 | 2,023 | |
9,000 | 3.500%—11/21/2046 | 9,336 | |
24,000 | 4.000%—12/21/2046-11/20/2047 | 25,193 | |
36,552 | |||
TOTAL MORTGAGE PASS-THROUGH | |||
(Cost $1,135,655) | 1,139,437 | ||
MUNICIPAL BONDS—1.1% | |||
Chicago Transit Authority | |||
170 | 6.300%—12/01/2021 | 181 | |
City of Chicago, IL | |||
5,800 | 7.750%—01/01/2042 | 6,340 | |
Clark County, NV | |||
4,000 | 6.350%—07/01/2029 | 4,280 | |
University of California | |||
12,270 | 4.858%—05/15/2112 | 13,413 | |
TOTAL MUNICIPAL BONDS | |||
(Cost $22,089) | 24,214 | ||
Portfolio of Investments—Continued
U.S. GOVERNMENT OBLIGATIONS—26.6% | |||
Principal Amount | Value | ||
U.S. Treasury Bonds | |||
$ | 19,600 | 2.250%—08/15/2046 | $ 17,172 |
34,200 | 2.500%—02/15/2045-02/15/2046 | 31,794 | |
4,800 | 2.750%—08/15/2047 | 4,676 | |
16,800 | 2.875%—05/15/2043 | 16,883 | |
9,400 | 3.000%—05/15/2042 | 9,698 | |
69,800 | 3.125%—02/15/2042-08/15/2044 | 73,418 | |
1,800 | 3.625%—02/15/2044 | 2,061 | |
4,200 | 4.250%—05/15/2039 | 5,239 | |
10,500 | 4.375%—05/15/2040 | 13,338 | |
12,000 | 4.625%—02/15/2040 | 15,740 | |
190,019 | |||
U.S. Treasury Notes | |||
16,800 | 1.375%—03/31/202011 | 16,682 | |
21,000 | 1.750%—09/30/202211 | 20,732 | |
25,100 | 1.875%—07/31/2022 | 24,953 | |
94,000 | 2.000%—08/31/2021-12/31/202111 | 94,353 | |
51,300 | 2.125%—09/30/2024 | 50,972 | |
147,200 | 2.250%—11/15/2024-08/15/202711 | 146,151 | |
38,300 | 2.375%—05/15/2027 | 38,319 | |
392,162 | |||
TOTAL U.S. GOVERNMENT OBLIGATIONS | |||
(Cost $593,231) | 582,181 | ||
SHORT-TERM INVESTMENTS—11.5% | |||
BANKER'S ACCEPTANCE—0.4% | |||
Bank of Nova Scotia | |||
7,100 | 1.000%—11/27/2017 | 5,499 | |
Toronto Dominion Bank | |||
4,400 | 1.000%—11/20/2017 | 3,409 | |
8,908 | |||
CERTIFICATES OF DEPOSIT—1.7% | |||
Barclays plc | |||
28,800 | 1.940%—09/04/2018 | 28,843 | |
Mizuho Bank Ltd. | |||
9,500 | 2.010% (3 Month USD Libor + 0.700) 12/12/20172 | 9,500 | |
38,343 | |||
COMMERCIAL PAPER—3.4% | |||
Arrow Electronics Inc. | |||
5,500 | 1.800%—11/14/20173 | 5,496 | |
Deutsche Telekom AG | |||
5,000 | 1.630%—01/30/2018 | 4,979 | |
Electricite de France SA | |||
9,200 | 1.870%—01/05/2018 | 9,175 |
SHORT-TERM INVESTMENTS—Continued | |||
Principal Amount | Value | ||
COMMERCIAL PAPER—Continued | |||
Enbridge Energy Prtns | |||
$ | 5,000 | 2.250%—12/05/20173 | $ 4,989 |
ENI Finance USA Inc. | |||
5,000 | 1.500%—12/06/2017 | 4,993 | |
Entergy Corp. | |||
5,200 | 1.650%—11/17/2017 | 5,196 | |
Enterprise Prods Oper LLC | |||
400 | 1.410%—11/20/2017 | 400 | |
Glencore Funding LLC | |||
6,600 | 1.650%—01/17/2018 | 6,576 | |
ING US Funding LLC | |||
5,100 | 1.430% (1 Month USD Libor + 0.190) 07/23/20182 | 5,100 | |
Southern Co. Gas Capital | |||
5,500 | 1.520%—01/03/2018 | 5,486 | |
Toyota Industries Comm | |||
7,000 | 1.375%—02/22/2018 | 6,971 | |
Transcanada American | |||
15,300 | 1.550%—12/11/2017 | 15,274 | |
74,635 | |||
REPURCHASE AGREEMENTS—5.7% | |||
95,400 | Repurchase Agreement with Barclays Capital Inc. dated October 31, 2017 due November 01, 2017 at 1.180% collateralized by U.S. Treasury Notes (value $96,371) | 95,400 | |
14,689 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $14,984) | 14,689 | |
13,800 | Repurchase Agreement with Paribas dated October 31, 2017 due November 01, 2017 at 1.200% collateralized by U.S. Treasury Inflation Indexed Bonds (value $14,008) | 13,800 | |
123,889 | |||
U.S. GOVERNMENT OBLIGATIONS—0.3% | |||
U.S. Treasury Bills | |||
5,749 | 1.035%—01/04/2018 | 5,738 | |
TOTAL SHORT-TERM INVESTMENTS | |||
(Cost $251,573) | 251,513 | ||
TOTAL INVESTMENTS—154.5% | |||
(Cost $3,372,572) | 3,382,673 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(54.5)% | (1,192,907) | ||
TOTAL NET ASSETS—100.0% | $ 2,189,766 |
Description | Number of Contracts | Expiration Date | Current Notional Value (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||
Canadian Government Bond Futures 10 year (Short) | 195 | 12/18/2017 | CAD$ 26,799 | $ 72 | ||||
Euro-BTP Futures (Short) | 198 | 12/07/2017 | € 27,639 | (493) | ||||
Euro-BUND Futures (Long) | 777 | 12/07/2017 | 126,457 | 594 | ||||
Euro-OAT Futures (Short) | 1,052 | 12/07/2017 | 165,648 | (1,679) | ||||
Euro-Schatz Futures (Short) | 321 | 12/07/2017 | 36,037 | (35) | ||||
United Kingdom GILT Futures 90 day (Short) | 237 | 12/27/2017 | £ 29,466 | 828 |
Portfolio of Investments—Continued
Description | Number of Contracts | Expiration Date | Current Notional Value (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||
Japanese Government Bond Futures 10 year (Long) | 5 | 12/13/2017 | ¥ 752,350 | $ (21) | ||||
Eurodollar Futures-CME 90 day (Short) | 1,826 | 12/18/2017 | $ 449,607 | 610 | ||||
Eurodollar Futures-CME 90 day (Short) | 583 | 03/19/2018 | 143,345 | 237 | ||||
Eurodollar Futures-CME 90 day (Short) | 361 | 06/18/2018 | 88,657 | 166 | ||||
Eurodollar Futures-CME 90 day (Short) | 589 | 12/17/2018 | 144,415 | 198 | ||||
Eurodollar Futures-CME 90 day (Short) | 265 | 03/18/2019 | 64,938 | 34 | ||||
Eurodollar Futures-CME 90 day (Short) | 950 | 06/17/2019 | 232,667 | 75 | ||||
Eurodollar Futures-CME 90 day (Short) | 440 | 09/16/2019 | 107,712 | 93 | ||||
U.S. Treasury Bond Futures 30 year (Short) | 492 | 12/19/2017 | 75,015 | 1,172 | ||||
U.S. Treasury Note Futures 5 year (Long) | 5,409 | 12/29/2017 | 633,867 | (5,760) | ||||
U.S. Treasury Note Futures 10 year (Long) | 959 | 12/19/2017 | 119,815 | (484) | ||||
Ultra U.S. Treasury Bond Futures 30 year (Long) | 368 | 12/19/2017 | 60,639 | (1,061) | ||||
Total Futures Contracts | $(5,454) |
Description | Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||
Euro-Bund Futures (Put) | Eurex | € 145.00 | 11/24/2017 | 829 | $11 | $10 | ||||||
Total Purchased Options that Require Periodic Settlement of Variation Margin | $11 | $10 |
Description | Counterparty/Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||
Eurodollar Futures (Put) | CME Group | $ 98.25 | 03/19/2018 | 1,090 | $ 96 | $ 61 | ||||||
Federal National Mortgage Association Futures 30 year (Put) | JP Morgan Chase Bank NA | 72.00 | 12/06/2017 | 32,900,000 | 1 | — | ||||||
U.S. Treasury Note Option 5 year (Put) | Chicago Board of Trade | 106.50 | 11/24/2017 | 196 | 2 | — | ||||||
U.S. Treasury Note Option 5 year (Put) | Chicago Board of Trade | 111.75 | 11/24/2017 | 3,122 | 27 | 3 | ||||||
U.S. Treasury Note Option 5 year (Put) | Chicago Board of Trade | 112.25 | 11/24/2017 | 3,421 | 29 | 4 | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 107.50 | 11/24/2017 | 4 | — | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 114.00 | 11/24/2017 | 271 | 2 | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 114.50 | 11/24/2017 | 210 | 2 | — | ||||||
Total Purchased Options Not Settled Through Variation Margin | $159 | $ 68 |
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 30 year (Put) | Goldman Sachs Bank USA | 3-Month USD-LIBOR | Receive | 2.930% | 08/20/2018 | 6,000,000 | $ 637 | $161 | ||||||||
Interest Rate Swap Option 30 year (Put) | Goldman Sachs Bank USA | 3-Month USD-LIBOR | Receive | 2.940 | 08/20/2018 | 5,300,000 | 518 | 120 | ||||||||
Interest Rate Swap Option 30 year (Put) | Morgan Stanley Capital Services LLC | 3-Month USD-LIBOR | Receive | 2.910 | 08/20/2018 | 16,600,000 | 1,637 | 410 | ||||||||
Total Purchased Swap Options Not Settled Through Variation Margin | $2,792 | $691 | ||||||||||||||
Total Purchased Options | $2,962 | $769 |
Description | Counterparty/Exchange | Strike Index/Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Citibank NA | 215.950 j | 03/12/2020 | 14,100,000 | $ 119 | $ — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Citibank NA | 216.690 j | 04/07/2020 | 33,900,000 | 302 | — |
Portfolio of Investments—Continued
Description | Counterparty/Exchange | Strike Index/Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Citibank NA | $��� 217.970j | 09/29/2020 | 15,100,000 | $ 195 | $ — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Deutsche Bank AG | 215.950 j | 03/10/2020 | 5,100,000 | 38 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Deutsche Bank AG | 218.010 j | 10/13/2020 | 15,600,000 | 153 | — | ||||||
Currency Option U.S. Dollar vs. Brazilian Real (Call) | Credit Suisse International | $ 6.30 | 01/11/2018 | 7,900,000 | 421 | — | ||||||
Currency Option U.S. Dollar vs. Brazilian Real (Call) | Credit Suisse International | 3.48 | 01/30/2018 | 6,200,000 | 64 | (60) | ||||||
Currency Option U.S. Dollar vs. Brazilian Real (Call) | Deutsche Bank AG | 3.35 | 11/30/2017 | 3,200,000 | 22 | (22) | ||||||
Currency Option U.S. Dollar vs. Brazilian Real (Call) | Goldman Sachs Bank USA | 3.40 | 01/03/2018 | 4,000,000 | 38 | (41) | ||||||
Currency Option U.S. Dollar vs. Brazilian Real (Call) | Goldman Sachs Bank USA | 3.40 | 12/27/2017 | 9,700,000 | 91 | (87) | ||||||
Currency Option U.S. Dollar vs. Brazilian Real (Call) | Goldman Sachs Bank USA | 3.41 | 12/28/2017 | 4,900,000 | 39 | (44) | ||||||
Currency Option U.S. Dollar vs. South Korean Won (Call) | Société Générale Paris | 1,169.00 | 11/09/2017 | 4,200,000 | 29 | (1) | ||||||
Currency Option U.S. Dollar vs. South Korean Won (Call) | UBS AG Stamford | 1,168.00 | 11/09/2017 | 9,000,000 | 63 | (2) | ||||||
Eurodollar Futures (Call) | CME Group | 98.75 | 03/19/2018 | 1,090 | 116 | (7) | ||||||
Total Written Options Not Settled Through Variation Margin | $1,690 | $(264) |
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 5 year (Put) | Goldman Sachs Bank USA | 3-Month USD-LIBOR | Pay | 2.800% | 08/20/2018 | 49,600,000 | $1,155 | $(137) | ||||||||
Interest Rate Swap Option 5 year (Put) | Morgan Stanley Capital Services LLC | 3-Month USD-LIBOR | Pay | 2.800 | 08/20/2018 | 72,800,000 | 1,625 | (200) | ||||||||
Total Written Swap Options Not Settled Through Variation Margin | $2,780 | $(337) | ||||||||||||||
Total Written Options | $4,470 | $(601) |
Counterparty | Amount to be Delivered (000s) | Amount to be Received (000s) | Settlement Date | Unrealized Appreciation/ (Depreciation) (000s) | ||||
BNP Paribas SA | $ 7,760 | AUD$ 10,161 | 12/04/2017 | $ 14 | ||||
JP Morgan Chase Bank NA | $ 7,903 | AUD$ 10,161 | 11/02/2017 | (127) | ||||
BNP Paribas SA | AUD$ 10,161 | $ 7,763 | 11/02/2017 | (14) | ||||
BNP Paribas SA | $ 19,906 | R$ 68,400 | 04/03/2018 | 613 | ||||
Citibank NA | $ 1,240 | R$ 3,911 | 11/03/2017 | (45) | ||||
Citibank NA | $ 1,226 | R$ 3,911 | 12/04/2017 | (36) | ||||
Deutsche Bank AG | $ 3,184 | R$ 10,406 | 11/03/2017 | (5) | ||||
Goldman Sachs Bank USA | $ 3,136 | R$ 10,276 | 11/03/2017 | 4 | ||||
JP Morgan Chase Bank | $ 7,839 | R$ 25,000 | 01/03/2018 | (257) | ||||
JP Morgan Chase Bank | $ 480 | R$ 1,653 | 01/03/2018 | 21 | ||||
BNP Paribas SA | R$ 1,653 | $ 483 | 01/03/2018 | (18) | ||||
Citibank NA | R$ 3,911 | $ 1,230 | 11/03/2017 | 36 | ||||
Citibank NA | R$ 83,900 | $ 24,960 | 07/03/2018 | 74 | ||||
Deutsche Bank AG | R$ 10,406 | $ 3,176 | 11/03/2017 | (4) | ||||
Goldman Sachs Bank USA | R$ 10,276 | $ 3,145 | 11/03/2017 | 6 | ||||
Goldman Sachs Bank USA | R$ 54,500 | $ 16,225 | 07/03/2018 | 60 | ||||
HSBC Bank USA | R$ 28,500 | $ 8,446 | 04/03/2018 | (104) | ||||
JP Morgan Chase Bank | R$ 35,600 | $ 9,764 | 01/03/2018 | (1,033) | ||||
JP Morgan Chase Bank | R$ 140,800 | $ 41,756 | 04/03/2018 | (482) | ||||
JP Morgan Chase Bank | R$ 56,700 | $ 16,862 | 07/03/2018 | 44 | ||||
Barclays Bank plc | $ 18,702 | £ 14,041 | 11/15/2017 | (46) | ||||
Goldman Sachs Bank USA | $ 1,183 | £ 872 | 11/15/2017 | (24) | ||||
JP Morgan Chase Bank NA | $ 1,851 | £ 1,392 | 11/15/2017 | (2) | ||||
BNP Paribas SA | £ 3,351 | $ 4,334 | 11/15/2017 | (119) | ||||
Citibank NA | £ 7,079 | $ 9,261 | 11/15/2017 | (145) | ||||
Goldman Sachs Bank USA | £ 7,620 | $ 9,930 | 11/15/2017 | (195) | ||||
Goldman Sachs Bank USA | £ 12,848 | $ 17,443 | 11/15/2017 | 371 | ||||
JP Morgan Chase Bank NA | £ 13,909 | $ 17,989 | 11/15/2017 | (492) | ||||
Citibank NA | $ 5,728 | CAD$ 7,345 | 11/02/2017 | (34) | ||||
Goldman Sachs Bank USA | $ 10,013 | CAD$ 12,927 | 11/02/2017 | 7 | ||||
Goldman Sachs Bank USA | $ 3,696 | CAD$ 4,747 | 12/04/2017 | (15) |
Portfolio of Investments—Continued
Counterparty | Amount to be Delivered (000s) | Amount to be Received (000s) | Settlement Date | Unrealized Appreciation/ (Depreciation) (000s) | ||||
JP Morgan Chase Bank NA | $ 3,764 | CAD$ 4,833 | 11/01/2017 | $ (17) | ||||
JP Morgan Chase Bank NA | $ 12,497 | CAD$ 16,082 | 11/02/2017 | (31) | ||||
UBS AG | $ 5,695 | CAD$ 7,345 | 12/04/2017 | — | ||||
BNP Paribas SA | CAD$ 7,094 | $ 5,496 | 12/04/2017 | (4) | ||||
Citibank NA | CAD$ 25,046 | $ 20,137 | 11/02/2017 | 722 | ||||
Goldman Sachs Bank USA | CAD$ 12,927 | $ 10,016 | 12/04/2017 | (7) | ||||
JP Morgan Chase Bank NA | CAD$ 3,963 | $ 3,138 | 11/02/2017 | 66 | ||||
UBS AG | CAD$ 7,345 | $ 5,694 | 11/02/2017 | — | ||||
Goldman Sachs Bank USA | DKK$ 165,215 | $ 26,746 | 04/03/2018 | 629 | ||||
Goldman Sachs Bank USA | DKK$ 81,978 | $ 13,412 | 07/02/2018 | 373 | ||||
Goldman Sachs Bank USA | DKK$ 12,005 | $ 1,971 | 10/01/2018 | 49 | ||||
Société Générale | DKK$ 139,535 | $ 22,482 | 07/02/2018 | 287 | ||||
Société Générale | DKK$ 433,353 | $ 71,330 | 10/01/2018 | 1,964 | ||||
UBS AG | DKK$ 34,790 | $ 5,554 | 01/02/2018 | 86 | ||||
UBS AG | DKK$ 183,270 | $ 29,383 | 04/03/2018 | 412 | ||||
UBS AG | DKK$ 70,933 | $ 11,465 | 07/02/2018 | 182 | ||||
UBS AG | DKK$ 25,415 | $ 4,100 | 10/01/2018 | 32 | ||||
BNP Paribas SA | $ 15,431 | € 12,970 | 11/15/2017 | (311) | ||||
BNP Paribas SA | $ 32,855 | € 28,226 | 11/15/2017 | 51 | ||||
Citibank NA | $ 40,457 | € 34,364 | 11/15/2017 | (396) | ||||
JP Morgan Chase Bank NA | $ 14,817 | € 12,384 | 11/15/2017 | (380) | ||||
UBS AG | $ 2,309 | € 1,952 | 11/15/2017 | (33) | ||||
Citibank NA | € 2,698 | $ 3,233 | 11/15/2017 | 88 | ||||
Deutsche Bank AG | € 15,666 | $ 18,704 | 11/15/2017 | 441 | ||||
Goldman Sachs Bank USA | € 949 | $ 1,104 | 11/15/2017 | (2) | ||||
JP Morgan Chase Bank NA | € 58,077 | $ 69,646 | 11/15/2017 | 1,940 | ||||
Credit Suisse International | $ 328 | ₹ 21,478 | 12/04/2017 | 3 | ||||
Citibank NA | $ 2,732 | ¥ 307,500 | 11/15/2017 | (26) | ||||
Deutsche Bank AG | $ 14,595 | ¥ 1,657,000 | 11/15/2017 | (13) | ||||
Deutsche Bank AG | $ 2,733 | ¥ 311,500 | 11/15/2017 | 8 | ||||
Goldman Sachs Bank USA | $ 57,958 | ¥ 6,332,500 | 11/15/2017 | (2,230) | ||||
JP Morgan Chase Bank NA | $ 71,692 | ¥ 7,985,100 | 11/15/2017 | (1,421) | ||||
JP Morgan Chase Bank NA | $ 16,087 | ¥ 1,835,300 | 11/15/2017 | 64 | ||||
BNP Paribas SA | ¥ 5,550,000 | $ 50,695 | 11/13/2017 | 1,858 | ||||
BNP Paribas SA | ¥ 3,872,800 | $ 34,635 | 11/15/2017 | 553 | ||||
BNP Paribas SA | ¥ 1,600,000 | $ 14,287 | 01/10/2018 | 163 | ||||
Citibank NA | ¥ 1,370,000 | $ 12,430 | 11/06/2017 | 379 | ||||
JP Morgan Chase Bank NA | ¥ 800,000 | $ 7,261 | 11/06/2017 | 223 | ||||
JP Morgan Chase Bank NA | ¥ 621,400 | $ 5,462 | 11/15/2017 | (6) | ||||
JP Morgan Chase Bank NA | ¥ 11,865,200 | $ 108,206 | 11/15/2017 | 3,789 | ||||
JP Morgan Chase Bank NA | ¥ 4,860,000 | $ 44,661 | 11/20/2017 | 1,882 | ||||
JP Morgan Chase Bank NA | ¥ 1,220,000 | $ 10,886 | 01/10/2018 | 116 | ||||
JP Morgan Chase Bank NA | ¥ 3,460,000 | $ 30,944 | 01/22/2018 | 381 | ||||
JP Morgan Chase Bank NA | ¥ 3,600,000 | $ 32,028 | 01/29/2018 | 217 | ||||
UBS AG | ¥ 1,051,000 | $ 9,337 | 11/15/2017 | 88 | ||||
UBS AG | ¥ 1,220,000 | $ 10,972 | 11/27/2017 | 230 | ||||
UBS AG | ¥ 1,070,000 | $ 9,641 | 12/18/2017 | 207 | ||||
Citibank NA | $ 2,560 | MEX$ 49,326 | 12/15/2017 | (8) | ||||
Deutsche Bank AG | $ 10,984 | MEX$ 212,792 | 12/15/2017 | 27 | ||||
HSBC Bank USA | $ 36,848 | MEX$ 710,465 | 12/15/2017 | (85) | ||||
JP Morgan Chase Bank NA | NZD$ 826 | $ 594 | 11/02/2017 | 29 | ||||
Citibank NA | $ 20,219 | SGD$ 27,446 | 12/04/2017 | (78) | ||||
Citibank NA | $ 4,450 | SGD$ 6,066 | 12/04/2017 | 2 | ||||
HSBC Bank USA | $ 3,271 | SGD$ 4,467 | 12/04/2017 | 7 | ||||
Goldman Sachs Bank USA | SGD$ 53,201 | $ 39,087 | 12/04/2017 | 47 | ||||
Citibank NA | $ 1 | ₩ 1,146 | 12/04/2017 | — | ||||
Credit Suisse International | $ 1 | ₩ 1,146 | 12/04/2017 | — | ||||
Goldman Sachs Bank USA | $ 1,879 | ₩ 2,152,770 | 12/04/2017 | 47 | ||||
HSBC Bank USA | $ 6,859 | ₩ 7,754,923 | 12/04/2017 | 78 | ||||
UBS AG | ₩ 78,255,113 | $ 68,884 | 12/04/2017 | (1,116) | ||||
Goldman Sachs Bank USA | $ 9,247 | TWD$ 276,948 | 12/18/2017 | (30) | ||||
Royal Bank of Scotland plc | $ 11,453 | TWD$ 342,674 | 12/18/2017 | (48) | ||||
Société Générale | TWD$ 2,070,584 | $ 68,642 | 12/04/2017 | (212) | ||||
Total Forward Currency Contracts | $ 9,319 |
Portfolio of Investments—Continued
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
CME Group | Brazil Cetip Interbank Deposit | Pay | 8.180% | At maturity | 01/02/2020 | R$ 139,700 | $(108) | $ 16 | $ (124) | |||||||||
CME Group | Brazil Cetip Interbank Deposit | Pay | 8.220 | At maturity | 01/02/2020 | 314,900 | (175) | (97) | (78) | |||||||||
CME Group | Canada Bankers Acceptances-CDOR 3-Month | Receive | 2.700 | Semiannual | 12/19/2024 | CAD$ 6,500 | (220) | (535) | 315 | |||||||||
CME Group | Canada Bankers Acceptances-CDOR 3-Month | Receive | 1.750 | Semiannual | 12/16/2046 | 1,900 | 255 | (25) | 280 | |||||||||
LCH Group | EUR-EURIBOR-Act/ 360-Bloomberg 6-Month | Pay | 1.500 | Annual | 03/21/2048 | € 5,500 | (111) | (193) | 82 | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Receive | 1.000 | Semiannual | 03/21/2023 | £ 39,300 | 448 | (359) | 807 | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Receive | 1.500 | Semiannual | 03/21/2028 | 34,000 | (310) | (882) | 572 | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Receive | 1.750 | Semiannual | 03/21/2048 | 10,500 | (499) | (419) | (80) | |||||||||
CME Group | British Bankers' Association LIBOR JPY 6-Month | Receive | 0.300 | Semiannual | 03/18/2026 | ¥ 12,590,000 | (688) | (718) | 30 | |||||||||
LCH Group | British Bankers' Association LIBOR JPY 6-Month | Receive | 0.300 | Semiannual | 09/20/2027 | 2,180,000 | (33) | (114) | 81 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Receive | 2.000 | Semiannual | 12/16/2019 | $ 46,700 | (438) | (1,240) | 802 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Receive | 1.250 | Semiannual | 06/21/2020 | 73,300 | 994 | 1,702 | (708) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Receive | 2.500 | Semiannual | 12/20/2027 | 35,600 | (331) | (1,019) | 688 | |||||||||
Interest Rate Swaps | $2,667 |
Counterparty | Reference Entity | Buy/ Sellb,c | Pay/Receive Fixed Rate | Expiration Date | Implied Credit Spreadd | Payment Frequency | Notional Amounte (000s) | Value f (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||||||||
ICE Group | TESCO PLC 6.000% due 12/14/2029 | Buy | 1.000% | 06/20/2022 | 1.320% | Quarterly | € 5,000 | $ 30 | $(245) | $275 | ||||||||||
ICE Group | Volkswagen International Finance 5.380% due 05/22/2018 | Buy | 1.000 | 12/20/2017 | 0.131 | Quarterly | € 2,100 | 6 | 16 | (10) | ||||||||||
ICE Group | MetLife, Inc. 4.750% due 02/08/2021 | Buy | 1.000 | 06/20/2021 | 0.400 | Quarterly | $ 2,100 | 55 | 12 | 43 | ||||||||||
ICE Group | MetLife, Inc. 4.750% due 02/08/2021 | Buy | 1.000 | 12/20/2021 | 0.486 | Quarterly | $ 6,900 | 185 | 2 | 183 | ||||||||||
ICE Group | The Goldman Sachs Group, Inc. 5.950% due 01/18/2018 | Buy | 1.000 | 09/20/2020 | 0.439 | Quarterly | $ 8,000 | 154 | 127 | 27 | ||||||||||
Credit Default Swaps | $518 |
Portfolio of Investments—Continued
Counterparty | Reference Entity | Buy/ Sellb,c | Pay/Receive Fixed Rate | Expiration Date | Implied Credit Spreadd | Payment Frequency | Notional Amounte (000s) | Value f (000s) | Upfront Premiums (Received)/ Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||||||||
BNP Paribas SA | Petroleo Brasileiro SA Petrobras 8.380% due 12/10/2018 | Sell | 1.000% | 06/20/2018 | 0.721% | Quarterly | $ 900 | $ 4 | $(131) | $ 135 | ||||||||||
Goldman Sachs International | Petroleo Brasileiro SA Petrobras 8.380% due 12/10/2018 | Sell | 1.000 | 12/20/2019 | 1.407 | Quarterly | 400 | 2 | (42) | 44 | ||||||||||
HSBC Bank USA NA | Petroleo Brasileiro SA Petrobras 8.380% due 12/10/2018 | Sell | 1.000 | 03/20/2020 | 1.528 | Quarterly | 200 | 1 | (36) | 37 | ||||||||||
JP Morgan Chase Bank NA | Petroleo Brasileiro SA Petrobras 8.380% due 12/10/2018 | Sell | 1.000 | 12/20/2019 | 1.407 | Quarterly | 2,100 | 10 | (237) | 247 | ||||||||||
Credit Default Swaps | $ 463 | |||||||||||||||||||
Total Swaps | $3,648 |
Principal Amount (000s) | Security | Proceeds (000s) | Value (000s) | |||
$ 21,500 | Federal National Mortgage Association TBA10 6.000%—11/13/2047 | $24,198 | $(24,139) |
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 | ||||||||
Asset-Backed Securities | $ — | $ 211,841 | $— | $ 211,841 | ||||
Collateralized Mortgage Obligations | — | 174,691 | — | 174,691 | ||||
Corporate Bonds & Notes | — | 625,905 | — | 625,905 | ||||
Escrow | — | — | — | — | ||||
Foreign Government Obligations | — | 372,891 | — | 372,891 | ||||
Mortgage Pass-Through | — | 1,139,436 | 1 | 1,139,437 | ||||
Municipal Bonds | — | 24,214 | — | 24,214 | ||||
U.S. Government Obligations | — | 582,181 | — | 582,181 | ||||
Short-Term Investments | ||||||||
Banker’s Acceptance | — | 8,908 | — | 8,908 | ||||
Certificates of Deposit | — | 38,343 | — | 38,343 | ||||
Commercial Paper | — | 74,635 | — | 74,635 | ||||
Repurchase Agreements | — | 123,889 | — | 123,889 | ||||
U.S. Government Obligations | — | 5,738 | — | 5,738 | ||||
Total Investments in Securities | $ — | $3,382,672 | $ 1 | $3,382,673 | ||||
Financial Derivative Instruments - Assets | ||||||||
Forward Currency Contracts | $ — | $ 18,970 | $— | $ 18,970 | ||||
Futures Contracts | 4,079 | — | — | 4,079 | ||||
Purchased Options | 78 | 691 | — | 769 | ||||
Swap Agreements | — | 4,648 | — | 4,648 | ||||
Total Financial Derivative Instruments - Assets | $ 4,157 | $ 24,309 | $— | $ 28,466 | ||||
Liability Category | ||||||||
Fixed Income Investments Sold Short | $ — | $ (24,139) | $— | $ (24,139) | ||||
Financial Derivative Instruments - Liabilities | ||||||||
Forward Currency Contracts | $ — | $ (9,651) | $— | $ (9,651) | ||||
Futures Contracts | (9,533) | — | — | (9,533) |
Portfolio of Investments—Continued
Liability Category | Quoted Prices Level 1 (000s) | Other Significant Observable Inputs Level 2 (000s) | Significant Unobservable Inputs Level 3 (000s) | Total (000s) | ||||
Swap Agreements | $ — | $ (1,000) | $— | $ (1,000) | ||||
Written Options | (7) | (594) | — | (601) | ||||
Total Financial Derivative Instruments - Liabilities | $(9,540) | $ (11,245) | $— | $ (20,785) | ||||
Total Investments | $(5,383) | $3,371,597 | $ 1 | $3,366,215 |
Valuation Description | Balance Beginning at 11/01/2016 (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 10/31/2017w (000s) | |||||||||
Corporate Bonds & Notes | $23,331 | $— | $(23,750) | $— | $475 | $(56) | $— | $— | $— | |||||||||
Escrow | — | — | — | — | — | — | — | — | — | |||||||||
Mortgage Pass-Through | 5 | — | (4) | — | 1 | (1) | — | — | 1 | |||||||||
$23,336 | $— | $(23,754) | $— | $476 | $(57) | $— | $— | $ 1 |
Valuation Descriptions | Ending Balance as of 10/31/2017 (000s) | Valuation Technique | Unobservable Inputs | Input Value(s) | ||||
Investments in Securities | ||||||||
Escrow | ||||||||
General Motors Co. Escrow | $ — | Cash Available in Relation to Claims | Estimated Recovery Value | $ 0.00 | ||||
Mortgage Pass-Through | ||||||||
Federal Housing Authority Project | $ 1 | Income Approach | Base Price | 100.40 | ||||
$ 1 |
Overnight and Continuous (000s) | Up to 30 days (000s) | 31-90 days (000s) | Greater Than 90 days (000s) | Total (000s) | |||||
Sale-Buyback Transactions | |||||||||
U.S. Government Obligations | $95,381 | $— | $— | $159,649 | $255,030 |
Portfolio of Investments—Continued
* | Security in Default. | ||
1 | CLO after the name of a security stands for Collateralized Loan Obligation. | ||
2 | Variable rate security, the stated rate represents the rate in effect at October 31, 2017. | ||
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, 2017, the aggregate value of these securities was $282,179,000 or 13% of net assets. | ||
4 | Step coupon security, the stated rate represents the rate in effect at October 31, 2017. | ||
5 | Floating rate security, the stated rate represents the rate in effect at October 31, 2017. | ||
6 | REMICs are CMOs which can hold mortgages secured by any type of real property and issue multiple-class securities backed by those mortgages. | ||
7 | MTN after the name of a security stands for Medium Term Note. | ||
8 | Perpetuity bond, the maturity date represents the next callable date. | ||
9 | Zero coupon bond. | ||
10 | TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after October 31, 2017. Although the unit price for the trades has been established, the principal value has not been finalized. However, the amount of the commitments will not fluctuate more than 2% from the principal amount. Income on TBAs is not earned until settlement date (see Note 2 of the accompanying Notes to Financial Statements). | ||
11 | At October 31, 2017, a portion of securities held by the Fund were pledged to cover margin requirements for open future contracts, written options on futures contracts and swap options (see Note 2 of the accompanying Notes to Financial Statements). The securities pledged had an aggregate value of $24,733,000 or 1% of net assets. | ||
b | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | ||
c | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | ||
d | Implied credit spreads, represented in absolute terms, utilized in determining the value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. | ||
e | The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. | ||
f | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. | ||
j | Amount represents Index Value. | ||
w | 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 10/31/2017 (000s) | ||
Escrow | $(15) | ||
Mortgage Pass-Through | — | ||
$(15) | |||
x | Fair Valued in accordance with Harbor Funds Valuation Procedures using estimated recovery value which is a Level 3 input. | ||
y | Fair Valued by subadviser in accordance with Harbor Funds Valuation Procedures using quoted prices from other actively traded securities with similar terms which is a Level 3 input. | ||
AUD$ | Australian Dollar | ||
R$ | Brazilian Real | ||
£ | British Pound | ||
CAD$ | Canadian Dollar | ||
¥ | Chinese Yuan | ||
DKK$ | Denmark Krone | ||
€ | Euro | ||
₹ | Indian Rupee | ||
MEX$ | Mexican Peso | ||
NZD$ | New Zealand Dollar | ||
SGD$ | Singapore Dollar | ||
R | South African Rand | ||
₩ | South Korean Won | ||
TWD$ | New Taiwan Dollar |
Managers' Commentary (Unaudited)
Newport Beach, CA
92660
Since 2007
Since 2015
Fund Performance
• | A modest allocation to non-agency mortgages as non-agency mortgage backed securities performed well amid continued favorable market technicals and stable residential real estate fundamentals |
Managers' Commentary—Continued
TOP TEN ISSUERS (% of net assets) | |
U.S. Treasury | 118.0% |
Federal National Mortgage Association | 6.2% |
Federal National Mortgage Association TBA | 3.0% |
U.K. Gilt Inflation Linked | 2.6% |
Japan Treasury Discount Bill | 1.9% |
New Zealand Government Bond | 1.2% |
Lavender Trust | 0.9% |
Japan Government CPI Linked Bond | 0.8% |
Navient Corp. | 0.8% |
Long Beach Mortgage Loan Trust | 0.7% |
• | An allocation to select U.S. dollar-denominated emerging market debt, as these positions outperformed over the period |
• | Nominal interest rate strategies in the U.S., specifically an underweight to longer-dated maturities, as yields rose during the 2017 fiscal year. |
• | We maintained an underweight duration position overall at October 31, 2017, sourced primarily in U.K. and Japanese rates. We favor rate exposure in countries offering higher real yields, including inflation-linked bonds in New Zealand |
• | Within TIPS, we favor the belly of the real yield curve given higher real rates; we plan to seek attractive security mispricings, including taking exposure in off-the-run vs. on-the-run issues given relative cheapness |
• | U.K. long-dated breakevens appear rich to us while U.S. breakevens remains attractively priced; we plan to pursue this opportunity by going overweight U.S. versus short exposure to U.K. breakevens |
• | Within currency, we are long select emerging market countries, including the Brazilian real and Indian rupee. |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2025 |
Cusip | 411511520 |
Ticker | HARRX |
Inception Date | 12/01/2005 |
Net Expense Ratio | 0.54% a |
Total Net Assets (000s) | $99,929 |
ADMINISTRATIVE CLASS | |
Fund # | 2225 |
Cusip | 411511512 |
Ticker | HRRRX |
Inception Date | 12/01/2005 |
Net Expense Ratio | 0.77% a |
Total Net Assets (000s) | $1,461 |
Portfolio Statistics | |||
Portfolio | Benchmark | ||
Average Market Coupon | 1.40% | 0.73% | |
Yield to Maturity | 2.90% | 2.35% | |
Current 30-Day Yield (Institutional Class) | 0.13% | 0.77% | |
Weighted Average Maturity | 7.85 years | 8.36 years | |
Weighted Average Duration | 7.47 years | 7.74 years | |
Portfolio Turnover (Year Ended 10/31/2017) | 758% | N/A |
MATURITY PROFILE | ||
Years to Maturity | % of Investments | |
0 to 1 yr. | 19.54% | |
>1 to 5 | 15.68% | |
>5 to 10 | 52.21% | |
>10 to 15 | 0.52% | |
>15 to 20 | 0.14% | |
>20 to 25 | 2.21% | |
>25 yrs. | 9.70% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Real Return Fund | ||||||||||||||
Institutional Class | 0.92% | -0.38% | 3.81% | 12/01/2005 | $14,530 | |||||||||
Administrative Class | 0.62 | -0.64 | 3.54 | 12/01/2005 | 14,155 | |||||||||
Comparative Index | ||||||||||||||
Bloomberg Barclays U.S. TIPS | -0.11% | -0.11% | 3.81% | — | $14,530 |
a | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Portfolio of Investments—October 31, 2017
ASSET-BACKED SECURITIES—2.0% | |||
Principal Amount | Value | ||
Countrywide Asset-Backed Certificates | |||
Series 2006-19 Cl. 2A3 | |||
$ | 100 | 1.488% (1 Month USD Libor + 0.250) 03/25/20371 | $ 91 |
Fremont Home Loan Trust | |||
Series 2006-C Cl. 1A1 | |||
27 | 1.373% (1 Month USD Libor + 0.135) 10/25/20361 | 25 | |
GSAMP Trust | |||
Series 2004-WF Cl. M2 | |||
126 | 2.888% (1 Month USD Libor + 1.100) 10/25/20341 | 123 | |
Long Beach Mortgage Loan Trust | |||
Series 2006-WL3 Cl. 2A4 | |||
300 | 1.538% (1 Month USD Libor + 0.300) 01/25/20361 | 237 | |
Series 2005-WL2 Cl. M2 | |||
500 | 1.973% (1 Month USD Libor + 0.490) 08/25/20351 | 501 | |
738 | |||
MASTR Asset Backed Securities Trust | |||
Series 2006-HE2 Cl. A4 | |||
196 | 1.478% (1 Month USD Libor + 0.240) 06/25/20361 | 119 | |
Morgan Stanley ABS Capital I Inc. Trust | |||
Series 2006-HE8 Cl. A2FP | |||
103 | 1.308% (1 Month USD Libor + 0.070) 10/25/20361 | 61 | |
Morgan Stanley Mortgage Loan Trust | |||
Series 2006-15XS Cl. A6A | |||
118 | 5.910%—11/25/20362 | 56 | |
Navient Student Loan Trust | |||
Series 2016-7A Cl.A | |||
180 | 2.388% (1 Month USD Libor + 1.150) 03/25/20661,3 | 183 | |
Saxon Asset Securities Trust | |||
Series 2003-1 Cl. AF7 | |||
73 | 4.034%—06/25/20332 | 74 | |
Soundview Home Loan Trust | |||
Series 2006-OPT2 Cl. A4 | |||
200 | 1.518% (1 Month USD Libor + 0.280) 05/25/20361 | 182 | |
Volt LXII LLC | |||
Series 2017-NPL9 Cl. A1 | |||
99 | 0.000%—09/25/20472,3 | 99 | |
WhiteHorse VI Ltd | |||
Series 2012 1A Cl. A1R | |||
312 | 2.511% (3 Month USD Libor + 1.200) 02/03/20251,3 | 313 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $1,875) | 2,064 | ||
BANK LOAN OBLIGATIONS—0.1% | |||
(Cost $97) | |||
Petroleo Global Trading Term Loan | |||
100 | 3.450%—02/19/2020 | 98 | |
COLLATERALIZED MORTGAGE OBLIGATIONS—1.6% | |||
Principal Amount | Value | ||
Alliance Bancorp Trust | |||
Series 2007 Cl. OA1 | |||
$ | 73 | 1.478% (1 Month USD Libor + 0.240) 07/25/20371 | $ 61 |
Bear Stearns Adjustable Rate Mortgage Trust | |||
Series 2005-12 Cl. 23A1 | |||
52 | 3.314%—02/25/20364 | 51 | |
Series 2006-2 Cl. 3A2 | |||
28 | 3.674%—07/25/20364 | 27 | |
78 | |||
Citigroup Mortgage Loan Trust Inc. | |||
Series 2005-12 Cl. 2A1 | |||
376 | 2.034% (1 Month USD Libor + 0.800) 08/25/20351,3 | 344 | |
Countrywide Home Loan Mortgage Pass Through Trust | |||
Series 2004-HYB5 Cl. 2A1 | |||
23 | 3.483%—04/20/20354 | 23 | |
First Horizon Alternative Mortgage Securities Trust | |||
Series 2006-FA8 Cl. 1A7 | |||
12 | 6.000%—02/25/2037 | 10 | |
Lavender Trust | |||
Series 2010-RR2A Cl. A4 | |||
1,137 | 6.250%—10/26/20363 | 956 | |
Morgan Stanley Mortgage Loan Trust | |||
Series 2006-8AR Cl. 6A1 | |||
97 | 3.150%—06/25/20364 | 98 | |
Residential Asset Securitization Trust | |||
Series 2006-R1 Cl. A2 | |||
53 | 1.637% (1 Month USD Libor + 0.400) 01/25/20461 | 26 | |
Washington Mutual Mortgage Pass Through Certificates Trust | |||
Series 2003-AR9 Cl. 2A | |||
22 | 3.356%—09/25/20334 | 22 | |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $1,430) | 1,618 | ||
CORPORATE BONDS & NOTES—5.8% | |||
AUTOMOBILES—0.1% | |||
American Honda Finance Corp. MTN5 | |||
100 | 1.741% (3 Month USD Libor + 0.350) 11/05/20211 | 100 | |
BANKS—0.9% | |||
ING Bank NV MTN5 | |||
100 | 2.625%—12/05/20223 | 101 | |
Santander Holdings USA Inc. | |||
600 | 2.767% (3 Month USD Libor + 1.450) 11/24/20171 | 600 | |
Toronto Dominion Bank | |||
200 | 2.250%—03/15/20213 | 200 | |
901 | |||
CAPITAL MARKETS—1.7% | |||
Deutsche Bank AG | |||
500 | 4.250%—10/14/2021 | 524 | |
Goldman Sachs Group Inc. | |||
500 | 2.520% (3 Month USD Libor + 1.200) 09/15/20201 | 510 | |
100 | 2.876% (3 Month USD Libor + 0.821) 10/31/20221 | 100 | |
610 | |||
UBS AG | |||
300 | 1.897% (3 Month USD Libor + 0.580) 06/08/20201,3 | 301 | |
UBS AG MTN5 | |||
300 | 1.637% (3 Month USD Libor + 0.320) 12/07/20181,3 | 301 | |
1,736 |
Portfolio of Investments—Continued
CORPORATE BONDS & NOTES—Continued | |||
Principal Amount | Value | ||
CONSUMER FINANCE—1.3% | |||
Ally Financial Inc. | |||
$ | 100 | 3.500%—01/27/2019 | $ 102 |
300 | 3.600%—05/21/2018 | 302 | |
100 | 4.750%—09/10/2018 | 102 | |
506 | |||
Navient Corp. MTN5 | |||
740 | 3.978% (US CPI Urban Consumers YoY + 2.250) 05/03/20191,6 | 737 | |
100 | 5.500%—01/15/2019 | 104 | |
841 | |||
1,347 | |||
DIVERSIFIED TELECOMMUNICATION SERVICES—0.2% | |||
AT&T Inc. | |||
100 | 2.009% (3 Month USD Libor + 0.650) 01/15/20201 | 101 | |
100 | 5.150%—02/14/2050 | 99 | |
200 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—0.2% | |||
Boston Scientific Corp. | |||
200 | 2.850%—05/15/2020 | 203 | |
INTERNET SOFTWARE & SERVICES—0.1% | |||
eBay Inc. | |||
100 | 2.750%—01/30/2023 | 100 | |
MULTI-UTILITIES—0.1% | |||
Sempra Energy | |||
100 | 1.732% (3 Month USD Libor + 0.450) 03/15/20211 | 100 | |
OIL, GAS & CONSUMABLE FUELS—0.8% | |||
Enbridge Inc. | |||
100 | 1.750% (3 Month USD Libor + 0.400) 01/10/20201 | 100 | |
Petrobras Global Finance BV | |||
425 | 5.299%—01/27/20253 | 427 | |
200 | 7.375%—01/17/2027 | 222 | |
649 | |||
749 | |||
TOBACCO—0.1% | |||
BAT Capital Corp | |||
100 | 1.905% (3 Month USD Libor + 0.590) 08/14/20201,3 | 101 | |
TRADING COMPANIES & DISTRIBUTORS—0.3% | |||
AerCap Ireland Capital Ltd. | |||
300 | 4.625%—10/30/2020 | 319 | |
TOTAL CORPORATE BONDS & NOTES | |||
(Cost $5,705) | 5,856 | ||
FOREIGN GOVERNMENT OBLIGATIONS—7.6% | |||
Argentina Bonar Bonds | |||
ARG$ | 118 | 23.826%—04/03/20224 | 7 |
Argentina Pom Politica Monetaria | |||
2,500 | 27.095%—06/21/20204 | 156 | |
Argentine Republic Government International Bond | |||
$ | 300 | 6.875%—01/26/2027 | 328 |
Australia Government Bond | |||
AUD$ | 200 | 3.000%—09/20/20256 | 214 |
Canadian Government RRB Bonds | |||
CAD$ | 297 | 4.250%—12/01/20266 | 311 |
FOREIGN GOVERNMENT OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
Japan Government CPI Linked Bond6 | |||
¥ | 90,392 | 0.100%—03/10/2027 | $ 838 |
Japan Treasury Discount Bill | |||
220,000 | 0.000%—11/06/20177 | 1,935 | |
Mexican Bonos | |||
MEX$ | 2,386 | 7.750%—05/29/2031 | 128 |
New Zealand Government Bond | |||
NZD$ | 1,600 | 2.000%—09/20/20256 | 1,194 |
U.K. Gilt Inflation Linked6 | |||
£ | 1,528 | 0.125%—03/22/2026-11/22/2065 | 2,539 |
TOTAL FOREIGN GOVERNMENT OBLIGATIONS | |||
(Cost $7,806) | 7,650 | ||
MORTGAGE PASS-THROUGH—9.8% | |||
Federal Home Loan Mortgage Corp. REMIC8 | |||
$ | 258 | 1.834% (1 Month USD Libor + 0.600) 12/15/20371 | 261 |
Federal National Mortgage Association | |||
6,000 | 4.000%—12/13/2046 | 6,287 | |
Federal National Mortgage Association REMIC8 | |||
49 | 1.587% (1 Month USD Libor + 0.350) 07/25/20371 | 49 | |
73 | 1.617% (1 Month USD Libor + 0.380) 07/25/20371 | 74 | |
36 | 1.677% (1 Month USD Libor + 0.440) 05/25/20361 | 36 | |
178 | 1.917% (1 Month USD Libor + 0.680) 02/25/20411 | 181 | |
340 | |||
Federal National Mortgage Association TBA9 | |||
3,000 | 3.500%—12/13/2047 | 3,078 | |
TOTAL MORTGAGE PASS-THROUGH | |||
(Cost $9,974) | 9,966 | ||
U.S. GOVERNMENT OBLIGATIONS—117.8% | |||
U.S. Treasury Bonds | |||
1,580 | 2.750%—08/15/2047 | 1,539 | |
U.S. Treasury Inflation Indexed Bonds6 | |||
16,677 | 0.125%—04/15/2019-07/15/202410 | 16,668 | |
2,985 | 0.250%—01/15/2025 | 2,953 | |
6,010 | 0.375%—07/15/2023-07/15/2025 | 6,035 | |
12,571 | 0.625%—07/15/2021-02/15/2043 | 12,785 | |
1,801 | 0.750%—02/15/2042-02/15/2045 | 1,738 | |
1,637 | 0.875%—02/15/2047 | 1,618 | |
466 | 1.000%—02/15/2046 | 475 | |
450 | 1.250%—07/15/2020 | 468 | |
6,984 | 1.375%—02/15/2044 | 7,725 | |
12,072 | 1.875%—07/15/2019 | 12,557 | |
1,102 | 2.000%—01/15/2026 | 1,237 | |
1,954 | 2.125%—01/15/2019-02/15/2041 | 2,202 | |
33,677 | 2.375%—01/15/2025-01/15/2027 | 38,473 | |
3,579 | 2.500%—01/15/2029 | 4,315 | |
577 | 3.625%—04/15/2028 | 754 | |
149 | 3.875%—04/15/2029 | 203 | |
110,206 | |||
U.S. Treasury Notes | |||
500 | 2.000%—05/31/2024-02/15/2025 | 492 | |
1,200 | 2.125%—03/31/2024-07/31/2024 | 1,193 | |
100 | 2.250%—11/15/2024 | 100 | |
800 | 2.500%—05/15/2024 | 815 |
Portfolio of Investments—Continued
U.S. GOVERNMENT OBLIGATIONS—Continued | |||
Principal Amount | Value | ||
$ | 4,500 | 2.750%—02/15/2024 | $ 4,653 |
440 | 3.000%—05/15/2047 | 451 | |
7,704 | |||
TOTAL U.S. GOVERNMENT OBLIGATIONS | |||
(Cost $120,385) | 119,449 | ||
SHORT-TERM INVESTMENTS—0.9% | |||
CERTIFICATES OF DEPOSIT—0.8% | |||
Barclays plc | |||
300 | 1.781% (3 Month USD Libor + 0.460) 03/16/20181 | 300 | |
200 | 1.827% (3 Month USD Libor + 0.470) 05/17/20181 | 200 | |
300 | 1.940%—09/04/2018 | 301 | |
801 |
SHORT-TERM INVESTMENTS—Continued | |||
Principal Amount | Value | ||
REPURCHASE AGREEMENTS—0.1% | |||
$ | 109 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $114) | $ 109 |
TOTAL SHORT-TERM INVESTMENTS | |||
(Cost $909) | 910 | ||
TOTAL INVESTMENTS—145.6% | |||
(Cost $148,181) | 147,611 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—(45.6)% | (46,221) | ||
TOTAL NET ASSETS—100.0% | $101,390 |
Description | Number of Contracts | Expiration Date | Current Notional Value (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||
United Kingdom GILT Futures 90 day (Short) | 16 | 12/27/2017 | £ 1,989 | $ 57 | ||||
U.S. Treasury Bond Futures 30 year (Short) | 25 | 12/19/2017 | $ 3,812 | 70 | ||||
U.S. Treasury Note Futures 2 year (Short) | 21 | 12/29/2017 | 4,522 | 19 | ||||
U.S. Treasury Note Futures 5 year (Short) | 95 | 12/29/2017 | 11,133 | 56 | ||||
U.S. Treasury Note Futures 10 year (Long) | 28 | 12/19/2017 | 3,498 | (12) | ||||
Ultra U.S. Treasury Bond Futures 30 year (Long) | 4 | 12/19/2017 | 659 | (9) | ||||
Total Futures Contracts | $181 |
Description | Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||
Euro-Bund Futures (Call) | Eurex | € 165.00 | 11/24/2017 | 9 | $1 | $— | ||||||
Euro-Bund Futures (Put) | Eurex | 159.00 | 11/24/2017 | 28 | 4 | 3 | ||||||
Total Purchased Options that Require Periodic Settlement of Variation Margin | $5 | $ 3 |
Description | Counterparty/Exchange | Strike Index/ Rate | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||
Eurodollar Futures (Put) | CME Group | $ 98.25 | 03/19/2018 | 55 | $ 5 | $ 3 | ||||||
Federal National Mortgage Association Futures 30 year (Call) | JP Morgan Chase Bank NA | 122.00 | 12/06/2017 | 1,000,000 | — | — | ||||||
USD ICE Swap Rate Index 10 year - Cap (Put) | Deutsche Bank AG | 0.260 j | 03/29/2018 | 4,900,000 | 2 | 1 | ||||||
USD ICE Swap Rate Index 10 year - Cap (Put) | Morgan Stanley Capital Services LLC | 0.260 j | 04/03/2018 | 5,300,000 | 3 | 2 | ||||||
Total Purchased Options Not Settled Through Variation Margin | $ 10 | $ 6 |
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 10 year (Put) | Morgan Stanley Capital Services LLC | 3-Month USD-LIBOR | Receive | 2.770% | 07/16/2018 | 1,350,000 | $ 16 | $13 | ||||||||
Interest Rate Swap Option 30 year (Call) | Deutsche Bank AG | 3-Month USD-LIBOR | Pay | 2.150 | 06/15/2018 | 350,000 | 35 | 3 |
Portfolio of Investments—Continued
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Paid (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 30 year (Put) | Deutsche Bank AG | 3-Month USD-LIBOR | Receive | 2.150% | 06/15/2018 | 350,000 | $ 35 | $42 | ||||||||
Total Purchased Swap Options Not Settled Through Variation Margin | $ 86 | $58 | ||||||||||||||
Total Purchased Options | $101 | $67 |
Description | Exchange | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Euro-Bund Futures (Call) | Eurex | € 164.00 | 11/24/2017 | 9 | $2 | $ (2) | ||||||
Euro-Bund Futures (Put) | Eurex | 158.00 | 11/24/2017 | 30 | 2 | — | ||||||
Total Written Options that Require Periodic Settlement of Variation Margin | $4 | $ (2) |
Description | Counterparty/Exchange | Strike Index/ Rate | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Cap (Call) | JP Morgan Chase Bank NA | 243.270 j | 04/22/2024 | 4,000,000 | $ 29 | $ (1) | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Cap (Call) | JP Morgan Chase Bank NA | 244.170 j | 05/16/2024 | 300,000 | 2 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Citibank NA | 216.690 j | 04/07/2020 | 3,600,000 | 32 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Citibank NA | 217.970 j | 09/29/2020 | 500,000 | 7 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | Deutsche Bank AG | 233.550 j | 01/22/2018 | 600,000 | 6 | — | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | JP Morgan Chase Bank NA | 234.810 j | 03/24/2020 | 1,700,000 | 19 | (4) | ||||||
Consumer Price All Urban Non-Seasonally Adjusted Index - Floor (Put) | JP Morgan Chase Bank NA | 238.640 j | 10/02/2020 | 1,000,000 | 19 | (3) | ||||||
Eurodollar Futures (Call) | CME Group | $ 98.75 | 03/19/2018 | 55 | 6 | — | ||||||
Eurozone HICP Ex. Tobacco Index - Cap (Call) | Goldman Sachs Bank USA | 120.720 j | 06/22/2035 | 400,000 | 18 | (5) | ||||||
Federal National Mortgage Association Futures 30 year (Call) | Credit Suisse International | $ 103.16 | 12/06/2017 | 1,000,000 | 2 | (1) | ||||||
Federal National Mortgage Association Futures 30 year (Call) | Credit Suisse International | 103.31 | 11/06/2017 | 1,000,000 | 2 | — | ||||||
Federal National Mortgage Association Futures 30 year (Put) | Credit Suisse International | 102.16 | 12/06/2017 | 1,000,000 | 3 | (2) | ||||||
Federal National Mortgage Association Futures 30 year (Put) | Credit Suisse International | 102.31 | 11/06/2017 | 1,000,000 | 1 | — | ||||||
USD ICE Swap Rate Index 30 year - Cap (Put) | Deutsche Bank AG | 0.230 j | 03/29/2018 | 4,900,000 | 2 | (2) | ||||||
USD ICE Swap Rate Index 30 year - Cap (Put) | Morgan Stanley Capital Services LLC | 0.230 j | 04/03/2018 | 5,300,000 | 2 | (2) | ||||||
U.S. Treasury Bond Option 30 year (Call) | Chicago Board of Trade | $ 155.00 | 11/24/2017 | 2 | 2 | (1) | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 125.00 | 11/24/2017 | 5 | 2 | (2) | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 125.50 | 11/24/2017 | 8 | 2 | (2) | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 126.50 | 11/24/2017 | 5 | 1 | — | ||||||
U.S. Treasury Note Option 10 year (Call) | Chicago Board of Trade | 127.50 | 11/24/2017 | 9 | 6 | — | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 123.50 | 11/24/2017 | 8 | 2 | (1) | ||||||
U.S. Treasury Note Option 10 year (Put) | Chicago Board of Trade | 124.00 | 11/24/2017 | 8 | 3 | (1) | ||||||
Total Written Options Not Settled Through Variation Margin | $168 | $(27) |
Description | Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Strike Price | Expiration Date | Number of Contracts/ Notional | Premiums Received (000s) | Value (000s) | ||||||||
Interest Rate Swap Option 5 year (Call) | Royal Bank of Scotland plc | 3-Month USD-LIBOR | Receive | 1.800% | 11/07/2017 | 600,000 | $ 5 | $ — | ||||||||
Interest Rate Swap Option 5 year (Put) | Royal Bank of Scotland plc | 3-Month USD-LIBOR | Pay | 2.600 | 11/07/2017 | 600,000 | 5 | (3) | ||||||||
Total Written Swap Options Not Settled Through Variation Margin | $ 10 | $ (3) | ||||||||||||||
Total Written Options | $182 | $(32) |
Portfolio of Investments—Continued
Counterparty | Amount to be Delivered (000s) | Amount to be Received (000s) | Settlement Date | Unrealized Appreciation/ (Depreciation) (000s) | ||||
Citibank NA | $ 24 | ARG$ 423 | 12/20/2017 | $ — | ||||
Goldman Sachs Bank USA | $ 116 | ARG$ 2,133 | 01/12/2018 | — | ||||
Goldman Sachs Bank USA | $ 200 | ARG$ 3,720 | 02/14/2018 | (2) | ||||
HSBC Bank USA | $ 90 | ARG$ 1,684 | 02/14/2018 | — | ||||
BNP Paribas SA | ARG$ 795 | $ 42 | 02/14/2018 | — | ||||
JP Morgan Chase Bank | ARG$ 531 | $ 28 | 02/14/2018 | — | ||||
JP Morgan Chase Bank NA | AUD$ 900 | $ 703 | 11/02/2017 | 14 | ||||
Citibank NA | $ 226 | R$ 712 | 11/03/2017 | (8) | ||||
Citibank NA | $ 156 | R$ 499 | 12/04/2017 | (5) | ||||
Société Générale | $ 65 | R$ 213 | 11/03/2017 | — | ||||
Citibank NA | R$ 213 | $ 65 | 11/03/2017 | — | ||||
Citibank NA | R$ 499 | $ 157 | 11/03/2017 | 5 | ||||
Société Générale | R$ 213 | $ 67 | 11/03/2017 | 2 | ||||
UBS AG | $ 2,511 | £ 1,918 | 11/02/2017 | 36 | ||||
BNP Paribas SA | £ 60 | $ 79 | 11/02/2017 | (1) | ||||
Citibank NA | £ 198 | $ 261 | 11/02/2017 | (2) | ||||
Credit Suisse International | £ 89 | $ 119 | 11/02/2017 | 1 | ||||
JP Morgan Chase Bank NA | £ 1,571 | $ 2,106 | 11/02/2017 | 19 | ||||
UBS AG | £ 1,918 | $ 2,513 | 12/04/2017 | (37) | ||||
JP Morgan Chase Bank NA | $ 260 | CAD$ 335 | 11/02/2017 | (1) | ||||
JP Morgan Chase Bank NA | CAD$ 742 | $ 594 | 11/02/2017 | 18 | ||||
Citibank NA | $ 72 | COL$ 215,245 | 11/01/2017 | (1) | ||||
Citibank NA | COL$ 215,245 | $ 71 | 11/01/2017 | — | ||||
Citibank NA | COL$ 215,245 | $ 72 | 01/31/2018 | 2 | ||||
JP Morgan Chase Bank NA | $ 246 | € 209 | 11/02/2017 | (2) | ||||
Citibank NA | € 230 | $ 271 | 11/02/2017 | 3 | ||||
JP Morgan Chase Bank NA | € 216 | $ 254 | 11/02/2017 | 2 | ||||
Credit Suisse International | $ 359 | ₹ 23,487 | 12/04/2017 | 3 | ||||
BNP Paribas SA | ₹ 4,749 | $ 73 | 12/04/2017 | — | ||||
Citibank NA | ₹ 2,903 | $ 44 | 12/04/2017 | (1) | ||||
JP Morgan Chase Bank | ₹ 2,771 | $ 42 | 12/04/2017 | (1) | ||||
Citibank NA | $ 160 | ¥ 17,900 | 11/02/2017 | (2) | ||||
JP Morgan Chase Bank NA | $ 613 | ¥ 69,900 | 11/02/2017 | 2 | ||||
Citibank NA | ¥ 140,000 | $ 1,270 | 11/06/2017 | 39 | ||||
Goldman Sachs Bank USA | ¥ 87,800 | $ 781 | 11/02/2017 | 9 | ||||
JP Morgan Chase Bank NA | ¥ 80,000 | $ 726 | 11/06/2017 | 22 | ||||
JP Morgan Chase Bank NA | ¥ 69,900 | $ 614 | 12/04/2017 | (2) | ||||
Goldman Sachs Bank USA | $ 101 | MEX$ 1,915 | 12/15/2017 | (2) | ||||
Goldman Sachs Bank USA | MEX$ 2,881 | $ 160 | 12/15/2017 | 11 | ||||
JP Morgan Chase Bank NA | MEX$ 447 | $ 24 | 12/15/2017 | 1 | ||||
Citibank NA | $ 1,182 | NZD$ 1,722 | 11/02/2017 | (3) | ||||
Citibank NA | NZD$ 1,722 | $ 1,181 | 12/04/2017 | 3 | ||||
JP Morgan Chase Bank NA | NZD$ 1,722 | $ 1,238 | 11/02/2017 | 59 | ||||
Citibank NA | $ 103 | RUS$ 5,984 | 02/16/2018 | (2) | ||||
BNP Paribas SA | $ 97 | R 1,373 | 12/06/2017 | — | ||||
Citibank NA | $ 102 | R 1,373 | 11/06/2017 | (5) | ||||
BNP Paribas SA | R 1,373 | $ 97 | 11/06/2017 | — | ||||
BNP Paribas SA | ₩ 103,576 | $ 91 | 12/04/2017 | (2) | ||||
Deutsche Bank AG | ₩ 186,730 | $ 164 | 12/04/2017 | (3) | ||||
Total Forward Currency Contracts | $169 |
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
CME Group | Brazil Cetip Interbank Deposit | Pay | 9.650% | At maturity | 01/02/2025 | R$ 3,400 | $ (9) | $ (3) | $ (6) | |||||||||
LCH Group | Eurostat Eurozone HICP Ex Tobacco NSA | Receive | 1.165 | At maturity | 12/15/2021 | € 140 | 1 | — | 1 |
Portfolio of Investments—Continued
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
LCH Group | Eurostat Eurozone HICP Ex Tobacco NSA | Pay | 1.385% | At maturity | 12/15/2026 | € 330 | $ (2) | $ 1 | $ (3) | |||||||||
LCH Group | French Consumer Price Index Ex Tobacco | Pay | 1.438 | At maturity | 06/15/2027 | 400 | (2) | — | (2) | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Pay | 1.500 | Semiannual | 03/21/2028 | £ 1,000 | (9) | (34) | 25 | |||||||||
LCH Group | British Bankers' Association LIBOR GBP 6-Month | Pay | 1.750 | Semiannual | 03/21/2048 | 300 | (14) | (7) | (7) | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.350 | At maturity | 05/15/2030 | 610 | 6 | (7) | 13 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.400 | At maturity | 06/15/2030 | 600 | 10 | 9 | 1 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.100 | At maturity | 06/15/2031 | 300 | (32) | (36) | 4 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.470 | At maturity | 09/15/2032 | 1,540 | (13) | 2 | (15) | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Pay | 3.358 | At maturity | 04/15/2035 | 200 | (3) | (4) | 1 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Receive | 3.585 | At maturity | 10/15/2046 | 240 | (13) | (15) | 2 | |||||||||
LCH Group | UK Retail Prices Index All Items NSA | Receive | 3.428 | At maturity | 03/15/2047 | 40 | 3 | — | 3 | |||||||||
CME Group | British Bankers' Association LIBOR JPY 6-Month | Receive | 1.000 | Semiannual | 09/18/2023 | ¥ 40,000 | (18) | (15) | (3) | |||||||||
LCH Group | British Bankers' Association LIBOR JPY 6-Month | Pay | 0.300 | Semiannual | 09/20/2027 | 130,000 | (2) | (2) | — | |||||||||
LCH Group | British Bankers' Association LIBOR JPY 6-Month | Pay | 0.300 | Semiannual | 03/20/2028 | 10,000 | — | — | — | |||||||||
LCH Group | British Bankers' Association LIBOR JPY 6-Month | Pay | 0.450 | Semiannual | 03/20/2029 | 340,000 | (15) | (19) | 4 | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 7.200 | Lunar | 06/05/2024 | MEX$ 4,600 | (1) | — | (1) | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 8.310 | Lunar | 11/28/2036 | 1,300 | 5 | 7 | (2) | |||||||||
CME Group | Mexico Interbank TIIE 28 Day | Pay | 7.480 | Lunar | 06/18/2037 | 1,450 | (2) | — | (2) | |||||||||
CME Group | New Zeland 90 Day Bank Bill Futures Rate Agreement | Pay | 3.250 | Semiannual | 03/21/2028 | NZD$ 600 | — | 2 | (2) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 1.250 | Semiannual | 06/15/2018 | $ 1,000 | 1 | 4 | (3) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 1.250 | Semiannual | 06/21/2019 | 9,300 | 49 | 56 | (7) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.680 | Semiannual | 10/25/2023 | 1,000 | 19 | — | 19 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.670 | Semiannual | 11/19/2023 | 1,000 | 18 | — | 18 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.680 | Semiannual | 12/12/2023 | 1,000 | 18 | — | 18 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.500 | Semiannual | 12/19/2023 | 800 | 8 | (6) | 14 |
Portfolio of Investments—Continued
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.500% | Semiannual | 02/22/2026 | $ 3,160 | $ 5 | $ — | $ 5 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.400 | Semiannual | 03/16/2026 | 2,900 | 19 | — | 19 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.300 | Semiannual | 04/21/2026 | 1,700 | 19 | (10) | 29 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.300 | Semiannual | 04/27/2026 | 2,000 | 23 | (7) | 30 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 1.850 | Semiannual | 07/27/2026 | 600 | 19 | (2) | 21 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.000 | Semiannual | 07/27/2026 | 3,500 | 89 | 53 | 36 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.400 | Semiannual | 12/07/2026 | 6,000 | 56 | 48 | 8 | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.750 | Semiannual | 12/20/2047 | 1,170 | 29 | 36 | (7) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.970 | Semiannual | 10/25/2048 | 200 | (13) | — | (13) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.950 | Semiannual | 11/19/2048 | 100 | (6) | — | (6) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.950 | Semiannual | 12/12/2048 | 100 | (6) | — | (6) | |||||||||
CME Group | British Bankers' Association LIBOR USD 3-Month | Pay | 2.750 | Semiannual | 12/19/2048 | 100 | (1) | 3 | (4) | |||||||||
LCH Group | British Bankers' Association LIBOR USD 3-Month | Pay | 1.750 | Semiannual | 12/21/2026 | 1,570 | 66 | (46) | 112 | |||||||||
LCH Group | Federal Funds Effective Rate US | Pay | 2.000 | Annual | 12/15/2047 | 300 | 16 | — | 16 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.710 | At maturity | 04/27/2018 | 900 | (1) | — | (1) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.680 | At maturity | 04/28/2018 | 1,500 | (1) | — | (1) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.078 | At maturity | 03/29/2019 | 3,300 | 18 | — | 18 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.935 | At maturity | 04/27/2019 | 900 | 3 | — | 3 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 2.026 | At maturity | 11/23/2020 | 500 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 2.021 | At maturity | 11/25/2020 | 400 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.550 | At maturity | 07/26/2021 | 300 | 7 | 10 | (3) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Receive | 1.602 | At maturity | 09/12/2021 | 310 | 6 | 9 | (3) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.063 | At maturity | 05/12/2025 | 100 | 1 | — | 1 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.730 | At maturity | 07/26/2026 | 300 | (11) | (16) | 5 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.800 | At maturity | 09/12/2026 | 200 | (6) | (2) | (4) |
Portfolio of Investments—Continued
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.801% | At maturity | 09/12/2026 | $ 310 | $ (9) | $(15) | $ 6 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.805 | At maturity | 09/12/2026 | 200 | (6) | (10) | 4 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 1.780 | At maturity | 09/15/2026 | 200 | (6) | (10) | 4 | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.067 | At maturity | 07/25/2027 | 400 | (3) | — | (3) | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.180 | At maturity | 09/20/2027 | 170 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.150 | At maturity | 09/25/2027 | 200 | — | — | — | |||||||||
LCH Group | US Consumer Price Index Urban Consumers NSA | Pay | 2.156 | At maturity | 10/17/2027 | 400 | (1) | — | (1) | |||||||||
Interest Rate Swaps | $335 |
Counterparty | Reference Entity | Buy/ Sellb,c | Pay/Receive Fixed Rate | Expiration Date | Implied Credit Spreadd | Payment Frequency | Notional Amounte (000s) | Value f (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||||||||
ICE Group | iTraxx Europe Series 28 Version 1 | Buy | 1.000% | 12/20/2022 | 0.500% | Quarterly | € 1,500 | $ (47) | $ (40) | $ (7) | ||||||||||
ICE Group | Markit iTraxx Europe Indices Series 26 Version 1 | Buy | 1.000 | 12/20/2021 | 0.360 | Quarterly | € 500 | (16) | (8) | (8) | ||||||||||
ICE Group | Markit CDX North America High Yield Index Series 29 | Buy | 5.000 | 12/20/2022 | 3.102 | Quarterly | $ 1,400 | (126) | (110) | (16) | ||||||||||
Credit Default Swaps | $(31) |
Counterparty | Floating Rate Index | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Deutsche Bank AG | US Consumer Price Index Urban Consumers NSA | Receive | 2.500% | At maturity | 07/15/2022 | $ 300 | $(28) | $ 7 | $ (35) | |||||||||
Morgan Stanley Capital Services LLC | US Consumer Price Index Urban Consumers NSA | Pay | 1.788 | At maturity | 07/18/2026 | 1,200 | (38) | (1) | (37) | |||||||||
Morgan Stanley Capital Services LLC | US Consumer Price Index Urban Consumers NSA | Pay | 1.000 | At maturity | 07/20/2026 | 1,200 | (36) | — | (36) | |||||||||
Morgan Stanley Capital Services LLC | US Consumer Price Index Urban Consumers NSA | Pay | 1.805 | At maturity | 09/20/2026 | 100 | (3) | — | (3) | |||||||||
Interest Rate Swaps | $(111) |
Portfolio of Investments—Continued
Counterparty | Reference Assets | Pay/Receive Varianceg | Initial Volatility Strike | Payment Frequency | Expiration Date | Notional Amount (000s) | Value (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||||||||
Goldman Sachs International | Intercontinental Exchange LIBOR USD 3-month | Receive | $ — | At Maturity | 03/20/2018 | $ 100 | $(2) | $— | $(2) |
Counterparty | Reference Entity | Buy/ Sellb,c | Pay/Receive Fixed Rate | Expiration Date | Implied Credit Spreadd | Payment Frequency | Notional Amounte (000s) | Value f (000s) | Upfront Premiums (Received)/Paid (000s) | Unrealized Appreciation/ (Depreciation) (000s) | ||||||||||
Credit Suisse International | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000% | 06/20/2021 | 1.160% | Quarterly | $ 200 | $ (1) | $(14) | $ 13 | ||||||||||
Deutsche Bank AG | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000 | 06/20/2021 | 1.160 | Quarterly | 100 | — | (8) | 8 | ||||||||||
HSBC Bank USA NA | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000 | 03/20/2018 | 0.429 | Quarterly | 300 | 1 | — | 1 | ||||||||||
HSBC Bank USA NA | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000 | 06/20/2022 | 1.527 | Quarterly | 100 | (2) | (6) | 4 | ||||||||||
JP Morgan Chase Bank NA | Federative Republic of Brazil 4.250% due 01/07/2025 | Sell | 1.000 | 06/20/2021 | 1.160 | Quarterly | 100 | — | (7) | 7 | ||||||||||
Goldman Sachs International | Markit CMBX North America AAA Indices | Sell | 0.500 | 10/17/2057 | 0.000 | Monthly | 100 | — | (5) | 5 | ||||||||||
Goldman Sachs International | Markit CMBX North America AAA Indices | Sell | 0.500 | 09/17/2058 | 0.000 | Monthly | 100 | — | (6) | 6 | ||||||||||
Credit Default Swaps | $ 44 | |||||||||||||||||||
Total Swaps | $235 |
Principal Amount (000s) | Security | Proceeds (000s) | Value (000s) | |||
$ 3,000 | Federal National Mortgage Association TBA1 3.000%—12/13/2047 | $ 3,000 | $ (2,997) | |||
1,000 | Federal National Mortgage Association TBA1 3.500%—11/13/2047 | 1,029 | (1,028) | |||
80 | U.S. Treasury Notes 3.000%— 5/15/2047 | 81 | (82) | |||
Total Fixed Income Investments Sold Short | $ 4,110 | $ (4,107) |
Portfolio of Investments—Continued
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 | ||||||||
Asset-Backed Securities | $ — | $ 2,064 | $— | $ 2,064 | ||||
Bank Loan Obligations | — | 98 | — | 98 | ||||
Collateralized Mortgage Obligations | — | 1,618 | — | 1,618 | ||||
Corporate Bonds & Notes | — | 5,856 | — | 5,856 | ||||
Foreign Government Obligations | — | 7,650 | — | 7,650 | ||||
Mortgage Pass-Through | — | 9,966 | — | 9,966 | ||||
U.S. Government Obligations | — | 119,449 | — | 119,449 | ||||
Short-Term Investments | ||||||||
Certificates Of Deposit | — | 801 | — | 801 | ||||
Repurchase Agreements | — | 109 | — | 109 | ||||
Total Investments in Securities | $ — | $147,611 | $— | $147,611 | ||||
Financial Derivative Instruments - Assets | ||||||||
Forward Currency Contracts | $ — | $ 251 | $— | $ 251 | ||||
Futures Contracts | 202 | — | — | 202 | ||||
Purchased Options | 6 | 61 | — | 67 | ||||
Swap Agreements | — | 484 | — | 484 | ||||
Total Financial Derivative Instruments - Assets | $208 | $ 796 | $— | $ 1,004 | ||||
Liability Category | ||||||||
Fixed Income Investments Sold Short | $ — | $ (4,107) | $— | $ (4,107) | ||||
Financial Derivative Instruments - Liabilities | ||||||||
Forward Currency Contracts | $ — | $ (82) | $— | $ (82) | ||||
Futures Contracts | (21) | — | — | (21) | ||||
Swap Agreements | — | (249) | — | (249) | ||||
Written Options | (9) | (23) | — | (32) | ||||
Total Financial Derivative Instruments - Liabilities | $ (30) | $ (354) | $— | $ (384) | ||||
Total Investments | $178 | $143,946 | $— | $144,124 |
Valuation Description | Balance Beginning at 11/01/2016 (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 10/31/2017w (000s) | |||||||||
Asset-Backed Securities | $500 | $— | $(189) | $— | $— | $2 | $— | $(313) h | $— |
Overnight and Continuous (000s) | Up to 30 days (000s) | 31-90 days (000s) | Greater Than 90 days (000s) | Total (000s) | |||||
Sale-Buyback Transactions | |||||||||
U.S. Government Obligations | $— | $33,723 | $— | $4,757 | $38,480 |
Portfolio of Investments—Continued
1 | Variable rate security, the stated rate represents the rate in effect at October 31, 2017. | ||
2 | Step coupon security, the stated rate represents the rate in effect at October 31, 2017. | ||
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, 2017, the aggregate value of these securities was $3,326,000 or 3% of net assets. | ||
4 | Floating rate security, the stated rate represents the rate in effect at October 31, 2017. | ||
5 | MTN after the name of a security stands for Medium Term Note. | ||
6 | Inflation-protected securities (“IPS”) are securities in which the principal amount is adjusted for inflation and interest payments are applied to the inflation-adjusted principal. | ||
7 | Zero coupon bond. | ||
8 | REMICs are CMOs which can hold mortgages secured by any type of real property and issue multiple-class securities backed by those mortgages. | ||
9 | TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after October 31, 2017. Although the unit price for the trades has been established, the principal value has not been finalized. However, the amount of the commitments will not fluctuate more than 2% from the principal amount. Income on TBAs is not earned until settlement date (see Note 2 of the accompanying Notes to Financial Statements). | ||
10 | At October 31, 2017, a portion of securities held by the Fund were pledged to cover margin requirements for open future contracts, written options on futures contracts and swap options (see Note 2 of the accompanying Notes to Financial Statements). The securities pledged had an aggregate value of $250,000 or less than 1% of net assets. | ||
b | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | ||
c | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | ||
d | Implied credit spreads, represented in absolute terms, utilized in determining the value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. | ||
e | The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. | ||
f | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. | ||
g | At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price variance of the underlying asset and the strike price multiplied by the notional amount. As a receiver of the realized price variance, the Fund would receive the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would owe the payoff amount when the variance is less than the strike price. As a payer of the realized price variance, the Fund would owe the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would receive the payoff amount when the variance is less than the strike price. | ||
h | Transferred from Level 3 to Level 2 due to the availability of observable market data for pricing input. | ||
j | Amount represents Index Value. | ||
w | 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 10/31/2017 (000s) | ||
Asset-Backed Securities | $1 | ||
$1 | |||
ARG$ | Argentine Peso | ||
AUD$ | Australian Dollar | ||
R$ | Brazilian Real | ||
£ | British Pound | ||
CAD$ | Canadian Dollar | ||
COL$ | Colombian Peso | ||
€ | Euro | ||
₹ | Indian Rupee | ||
¥ | Japanese Yen | ||
MEX$ | Mexican Peso | ||
NZD$ | New Zealand Dollar | ||
PLN$ | Polish Zloty | ||
R | South African Rand | ||
₩ | South Korean Won |
Manager’s Commentary (Unaudited)
Since 2003
Fund Performance
Manager’s Commentary—Continued
TOP ISSUERS (% of net assets) | |
U.S. Treasury | 41.0% |
Federal Home Loan Bank | 32.4% |
Federal National Mortgage Association | 19.0% |
Federal Home Loan Mortgage Corp. | 7.3% |
Fund Summary—October 31, 2017 (Unaudited)
INSTITUTIONAL CLASS | |
Fund # | 2015 |
Cusip | 411511405 |
Ticker | HARXX |
Inception Date | 12/29/1987 |
Net Expense Ratio | 0.00% a |
Total Net Assets (000s) | $169,637 |
ADMINISTRATIVE CLASS | |
Fund # | 2215 |
Cusip | 411511660 |
Ticker | HRMXX |
Inception Date | 11/01/2002 |
Net Expense Ratio | 0.00% a |
Total Net Assets (000s) | $1,545 |
Portfolio | Benchmark | ||
Yield to Maturity | 0.97% | 1.02% | |
Weighted Average Maturity | 0.09 years | 0.16 years | |
Weighted Average Duration | 0.09 years | 0.16 years |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | 10 Years | |||||||||||||
Harbor Money Market Fund | ||||||||||||||
Institutional Class | 0.73% | 0.25% | 0.50% | 12/29/1987 | $10,514 | |||||||||
Administrative Class | 0.73 | 0.25 | 0.47 | 11/01/2002 | 10,479 | |||||||||
Comparative Index | ||||||||||||||
ICE BofAML U.S. 3-Month Treasury Bill | 0.72% | 0.24% | 0.45% | — | $10,458 |
Current 7-day subsidizedb SEC yield for period ended 10/31/2017: | Institutional Class: 1.03% | Administrative Class: 1.03% |
Current 7-day unsubsidizedc SEC yield for period ended 10/31/2017: | Institutional Class: 0.67% | Administrative Class: 0.42% |
a | Reflects a contractual management fee waiver and an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018, as well as a voluntary fee waiver that may be discontinued at any time |
b | Reflects reimbursement or waivers currently in effect |
c | Does not reflect reimbursements or waivers currently in effect |
Portfolio of Investments—October 31, 2017
GOVERNMENT AGENCY DEBT—58.7%† | |||
Principal Amount | Value | ||
Federal Home Loan Bank Discount Notes | |||
$ | 6,050 | 1.010%—11/14/2017 | $ 6,048 |
20,258 | 1.015%—11/08/2017-11/27/2017 | 20,247 | |
3,000 | 1.020%—11/09/2017 | 2,999 | |
6,000 | 1.023%—11/29/2017 | 5,995 | |
15,000 | 1.024%—11/20/2017-12/01/2017 | 14,990 | |
5,300 | 1.080%—01/05/2018 | 5,290 | |
55,569 | |||
Federal Home Loan Mortgage Corp. Discount Notes | |||
8,000 | 0.995%—11/22/2017 | 7,995 | |
4,400 | 0.997%—11/02/2017 | 4,400 | |
12,395 | |||
Federal National Mortgage Association Discount Notes | |||
5,816 | 0.846%—11/22/2017 | 5,813 | |
7,150 | 0.980%—11/15/2017 | 7,147 | |
6,000 | 0.995%—11/27/2017 | 5,996 | |
7,000 | 1.000%—12/04/2017 | 6,993 | |
1,600 | 1.050%—01/05/2018 | 1,597 | |
5,000 | 1.060%—01/08/2018 | 4,990 | |
32,536 | |||
TOTAL GOVERNMENT AGENCY DEBT | |||
(Cost $100,500) | 100,500 | ||
TREASURY DEBT—41.0%† | |||
Principal Amount | Value | ||
U.S. Treasury Bills | |||
$ | 10,750 | 0.968%—12/07/2017 | $ 10,739 |
13,000 | 0.972%—11/30/2017 | 12,990 | |
5,700 | 0.983%—11/16/2017 | 5,698 | |
12,000 | 0.997%—11/24/2017 | 11,992 | |
10,000 | 1.029%—01/11/2018 | 9,980 | |
9,975 | 1.035%—01/04/2018 | 9,957 | |
8,950 | 1.061%—01/18/2018 | 8,929 | |
TOTAL TREASURY DEBT | |||
(Cost $70,285) | 70,285 | ||
REPURCHASE AGREEMENTS—0.1% | |||
(Cost $134) | |||
Principal Amount | |||
$ | 134 | Repurchase Agreement with Fixed Income Clearing Corp. dated October 31, 2017 due November 01, 2017 at 0.001% collateralized by U.S. Treasury Notes (value $142) | 134 |
TOTAL INVESTMENTS—99.8% | |||
(Cost $170,919) | 170,919 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.2% | 263 | ||
TOTAL NET ASSETS—100.0% | $171,182 |
† | Coupon represents yield to maturity |
StatementS of Assets and Liabilities—October 31, 2017
Harbor Convertible Securities Fund | Harbor High-Yield Bond Fund | Harbor Bond Fund | Harbor Real Return Fund | Harbor Money Market Fund | |
ASSETS | |||||
Investments, at identified cost* | $110,746 | $1,394,886 | $3,372,572 | $148,181 | $170,919 |
Investments, at value | $113,563 | $1,425,549 | $3,258,784 | $147,502 | $170,785 |
Repurchase agreements | 1,368 | 10,568 | 123,889 | 109 | 134 |
Cash-restricted | — | — | 367 | 681 | — |
Cash | — | 94 | 271 | 1 | 1 |
Foreign currency, at value (cost: $0, $0, $3,341, $232 and $0) | — | — | 3,330 | 230 | — |
Receivables for: | |||||
Investments sold | 921 | 22,744 | 591,724 | 19,367 | — |
Foreign currency spot contracts | — | — | 77 | — | — |
Capital shares sold | 5 | 2,373 | 1,024 | 68 | 383 |
Interest | 470 | 22,392 | 10,437 | 562 | — |
Unrealized appreciation on open forward currency contracts | — | — | 18,970 | 251 | — |
Unrealized appreciation on OTC swap agreements | — | — | 463 | 44 | — |
Variation margin on options and futures contracts | — | — | 6,180 | 15 | — |
Variation margin on centrally cleared swap agreements | — | — | 81 | 3 | — |
Purchased options not settled through variation margin, at value (premiums paid: $0, $0, $2,951, $96 and $0) | — | — | 759 | 64 | — |
Options sold | — | — | 163 | 23 | — |
Prepaid registration fees | 9 | 38 | 25 | 25 | 20 |
Other assets | 17 | 118 | 519 | 38 | 38 |
Total Assets | 116,353 | 1,483,876 | 4,017,063 | 168,983 | 171,361 |
LIABILITIES | |||||
Payables for: | |||||
Due to broker | — | — | 10,633 | — | — |
Investments purchased | 1,749 | 8,239 | 1,513,226 | 24,273 | — |
Foreign currency spot contracts | — | — | 1,240 | — | — |
Capital shares reacquired | 26 | 604 | 4,214 | 344 | 100 |
Interest on investments sold short | — | — | — | 1 | — |
Investments sold short, at value (proceeds: $0, $0, $24,198, $4,110 and $0) | — | — | 24,139 | 4,107 | — |
Written options not settled through variation margin, at value (premiums received: $0, $0, $4,470, $178 and $0) | — | — | 601 | 30 | — |
Swap premiums received | — | — | 446 | 39 | — |
Unrealized depreciation on OTC swap agreements | — | — | — | 113 | — |
Sale-buyback financing transactions | — | — | 255,030 | 38,480 | — |
Variation margin on options and futures contracts | — | — | 6,339 | 1 | — |
Unrealized depreciation on open forward currency contracts | — | — | 9,651 | 82 | — |
Accrued expenses: | |||||
Management fees | 72 | 705 | 844 | 41 | 26 |
12b-1 fees | 1 | 10 | 7 | — | 1 |
Transfer agent fees | 8 | 103 | 149 | 7 | 12 |
Trustees' fees and expenses | 2 | 14 | 17 | 1 | 1 |
Other | 109 | 507 | 761 | 74 | 39 |
Total Liabilities | 1,967 | 10,182 | 1,827,297 | 67,593 | 179 |
NET ASSETS | $114,386 | $1,473,694 | $2,189,766 | $101,390 | $171,182 |
Net Assets Consist of: | |||||
Paid-in capital | $101,198 | $1,500,280 | $2,217,667 | $131,644 | $171,148 |
Accumulated undistributed net investment income/(loss) | (147) | 8,810 | 18,676 | 1,144 | 34 |
Accumulated net realized gain/(loss) | 9,150 | (76,626) | (64,746) | (31,527) | — |
Unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currencies | 4,185 | 41,230 | 8,981 | (571) | — |
Unrealized appreciation/(depreciation) of other financial instruments | — | — | 9,188 | 700 | — |
$114,386 | $1,473,694 | $2,189,766 | $101,390 | $171,182 | |
Harbor Convertible Securities Fund | Harbor High-Yield Bond Fund | Harbor Bond Fund | Harbor Real Return Fund | Harbor Money Market Fund | ||||||
NET ASSET VALUE PER SHARE BY CLASS | ||||||||||
Institutional Class | ||||||||||
Net assets | $87,391 | $1,387,213 | $2,159,390 | $99,929 | $169,637 | |||||
Shares of beneficial interest1 | 7,754 | 135,806 | 184,942 | 10,612 | 169,637 | |||||
Net asset value per share2 | $ 11.27 | $ 10.21 | $ 11.68 | $ 9.42 | $ 1.00 | |||||
Administrative Class | ||||||||||
Net assets | $ 395 | $ 1,753 | $ 30,376 | $ 1,461 | $ 1,545 | |||||
Shares of beneficial interest1 | 35 | 171 | 2,599 | 155 | 1,545 | |||||
Net asset value per share2 | $ 11.26 | $ 10.25 | $ 11.69 | $ 9.42 | $ 1.00 | |||||
Investor Class | ||||||||||
Net assets | $ 2,015 | $ 42,753 | N/A | N/A | N/A | |||||
Shares of beneficial interest1 | 179 | 4,175 | N/A | N/A | N/A | |||||
Net asset value per share2 | $ 11.25 | $ 10.24 | N/A | N/A | N/A | |||||
Retirement Class | ||||||||||
Net assets | $24,585 | $ 41,975 | N/A | N/A | N/A | |||||
Shares of beneficial interest1 | 2,182 | 4,106 | N/A | N/A | N/A | |||||
Net asset value per share2 | $ 11.27 | $ 10.22 | N/A | N/A | N/A |
* | 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. |
StatementS of Operations—Year Ended October 31, 2017
Harbor Convertible Securities Fund | Harbor High-Yield Bond Fund | Harbor Bond Fund | Harbor Real Return Fund | Harbor Money Market Fund | |
Investment Income | |||||
Interest | $ 6,153 | $102,448 | $ 84,068 | $ 3,460 | $1,089 |
Consent fee income | 3 | 263 | — | — | — |
Foreign taxes withheld | — | — | (50) | — | — |
Total Investment Income | 6,156 | 102,711 | 84,018 | 3,460 | 1,089 |
Operating Expenses | |||||
Management fees | 2,064 | 10,101 | 10,930 | 504 | 304 |
12b-1 fees: | |||||
Administrative Class | 1 | 10 | 83 | 5 | 4 |
Investor Class | 6 | 174 | N/A | N/A | N/A |
Shareholder communications | 47 | 262 | 252 | 21 | 6 |
Custodian fees | 35 | 85 | 295 | 73 | 23 |
Transfer agent fees: | |||||
Institutional Class | 260 | 1,372 | 1,944 | 90 | 131 |
Administrative Class | 1 | 4 | 29 | 1 | 1 |
Investor Class | 5 | 143 | N/A | N/A | N/A |
Retirement Class | 1 | 3 | N/A | N/A | N/A |
Professional fees | 12 | 51 | 69 | 3 | 7 |
Trustees' fees and expenses | 11 | 53 | 69 | 3 | 4 |
Registration fees | 62 | 73 | 62 | 32 | 42 |
Miscellaneous | 14 | 28 | 31 | 7 | 8 |
Expenses before interest expense | 2,519 | 12,359 | 13,764 | 739 | 530 |
Interest expense | — | — | 697 | 346 | — |
Total expenses | 2,519 | 12,359 | 14,461 | 1,085 | 530 |
Management fees waived | (91) | (674) | (638) | — | (304) |
Transfer agent fees waived | (28) | (152) | (209) | (9) | (14) |
Other expenses reimbursed | — | — | (1,221) | (158) | (212) |
Net expenses | 2,400 | 11,533 | 12,393 | 918 | — |
Net Investment Income/(Loss) | 3,756 | 91,178 | 71,625 | 2,542 | 1,089 |
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions | |||||
Net realized gain/(loss) on: | |||||
Investments | 26,914 | 31,901 | (11,827) | (187) | — |
Foreign currency transactions | — | — | 3,406 | 810 | — |
Investments sold short | — | — | 389 | 2 | — |
Swap agreements | — | — | (1,498) | (484) | — |
Futures contracts | — | — | (9,040) | (213) | — |
Purchased options | — | — | (1,600) | (29) | — |
Written options | — | — | 6,308 | 82 | — |
Change in net unrealized appreciation/(depreciation) on: | |||||
Investments | (3,408) | 8,088 | (52,106) | (3,170) | — |
Forwards currency contracts | — | — | 4,351 | (147) | — |
Investments sold short | — | — | 69 | 4 | — |
Swap agreements | — | — | 50,162 | 1,392 | — |
Futures contracts | — | — | 3 | 117 | — |
Purchased options | — | — | 521 | 165 | — |
Written options | — | — | (843) | (91) | — |
Translations of assets and liabilities in foreign currencies | — | — | (1,221) | (14) | — |
Net gain/(loss) on investment transactions | 23,506 | 39,989 | (12,926) | (1,763) | — |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $27,262 | $131,167 | $ 58,699 | $ 779 | $1,089 |
Statements of Changes In Net Assets
Harbor Convertible Securities Fund | Harbor High-Yield Bond Fund | ||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
INCREASE/(DECREASE) IN NET ASSETS | |||||
Operations: | |||||
Net investment income/(loss) | $ 3,756 | $ 4,152 | $ 91,178 | $ 94,071 | |
Net realized gain/(loss) on investments | 26,914 | (9,260) | 31,901 | (85,774) | |
Change in net unrealized appreciation/(depreciation) of investments | (3,408) | 13,769 | 8,088 | 104,959 | |
Net increase/(decrease) in assets resulting from operations | 27,262 | 8,661 | 131,167 | 113,256 | |
Distributions to Shareholders | |||||
Net investment income: | |||||
Institutional Class | (5,060) | (7,671) | (88,164) | (87,833) | |
Administrative Class | (5) | (7) | (210) | (223) | |
Investor Class | (30) | (32) | (3,528) | (4,226) | |
Retirement Class | (173) | (9) | (1,550) | (42) | |
Net realized gain on investments: | |||||
Institutional Class | — | (6,871) | — | — | |
Administrative Class | — | (7) | — | — | |
Investor Class | — | (34) | — | — | |
Retirement Class | — | — | — | — | |
Total distributions to shareholders | (5,268) | (14,631) | (93,452) | (92,324) | |
Net Increase/(Decrease) Derived from Capital Share Transactions | (333,925) | 56,629 | (475,537) | 328,505 | |
Net increase/(decrease) in net assets | (311,931) | 50,659 | (437,822) | 349,437 | |
Net Assets | |||||
Beginning of period | 426,317 | 375,658 | 1,911,516 | 1,562,079 | |
End of period* | $ 114,386 | $426,317 | $1,473,694 | $1,911,516 | |
* Includes accumulated undistributed net investment income/(loss) of: | $ (147) | $ (1,178) | $ 8,810 | $ 11,084 |
Harbor Bond Fund | Harbor Real Return Fund | Harbor Money Market Fund | |||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
$ 71,625 | $ 85,711 | $ 2,542 | $ 1,918 | $ 1,089 | $ 443 | ||
(13,862) | 24,402 | (19) | (6,353) | — | — | ||
936 | 12,245 | (1,744) | 10,477 | — | — | ||
58,699 | 122,358 | 779 | 6,042 | 1,089 | 443 | ||
(66,863) | (111,734) | (1,578) | (2,275) | (1,099) | (476) | ||
(931) | (1,912) | (16) | (55) | (11) | (5) | ||
— | — | — | — | — | — | ||
— | — | — | — | — | — | ||
(33,573) | (22,480) | — | — | — | — | ||
(538) | (439) | — | — | — | — | ||
— | — | — | — | — | — | ||
— | — | — | — | — | — | ||
(101,905) | (136,565) | (1,594) | (2,330) | (1,110) | (481) | ||
(243,730) | (441,670) | (9,177) | (25,971) | 31,950 | (39,217) | ||
(286,936) | (455,877) | (9,992) | (22,259) | 31,929 | (39,255) | ||
2,476,702 | 2,932,579 | 111,382 | 133,641 | 139,253 | 178,508 | ||
$2,189,766 | $2,476,702 | $101,390 | $111,382 | $171,182 | $139,253 | ||
$ 18,676 | $ 16,767 | $ 1,144 | $ (522) | $ 34 | $ 55 |
Statements of Changes in Net Assets—Capital Stock Activity
Harbor Convertible Securities Fund | Harbor High-Yield Bond Fund | ||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
AMOUNT ($) | |||||
Institutional Class | |||||
Net proceeds from sale of shares | $ 118,396 | $ 177,327 | $ 298,904 | $ 901,011 | |
Net proceeds from redemption fees | 5 | 2 | 32 | 27 | |
Reinvested distributions | 1,599 | 3,868 | 46,533 | 46,534 | |
Cost of shares reacquired | (475,619) | (126,893) | (811,755) | (611,877) | |
Net increase/(decrease) in net assets | $(355,619) | $ 54,304 | $(466,286) | $ 335,695 | |
Administrative Class | |||||
Net proceeds from sale of shares | $ 50 | $ 6 | $ 817 | $ 628 | |
Reinvested distributions | 5 | 14 | 203 | 223 | |
Cost of shares reacquired | (81) | — | (3,992) | (542) | |
Net increase/(decrease) in net assets | $ (26) | $ 20 | $ (2,972) | $ 309 | |
Investor Class | |||||
Net proceeds from sale of shares | $ 2,678 | $ 693 | $ 22,940 | $ 42,066 | |
Net proceeds from redemption fees | — | — | 1 | 2 | |
Reinvested distributions | 30 | 66 | 3,502 | 4,191 | |
Cost of shares reacquired | (2,902) | (586) | (72,679) | (55,542) | |
Net increase/(decrease) in net assets | $ (194) | $ 173 | $ (46,236) | $ (9,283) | |
Retirement Class | |||||
Net proceeds from sale of shares | $ 22,088 | $ 2,206 | $ 42,380 | $ 1,826 | |
Net proceeds from redemption fees | 1 | — | 1 | — | |
Reinvested distributions | 173 | 9 | 1,501 | 42 | |
Cost of shares reacquired | (348) | (83) | (3,925) | (84) | |
Net increase/(decrease) in net assets | $ 21,914 | $ 2,132 | $ 39,957 | $ 1,784 |
Harbor Bond Fund | Harbor Real Return Fund | Harbor Money Market Fund | |||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
$ 297,400 | $ 301,167 | $ 13,033 | $ 11,200 | $ 632,718 | $ 579,783 | ||
— | — | — | — | — | — | ||
96,574 | 129,049 | 1,531 | 2,204 | 1,095 | 474 | ||
(630,922) | (852,459) | (22,733) | (38,609) | (601,142) | (620,014) | ||
$(236,948) | $(422,243) | $ (8,169) | $(25,205) | $ 32,671 | $ (39,757) | ||
$ 7,619 | $ 6,631 | $ 172 | $ 419 | $ 2,553 | $ 2,643 | ||
1,464 | 2,345 | 16 | 55 | 11 | 5 | ||
(15,865) | (28,403) | (1,196) | (1,240) | (3,285) | (2,108) | ||
$ (6,782) | $ (19,427) | $ (1,008) | $ (766) | $ (721) | $ 540 | ||
N/A | N/A | N/A | N/A | N/A | N/A | ||
N/A | N/A | N/A | N/A | N/A | N/A | ||
Statements of Changes in Net Assets—Capital Stock Activity—Continued
Harbor Convertible Securities Fund | Harbor High-Yield Bond Fund | ||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
SHARES | |||||
Institutional Class | |||||
Shares sold | 10,860 | 17,034 | 29,512 | 94,211 | |
Shares issued due to reinvestment of distributions | 148 | 383 | 4,624 | 4,844 | |
Shares reacquired | (43,282) | (12,521) | (80,242) | (63,167) | |
Net increase/(decrease) in shares outstanding | (32,274) | 4,896 | (46,106) | 35,888 | |
Beginning of period | 40,028 | 35,132 | 181,912 | 146,024 | |
End of period | 7,754 | 40,028 | 135,806 | 181,912 | |
Administrative Class | |||||
Shares sold | 5 | 1 | 80 | 65 | |
Shares issued due to reinvestment of distributions | — | 1 | 20 | 23 | |
Shares reacquired | (7) | — | (392) | (56) | |
Net increase/(decrease) in shares outstanding | (2) | 2 | (292) | 32 | |
Beginning of period | 37 | 35 | 463 | 431 | |
End of period | 35 | 37 | 171 | 463 | |
Investor Class | |||||
Shares sold | 244 | 68 | 2,260 | 4,293 | |
Shares issued due to reinvestment of distributions | 3 | 7 | 348 | 437 | |
Shares reacquired | (262) | (56) | (7,139) | (5,704) | |
Net increase/(decrease) in shares outstanding | (15) | 19 | (4,531) | (974) | |
Beginning of period | 194 | 175 | 8,706 | 9,680 | |
End of period | 179 | 194 | 4,175 | 8,706 | |
Retirement Class | |||||
Shares sold | 1,988 | 217 | 4,160 | 187 | |
Shares issued due to reinvestment of distributions | 16 | 1 | 149 | 4 | |
Shares reacquired | (32) | (8) | (386) | (8) | |
Net increase/(decrease) in shares outstanding | 1,972 | 210 | 3,923 | 183 | |
Beginning of period | 210 | — | 183 | — | |
End of period | 2,182 | 210 | 4,106 | 183 |
Harbor Bond Fund | Harbor Real Return Fund | Harbor Money Market Fund | |||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||
25,632 | 25,652 | 1,389 | 1,205 | 632,718 | 579,725 | ||
8,483 | 11,133 | 164 | 249 | 1,095 | 474 | ||
(54,503) | (72,530) | (2,424) | (4,225) | (601,142) | (620,014) | ||
(20,388) | (35,745) | (871) | (2,771) | 32,671 | (39,815) | ||
205,330 | 241,075 | 11,483 | 14,254 | 136,966 | 176,781 | ||
184,942 | 205,330 | 10,612 | 11,483 | 169,637 | 136,966 | ||
659 | 563 | 18 | 45 | 2,553 | 2,642 | ||
129 | 203 | 2 | 6 | 11 | 5 | ||
(1,376) | (2,429) | (128) | (135) | (3,285) | (2,108) | ||
(588) | (1,663) | (108) | (84) | (721) | 539 | ||
3,187 | 4,850 | 263 | 347 | 2,266 | 1,727 | ||
2,599 | 3,187 | 155 | 263 | 1,545 | 2,266 | ||
N/A | N/A | N/A | N/A | N/A | N/A | ||
N/A | N/A | N/A | N/A | N/A | N/A | ||
Statement of Cash Flows— Year Ended October 31, 2017
Harbor Real Return Fund | |
Cash flows from operating activities: | |
Net increase in net assets resulting from operations | $ 779 |
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: | |
Purchases of long-term securities | (1,001,300) |
Proceeds from sales of long-term securities | 992,364 |
Proceeds from short-term portfolio investments, net | 5,466 |
Increase in receivable for investments sold | (5,007) |
Decrease in foreign spot contracts receivable | 7 |
Decrease in interest receivable | 57 |
Decrease in variation margin on options and futures contracts | 4 |
Decrease in variation margin on swap agreements | 33 |
Decrease in options sold | 3 |
Increase in prepaid registration fees | (2) |
Increase in other assets | (30) |
Increase in payable for investments purchased | 7,694 |
Increase in interest on investments sold short | 1 |
Increase in investments sold short | 4,110 |
Decrease in premiums from written options not settled through variation margin | (248) |
Increase in swap premiums received | 4 |
Increase in variation margin on options and futures contracts | 1 |
Decrease in management fees payable | (4) |
Increase in other liabilities | 20 |
Net change in unrealized appreciation/(depreciation) on investments | 3,166 |
Net change in unrealized appreciation/(depreciation) on forwards | 147 |
Net change in unrealized appreciation/(depreciation) on OTC swaps | (827) |
Net change in unrealized appreciation/(depreciation) on purchased options not settled through variation margin | (153) |
Net change in unrealized appreciation/(depreciation) on written options not settled through variation margin | 89 |
Net realized loss on investments | 185 |
Net realized loss on purchased options | 29 |
Net amortization and earned inflation component .. | 635 |
Net cash provided by operating activities | 7,223 |
Cash flows from financing activities: | |
Proceeds from shares sold | 13,159 |
Payment on shares redeemed | (23,662) |
Cash dividends paid | (47) |
Increase in sale-buyback financing transactions | 2,906 |
Decrease in due to broker | (26) |
Decrease in cash-restricted | 412 |
Net cash used for financing activities | (7,258) |
Net decrease in cash and foreign currency | (35) |
Cash and foreign currency: | |
Beginning of period | $ 266 |
End of period | 231 |
Reinvestment of dividends | $ 1,547 |
Supplemental disclosure of cash flow information: | |
Interest paid during the year | $ 346 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR CONVERTIBLE SECURITIES FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 10.53 | $ 10.63 | $ 11.20 | $ 10.95 | $ 10.01 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.13 e | 0.12 e | 0.15 e | 0.19 | 0.20 |
Net realized and unrealized gains/(losses) on investments | 0.78 | 0.19 | (0.08) | 0.38 | 0.96 |
Total from investment operations | 0.91 | 0.31 | 0.07 | 0.57 | 1.16 |
Less Distributions | |||||
Dividends from net investment income | (0.17) | (0.22) | (0.22) | (0.21) | (0.22) |
Distributions from net realized capital gains1 | — | (0.19) | (0.42) | (0.11) | — |
Total distributions | (0.17) | (0.41) | (0.64) | (0.32) | (0.22) |
Proceeds from redemption fees | — * | — * | — * | — * | — * |
Net asset value end of period | 11.27 | 10.53 | 10.63 | 11.20 | 10.95 |
Net assets end of period (000s) | $87,391 | $421,671 | $373,421 | $353,370 | $267,251 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 8.74% | 3.12% | 0.72% | 5.23% | 11.80% |
Ratio of total expenses to average net assets2 | 0.79 | 0.77 | 0.75 | 0.74 | 0.79 |
Ratio of net expenses to average net assetsa | 0.76 | 0.76 | 0.75 | 0.74 | 0.79 |
Ratio of net investment income to average net assetsa | 1.18 | 1.15 | 1.37 | 1.58 | 1.82 |
Portfolio turnover | 102 | 102 | 81 | 54 | 45 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 10.52 | $ 10.61 | $ 11.18 | $ 10.94 | $ 10.00 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.09 e | 0.08 e | 0.11 e | 0.11 | 0.16 |
Net realized and unrealized gains/(losses) on investments | 0.77 | 0.20 | (0.08) | 0.40 | 0.97 |
Total from investment operations | 0.86 | 0.28 | 0.03 | 0.51 | 1.13 |
Less Distributions | |||||
Dividends from net investment income | (0.13) | (0.18) | (0.18) | (0.16) | (0.19) |
Distributions from net realized capital gains1 | — | (0.19) | (0.42) | (0.11) | — |
Total distributions | (0.13) | (0.37) | (0.60) | (0.27) | (0.19) |
Proceeds from redemption fees | — * | — * | — * | — * | — * |
Net asset value end of period | 11.25 | 10.52 | 10.61 | 11.18 | 10.94 |
Net assets end of period (000s) | $ 2,015 | $ 2,039 | $ 1,861 | $ 1,941 | $ 2,452 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 8.26% | 2.85% | 0.35% | 4.76% | 11.41% |
Ratio of total expenses to average net assets2 | 1.16 | 1.14 | 1.12 | 1.11 | 1.16 |
Ratio of net expenses to average net assetsa | 1.12 | 1.13 | 1.12 | 1.11 | 1.16 |
Ratio of net investment income to average net assetsa | 0.81 | 0.77 | 1.00 | 1.24 | 1.49 |
Portfolio turnover | 102 | 102 | 81 | 54 | 45 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$10.53 | $10.62 | $11.19 | $10.94 | $10.00 |
0.10 e | 0.09 e | 0.12 e | 0.13 | 0.16 |
0.77 | 0.20 | (0.08) | 0.41 | 0.98 |
0.87 | 0.29 | 0.04 | 0.54 | 1.14 |
(0.14) | (0.19) | (0.19) | (0.18) | (0.20) |
— | (0.19) | (0.42) | (0.11) | — |
(0.14) | (0.38) | (0.61) | (0.29) | (0.20) |
— * | — * | — * | — * | — * |
11.26 | 10.53 | 10.62 | 11.19 | 10.94 |
$ 395 | $ 392 | $ 376 | $ 306 | $ 427 |
8.37% | 2.96% | 0.47% | 4.97% | 11.55% |
1.04 | 1.02 | 1.00 | 0.99 | 1.04 |
1.00 | 1.01 | 1.00 | 0.99 | 1.04 |
0.93 | 0.90 | 1.11 | 1.35 | 1.61 |
102 | 102 | 81 | 54 | 45 |
Retirement Class | |
2017 | 2016 f |
$ 10.53 | $ 9.78 |
0.14 e | 0.08 e |
0.78 | 0.75 |
0.92 | 0.83 |
(0.18) | (0.08) |
— | — |
(0.18) | (0.08) |
— * | — |
11.27 | 10.53 |
$24,585 | $2,215 |
8.81% | 8.51% c |
0.72 | 0.73 d |
0.67 | 0.71 d |
1.24 | 1.13 d |
102 | 102 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR HIGH-YIELD BOND FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 9.99 | $ 10.00 | $ 10.85 | $ 11.19 | $ 11.15 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.55 e | 0.53 e | 0.57 e | 0.60 | 0.64 |
Net realized and unrealized gains/(losses) on investments | 0.24 | (0.02) | (0.66) | (0.05) | 0.06 |
Total from investment operations | 0.79 | 0.51 | (0.09) | 0.55 | 0.70 |
Less Distributions | |||||
Dividends from net investment income | (0.57) | (0.52) | (0.54) | (0.62) | (0.64) |
Distributions from net realized capital gains1 | — | — | (0.22) | (0.27) | (0.02) |
Total distributions | (0.57) | (0.52) | (0.76) | (0.89) | (0.66) |
Proceeds from redemption fees | — * | — * | — * | — * | — * |
Net asset value end of period | 10.21 | 9.99 | 10.00 | 10.85 | 11.19 |
Net assets end of period (000s) | $1,387,213 | $1,817,902 | $1,460,808 | $1,707,788 | $1,880,044 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 8.16% | 5.46% | (0.79)% | 5.10% | 6.55% |
Ratio of total expenses to average net assets2 | 0.72 | 0.70 | 0.69 | 0.68 | 0.68 |
Ratio of net expenses to average net assetsa | 0.67 | 0.66 | 0.65 | 0.64 | 0.64 |
Ratio of net investment income to average net assetsa | 5.43 | 5.43 | 5.51 | 5.43 | 5.56 |
Portfolio turnover | 56 | 58 | 49 | 48 | 57 |
Investor Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 10.01 | $ 10.02 | $ 10.87 | $ 11.21 | $ 11.16 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.52 e | 0.49 e | 0.53 e | 0.59 | 0.66 |
Net realized and unrealized gains/(losses) on investments | 0.24 | (0.02) | (0.66) | (0.08) | 0.01 |
Total from investment operations | 0.76 | 0.47 | (0.13) | 0.51 | 0.67 |
Less Distributions | |||||
Dividends from net investment income | (0.53) | (0.48) | (0.50) | (0.58) | (0.60) |
Distributions from net realized capital gains1 | — | — | (0.22) | (0.27) | (0.02) |
Total distributions | (0.53) | (0.48) | (0.72) | (0.85) | (0.62) |
Proceeds from redemption fees | — * | — * | — * | — * | — * |
Net asset value end of period | 10.24 | 10.01 | 10.02 | 10.87 | 11.21 |
Net assets end of period (000s) | $ 42,753 | $ 87,155 | $ 96,957 | $ 100,194 | $ 114,564 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 7.79% | 5.02% | (1.15)% | 4.70% | 6.22% |
Ratio of total expenses to average net assets2 | 1.09 | 1.07 | 1.06 | 1.05 | 1.05 |
Ratio of net expenses to average net assetsa | 1.04 | 1.03 | 1.02 | 1.01 | 1.01 |
Ratio of net investment income to average net assetsa | 5.08 | 5.09 | 5.14 | 5.06 | 5.19 |
Portfolio turnover | 56 | 58 | 49 | 48 | 57 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$10.01 | $10.02 | $10.87 | $11.21 | $11.16 |
0.53 e | 0.51 e | 0.55 e | 0.60 | 0.70 |
0.25 | (0.02) | (0.67) | (0.08) | (0.02) |
0.78 | 0.49 | (0.12) | 0.52 | 0.68 |
(0.54) | (0.50) | (0.51) | (0.59) | (0.61) |
— | — | (0.22) | (0.27) | (0.02) |
(0.54) | (0.50) | (0.73) | (0.86) | (0.63) |
— * | — * | — * | — * | — * |
10.25 | 10.01 | 10.02 | 10.87 | 11.21 |
$1,753 | $4,631 | $4,314 | $4,773 | $5,519 |
7.98% | 5.18% | (1.03)% | 4.82% | 6.33% |
0.97 | 0.95 | 0.94 | 0.93 | 0.93 |
0.92 | 0.91 | 0.90 | 0.89 | 0.89 |
5.20 | 5.20 | 5.26 | 5.18 | 5.32 |
56 | 58 | 49 | 48 | 57 |
Retirement Class | |
2017 | 2016 f |
$ 10.00 | $ 9.40 |
0.55 e | 0.36 e |
0.25 | 0.61 |
0.80 | 0.97 |
(0.58) | (0.37) |
— | — |
(0.58) | (0.37) |
— * | — * |
10.22 | 10.00 |
$41,975 | $1,828 |
8.23% | 10.49% c |
0.65 | 0.66 d |
0.61 | 0.61 d |
5.44 | 5.38 d |
56 | 58 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR BOND FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 11.88 | $ 11.92 | $ 12.28 | $ 12.22 | $ 13.03 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.36 e | 0.37 e | 0.34 e | 0.25 | 0.30 |
Net realized and unrealized gains/(losses) on investments | (0.04) | 0.16 | (0.18) | 0.16 | (0.30) |
Total from investment operations | 0.32 | 0.53 | 0.16 | 0.41 | — * |
Less Distributions | |||||
Dividends from net investment income | (0.35) | (0.48) | (0.41) | (0.35) | (0.30) |
Distributions from net realized capital gains1 | (0.17) | (0.09) | (0.11) | — | (0.51) |
Total distributions | (0.52) | (0.57) | (0.52) | (0.35) | (0.81) |
Net asset value end of period | 11.68 | 11.88 | 11.92 | 12.28 | 12.22 |
Net assets end of period (000s) | $2,159,390 | $2,438,815 | $2,874,705 | $4,125,889 | $6,626,361 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 2.82% | 4.70% | 1.32% | 3.40% | (0.05)% |
Ratio of total expenses to average net assets2 | 0.63 | 0.60 | 0.58 | 0.56 | 0.56 |
Ratio of net expenses to average net assetsa | 0.54 | 0.53 | 0.52 | 0.54 | 0.53 |
Ratio of net expenses excluding interest expense to average net assetsa | 0.51 | 0.51 | 0.52 | 0.54 | 0.53 |
Ratio of net investment income to average net assetsa | 3.15 | 3.16 | 2.80 | 1.90 | 2.36 |
Portfolio turnover | 654 | 592 | 586 | 439 | 446 |
HARBOR REAL RETURN FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 9.48 | $ 9.15 | $ 10.18 | $ 10.41 | $ 11.54 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.23 e | 0.15 e | 0.10 e | 0.40 | 0.10 |
Net realized and unrealized gains/(losses) on investments | (0.14) | 0.35 | (0.43) | (0.20) | (0.84) |
Total from investment operations | 0.09 | 0.50 | (0.33) | 0.20 | (0.74) |
Less Distributions | |||||
Dividends from net investment income | (0.15) | (0.17) | (0.70) | (0.03) | (0.18) |
Distributions from net realized capital gains1 | — | — | — | (0.40) | (0.21) |
Total distributions | (0.15) | (0.17) | (0.70) | (0.43) | (0.39) |
Net asset value end of period | 9.42 | 9.48 | 9.15 | 10.18 | 10.41 |
Net assets end of period (000s) | $ 99,929 | $ 108,890 | $ 130,467 | $ 169,969 | $ 404,689 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 0.92% | 5.55% | (3.32)% | 2.07% | (6.67)% |
Ratio of total expenses to average net assets2 | 1.03 | 0.87 | 0.77 | 0.63 | 0.61 |
Ratio of net expenses to average net assetsa | 0.87 | 0.73 | 0.68 | 0.62 | 0.61 |
Ratio of net expenses excluding interest expense to average net assetsa | 0.54 | 0.55 | 0.58 | 0.60 | 0.59 |
Ratio of net investment income to average net assetsa | 2.42 | 1.63 | 1.06 | 1.91 | 0.92 |
Portfolio turnover | 758 | 611 | 531 | 427 | 285 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 11.89 | $ 11.93 | $ 12.28 | $ 12.23 | $ 13.03 |
0.34 e | 0.34 e | 0.30 e | 0.22 | 0.27 |
(0.05) | 0.16 | (0.16) | 0.15 | (0.29) |
0.29 | 0.50 | 0.14 | 0.37 | (0.02) |
(0.32) | (0.45) | (0.38) | (0.32) | (0.27) |
(0.17) | (0.09) | (0.11) | — | (0.51) |
(0.49) | (0.54) | (0.49) | (0.32) | (0.78) |
11.69 | 11.89 | 11.93 | 12.28 | 12.23 |
$30,376 | $37,887 | $57,874 | $102,591 | $138,575 |
2.56% | 4.42% | 1.13% | 3.05% | (0.23)% |
0.88 | 0.85 | 0.83 | 0.81 | 0.81 |
0.79 | 0.78 | 0.77 | 0.79 | 0.78 |
0.76 | 0.76 | 0.77 | 0.79 | 0.78 |
2.90 | 2.89 | 2.47 | 1.66 | 2.11 |
654 | 592 | 586 | 439 | 446 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 9.46 | $ 9.15 | $ 10.17 | $ 10.41 | $ 11.55 |
0.21 e | 0.13 e | 0.08 e | 0.21 | 0.06 |
(0.15) | 0.34 | (0.42) | (0.03) | (0.84) |
0.06 | 0.47 | (0.34) | 0.18 | (0.78) |
(0.10) | (0.16) | (0.68) | (0.02) | (0.15) |
— | — | — | (0.40) | (0.21) |
(0.10) | (0.16) | (0.68) | (0.42) | (0.36) |
9.42 | 9.46 | 9.15 | 10.17 | 10.41 |
$ 1,461 | $ 2,492 | $ 3,174 | $ 3,481 | $ 3,542 |
0.62% | 5.26% | (3.47)% | 1.81% | (6.94)% |
1.26 | 1.12 | 1.02 | 0.88 | 0.86 |
1.10 | 0.98 | 0.93 | 0.87 | 0.86 |
0.77 | 0.80 | 0.83 | 0.85 | 0.84 |
2.19 | 1.38 | 0.90 | 2.08 | 0.69 |
758 | 611 | 531 | 427 | 285 |
Selected Data for a Share Outstanding for the Periods Presented
HARBOR MONEY MARKET FUND | |||||
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income/(loss)a | 0.01 e | — *,e | — *,e | — * | — * |
Net realized and unrealized gains/(losses) on investments | — | — | — | — | — |
Total from investment operations | 0.01 | — * | — * | — * | — * |
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 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Net assets end of period (000s) | $169,637 | $136,986 | $176,781 | $157,801 | $137,042 |
Ratios and Supplemental Data (%) | |||||
Total returnb | 0.73% | 0.30% | 0.08% | 0.06% | 0.09% |
Ratio of total expenses to average net assets2 | 0.35 | 0.36 | 0.32 | 0.30 | 0.31 |
Ratio of net expenses to average net assetsa | — | — | — | — | — |
Ratio of net investment income to average net assetsa | 0.72 | 0.27 | 0.08 | 0.06 | 0.09 |
* | 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 (inception) through October 31, 2016 |
Administrative Class | ||||
2017 | 2016 | 2015 | 2014 | 2013 |
$ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $1.00 |
0.01 e | — *,e | — *,e | — * | — * |
— | — | — | — | — |
0.01 | — * | — * | — * | — * |
(0.01) | — * | — * | — * | — * |
— | — | — | — | — |
(0.01) | — * | — * | — * | — * |
1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
$1,545 | $2,267 | $1,727 | $2,177 | $ 376 |
0.73% | 0.30% | 0.08% | 0.06% | 0.09% |
0.60 | 0.61 | 0.57 | 0.55 | 0.56 |
— | — | — | — | — |
0.70 | 0.28 | 0.07 | 0.06 | 0.09 |
Notes to Financial Statements—October 31, 2017
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
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. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Purchases (000s) | Sales (000s) | ||||||
U.S. Government | Other | U.S. Government | Other | ||||
Harbor Convertible Securities Fund | $ — | $ 310,706 | $ — | $ 631,945 | |||
Harbor High-Yield Bond Fund | — | 905,788 | — | 1,364,632 | |||
Harbor Bond Fund | 18,624,538 | 1,157,921 | 19,159,003 | 966,823 | |||
Harbor Real Return Fund | 981,307 | 19,993 | 965,634 | 26,730 |
Notes to Financial Statements—Continued
Contractual Rate | Actual Rate | ||
Harbor Convertible Securities Fund | 0.65% a | 0.62% | |
Harbor High-Yield Bond Fund | 0.60 b | 0.56% | |
Harbor Bond Fund | 0.48 c | 0.45% | |
Harbor Real Return Fund | 0.48 | 0.48% | |
Harbor Money Market Fund | 0.20 d | 0.18% |
a | Effective March 1, 2017, the Adviser has contractually agreed to reduce the management fee to 0.60% through February 28, 2018. |
b | The Adviser has contractually agreed to reduce the management fee to 0.56% through February 28, 2018. |
c | The Adviser has contractually agreed to reduce the management fee to 0.43% on assets between $1 billion and $3 billion and to 0.405% on assets over $3 billion through February 28, 2018. |
d | The Adviser has contractually agreed to reduce the management fee to 0.18% through February 28, 2018. |
• | Harbor Bond Fund. For the period November 1, 2016 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.51% and 0.76% for the Institutional Class and Administrative Class, respectively. These contractual expense limitations are effective through February 28, 2018. |
• | Harbor Real Return Fund. For the period November 1, 2016 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.54% and 0.79% for the Institutional Class and Administrative Class, respectively. These contractual expense limitations are effective through February 28, 2018. |
• | Harbor Money Market Fund. For the period November 1, 2016 through October 31, 2017, Harbor Capital contractually agreed to limit the operating expenses, excluding interest expense (if any), to 0.28% and 0.53% for the Institutional Class and Administrative Class, respectively. These contractual expense limitations are effective through February 28, 2018. Since December 9, 2009, Harbor Capital has voluntarily reimbursed all expenses of Harbor Money Market Fund resulting in actual expense ratios for the year ended October 31, 2017 to 0.00% and 0.00% for the Institutional Class and Administrative Class, respectively. |
Notes to Financial Statements—Continued
Transfer Agent Feesa | |
Institutional Class | 0.09% of the average daily net assets of all Institutional Class shares |
Administrative Class | 0.09% of the average daily net assets of all Administrative Class shares |
Investor Class | 0.21% of the average daily net assets of all Investor Class shares |
Retirement Class | 0.01% of the average daily net assets of all Retirement Class shares |
a | For the period November 1, 2016 through February 28, 2017, the Transfer Agent Fees were 0.08% for the Institutional and Administrative Class shares, 0.20% for the Investor Class shares, and 0.03% for the Retirement Class shares. |
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 | |||||||
Harbor Convertible Securities Fund | — | 29,976 | 29,775 | 135,145 | 194,896 | 1.9% | |||||
Harbor High-Yield Bond Fund | — | — | — | 64,190 | 64,190 | 0.0 | |||||
Harbor Bond Fund | 43,100 | — | N/A | N/A | 43,100 | 0.0 | |||||
Harbor Real Return Fund | 15,912 | — | N/A | N/A | 15,912 | 0.1 | |||||
Harbor Money Market Fund | 94,959,450 | 25,440 | N/A | N/A | 94,984,890 | 55.5 |
Notes to Financial Statements—Continued
Amount (000s) | |
Harbor Convertible Securities Fund | $ 6 |
Harbor High-Yield Bond Fund | 34 |
Undistributed Net Investment Income/(Loss) (000s) | Accumulated Net Realized Gain/(Loss) (000s) | Paid-In Capital (000s) | |||
Harbor Convertible Securities Fund | $ 2,543 | $(8,572) | $6,029 | ||
Harbor High-Yield Bond Fund | — | — | — | ||
Harbor Bond Fund | (1,922) | 1,922 | — | ||
Harbor Real Return Fund | 718 | (716) | (2) | ||
Harbor Money Market Fund | — | — | — |
Notes to Financial Statements—Continued
As of October 31, 2017 | As of October 31, 2016 | ||||||||||
Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | ||||||
Harbor Convertible Securities Fund | $ 5,268 | $— | $ 5,268 | $ 7,719 | $6,912 | $ 14,631 | |||||
Harbor High-Yield Bond Fund | 93,452 | — | 93,452 | 92,324 | — | 92,324 | |||||
Harbor Bond Fund | 101,905 | — | 101,905 | 136,565 | — | 136,565 | |||||
Harbor Real Return Fund | 1,594 | — | 1,594 | 2,330 | — | 2,330 | |||||
Harbor Money Market Fund | 1,110 | — | 1,110 | 481 | — | 481 |
Undistributed Ordinary Income (000s) | Undistributed Long-Term Capital Gains (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||
Harbor Convertible Securities Fund | $ 9,918 | $— | $ 3,287 | ||
Harbor High-Yield Bond Fund | 8,897 | — | 40,965 | ||
Harbor Bond Fund | 26,001 | — | (4,817) | ||
Harbor Real Return Fund | 1,507 | — | (2,968) | ||
Harbor Money Market Fund | 42 | — | — |
Capital Loss Carryfoward | |||||
Short-Term (000s) | Long- Term (000s) | Total (000s) | |||
Harbor High-Yield Bond Fund | $ 4,340 | $72,024 | $76,364 | ||
Harbor Bond Fund | 19,914 | 29,089 | 49,003 | ||
Harbor Real Return Fund | 4,683 | 24,096 | 28,779 |
Identified Cost (000s) | Gross Unrealized | Net Unrealized Appreciation/ (Depreciation) (000s) | |||||
Appreciation (000s) | (Depreciation) (000s) | ||||||
Harbor Convertible Securities Fund | $ 111,644 | $ 4,904 | $ (1,617) | $ 3,287 | |||
Harbor High-Yield Bond Fund* | 1,395,152 | 55,203 | (14,238) | 40,965 | |||
Harbor Bond Fund* | 3,403,301 | 60,649 | (65,466) | (4,817) | |||
Harbor Real Return Fund* | 151,117 | 2,086 | (5,054) | (2,968) | |||
Harbor Money Market Fund | 170,919 | — | — | — |
* | Capital loss carryforwards are available which may reduce taxable income from future net realized gain on investments. |
Notes to Financial Statements—Continued
Statement of Assets and Liabilities Caption | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Total (000s) | ||||||||
Assets | ||||||||||||
Unrealized appreciation on open forward currency contracts | $ — | $18,970 | $ — | $18,970 | ||||||||
Unrealized appreciation on OTC swap agreementsb | — | — | 463 | 463 | ||||||||
Variation margin on centrally cleared swap agreementsa,b | 3,657 | — | 528 | 4,185 | ||||||||
Variation margin on options and futures contracts (futures)a | 4,079 | — | — | 4,079 | ||||||||
Variation margin on options and futures contracts (options)a | 10 | — | — | 10 | ||||||||
Purchased options, at value | 759 | — | — | 759 | ||||||||
Liabilities | ||||||||||||
Unrealized depreciation on open forward currency contracts | $ — | $ (9,651) | $ — | $ (9,651) | ||||||||
Variation margin on centrally cleared swap agreementsa,b | (990) | — | (10) | (1,000) | ||||||||
Variation margin on options and futures contracts (futures)a | (9,533) | — | — | (9,533) | ||||||||
Written options, at value | (344) | (257) | — | (601) |
Statement of Assets and Liabilities Caption | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Total (000s) | ||||||||
Assets | ||||||||||||
Unrealized appreciation on open forward currency contracts | $ — | $251 | $ — | $ 251 | ||||||||
Unrealized appreciation on OTC swap agreementsb | — | — | 44 | 44 | ||||||||
Variation margin on centrally cleared swap agreementsa,b | 440 | — | — | 440 | ||||||||
Variation margin on options and futures contracts (futures)a | 202 | — | — | 202 | ||||||||
Variation margin on options and futures contracts (options)a | 3 | — | — | 3 | ||||||||
Purchased options, at value | 64 | — | — | 64 | ||||||||
Liabilities | ||||||||||||
Unrealized depreciation on open forward currency contracts | $ — | $ (82) | $ — | $ (82) | ||||||||
Unrealized depreciation on OTC swap agreementsb | (113) | — | — | (113) | ||||||||
Variation margin on centrally cleared swap agreementsa,b | (105) | — | (31) | (136) | ||||||||
Variation margin on options and futures contracts (futures)a | (21) | — | — | (21) | ||||||||
Variation margin on options and futures contracts (options)a | (2) | — | — | (2) | ||||||||
Written options, at value | (30) | — | — | (30) |
a | Includes cumulative appreciation/depreciation of contracts as reported in the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
b | Net of premiums received of $446,000 and $39,000 for Harbor Bond Fund and Harbor Real Return Fund, respectively. |
Notes to Financial Statements—Continued
Net Realized Gain/(Loss) on Derivatives | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Total (000s) | ||||
Forward currency contracts | $ — | $4,630 | $ — | $ 4,630 | ||||
Futures contracts | (9,040) | — | — | (9,040) | ||||
Purchased options | (1,600) | — | — | (1,600) | ||||
Written options | 2,621 | 3,687 | — | 6,308 | ||||
Swaps agreements | (3,803) | — | 2,305 | (1,498) | ||||
Net realized gain/(loss) on derivatives | $(11,822) | $8,317 | $2,305 | $(1,200) |
Change in Unrealized Appreciation/(Depreciation) on Derivatives | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Total (000s) | ||||
Forward currency contracts | $ — | $4,351 | $ — | $ 4,351 | ||||
Futures contracts | 3 | — | — | 3 | ||||
Purchased options | 521 | — | — | 521 | ||||
Written options | (769) | (74) | — | (843) | ||||
Swaps agreements | 50,362 | — | (200) | 50,162 | ||||
Change in unrealized appreciation/(depreciation) on derivatives | $50,117 | $4,277 | $(200) | $54,194 |
Net Realized Gain/(Loss) on Derivatives | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Total (000s) | ||||
Forward currency contracts | $ — | $751 | $ — | $ 751 | ||||
Futures contracts | (213) | — | — | (213) | ||||
Purchased options | (29) | — | — | (29) | ||||
Written options | 55 | 27 | — | 82 | ||||
Swaps agreements | (401) | — | (83) | (484) | ||||
Net realized gain/(loss) on derivatives | $(588) | $778 | $(83) | $ 107 |
Change in Unrealized Appreciation/(Depreciation) on Derivatives | Interest Rate Contracts (000s) | Foreign Exchange Contracts (000s) | Credit Contracts (000s) | Total (000s) | ||||
Forward currency contracts | $ — | $(147) | $— | $ (147) | ||||
Futures contracts | 117 | — | — | 117 | ||||
Purchased options | 165 | — | — | 165 | ||||
Written options | (75) | (15) | (1) | (91) | ||||
Swaps agreements | 1,389 | — | 3 | 1,392 | ||||
Change in unrealized appreciation/(depreciation) on derivatives | $1,596 | $(162) | $ 2 | $1,436 |
Notes to Financial Statements—Continued
Counterparty | Repurchase Agreement Proceeds to be Received (000s) | Payable for Reverse Repurchase Agreements (000s) | Payable for Sale-Buyback Transactions (000s) | Payable for Short Sale (000s) | Total Borrowings and Other Financing Transactions (000s) | Collateral (Received)/ Pledged (000s) | Net Exposure (000s) | ||||||||||||||
Master/Global Repurchase Agreement | |||||||||||||||||||||
Barclays Capital Inc. | $ 95,400 | $— | $ — | $ — | $ 95,400 | $(95,400) | $ — | ||||||||||||||
Fixed Income Clearing Corp. | 14,689 | — | — | — | 14,689 | (14,689) | — | ||||||||||||||
BNP Paribas NY | 13,800 | — | — | — | 13,800 | (13,800) | — | ||||||||||||||
Master Securities Forward Transactions Agreements | |||||||||||||||||||||
Barclays Capital Inc. | — | — | (95,380) | — | (95,380) | — | (95,380) | ||||||||||||||
Credit Suisse Securities LLC | — | — | — | (24,139) | (24,139) | — | (24,139) | ||||||||||||||
UBS Securities LLC | — | — | (159,650) | — | (159,650) | 959 | (158,691) | ||||||||||||||
Total Borrowings and Other Financing Transactions | $123,889 | $— | $(255,030) | $(24,139) |
Counterparty | Repurchase Agreement Proceeds to be Received (000s) | Payable for Reverse Repurchase Agreements (000s) | Payable for Sale-Buyback Transactions (000s) | Payable for Short Sale (000s) | Total Borrowings and Other Financing Transactions (000s) | Collateral (Received)/ Pledged (000s) | Net Exposure (000s) | ||||||||||||||
Master/Global Repurchase Agreement | |||||||||||||||||||||
Fixed Income Clearing Corp. | $109 | $— | $ — | $ — | $ 109 | $(109) | $ — |
Notes to Financial Statements—Continued
Counterparty | Repurchase Agreement Proceeds to be Received (000s) | Payable for Reverse Repurchase Agreements (000s) | Payable for Sale-Buyback Transactions (000s) | Payable for Short Sale (000s) | Total Borrowings and Other Financing Transactions (000s) | Collateral (Received)/ Pledged (000s) | Net Exposure (000s) | ||||||||||||||
Master Securities Forward Transactions Agreements | |||||||||||||||||||||
Barclays Capital Inc. | $ — | $— | $(32,857) | $(1,030) | $(33,887) | $ — | (33,887) | ||||||||||||||
BNP Paribas NY | — | — | (866) | — | (866) | — | (866) | ||||||||||||||
Credit Suisse Securities LLC | — | — | — | (1,798) | (1,798) | — | (1,798) | ||||||||||||||
Goldman Sachs & Co. LLC | — | — | — | (1,028) | (1,028) | — | (1,028) | ||||||||||||||
JP Morgan Chase Bank | — | — | — | (7) | (7) | — | (7) | ||||||||||||||
Merrill Lynch | — | — | — | (44) | (44) | — | (44) | ||||||||||||||
Morgan Stanley Co. Inc. | — | — | — | (200) | (200) | — | (200) | ||||||||||||||
UBS Securities LLC | — | — | (4,757) | — | (4,757) | — | (4,757) | ||||||||||||||
Total Borrowings and Other Financing Transactions | $109 | $— | $(38,480) | $(4,107) |
Financial Derivative Assets | Financial Derivative Liabilities | Net Value of OTC Derivatives (000s) | Collateral (Received)/ Pledged* (000s) | Net Exposure (000s) | ||||||||||||||||||
Counterparty | Forward Currency Contracts (000s) | Purchased Options (000s) | Swap Agreements (000s) | Total Over-the- Counter (000s) | Forward Currency Contracts (000s) | Written Options (000s) | Swap Agreements (000s) | Total Over-the- Counter (000s) | ||||||||||||||
Barclays Bank plc | $ — | $ — | $ — | $ — | $ (46) | $ — | $— | $ (46) | $ (46) | $ 46 | $ — | |||||||||||
BNP Paribas SA | 3,252 | — | 135 | 3,387 | (466) | — | — | (466) | 2,921 | (2,620) | 301 | |||||||||||
Citibank NA | 1,301 | — | — | 1,301 | (768) | — | — | (768) | 533 | (410) | 123 | |||||||||||
Credit Suisse International | 3 | — | — | 3 | — | (60) | — | (60) | (57) | 57 | — | |||||||||||
Deutsche Bank AG | 476 | — | — | 476 | (22) | (22) | — | (44) | 432 | (432) | — | |||||||||||
Goldman Sachs Bank USA | 1,593 | 281 | — | 1,874 | (2,503) | (309) | — | (2,812) | (938) | 591 | (347) | |||||||||||
Goldman Sachs International | — | — | 44 | 44 | — | — | — | — | 44 | — | 44 | |||||||||||
HSBC Bank USA | 85 | — | — | 85 | (189) | — | — | (189) | (104) | — | (104) | |||||||||||
HSBC Bank USA NA | — | — | 37 | 37 | — | — | — | — | 37 | — | 37 | |||||||||||
JP Morgan Chase Bank | 65 | — | — | 65 | (1,772) | — | — | (1,772) | (1,707) | — | (1,707) | |||||||||||
JP Morgan Chase Bank NA | 8,707 | — | 247 | 8,954 | (2,476) | — | — | (2,476) | 6,478 | (4,340) | 2,138 | |||||||||||
Morgan Stanley Capital Services LLC | — | 410 | — | 410 | — | (200) | — | (200) | 210 | (210) | — | |||||||||||
Royal Bank of Scotland plc | — | — | — | — | (48) | — | — | (48) | (48) | — | (48) | |||||||||||
Société Générale | 2,251 | — | — | 2,251 | (212) | — | — | (212) | 2,039 | — | 2,039 | |||||||||||
Société Générale Paris | — | — | — | — | — | (1) | — | (1) | (1) | — | (1) | |||||||||||
UBS AG | 1,237 | — | — | 1,237 | (1,149) | — | — | (1,149) | 88 | — | 88 | |||||||||||
UBS AG Stamford | — | — | — | — | — | (2) | — | (2) | (2) | — | (2) | |||||||||||
Total Over-the-Counter Exposure | $18,970 | $691 | $463 | $20,124 | $(9,651) | $(594) | $— | $(10,245) |
* | Of the total collateral received and/or pledged listed in the table above, $8,012 cash has been received as collateral. |
Notes to Financial Statements—Continued
Financial Derivative Assets | Financial Derivative Liabilities | Net Value of OTC Derivatives (000s) | Collateral (Received)/ Pledged* (000s) | Net Exposure (000s) | ||||||||||||||||||
Counterparty | Forward Currency Contracts (000s) | Purchased Options (000s) | Swap Agreements (000s) | Total Over-the- Counter (000s) | Forward Currency Contracts (000s) | Written Options (000s) | Swap Agreements (000s) | Total Over-the- Counter (000s) | ||||||||||||||
BNP Paribas SA | $ — | $— | $— | $ — | $ (3) | $ — | $ — | $ (3) | $ (3) | $— | $ (3) | |||||||||||
Citibank NA | 52 | — | — | 52 | (29) | — | — | (29) | 23 | — | 23 | |||||||||||
Credit Suisse International | 4 | — | 13 | 17 | — | (3) | — | (3) | 14 | — | 14 | |||||||||||
Deutsche Bank AG | — | 46 | 8 | 54 | (3) | (2) | (35) | (40) | 14 | — | 14 | |||||||||||
Goldman Sachs Bank USA | 20 | — | — | 20 | (4) | (5) | — | (9) | 11 | — | 11 | |||||||||||
Goldman Sachs International | — | — | 11 | 11 | — | — | (2) | (2) | 9 | — | 9 | |||||||||||
HSBC Bank USA NA | — | — | 5 | 5 | — | — | — | — | 5 | — | 5 | |||||||||||
JP Morgan Chase Bank | — | — | — | — | (1) | — | — | (1) | (1) | — | (1) | |||||||||||
JP Morgan Chase Bank NA | 137 | — | 7 | 144 | (5) | (8) | — | (13) | 131 | — | 131 | |||||||||||
Morgan Stanley Capital Services LLC | — | 15 | — | 15 | — | (2) | (76) | (78) | (63) | — | (63) | |||||||||||
Royal Bank of Scotland plc | — | — | — | — | — | (3) | — | (3) | (3) | — | (3) | |||||||||||
Société Générale | 2 | — | — | 2 | — | — | — | — | 2 | — | 2 | |||||||||||
UBS AG | 36 | — | — | 36 | (37) | — | — | (37) | (1) | — | (1) | |||||||||||
Total Over-the-Counter Exposure | $251 | $ 61 | $ 44 | $356 | $(82) | $(23) | $(113) | $(218) |
* | Of the total collateral received and/or pledged listed in the table above, no cash has been received as collateral. |
Report of Independent Registered Public Accounting Firm
December 21, 2017
Fees and Expenses Example (Unaudited)
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Convertible Securities Fund | ||||||||
Institutional Class | 0.76% | |||||||
Actual | $3.90 | $1,000 | $1,036.60 | |||||
Hypothetical (5% return) | 3.87 | 1,000 | 1,021.28 | |||||
Administrative Class | 1.00% | |||||||
Actual | $5.13 | $1,000 | $1,035.20 | |||||
Hypothetical (5% return) | 5.09 | 1,000 | 1,020.04 | |||||
Investor Class | 1.12% | |||||||
Actual | $5.75 | $1,000 | $1,034.90 | |||||
Hypothetical (5% return) | 5.70 | 1,000 | 1,019.42 | |||||
Retirement Class | 0.67% | |||||||
Actual | $3.44 | $1,000 | $1,037.00 | |||||
Hypothetical (5% return) | 3.41 | 1,000 | 1,021.74 |
Fees and Expenses Example—Continued
Annualized Expense Ratios* | Expenses Paid During Period** | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor High-Yield Bond Fund | ||||||||
Institutional Class | 0.67% | |||||||
Actual | $3.43 | $1,000 | $1,029.90 | |||||
Hypothetical (5% return) | 3.41 | 1,000 | 1,021.74 | |||||
Administrative Class | 0.92% | |||||||
Actual | $4.71 | $1,000 | $1,029.60 | |||||
Hypothetical (5% return) | 4.69 | 1,000 | 1,020.45 | |||||
Investor Class | 1.04% | |||||||
Actual | $5.31 | $1,000 | $1,028.30 | |||||
Hypothetical (5% return) | 5.29 | 1,000 | 1,019.83 | |||||
Retirement Class | 0.61% | |||||||
Actual | $3.13 | $1,000 | $1,030.30 | |||||
Hypothetical (5% return) | 3.11 | 1,000 | 1,022.05 | |||||
Harbor Bond Fund | ||||||||
Institutional Class | 0.51% | |||||||
Actual | $2.60 | $1,000 | $1,024.40 | |||||
Hypothetical (5% return) | 2.60 | 1,000 | 1,022.57 | |||||
Administrative Class | 0.76% | |||||||
Actual | $3.87 | $1,000 | $1,022.20 | |||||
Hypothetical (5% return) | 3.87 | 1,000 | 1,021.28 | |||||
Harbor Real Return Fund | ||||||||
Institutional Class | 0.54% | |||||||
Actual | $2.73 | $1,000 | $1,004.50 | |||||
Hypothetical (5% return) | 2.75 | 1,000 | 1,022.41 | |||||
Administrative Class | 0.77% | |||||||
Actual | $3.89 | $1,000 | $1,003.60 | |||||
Hypothetical (5% return) | 3.92 | 1,000 | 1,021.23 | |||||
Harbor Money Market Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00 | $1,000 | $1,004.70 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Administrative Class | 0.00% | |||||||
Actual | $0.00 | $1,000 | $1,004.70 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 |
* | Reflective of all fee waivers and expense reimbursements (excluding interest expense, if any) |
** | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Additional Information (Unaudited)
Percentage of Distribution | |
Harbor Convertible Securities Fund | 3% |
Amount (000s) | |
Harbor Convertible Securities Fund | $ 4,707 |
Harbor Bond Fund | 34,111 |
Additional Information—Continued
Trustee | For | Withhold | ||
Scott M. Amero | 1,047,869,265 | 14,860,642 | ||
Joseph L. Dowling III | 1,046,335,272 | 16,394,636 | ||
Robert A. Kasdin | 1,047,514,035 | 15,215,872 | ||
Charles F. McCain | 1,047,667,935 | 15,061,973 | ||
Kathryn L. Quirk | 1,046,812,694 | 15,917,214 | ||
Ann M. Spruill | 1,047,274,165 | 15,455,742 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Convertible Securities Fund | 18,790,592 | 3,444,688 | 2,418 | 1,310,336 | ||||
Harbor High-Yield Bond Fund | 106,310,802 | 232,560 | 151,173 | 20,951,685 | ||||
Harbor Bond Fund | 85,601,369 | 3,272,756 | 1,704,846 | 35,727,141 | ||||
Harbor Real Return Funda | 4,763,427 | 196,593 | 60,854 | 3,381,084 | ||||
Harbor Money Market Fund | 75,782,877 | 2,004,219 | 807,882 | 1,040,284 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Convertible Securities Fund | 18,790,592 | 3,444,688 | 2,418 | 1,310,336 | ||||
Harbor High-Yield Bond Fund | 106,305,737 | 227,656 | 161,143 | 20,951,685 | ||||
Harbor Bond Fund | 85,655,964 | 3,226,234 | 1,696,772 | 35,727,141 | ||||
Harbor Real Return Funda | 4,763,710 | 196,275 | 60,890 | 3,381,084 | ||||
Harbor Money Market Fund | 75,776,728 | 2,010,074 | 808,175 | 1,040,284 |
a | Meeting held on October 18, 2017 |
Additional Information—Continued
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 (54) Trustee | Since 2014 | Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation nonprofit); Trustee, Berkshire School (2014-Present); 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), BlackRock, Inc., (publicly traded investment management firm). | 32 | None |
Raymond J. Ball (73) 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). | 32 | None |
Donna J. Dean (66) Trustee | Since 2010 | Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present). | 32 | None |
Joseph L. Dowling III (53) Trustee | Since 2017 | Chief Investment Officer, Brown University (2013-Present); Advisory Board Member, Stage Point Capital (private mortgage specialist) (2016-Present); Advisory Board Member, Harbor Funds (2016-2017); and Founder and Managing Member, Narragansett Asset Management (private investment management firm) (1998-2013). | 32 | Director of Integrated Electrical Services (2011-Present). |
Randall A. Hack (70) Trustee | Since 2010 | Founder and Senior Managing Director of Capstone Capital LLC (private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (private equity firm) (2002-2013). | 32 | None |
Robert Kasdin (59) Trustee | Since 2014 | Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee and Co-Chair of the Finance Committee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014). | 32 | Director of Noranda Aluminum Holdings Corporation (2007-2014); and Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present). |
Additional Information—Continued
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—Continued | ||||
Kathryn L. Quirk (65) Trustee | Since 2017 | Retired; Vice President, Senior Compliance Officer and Head, U.S. Regulatory Compliance, Goldman Sachs Asset Management (2013-2017); Deputy Chief Legal Officer, Asset Management, and Vice President and Corporate Counsel, Prudential Insurance Company of America (2010-2012); Co-Chief Legal Officer, Prudential Investment Management, Inc., and Chief Legal Officer, Prudential Investments and Prudential Mutual Funds (2008-2012); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America, and Chief Legal Officer, Prudential Investments (2005-2008); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America (2004-2005); Member, Management Committee (2000-2002), General Counsel and Chief Compliance Officer, Zurich Scudder Investments, Inc. (1997-2002). | 32 | None |
Ann M. Spruill (63) 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). | 32 | None |
INTERESTED TRUSTEE | ||||
Charles F. McCain (48)* Chairman, Trustee and President | Since 2017 | Chief Executive Officer (2017-Present), Director (2007-Present), President and Chief Operating Officer (2017), Executive Vice President and General Counsel (2004-2017), and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-2017), Harbor Services Group, Inc.; and Chief Executive Officer (2017-Present), Director (2007-Present), Chief Compliance Officer and Executive Vice President (2007-2017), Harbor Funds Distributors, Inc. | 32 | None |
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE** | ||
Erik D. Ojala (42) Chief Compliance Officer and Secretary | Since 2017 Since 2007 | Executive Vice President and General Counsel (2017-Present) and Secretary (2010-Present); Senior Vice President and Associate General Counsel (2007-2017), Harbor Capital Advisors, Inc.; Director, Executive Vice President and Chief Compliance Officer (2017-Present), Harbor Funds Distributors, Inc.; and Director (2017-Present) and Assistant Secretary (2014-Present), Harbor Services Group, Inc. |
Anmarie S. Kolinski (46) 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. |
Brian L. Collins (49) Vice President | Since 2005 | Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc. |
Charles P. Ragusa (58) 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) and OFAC Officer (2015-Present), Harbor Funds Distributors, Inc. |
Jodie L. Crotteau (45) Assistant Secretary | Since 2014 | Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Chief Compliance Officer and Secretary (2017-present) and Assistant Secretary (2015-2016), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); and Vice President, Grosvenor Capital Management, L.P. (2010-2014). |
Additional Information—Continued
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE**—Continued | ||
Lana M. Lewandowski (38) AML Compliance Officer and Assistant Secretary | Since 2017 | Legal & Compliance Manager (2016-Present) and Legal Specialist (2012-2015), Harbor Capital Advisors, Inc. |
Lora A. Kmieciak (53) Assistant Treasurer | Since 2017 | Senior Vice President – Fund Administration and Analysis (2017-Present) and Senior Vice President - Business Analysis (2015-2017), Harbor Capital Advisors, Inc.; and Assurance Executive Director (1999-2015), Ernst & Young LLP. |
John M. Paral (49) Assistant Treasurer | Since 2013 | Director of Fund Administration and Analysis (2017-Present), Vice President (2012-Present) and Financial Reporting Manager (2007-2017), Harbor Capital Advisors, Inc. |
1 | Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually. |
* | Mr. McCain 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. |
111 South Wacker Drive, 34th Floor | Chicago, IL 60606-4302 | 800-422-1050 | harborfunds.com |
Chairman, President & Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Treasurer
Chief Compliance Officer
& Secretary
Vice President
Vice President
Assistant Secretary
AML Compliance Officer
& Assistant Secretary
Assistant Treasurer
Assistant Treasurer
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900
Table of Contents
Institutional Class | |
Harbor Target Retirement Income | HARAX |
Harbor Target Retirement 2015 Fund | HARGX |
Harbor Target Retirement 2020 Fund | HARJX |
Harbor Target Retirement 2025 Fund | HARMX |
Harbor Target Retirement 2030 Fund | HARPX |
Harbor Target Retirement 2035 Fund | HARUX |
Harbor Target Retirement 2040 Fund | HARYX |
Harbor Target Retirement 2045 Fund | HACCX |
Harbor Target Retirement 2050 Fund | HAFFX |
Harbor Target Retirement 2055 Fund | HATRX |
Charles F. McCain Chairman |
Returns For Periods Ended October 31, 2017 | ||||||||
Annualized | ||||||||
Domestic Equities | 1 Year | 5 Years | 10 Years | 30 Years | ||||
Russell 3000® (entire U.S. stock market) | 23.98% | 15.12% | 7.61% | 10.60% | ||||
S&P 500 (large cap stocks) | 23.63 | 15.18 | 7.51 | 10.50 | ||||
Russell Midcap® (mid cap stocks) | 21.09 | 14.87 | 8.09 | 12.11 | ||||
Russell 2000® (small cap stocks) | 27.85 | 14.49 | 7.63 | 10.45 | ||||
Russell 3000® Growth (growth stocks) | 29.80 | 16.71 | 9.05 | 10.16 | ||||
Russell 3000® Value (value stocks) | 18.30 | 13.48 | 6.07 | 10.68 | ||||
International & Global | ||||||||
MSCI EAFE (ND) (foreign stocks) | 23.44% | 8.53% | 1.10% | 5.62% | ||||
MSCI EAFE Small Cap (ND) (foreign small cap stocks) | 27.51 | 13.03 | 4.18 | N/A | ||||
MSCI World (ND) (global stocks) | 22.77 | 11.56 | 4.10 | 7.44 | ||||
MSCI All Country World Ex. U.S. (ND) (foreign stocks) | 23.64 | 7.29 | 0.92 | N/A | ||||
MSCI Emerging Markets (ND) (emerging market stocks) | 26.45 | 4.83 | 0.60 | N/A | ||||
Strategic Markets | ||||||||
Bloomberg Commodity Index Total ReturnSM (commodities) | 2.35% | -9.37% | -6.93% | N/A | ||||
Fixed Income | ||||||||
ICE BofAML U.S. Non-Distressed High Yield (domestic high-yield bonds) | 8.62% | 6.33% | 6.69% | N/A | ||||
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90 | 2.04 | 4.19 | 6.43% | ||||
Bloomberg Barclays U.S. TIPS (domestic inflation-linked bonds) | -0.11 | -0.11 | 3.81 | N/A | ||||
ICE BofAML U.S. 3-Month Treasury Bill (proxy for money market returns) | 0.72 | 0.24 | 0.45 | 3.35 |
Charles F. McCain |
Chairman |
Managers Commentary (Unaudited)
Since Inception
Since Inception
Managers Commentary—Continued
HARBOR TARGET RETIREMENT FUNDS | Total Return Year Ended October 31, 2017 |
Harbor Target Retirement Income Fund | 7.17% |
Harbor Target Retirement 2015 Fund | 8.43 |
Harbor Target Retirement 2020 Fund | 10.77 |
Harbor Target Retirement 2025 Fund | 12.38 |
Harbor Target Retirement 2030 Fund | 14.18 |
Harbor Target Retirement 2035 Fund | 16.31 |
Harbor Target Retirement 2040 Fund | 18.26 |
Harbor Target Retirement 2045 Fund | 20.37 |
Harbor Target Retirement 2050 Fund | 22.40 |
Harbor Target Retirement 2055 Fund | 23.34 |
COMMONLY USED MARKET INDICES | Total Return Year Ended October 31, 2017 |
Bloomberg Barclays U.S. Aggregate Bond (domestic bonds) | 0.90% |
MSCI EAFE (ND) (foreign stocks) | 23.44 |
Russell 3000® (entire U.S. stock market) | 23.98 |
HARBOR TARGET RETIREMENT FUND INDICES | Total Return Year Ended October 31, 2017 |
Composite Index Income | 5.97% |
Composite Index 2015 | 7.30 |
Composite Index 2020 | 9.81 |
Composite Index 2025 | 11.53 |
Composite Index 2030 | 13.27 |
Composite Index 2035 | 15.24 |
Composite Index 2040 | 17.10 |
Composite Index 2045 | 19.11 |
Composite Index 2050 | 21.17 |
Composite Index 2055 | 22.13 |
Managers Commentary—Continued
Total Return for the Year Ended October 31, 2017 | |||||||||||||||||
EQUITY | One Year | Five Yearsa | Ten Yearsa | Since Inceptiona | Current 7-Day SEC Yield | Inception Date | Expense Ratios* | ||||||||||
Subsidized b | Unsubsidized c | Net | Gross | ||||||||||||||
Harbor Capital Appreciation Fund | 32.52% | 17.88% | 9.42% | 11.73% | N/A | N/A | 12/29/1987 | 0.65% d | 0.70% | ||||||||
Harbor Mid Cap Growth Fund | 31.00 | 14.51 | 6.51 | 4.61 | N/A | N/A | 11/01/2000 | 0.87 | 0.87 | ||||||||
Harbor Small Cap Growth Fund | 26.72 | 15.42 | 8.13 | 8.70 | N/A | N/A | 11/01/2000 | 0.86 | 0.86 | ||||||||
Harbor Large Cap Value Fund | 26.00 | 16.36 | 7.31 | 10.22 | N/A | N/A | 12/29/1987 | 0.68 e | 0.73 | ||||||||
Harbor Mid Cap Value Fund | 19.16 | 15.57 | 8.36 | 8.34 | N/A | N/A | 03/01/2002 | 0.86 d | 0.87 | ||||||||
Harbor Small Cap Value Fund | 33.00 | 17.12 | 8.52 | 11.12 | N/A | N/A | 12/14/2001 | 0.87 | 0.87 | ||||||||
Harbor International Fund | 18.24 | 6.14 | 1.34 | 10.77 | N/A | N/A | 12/29/1987 | 0.79 d | 0.80 | ||||||||
Harbor Diversified International All Cap Fund | 22.29 | N/A | N/A | 9.35 | N/A | N/A | 11/02/2015 | 0.85 e | 1.23 | ||||||||
Harbor International Growth Fund | 23.38 | 8.67 | 0.57 | 4.02 | N/A | N/A | 11/01/1993 | 0.85 e | 0.91 | ||||||||
Harbor Global Leaders Fund | 24.74 | 13.11 | N/A | 17.40 | N/A | N/A | 03/01/2009 | 0.90 e | 1.05 | ||||||||
FIXED INCOME | |||||||||||||||||
Harbor High-Yield Bond Fund | 8.16% | 4.85% | 6.15% | 7.14% | N/A | N/A | 12/01/2002 | 0.67% d,e | 0.71% | ||||||||
Harbor Bond Fund | 2.82 | 2.43 | 5.16 | 7.09 | N/A | N/A | 12/29/1987 | 0.51 e | 0.61 | ||||||||
Harbor Real Return Fund | 0.92 | -0.38 | 3.81 | 3.87 | N/A | N/A | 12/01/2005 | 0.54 e | 0.88 | ||||||||
SHORT-TERM | |||||||||||||||||
Harbor Money Market Fund | 0.73% | 0.25% | 0.50% | 3.21% | 1.03% | 0.67% | 12/29/1987 | 0.28% d,e | 0.37% |
* | All mutual funds have expense ratios which represent what shareholders pay for operating expenses and management fees. Expense ratios are expressed as an annualized percentage of a fund’s average net assets paid out in expenses. Net expense ratios reflect adjustments due to voluntary or contractual fee waivers or expense reimbursements. Expense ratio information is as of the fund’s current prospectus, as revised and supplemented to date. |
a | Annualized |
b | Reflects reimbursements or waivers in effect during the period |
c | Does not reflect reimbursements or waivers currently in effect |
d | Reflects a contractual management fee waiver effective through February 28, 2018 |
e | Reflects an expense limitation agreement (excluding interest expense, if any) effective through February 28, 2018 |
Asset allocation framework (Unaudited)
HARBOR TARGET RETIREMENT FUNDS - ACTUAL ALLOCATION AS OF October 31, 2017 | |||||||||||||||||||
2055 Fund | 2050 Fund | 2045 Fund | 2040 Fund | 2035 Fund | 2030 Fund | 2025 Fund | 2020 Fund | 2015 Fund | Income Fund | ||||||||||
Equity | |||||||||||||||||||
Harbor Capital Appreciation Fund | 12% | 11% | 10% | 8% | 7% | 6% | 5% | 4% | 3% | 3% | |||||||||
Harbor Mid Cap Growth Fund | 6 | 6 | 5 | 5 | 4 | 3 | 3 | 2 | 2 | 1 | |||||||||
Harbor Small Cap Growth Fund | 5 | 5 | 5 | 4 | 4 | 3 | 3 | 2 | 2 | 1 | |||||||||
Harbor Large Cap Value Fund | 14 | 13 | 11 | 10 | 9 | 7 | 6 | 5 | 4 | 3 | |||||||||
Harbor Mid Cap Value Fund | 9 | 9 | 7 | 7 | 6 | 5 | 4 | 3 | 2 | 2 | |||||||||
Harbor Small Cap Value Fund | 7 | 6 | 6 | 5 | 4 | 4 | 3 | 3 | 2 | 1 | |||||||||
Harbor International Fund | 12 | 11 | 10 | 9 | 7 | 6 | 5 | 5 | 3 | 3 | |||||||||
Harbor Diversified International All Cap Fund | 11 | 11 | 10 | 9 | 7 | 6 | 5 | 4 | 3 | 2 | |||||||||
Harbor International Growth Fund | 12 | 11 | 10 | 9 | 8 | 6 | 5 | 5 | 3 | 3 | |||||||||
Harbor Global Leaders Fund | 5 | 5 | 4 | 3 | 3 | 2 | 2 | 2 | 1 | 1 | |||||||||
Total Equity | 93 | 88 | 78 | 69 | 59 | 48 | 41 | 35 | 25 | 20 | |||||||||
Fixed Income | |||||||||||||||||||
Harbor High-Yield Bond Fund | 3% | 5% | 9% | 12% | 16% | 19% | 20% | 17% | 14% | 13% | |||||||||
Harbor Bond Fund | 4 | 7 | 12 | 17 | 21 | 26 | 29 | 32 | 37 | 39 | |||||||||
Harbor Real Return Fund | 0 | 0 | 1 | 2 | 4 | 7 | 10 | 12 | 15 | 18 | |||||||||
Total Fixed Income | 7 | 12 | 22 | 31 | 41 | 52 | 59 | 61 | 66 | 70 | |||||||||
Short-Term | |||||||||||||||||||
Harbor Money Market Fund | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 4% | 9% | 10% | |||||||||
Total Short-Term | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 9 | 10 | |||||||||
100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 20.1% | |
Harbor Large Cap Value Fund | 3.0% | |
Harbor Capital Appreciation Fund | 2.6% | |
Harbor Diversified International All Cap Fund | 2.5% | |
Harbor International Fund | 2.5% | |
Harbor International Growth Fund | 2.5% | |
Harbor Mid Cap Value Fund | 2.0% | |
Harbor Small Cap Value Fund | 1.4% | |
Harbor Mid Cap Growth Fund | 1.3% | |
Harbor Small Cap Growth Fund | 1.2% | |
Harbor Global Leaders Fund | 1.1% |
Fixed Income Funds | 69.9% | |
Harbor Bond Fund | 39.3% | |
Harbor Real Return Fund | 17.6% | |
Harbor High-Yield Bond Fund | 13.0% | |
Short-Term Investments | 10.0% | |
Harbor Money Market Fund | 10.0% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement Income Fund | ||||||||||||||
Institutional Class | 7.17% | 4.05% | 6.18% | 01/02/2009 | $16,982 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index Income | 5.97 | 3.96 | 5.84 | — | 16,509 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—20.1% | |||
Shares | Value | ||
4,730 | Harbor Capital Appreciation Fund | $ 356 | |
16,135 | Harbor Mid Cap Growth Fund | 181 | |
10,706 | Harbor Small Cap Growth Fund | 161 | |
27,678 | Harbor Large Cap Value Fund | 412 | |
11,443 | Harbor Mid Cap Value Fund | 267 | |
5,429 | Harbor Small Cap Value Fund | 196 | |
4,956 | Harbor International Fund | 347 | |
29,394 | Harbor Diversified International All Cap Fund | 347 | |
22,126 | Harbor International Growth Fund | 347 | |
5,853 | Harbor Global Leaders Fund | 148 | |
TOTAL EQUITY FUNDS | |||
(Cost $2,217) | 2,762 | ||
FIXED INCOME FUNDS—69.9% | |||
175,483 | Harbor High-Yield Bond Fund | 1,792 |
FIXED INCOME FUNDS—Continued | |||
| Shares | Value | |
462,372 | Harbor Bond Fund | $ 5,401 | |
256,822 | Harbor Real Return Fund | 2,419 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $9,846) | 9,612 | ||
SHORT-TERM INVESTMENTS—10.0% | |||
(Cost $1,372) | |||
1,372,356 | Harbor Money Market Fund | 1,372 | |
TOTAL INVESTMENTS—100.0% | |||
(Cost $13,435) | 13,746 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $13,746 |
† | The Harbor Target Retirement Income Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 24.9% | |
Harbor Large Cap Value Fund | 3.7% | |
Harbor International Fund | 3.2% | |
Harbor Capital Appreciation Fund | 3.1% | |
Harbor Diversified International All Cap Fund | 3.1% | |
Harbor International Growth Fund | 3.1% | |
Harbor Mid Cap Value Fund | 2.4% | |
Harbor Small Cap Value Fund | 1.8% | |
Harbor Mid Cap Growth Fund | 1.7% | |
Harbor Small Cap Growth Fund | 1.5% | |
Harbor Global Leaders Fund | 1.3% |
Fixed Income Funds | 66.3% | |
Harbor Bond Fund | 37.1% | |
Harbor Real Return Fund | 15.5% | |
Harbor High-Yield Bond Fund | 13.7% | |
Short-Term Investments | 8.8% | |
Harbor Money Market Fund | 8.8% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2015 Fund | ||||||||||||||
Institutional Class | 8.43% | 4.91% | 7.43% | 01/02/2009 | $18,823 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2015 | 7.30 | 4.82 | 7.09 | — | 18,307 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—24.9% | |||
Shares | Value | ||
2,617 | Harbor Capital Appreciation Fund | $ 197 | |
9,290 | Harbor Mid Cap Growth Fund | 105 | |
6,249 | Harbor Small Cap Growth Fund | 94 | |
15,575 | Harbor Large Cap Value Fund | 232 | |
6,525 | Harbor Mid Cap Value Fund | 152 | |
3,133 | Harbor Small Cap Value Fund | 113 | |
2,824 | Harbor International Fund | 197 | |
16,715 | Harbor Diversified International All Cap Fund | 197 | |
12,536 | Harbor International Growth Fund | 197 | |
3,210 | Harbor Global Leaders Fund | 81 | |
TOTAL EQUITY FUNDS | |||
(Cost $1,250) | 1,565 | ||
FIXED INCOME FUNDS—66.3% | |||
84,611 | Harbor High-Yield Bond Fund | 864 |
FIXED INCOME FUNDS—Continued | |||
| Shares | Value | |
199,459 | Harbor Bond Fund | $2,330 | |
103,604 | Harbor Real Return Fund | 976 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $4,194) | 4,170 | ||
SHORT-TERM INVESTMENTS—8.8% | |||
(Cost $553) | |||
553,313 | Harbor Money Market Fund | 553 | |
TOTAL INVESTMENTS—100.0% | |||
(Cost $5,997) | 6,288 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $6,288 |
† | The Harbor Target Retirement 2015 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 34.5% | |
Harbor Large Cap Value Fund | 5.0% | |
Harbor Diversified International All Cap Fund | 4.4% | |
Harbor International Fund | 4.4% | |
Harbor International Growth Fund | 4.4% | |
Harbor Capital Appreciation Fund | 4.3% | |
Harbor Mid Cap Value Fund | 3.3% | |
Harbor Small Cap Value Fund | 2.5% | |
Harbor Mid Cap Growth Fund | 2.4% | |
Harbor Small Cap Growth Fund | 2.1% | |
Harbor Global Leaders Fund | 1.7% |
Fixed Income Funds | 61.3% | |
Harbor Bond Fund | 32.7% | |
Harbor High-Yield Bond Fund | 16.9% | |
Harbor Real Return Fund | 11.7% | |
Short-Term Investments | 4.2% | |
Harbor Money Market Fund | 4.2% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2020 Fund | ||||||||||||||
Institutional Class | 10.77% | 5.76% | 8.17% | 01/02/2009 | $19,998 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2020 | 9.81 | 5.69 | 7.85 | — | 19,487 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—34.5% | |||
Shares | Value | ||
15,982 | Harbor Capital Appreciation Fund | $ 1,204 | |
58,019 | Harbor Mid Cap Growth Fund | 652 | |
39,096 | Harbor Small Cap Growth Fund | 589 | |
93,736 | Harbor Large Cap Value Fund | 1,394 | |
39,691 | Harbor Mid Cap Value Fund | 926 | |
19,417 | Harbor Small Cap Value Fund | 702 | |
17,292 | Harbor International Fund | 1,209 | |
102,574 | Harbor Diversified International All Cap Fund | 1,209 | |
77,018 | Harbor International Growth Fund | 1,208 | |
18,895 | Harbor Global Leaders Fund | 478 | |
TOTAL EQUITY FUNDS | |||
(Cost $7,805) | 9,571 | ||
FIXED INCOME FUNDS—61.3% | |||
460,112 | Harbor High-Yield Bond Fund | 4,698 |
FIXED INCOME FUNDS—Continued | |||
| Shares | Value | |
776,040 | Harbor Bond Fund | $ 9,064 | |
344,633 | Harbor Real Return Fund | 3,246 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $17,189) | 17,008 | ||
SHORT-TERM INVESTMENTS—4.2% | |||
(Cost $1,163) | |||
1,162,866 | Harbor Money Market Fund | 1,163 | |
TOTAL INVESTMENTS—100.0% | |||
(Cost $26,157) | 27,742 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $27,742 |
† | The Harbor Target Retirement 2020 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 40.5% | |
Harbor Large Cap Value Fund | 5.9% | |
Harbor Capital Appreciation Fund | 5.1% | |
Harbor Diversified International All Cap Fund | 5.1% | |
Harbor International Fund | 5.1% | |
Harbor International Growth Fund | 5.1% | |
Harbor Mid Cap Value Fund | 3.9% | |
Harbor Small Cap Value Fund | 3.0% | |
Harbor Mid Cap Growth Fund | 2.8% | |
Harbor Small Cap Growth Fund | 2.5% | |
Harbor Global Leaders Fund | 2.0% |
Fixed Income Funds | 59.5% | |
Harbor Bond Fund | 29.7% | |
Harbor High-Yield Bond Fund | 20.2% | |
Harbor Real Return Fund | 9.6% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2025 Fund | ||||||||||||||
Institutional Class | 12.38% | 6.41% | 8.75% | 01/02/2009 | $20,982 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2025 | 11.53 | 6.37 | 8.56 | — | 20,655 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—40.5% | |||
Shares | Value | ||
14,289 | Harbor Capital Appreciation Fund | $ 1,076 | |
52,487 | Harbor Mid Cap Growth Fund | 590 | |
35,469 | Harbor Small Cap Growth Fund | 534 | |
83,749 | Harbor Large Cap Value Fund | 1,245 | |
35,690 | Harbor Mid Cap Value Fund | 833 | |
17,510 | Harbor Small Cap Value Fund | 633 | |
15,562 | Harbor International Fund | 1,088 | |
92,192 | Harbor Diversified International All Cap Fund | 1,087 | |
69,193 | Harbor International Growth Fund | 1,086 | |
16,698 | Harbor Global Leaders Fund | 422 | |
TOTAL EQUITY FUNDS | |||
(Cost $7,197) | 8,594 | ||
FIXED INCOME FUNDS—59.5% | |||
| Shares | Value | |
420,255 | Harbor High-Yield Bond Fund | $ 4,291 | |
539,326 | Harbor Bond Fund | 6,299 | |
215,858 | Harbor Real Return Fund | 2,034 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $12,647) | 12,624 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $19,844) | 21,218 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $21,218 |
† | The Harbor Target Retirement 2025 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 48.4% | |
Harbor Large Cap Value Fund | 7.1% | |
Harbor Diversified International All Cap Fund | 6.1% | |
Harbor International Fund | 6.1% | |
Harbor International Growth Fund | 6.1% | |
Harbor Capital Appreciation Fund | 6.0% | |
Harbor Mid Cap Value Fund | 4.7% | |
Harbor Small Cap Value Fund | 3.6% | |
Harbor Mid Cap Growth Fund | 3.3% | |
Harbor Small Cap Growth Fund | 3.0% | |
Harbor Global Leaders Fund | 2.4% |
Fixed Income Funds | 51.6% | |
Harbor Bond Fund | 25.8% | |
Harbor High-Yield Bond Fund | 19.1% | |
Harbor Real Return Fund | 6.7% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2030 Fund | ||||||||||||||
Institutional Class | 14.18% | 7.30% | 9.46% | 01/02/2009 | $22,217 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2030 | 13.27 | 7.20 | 9.31 | — | 21,944 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—48.4% | |||
Shares | Value | ||
22,918 | Harbor Capital Appreciation Fund | $ 1,726 | |
84,583 | Harbor Mid Cap Growth Fund | 951 | |
57,317 | Harbor Small Cap Growth Fund | 863 | |
135,386 | Harbor Large Cap Value Fund | 2,013 | |
57,937 | Harbor Mid Cap Value Fund | 1,352 | |
28,341 | Harbor Small Cap Value Fund | 1,024 | |
25,095 | Harbor International Fund | 1,754 | |
148,704 | Harbor Diversified International All Cap Fund | 1,753 | |
111,530 | Harbor International Growth Fund | 1,750 | |
26,685 | Harbor Global Leaders Fund | 676 | |
TOTAL EQUITY FUNDS | |||
(Cost $11,305) | 13,862 | ||
FIXED INCOME FUNDS—51.6% | |||
| Shares | Value | |
534,561 | Harbor High-Yield Bond Fund | $ 5,458 | |
631,169 | Harbor Bond Fund | 7,372 | |
204,499 | Harbor Real Return Fund | 1,926 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $14,871) | 14,756 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $26,176) | 28,618 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $28,618 |
† | The Harbor Target Retirement 2030 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 59.1% | |
Harbor Large Cap Value Fund | 8.5% | |
Harbor Capital Appreciation Fund | 7.5% | |
Harbor Diversified International All Cap Fund | 7.5% | |
Harbor International Fund | 7.5% | |
Harbor International Growth Fund | 7.5% | |
Harbor Mid Cap Value Fund | 5.7% | |
Harbor Small Cap Value Fund | 4.3% | |
Harbor Mid Cap Growth Fund | 4.0% | |
Harbor Small Cap Growth Fund | 3.7% | |
Harbor Global Leaders Fund | 2.9% |
Fixed Income Funds | 40.9% | |
Harbor Bond Fund | 21.3% | |
Harbor High-Yield Bond Fund | 15.7% | |
Harbor Real Return Fund | 3.9% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2035 Fund | ||||||||||||||
Institutional Class | 16.31% | 8.37% | 10.15% | 01/02/2009 | $23,479 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2035 | 15.24 | 8.13 | 10.01 | — | 23,229 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—59.1% | |||
Shares | Value | ||
14,924 | Harbor Capital Appreciation Fund | $ 1,124 | |
54,233 | Harbor Mid Cap Growth Fund | 609 | |
36,510 | Harbor Small Cap Growth Fund | 550 | |
86,204 | Harbor Large Cap Value Fund | 1,282 | |
36,759 | Harbor Mid Cap Value Fund | 858 | |
18,043 | Harbor Small Cap Value Fund | 652 | |
16,022 | Harbor International Fund | 1,120 | |
95,120 | Harbor Diversified International All Cap Fund | 1,121 | |
71,496 | Harbor International Growth Fund | 1,122 | |
17,213 | Harbor Global Leaders Fund | 436 | |
TOTAL EQUITY FUNDS | |||
(Cost $7,365) | 8,874 | ||
FIXED INCOME FUNDS—40.9% | |||
| Shares | Value | |
230,732 | Harbor High-Yield Bond Fund | $ 2,356 | |
273,767 | Harbor Bond Fund | 3,198 | |
61,311 | Harbor Real Return Fund | 577 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $6,128) | 6,131 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $13,493) | 15,005 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $15,005 |
† | The Harbor Target Retirement 2035 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 68.7% | |
Harbor Large Cap Value Fund | 10.0% | |
Harbor Capital Appreciation Fund | 8.7% | |
Harbor Diversified International All Cap Fund | 8.7% | |
Harbor International Fund | 8.7% | |
Harbor International Growth Fund | 8.7% | |
Harbor Mid Cap Value Fund | 6.6% | |
Harbor Small Cap Value Fund | 5.0% | |
Harbor Mid Cap Growth Fund | 4.7% | |
Harbor Small Cap Growth Fund | 4.2% | |
Harbor Global Leaders Fund | 3.4% |
Fixed Income Funds | 31.3% | |
Harbor Bond Fund | 17.0% | |
Harbor High-Yield Bond Fund | 12.0% | |
Harbor Real Return Fund | 2.3% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2040 Fund | ||||||||||||||
Institutional Class | 18.26% | 9.49% | 10.78% | 01/02/2009 | $24,698 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2040 | 17.10 | 9.14 | 10.71 | — | 24,562 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—68.7% | |||
Shares | Value | ||
28,885 | Harbor Capital Appreciation Fund | $ 2,175 | |
103,807 | Harbor Mid Cap Growth Fund | 1,167 | |
69,709 | Harbor Small Cap Growth Fund | 1,050 | |
167,647 | Harbor Large Cap Value Fund | 2,493 | |
70,967 | Harbor Mid Cap Value Fund | 1,656 | |
34,662 | Harbor Small Cap Value Fund | 1,253 | |
30,859 | Harbor International Fund | 2,157 | |
183,574 | Harbor Diversified International All Cap Fund | 2,164 | |
137,953 | Harbor International Growth Fund | 2,164 | |
33,899 | Harbor Global Leaders Fund | 858 | |
TOTAL EQUITY FUNDS | |||
(Cost $13,746) | 17,137 | ||
FIXED INCOME FUNDS—31.3% | |||
| Shares | Value | |
292,384 | Harbor High-Yield Bond Fund | $ 2,985 | |
363,445 | Harbor Bond Fund | 4,245 | |
60,751 | Harbor Real Return Fund | 573 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $7,843) | 7,803 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $21,589) | 24,940 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $24,940 |
† | The Harbor Target Retirement 2040 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 78.1% | |
Harbor Large Cap Value Fund | 11.4% | |
Harbor Capital Appreciation Fund | 9.9% | |
Harbor Diversified International All Cap Fund | 9.9% | |
Harbor International Fund | 9.9% | |
Harbor International Growth Fund | 9.8% | |
Harbor Mid Cap Value Fund | 7.5% | |
Harbor Small Cap Value Fund | 5.7% | |
Harbor Mid Cap Growth Fund | 5.3% | |
Harbor Small Cap Growth Fund | 4.7% | |
Harbor Global Leaders Fund | 4.0% |
Fixed Income Funds | 21.9% | |
Harbor Bond Fund | 11.8% | |
Harbor High-Yield Bond Fund | 8.7% | |
Harbor Real Return Fund | 1.4% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2045 Fund | ||||||||||||||
Institutional Class | 20.37% | 10.49% | 11.30% | 01/02/2009 | $25,735 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2045 | 19.11 | 10.04 | 11.29 | — | 25,723 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—78.1% | |||
Shares | Value | ||
13,018 | Harbor Capital Appreciation Fund | $ 981 | |
46,154 | Harbor Mid Cap Growth Fund | 519 | |
30,965 | Harbor Small Cap Growth Fund | 466 | |
75,737 | Harbor Large Cap Value Fund | 1,126 | |
31,937 | Harbor Mid Cap Value Fund | 745 | |
15,430 | Harbor Small Cap Value Fund | 558 | |
13,908 | Harbor International Fund | 972 | |
82,423 | Harbor Diversified International All Cap Fund | 972 | |
61,887 | Harbor International Growth Fund | 971 | |
15,465 | Harbor Global Leaders Fund | 391 | |
TOTAL EQUITY FUNDS | |||
(Cost $6,447) | 7,701 | ||
FIXED INCOME FUNDS—21.9% | |||
| Shares | Value | |
84,147 | Harbor High-Yield Bond Fund | $ 859 | |
99,818 | Harbor Bond Fund | 1,166 | |
14,553 | Harbor Real Return Fund | 137 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $2,141) | 2,162 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $8,588) | 9,863 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $9,863 |
† | The Harbor Target Retirement 2045 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 87.7% | |
Harbor Large Cap Value Fund | 12.9% | |
Harbor Capital Appreciation Fund | 11.2% | |
Harbor International Fund | 11.1% | |
Harbor Diversified International All Cap Fund | 11.0% | |
Harbor International Growth Fund | 11.0% | |
Harbor Mid Cap Value Fund | 8.5% | |
Harbor Small Cap Value Fund | 6.3% | |
Harbor Mid Cap Growth Fund | 5.9% | |
Harbor Small Cap Growth Fund | 5.3% | |
Harbor Global Leaders Fund | 4.5% |
Fixed Income Funds | 12.3% | |
Harbor Bond Fund | 6.8% | |
Harbor High-Yield Bond Fund | 5.5% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | Annualized | Inception Date | Final Value of a $10,000 Investment | ||||||||||
5 Years | Life of Fund | |||||||||||||
Harbor Target Retirement 2050 Fund | ||||||||||||||
Institutional Class | 22.40% | 11.42% | 11.78% | 01/02/2009 | $26,736 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | 2.04% | 3.91% | — | $14,027 | |||||||||
MSCI EAFE (ND) | 23.44 | 8.53 | 8.68 | — | 20,847 | |||||||||
Russell 3000® | 23.98 | 15.12 | 15.24 | — | 34,981 | |||||||||
Composite Index 2050 | 21.17 | 10.88 | 11.75 | — | 26,688 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—87.7% | |||
Shares | Value | ||
33,875 | Harbor Capital Appreciation Fund | $ 2,551 | |
119,243 | Harbor Mid Cap Growth Fund | 1,340 | |
80,046 | Harbor Small Cap Growth Fund | 1,205 | |
197,631 | Harbor Large Cap Value Fund | 2,939 | |
83,006 | Harbor Mid Cap Value Fund | 1,936 | |
40,028 | Harbor Small Cap Value Fund | 1,447 | |
36,074 | Harbor International Fund | 2,522 | |
213,720 | Harbor Diversified International All Cap Fund | 2,520 | |
160,544 | Harbor International Growth Fund | 2,519 | |
40,610 | Harbor Global Leaders Fund | 1,028 | |
TOTAL EQUITY FUNDS | |||
(Cost $16,292) | 20,007 | ||
FIXED INCOME FUNDS—12.3% | |||
| Shares | Value | |
123,956 | Harbor High-Yield Bond Fund | $ 1,265 | |
132,592 | Harbor Bond Fund | 1,549 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $2,784) | 2,814 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $19,076) | 22,821 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $22,821 |
† | The Harbor Target Retirement 2050 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
Fund Summary —October 31, 2017 (Unaudited)
Equity Funds | 93.0% | |
Harbor Large Cap Value Fund | 13.7% | |
Harbor Capital Appreciation Fund | 11.8% | |
Harbor International Fund | 11.8% | |
Harbor Diversified International All Cap Fund | 11.7% | |
Harbor International Growth Fund | 11.7% | |
Harbor Mid Cap Value Fund | 9.0% | |
Harbor Small Cap Value Fund | 6.7% | |
Harbor Mid Cap Growth Fund | 6.2% | |
Harbor Small Cap Growth Fund | 5.6% | |
Harbor Global Leaders Fund | 4.8% |
Fixed Income Funds | 7.0% | |
Harbor Bond Fund | 3.9% | |
Harbor High-Yield Bond Fund | 3.1% |
TOTAL RETURNS For the periods ended 10/31/2017 | 1 Year | 5 Years | Annualized | Inception Date | Final Value of a $10,000 Investment | |||||||||
Life of Fund | ||||||||||||||
Harbor Target Retirement 2055 Fund | ||||||||||||||
Institutional Class | 23.34% | N/A | 8.55% | 11/01/2014 | $12,790 | |||||||||
Comparative Indices | ||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond | 0.90% | N/A | 2.40% | — | $10,737 | |||||||||
MSCI EAFE (ND) | 23.44 | N/A | 6.08 | — | 11,937 | |||||||||
Russell 3000® | 23.98 | N/A | 10.53 | — | 13,504 | |||||||||
Composite Index 2055 | 22.13 | N/A | 7.85 | — | 12,546 |
Portfolio of Investments—October 31, 2017
EQUITY FUNDS—93.0% | |||
Shares | Value | ||
4,273 | Harbor Capital Appreciation Fund | $ 322 | |
15,045 | Harbor Mid Cap Growth Fund | 169 | |
10,095 | Harbor Small Cap Growth Fund | 152 | |
25,145 | Harbor Large Cap Value Fund | 374 | |
10,539 | Harbor Mid Cap Value Fund | 246 | |
5,048 | Harbor Small Cap Value Fund | 182 | |
4,586 | Harbor International Fund | 321 | |
27,162 | Harbor Diversified International All Cap Fund | 320 | |
20,376 | Harbor International Growth Fund | 320 | |
5,207 | Harbor Global Leaders Fund | 132 | |
TOTAL EQUITY FUNDS | |||
(Cost $2,191) | 2,538 | ||
FIXED INCOME FUNDS—7.0% | |||
| Shares | Value | |
8,386 | Harbor High-Yield Bond Fund | $ 85 | |
8,966 | Harbor Bond Fund | 105 | |
TOTAL FIXED INCOME FUNDS | |||
(Cost $188) | 190 | ||
TOTAL INVESTMENTS—100.0% | |||
(Cost $2,379) | 2,728 | ||
CASH AND OTHER ASSETS, LESS LIABILITIES—0.0% | — a | ||
TOTAL NET ASSETS—100.0% | $2,728 |
† | The Harbor Target Retirement 2055 Fund is investing in Institutional Class shares of affiliated Harbor Funds. |
a | Rounds to less than $1,000 |
StatementS of Assets and Liabilities—October 31, 2017
Harbor Target Retirement Income Fund | Harbor Target Retirement 2015 Fund | Harbor Target Retirement 2020 Fund | Harbor Target Retirement 2025 Fund | Harbor Target Retirement 2030 Fund | Harbor Target Retirement 2035 Fund | Harbor Target Retirement 2040 Fund | Harbor Target Retirement 2045 Fund | Harbor Target Retirement 2050 Fund | Harbor Target Retirement 2055 Fund | |||||||||||
ASSETS | ||||||||||||||||||||
Investments, at identified cost | $13,435 | $5,997 | $26,157 | $19,844 | $26,176 | $13,493 | $21,589 | $8,588 | $19,076 | $2,379 | ||||||||||
Investments in affiliated funds, at value | $13,746 | $6,288 | $27,742 | $21,218 | $28,618 | $15,005 | $24,940 | $9,863 | $22,821 | $2,728 | ||||||||||
Receivables for: | ||||||||||||||||||||
Investments in affiliated funds sold | — | — | — | — | — | — | 1 | — | 2 | — | ||||||||||
Capital shares sold | 21 | — | — | — | 92 | — | — | 5 | 1 | — | ||||||||||
Distributions from affiliated funds | 1 | — | 1 | — | — | — | — | — | — | — | ||||||||||
Total Assets | 13,768 | 6,288 | 27,743 | 21,218 | 28,710 | 15,005 | 24,941 | 9,868 | 22,824 | 2,728 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Payables for: | ||||||||||||||||||||
Investments in affiliated funds purchased | 22 | — | 1 | — | 72 | — | — | 5 | — | — | ||||||||||
Capital shares reacquired | — | — | — | — | 20 | — | 1 | — | 3 | — | ||||||||||
Total Liabilities | 22 | — | 1 | — | 92 | — | 1 | 5 | 3 | — | ||||||||||
NET ASSETS | $13,746 | $6,288 | $27,742 | $21,218 | $28,618 | $15,005 | $24,940 | $9,863 | $22,821 | $2,728 | ||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Paid-in capital | $13,793 | $6,332 | $26,795 | $19,964 | $26,239 | $13,704 | $21,382 | $8,503 | $18,605 | $2,374 | ||||||||||
Accumulated undistributed net investment income/(loss) | 20 | 94 | 384 | 279 | 379 | 150 | 198 | 57 | 88 | 5 | ||||||||||
Accumulated net realized gain/(loss) | (378) | (429) | (1,022) | (399) | (442) | (361) | 9 | 28 | 383 | — | ||||||||||
Unrealized appreciation/(depreciation) of investments | 311 | 291 | 1,585 | 1,374 | 2,442 | 1,512 | 3,351 | 1,275 | 3,745 | 349 | ||||||||||
$13,746 | $6,288 | $27,742 | $21,218 | $28,618 | $15,005 | $24,940 | $9,863 | $22,821 | $2,728 | |||||||||||
NET ASSET VALUE PER SHARE BY CLASS | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||
Net assets | $13,746 | $6,288 | $27,742 | $21,218 | $28,618 | $15,005 | $24,940 | $9,863 | $22,821 | $2,728 | ||||||||||
Shares of beneficial interest1 | 1,486 | 571 | 2,802 | 1,663 | 3,093 | 1,039 | 2,681 | 639 | 2,191 | 228 | ||||||||||
Net asset value per share2 | $ 9.25 | $11.02 | $ 9.90 | $ 12.76 | $ 9.25 | $ 14.44 | $ 9.30 | $15.43 | $ 10.42 | $11.97 |
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. |
StatementS of Operations—Year Ended October 31, 2017
Harbor Target Retirement Income Fund | Harbor Target Retirement 2015 Fund | Harbor Target Retirement 2020 Fund | Harbor Target Retirement 2025 Fund | Harbor Target Retirement 2030 Fund | Harbor Target Retirement 2035 Fund | Harbor Target Retirement 2040 Fund | Harbor Target Retirement 2045 Fund | Harbor Target Retirement 2050 Fund | Harbor Target Retirement 2055 Fund | |
Investment Income | ||||||||||
Dividends from affiliated funds | $337 | $155 | $ 646 | $ 427 | $ 631 | $ 271 | $ 396 | $ 133 | $ 264 | $ 19 |
Total Investment Income | 337 | 155 | 646 | 427 | 631 | 271 | 396 | 133 | 264 | 19 |
Operating Expenses | ||||||||||
12b-1 fees: | ||||||||||
Administrative Classa | — | — | — | — | — | — | — | — | — | — |
Investor Classa | — | — | — | — | — | — | — | — | — | — |
Transfer agent fees: | — | — | — | — | — | — | — | — | — | — |
Investor Classa | — | — | — | — | — | — | — | — | — | — |
Total expensesa | — | — | — | — | — | — | — | — | — | — |
Expenses waiveda | — | — | — | — | — | — | — | — | — | — |
Net expenses | — | — | — | — | — | — | — | — | — | — |
Net Investment Income/(Loss) | 337 | 155 | 646 | 427 | 631 | 271 | 396 | 133 | 264 | 19 |
Realized and Change in Net Unrealized Gain/(Loss) on Investment Transactions | ||||||||||
Net realized gain/(loss) on: | ||||||||||
Sale of affiliated funds | (91) | (22) | (64) | (18) | 233 | (83) | 301 | 104 | 555 | 19 |
Distributions received from affiliated funds | 115 | 59 | 235 | 131 | 242 | 128 | 228 | 93 | 244 | 18 |
Change in net unrealized appreciation/(depreciation) on: | ||||||||||
Affiliated funds | 583 | 325 | 1,887 | 1,534 | 2,527 | 1,668 | 2,796 | 1,292 | 3,142 | 356 |
Net gain/(loss) on investment transactions | 607 | 362 | 2,058 | 1,647 | 3,002 | 1,713 | 3,325 | 1,489 | 3,941 | 393 |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $944 | $517 | $2,704 | $2,074 | $3,633 | $1,984 | $3,721 | $1,622 | $4,205 | $412 |
a | Rounds to less than $1,000 |
Statements of Changes In Net Assets
Harbor Target Retirement Income Fund | Harbor Target Retirement 2015 Fund | Harbor Target Retirement 2020 Fund | Harbor Target Retirement 2025 Fund | ||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||||
INCREASE/(DECREASE) IN NET ASSETS | |||||||||||
Operations: | |||||||||||
Net investment income/(loss) | $ 337 | $ 396 | $ 155 | $ 203 | $ 646 | $ 727 | $ 427 | $ 324 | |||
Net realized gain/(loss) on sale of affiliated funds | (91) | (254) | (22) | (287) | (64) | (692) | (18) | (240) | |||
Realized gain distributions received from affiliated funds | 115 | 157 | 59 | 107 | 235 | 443 | 131 | 214 | |||
Change in net unrealized appreciation/(depreciation) on affiliated funds | 583 | 201 | 325 | 211 | 1,887 | 343 | 1,534 | 120 | |||
Net increase/(decrease) in assets resulting from operations | 944 | 500 | 517 | 234 | 2,704 | 821 | 2,074 | 418 | |||
Distributions to Shareholders | |||||||||||
Net investment income: | |||||||||||
Institutional Class | (410) | (449) | (179) | (261) | (682) | (859) | (349) | (352) | |||
Administrative Class | — | (1) | — | (1) | — | (1) | (1) | — | |||
Investor Class | — | — | — | — | — | — | (1) | (1) | |||
Net realized gain on investments: | |||||||||||
Institutional Class | (51) | (466) | — | (218) | (304) | (1,705) | (180) | (501) | |||
Administrative Class | — | (1) | — | (1) | — | (1) | — | (1) | |||
Investor Class | — | — | — | — | — | (1) | — | (1) | |||
Total distributions to shareholders | (461) | (917) | (179) | (481) | (986) | (2,567) | (531) | (856) | |||
Net Increase/(Decrease) Derived from Capital Share Transactions | (574) | (900) | (659) | (955) | 569 | (123) | 5,344 | 3,246 | |||
Net increase/(decrease) in net assets | (91) | (1,317) | (321) | (1,202) | 2,287 | (1,869) | 6,887 | 2,808 | |||
Net Assets | |||||||||||
Beginning of period | 13,837 | 15,154 | 6,609 | 7,811 | 25,455 | 27,324 | 14,331 | 11,523 | |||
End of period* | $13,746 | $13,837 | $6,288 | $ 6,609 | $27,742 | $25,455 | $21,218 | $14,331 | |||
* Includes accumulated undistributed net investment income/(loss) of: | $ 20 | $ 15 | $ 94 | $ 83 | $ 384 | $ 301 | $ 279 | $ 145 |
Harbor Target Retirement 2030 Fund | Harbor Target Retirement 2035 Fund | Harbor Target Retirement 2040 Fund | Harbor Target Retirement 2045 Fund | Harbor Target Retirement 2050 Fund | Harbor Target Retirement 2055 Fund | |||||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||||
$ 631 | $ 605 | $ 271 | $ 222 | $ 396 | $ 385 | $ 133 | $ 95 | $ 264 | $ 247 | $ 19 | $ 11 | |||||
233 | (100) | (83) | (220) | 301 | 128 | 104 | 3 | 555 | 414 | 19 | (33) | |||||
242 | 528 | 128 | 229 | 228 | 564 | 93 | 180 | 244 | 672 | 18 | 31 | |||||
2,527 | (414) | 1,668 | 91 | 2,796 | (703) | 1,292 | (148) | 3,142 | (1,123) | 356 | 3 | |||||
3,633 | 619 | 1,984 | 322 | 3,721 | 374 | 1,622 | 130 | 4,205 | 210 | 412 | 12 | |||||
(590) | (700) | (255) | (238) | (386) | (451) | (121) | (106) | (260) | (305) | (18) | (12) | |||||
(1) | (1) | (1) | — | (1) | — | — | — | — | (1) | — | — | |||||
— | (1) | (1) | — | (1) | — | — | — | — | — | — | — | |||||
(855) | (1,477) | (224) | (403) | (930) | (1,314) | (272) | (272) | (1,219) | (1,978) | (28) | (3) | |||||
(1) | (1) | — | (1) | (1) | (2) | (1) | (1) | (2) | (3) | — | — | |||||
(1) | (1) | — | (1) | (1) | (1) | (1) | (1) | (1) | (2) | — | — | |||||
(1,448) | (2,181) | (481) | (643) | (1,320) | (1,768) | (395) | (380) | (1,482) | (2,289) | (46) | (15) | |||||
1,760 | 1,113 | 1,966 | 2,811 | 3,049 | 1,039 | 1,383 | 1,938 | 1,326 | 1,587 | 1,102 | 481 | |||||
3,945 | (449) | 3,469 | 2,490 | 5,450 | (355) | 2,610 | 1,688 | 4,049 | (492) | 1,468 | 478 | |||||
24,673 | 25,122 | 11,536 | 9,046 | 19,490 | 19,845 | 7,253 | 5,565 | 18,772 | 19,264 | 1,260 | 782 | |||||
$28,618 | $24,673 | $15,005 | $11,536 | $24,940 | $19,490 | $9,863 | $7,253 | $22,821 | $18,772 | $2,728 | $1,260 | |||||
$ 379 | $ 252 | $ 150 | $ 99 | $ 198 | $ 139 | $ 57 | $ 31 | $ 88 | $ 62 | $ 5 | $ 3 |
Statements of Changes in Net Assets—Capital Stock Activity
Harbor Target Retirement Income Fund | Harbor Target Retirement 2015 Fund | Harbor Target Retirement 2020 Fund | Harbor Target Retirement 2025 Fund | ||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||||
AMOUNT ($) | |||||||||||
Institutional Class | |||||||||||
Net proceeds from sale of shares | $ 1,411 | $ 1,979 | $ 1,101 | $ 1,226 | $ 5,095 | $ 5,082 | $ 7,504 | $ 4,503 | |||
Reinvested distributions | 460 | 915 | 178 | 479 | 985 | 2,563 | 529 | 853 | |||
Cost of shares reacquired | (2,413) | (3,796) | (1,902) | (2,662) | (5,473) | (7,771) | (2,649) | (2,112) | |||
Net increase/(decrease) in net assets | $ (542) | $ (902) | $ (623) | $ (957) | $ 607 | $ (126) | $ 5,384 | $ 3,244 | |||
Administrative Class | |||||||||||
Net proceeds from sale of shares | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | |||
Reinvested distributions | — | 1 | — | 1 | — | 2 | 1 | 1 | |||
Cost of shares reacquired | (16) | — | (18) | — | (19) | — | (21) | — | |||
Net increase/(decrease) in net assets | $ (16) | $ 1 | $ (18) | $ 1 | $ (19) | $ 2 | $ (20) | $ 1 | |||
Investor Class | |||||||||||
Net proceeds from sale of shares | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | |||
Reinvested distributions | — | 1 | — | 1 | — | 1 | 1 | 1 | |||
Cost of shares reacquired | (16) | — | (18) | — | (19) | — | (21) | — | |||
Net increase/(decrease) in net assets | $ (16) | $ 1 | $ (18) | $ 1 | $ (19) | $ 1 | $ (20) | $ 1 |
Harbor Target Retirement 2030 Fund | Harbor Target Retirement 2035 Fund | Harbor Target Retirement 2040 Fund | Harbor Target Retirement 2045 Fund | Harbor Target Retirement 2050 Fund | Harbor Target Retirement 2055 Fund | |||||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||||
$ 6,126 | $ 4,715 | $ 3,780 | $ 4,330 | $ 4,661 | $ 4,210 | $ 3,106 | $ 2,976 | $ 4,814 | $ 3,233 | $1,585 | $ 847 | |||||
1,445 | 2,177 | 479 | 641 | 1,316 | 1,763 | 393 | 378 | 1,479 | 2,283 | 45 | 15 | |||||
(5,769) | (5,783) | (2,249) | (2,162) | (2,882) | (4,937) | (2,068) | (1,418) | (4,917) | (3,934) | (504) | (381) | |||||
$ 1,802 | $ 1,109 | $ 2,010 | $ 2,809 | $ 3,095 | $ 1,036 | $ 1,431 | $ 1,936 | $ 1,376 | $ 1,582 | $1,126 | $ 481 | |||||
$ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | |||||
1 | 2 | 1 | 1 | 1 | 2 | 1 | 1 | 2 | 3 | — | — | |||||
(22) | — | (23) | — | (24) | — | (25) | — | (27) | — | (12) | — | |||||
$ (21) | $ 2 | $ (22) | $ 1 | $ (23) | $ 2 | $ (24) | $ 1 | $ (25) | $ 3 | $ (12) | $ — | |||||
$ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | |||||
1 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | — | — | |||||
(22) | — | (23) | — | (24) | — | (25) | — | (26) | — | (12) | — | |||||
$ (21) | $ 2 | $ (22) | $ 1 | $ (23) | $ 1 | $ (24) | $ 1 | $ (25) | $ 2 | $ (12) | $ — |
Statements of Changes in Net Assets—Capital Stock Activity—Continued
Harbor Target Retirement Income Fund | Harbor Target Retirement 2015 Fund | Harbor Target Retirement 2020 Fund | Harbor Target Retirement 2025 Fund | ||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | ||||
SHARES | |||||||||||
Institutional Class | |||||||||||
Shares sold | 156 | 226 | 103 | 121 | 537 | 561 | 623 | 391 | |||
Shares issued due to reinvestment of distributions | 52 | 107 | 18 | 49 | 110 | 293 | 46 | 77 | |||
Shares reacquired | (268) | (432) | (179) | (263) | (581) | (863) | (220) | (186) | |||
Net increase/(decrease) in shares outstanding | (60) | (99) | (58) | (93) | 66 | (9) | 449 | 282 | |||
Beginning of period | 1,546 | 1,645 | 629 | 722 | 2,736 | 2,745 | 1,214 | 932 | |||
End of period | 1,486 | 1,546 | 571 | 629 | 2,802 | 2,736 | 1,663 | 1,214 | |||
Administrative Class | |||||||||||
Shares sold | — | — | — | — | — | — | — | — | |||
Shares issued due to reinvestment of distributions | — | — | — | 1 | — | — | — | 1 | |||
Shares reacquired | (2) | — | (2) | — | (2) | — | (2) | — | |||
Net increase/(decrease) in shares outstanding | (2) | — | (2) | 1 | (2) | — | (2) | 1 | |||
Beginning of period | 2 | 2 | 2 | 1 | 2 | 2 | 2 | 1 | |||
End of period | — | 2 | — | 2 | — | 2 | — | 2 | |||
Investor Class | |||||||||||
Shares sold | — | — | — | — | — | — | — | — | |||
Shares issued due to reinvestment of distributions | — | — | — | 1 | — | — | — | 1 | |||
Shares reacquired | (2) | — | (2) | — | (2) | — | (2) | — | |||
Net increase/(decrease) in shares outstanding | (2) | — | (2) | 1 | (2) | — | (2) | 1 | |||
Beginning of period | 2 | 2 | 2 | 1 | 2 | 2 | 2 | 1 | |||
End of period | — | 2 | — | 2 | — | 2 | — | 2 |
Harbor Target Retirement 2030 Fund | Harbor Target Retirement 2035 Fund | Harbor Target Retirement 2040 Fund | Harbor Target Retirement 2045 Fund | Harbor Target Retirement 2050 Fund | Harbor Target Retirement 2055 Fund | |||||||||||
November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | November 1, 2016 through October 31, 2017 | November 1, 2015 through October 31, 2016 | |||||
700 | 561 | 280 | 345 | 539 | 514 | 219 | 225 | 503 | 357 | 145 | 87 | |||||
176 | 270 | 38 | 53 | 164 | 222 | 30 | 30 | 169 | 262 | 5 | 2 | |||||
(647) | (697) | (168) | (173) | (332) | (615) | (143) | (109) | (511) | (439) | (46) | (41) | |||||
229 | 134 | 150 | 225 | 371 | 121 | 106 | 146 | 161 | 180 | 104 | 48 | |||||
2,864 | 2,730 | 889 | 664 | 2,310 | 2,189 | 533 | 387 | 2,030 | 1,850 | 124 | 76 | |||||
3,093 | 2,864 | 1,039 | 889 | 2,681 | 2,310 | 639 | 533 | 2,191 | 2,030 | 228 | 124 | |||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||
— | — | — | 1 | — | — | — | 1 | — | — | — | — | |||||
(2) | — | (2) | — | (2) | — | (2) | — | (2) | — | (1) | — | |||||
(2) | — | (2) | 1 | (2) | — | (2) | 1 | (2) | — | (1) | — | |||||
2 | 2 | 2 | 1 | 2 | 2 | 2 | 1 | 2 | 2 | 1 | 1 | |||||
— | 2 | — | 2 | — | 2 | — | 2 | — | 2 | — | 1 | |||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||
— | — | — | 1 | — | — | — | 1 | — | — | — | — | |||||
(2) | — | (2) | — | (2) | — | (2) | — | (2) | — | (1) | — | |||||
(2) | — | (2) | 1 | (2) | — | (2) | 1 | (2) | — | (1) | — | |||||
2 | 2 | 2 | 1 | 2 | 2 | 2 | 1 | 2 | 2 | 1 | 1 | |||||
— | 2 | — | 2 | — | 2 | — | 2 | — | 2 | — | 1 |
Selected Data for a Share Outstanding for the Periods Presented
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 8.93 | $ 9.19 | $ 9.75 | $ 9.83 | $ 9.95 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.22 a | 0.25 a | 0.34 a | 0.22 | 0.23 |
Net realized and unrealized gains/(losses) on investments | 0.40 | 0.08 | (0.30) | 0.19 | 0.20 |
Total from investment operations | 0.62 | 0.33 | 0.04 | 0.41 | 0.43 |
Less Distributions | |||||
Dividends from net investment income | (0.27) | (0.29) | (0.35) | (0.28) | (0.38) |
Distributions from net realized capital gains1 | (0.03) | (0.30) | (0.25) | (0.21) | (0.17) |
Total distributions | (0.30) | (0.59) | (0.60) | (0.49) | (0.55) |
Net asset value end of period | 9.25 | 8.93 | 9.19 | 9.75 | 9.83 |
Net assets end of period (000s) | $13,746 | $13,805 | $15,124 | $17,410 | $15,510 |
Ratios and Supplemental Data (%) | |||||
Total return | 7.17% | 3.91% | 0.46% | 4.32% | 4.49% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 2.46 | 2.87 | 3.57 | 2.14 | 2.36 |
Portfolio turnover3 | 16 | 26 | 24 | 20 | 28 |
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $10.45 | $10.77 | $11.68 | $ 11.87 | $ 11.52 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.26 a | 0.29 a | 0.36 a | 0.24 | 0.28 |
Net realized and unrealized gains/(losses) on investments | 0.60 | 0.05 | (0.35) | 0.29 | 0.60 |
Total from investment operations | 0.86 | 0.34 | 0.01 | 0.53 | 0.88 |
Less Distributions | |||||
Dividends from net investment income | (0.29) | (0.36) | (0.39) | (0.31) | (0.44) |
Distributions from net realized capital gains1 | — | (0.30) | (0.53) | (0.41) | (0.09) |
Total distributions | (0.29) | (0.66) | (0.92) | (0.72) | (0.53) |
Net asset value end of period | 11.02 | 10.45 | 10.77 | 11.68 | 11.87 |
Net assets end of period (000s) | $6,288 | $6,574 | $7,778 | $11,200 | $10,654 |
Ratios and Supplemental Data (%) | |||||
Total return | 8.43% | 3.59% | 0.13% | 4.73% | 7.89% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 2.43 | 2.82 | 3.26 | 2.08 | 2.43 |
Portfolio turnover3 | 22 | 32 | 26 | 38 | 48 |
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 9.29 | $ 9.94 | $ 10.63 | $ 10.78 | $ 10.43 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.23 a | 0.26 a | 0.32 a | 0.23 | 0.26 |
Net realized and unrealized gains/(losses) on investments | 0.73 | 0.04 | (0.30) | 0.29 | 0.68 |
Total from investment operations | 0.96 | 0.30 | 0.02 | 0.52 | 0.94 |
Less Distributions | |||||
Dividends from net investment income | (0.24) | (0.32) | (0.34) | (0.30) | (0.40) |
Distributions from net realized capital gains1 | (0.11) | (0.63) | (0.37) | (0.37) | (0.19) |
Total distributions | (0.35) | (0.95) | (0.71) | (0.67) | (0.59) |
Net asset value end of period | 9.90 | 9.29 | 9.94 | 10.63 | 10.78 |
Net assets end of period (000s) | $27,742 | $25,419 | $27,290 | $31,124 | $27,397 |
Ratios and Supplemental Data (%) | |||||
Total return | 10.77% | 3.56% | 0.30% | 5.06% | 9.43% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 2.44 | 2.83 | 3.19 | 2.18 | 2.56 |
Portfolio turnover3 | 29 | 33 | 28 | 19 | 36 |
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 11.78 | $ 12.32 | $ 13.48 | $ 13.44 | $12.69 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.29 a | 0.31 a | 0.37 a | 0.29 | 0.34 |
Net realized and unrealized gains/(losses) on investments | 1.12 | 0.05 | (0.36) | 0.40 | 1.04 |
Total from investment operations | 1.41 | 0.36 | 0.01 | 0.69 | 1.38 |
Less Distributions | |||||
Dividends from net investment income | (0.28) | (0.37) | (0.41) | (0.36) | (0.45) |
Distributions from net realized capital gains1 | (0.15) | (0.53) | (0.76) | (0.29) | (0.18) |
Total distributions | (0.43) | (0.90) | (1.17) | (0.65) | (0.63) |
Net asset value end of period | 12.76 | 11.78 | 12.32 | 13.48 | 13.44 |
Net assets end of period (000s) | $21,218 | $14,293 | $11,487 | $10,612 | $8,728 |
Ratios and Supplemental Data (%) | |||||
Total return | 12.38% | 3.39% | 0.11% | 5.37% | 11.33% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 2.42 | 2.69 | 2.91 | 2.06 | 2.44 |
Portfolio turnover3 | 24 | 25 | 25 | 33 | 32 |
Selected Data for a Share Outstanding for the Periods Presented
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 8.60 | $ 9.19 | $ 10.04 | $ 10.22 | $ 9.56 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.20 a | 0.21 a | 0.24 a | 0.21 | 0.25 |
Net realized and unrealized gains/(losses) on investments | 0.96 | 0.01 | (0.23) | 0.35 | 1.04 |
Total from investment operations | 1.16 | 0.22 | 0.01 | 0.56 | 1.29 |
Less Distributions | |||||
Dividends from net investment income | (0.21) | (0.26) | (0.28) | (0.27) | (0.33) |
Distributions from net realized capital gains1 | (0.30) | (0.55) | (0.58) | (0.47) | (0.30) |
Total distributions | (0.51) | (0.81) | (0.86) | (0.74) | (0.63) |
Net asset value end of period | 9.25 | 8.60 | 9.19 | 10.04 | 10.22 |
Net assets end of period (000s) | $28,618 | $24,634 | $25,084 | $24,727 | $23,994 |
Ratios and Supplemental Data (%) | |||||
Total return | 14.18% | 2.96% | 0.13% | 5.79% | 14.19% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 2.30 | 2.54 | 2.55 | 1.99 | 2.42 |
Portfolio turnover3 | 29 | 31 | 24 | 22 | 31 |
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 12.93 | $ 13.56 | $14.92 | $14.52 | $13.01 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.28 a | 0.27 a | 0.30 a | 0.29 | 0.33 |
Net realized and unrealized gains/(losses) on investments | 1.75 | 0.04 | (0.26) | 0.58 | 1.85 |
Total from investment operations | 2.03 | 0.31 | 0.04 | 0.87 | 2.18 |
Less Distributions | |||||
Dividends from net investment income | (0.28) | (0.35) | (0.36) | (0.33) | (0.40) |
Distributions from net realized capital gains1 | (0.24) | (0.59) | (1.04) | (0.14) | (0.27) |
Total distributions | (0.52) | (0.94) | (1.40) | (0.47) | (0.67) |
Net asset value end of period | 14.44 | 12.93 | 13.56 | 14.92 | 14.52 |
Net assets end of period (000s) | $15,005 | $11,496 | $9,007 | $7,708 | $5,397 |
Ratios and Supplemental Data (%) | |||||
Total return | 16.31% | 2.70% | 0.34% | 6.19% | 17.43% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 2.06 | 2.17 | 2.17 | 1.64 | 2.08 |
Portfolio turnover3 | 26 | 26 | 22 | 39 | 12 |
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 8.42 | $ 9.05 | $ 9.84 | $ 10.01 | $ 9.19 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.15 a | 0.17 a | 0.18 a | 0.17 | 0.22 |
Net realized and unrealized gains/(losses) on investments | 1.30 | (0.01) | (0.10) | 0.46 | 1.52 |
Total from investment operations | 1.45 | 0.16 | 0.08 | 0.63 | 1.74 |
Less Distributions | |||||
Dividends from net investment income | (0.17) | (0.20) | (0.22) | (0.23) | (0.26) |
Distributions from net realized capital gains1 | (0.40) | (0.59) | (0.65) | (0.57) | (0.66) |
Total distributions | (0.57) | (0.79) | (0.87) | (0.80) | (0.92) |
Net asset value end of period | 9.30 | 8.42 | 9.05 | 9.84 | 10.01 |
Net assets end of period (000s) | $24,940 | $19,448 | $19,805 | $18,933 | $17,963 |
Ratios and Supplemental Data (%) | |||||
Total return | 18.26% | 2.36% | 0.94% | 6.77% | 20.63% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 1.78 | 2.03 | 1.96 | 1.59 | 2.24 |
Portfolio turnover3 | 21 | 30 | 18 | 22 | 22 |
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $13.51 | $14.25 | $15.17 | $14.85 | $12.42 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.21 a | 0.21 a | 0.23 a | 0.23 | 0.29 |
Net realized and unrealized gains/(losses) on investments | 2.42 | 0.01 | (0.06) | 0.80 | 2.58 |
Total from investment operations | 2.63 | 0.22 | 0.17 | 1.03 | 2.87 |
Less Distributions | |||||
Dividends from net investment income | (0.22) | (0.27) | (0.29) | (0.31) | (0.31) |
Distributions from net realized capital gains1 | (0.49) | (0.69) | (0.80) | (0.40) | (0.13) |
Total distributions | (0.71) | (0.96) | (1.09) | (0.71) | (0.44) |
Net asset value end of period | 15.43 | 13.51 | 14.25 | 15.17 | 14.85 |
Net assets end of period (000s) | $9,863 | $7,211 | $5,523 | $4,239 | $3,340 |
Ratios and Supplemental Data (%) | |||||
Total return | 20.37% | 1.91% | 1.23% | 7.17% | 23.75% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 1.50 | 1.58 | 1.56 | 1.37 | 1.82 |
Portfolio turnover3 | 32 | 24 | 15 | 21 | 20 |
Selected Data for a Share Outstanding for the Periods Presented
Institutional Class | |||||
Year Ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Net asset value beginning of period | $ 9.23 | $ 10.39 | $ 11.40 | $ 11.46 | $ 10.17 |
Income from Investment Operations | |||||
Net investment income/(loss) | 0.12 a | 0.12 a | 0.14 a | 0.15 | 0.22 |
Net realized and unrealized gains/(losses) on investments | 1.81 | (0.03) | 0.05 | 0.67 | 2.20 |
Total from investment operations | 1.93 | 0.09 | 0.19 | 0.82 | 2.42 |
Less Distributions | |||||
Dividends from net investment income | (0.13) | (0.17) | (0.19) | (0.23) | (0.24) |
Distributions from net realized capital gains1 | (0.61) | (1.08) | (1.01) | (0.65) | (0.89) |
Total distributions | (0.74) | (1.25) | (1.20) | (0.88) | (1.13) |
Net asset value end of period | 10.42 | 9.23 | 10.39 | 11.40 | 11.46 |
Net assets end of period (000s) | $22,821 | $18,728 | $19,221 | $20,434 | $19,170 |
Ratios and Supplemental Data (%) | |||||
Total return | 22.40% | 1.51% | 1.83% | 7.61% | 26.12% |
Ratio of total expenses to average net assets2 | — | — | — | — | — |
Ratio of net investment income to average net assets2 | 1.27 | 1.34 | 1.35 | 1.17 | 1.88 |
Portfolio turnover3 | 33 | 24 | 24 | 23 | 17 |
Institutional Class | |||
Year Ended October 31, | 2017 | 2016 | 2015 |
Net asset value beginning of period | $10.02 | $10.08 | $10.00 |
Income from Investment Operations | |||
Net investment income/(loss) | 0.10 a | 0.11 a | 0.05 a |
Net realized and unrealized gains/(losses) on investments | 2.17 | 0.01 | 0.18 |
Total from investment operations | 2.27 | 0.12 | 0.23 |
Less Distributions | |||
Dividends from net investment income | (0.12) | (0.14) | (0.15) |
Distributions from net realized capital gains1 | (0.20) | (0.04) | — |
Total distributions | (0.32) | (0.18) | (0.15) |
Net asset value end of period | 11.97 | 10.02 | 10.08 |
Net assets end of period (000s) | $2,728 | $1,240 | $ 762 |
Ratios and Supplemental Data (%) | |||
Total return | 23.34% | 1.38% | 2.28% |
Ratio of total expenses to average net assets2 | — | — | — |
Ratio of net investment income to average net assets2 | 0.95 | 1.13 | 0.52 |
Portfolio turnover3 | 32 | 33 | 15 |
* | Less than $0.01. |
1 | Includes both short-term and long-term capital gains. |
2 | Ratios of income and expenses to average net assets represents the expenses paid by the Fund but does not include the acquired fund fees and expenses from underlying funds. |
3 | Amounts do not include the activity of the underlying funds. |
a | Amounts are allocated based upon average shares outstanding during the period. |
Notes to Financial Statements—October 31, 2017
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. |
Notes to Financial Statements—Continued
Notes to Financial Statements—Continued
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement Income Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 51 | $ 122 | $ — | $ 68 | $ 20 | $ 12 | |||||
Harbor Mid Cap Growth Fund | 22 | 64 | — | 54 | — | (4) | |||||
Harbor Small Cap Growth Fund | 25 | 60 | — | 41 | 1 | (3) | |||||
Harbor Large Cap Value Fund | 58 | 139 | 4 | 58 | 13 | 21 | |||||
Harbor Mid Cap Value Fund | 58 | 101 | 4 | 19 | 4 | 22 | |||||
Harbor Small Cap Value Fund | 34 | 90 | 1 | 39 | — | 18 | |||||
Harbor International Fund | 63 | 373 | 12 | 84 | — | (32) | |||||
Harbor Diversified International Fund | 354 | 65 | — | 51 | — | 6 | |||||
Harbor International Growth Fund | 45 | 184 | 5 | 55 | — | 14 | |||||
Harbor Global Leaders Fund | 14 | 42 | — | 33 | — | (1) | |||||
Harbor High-Yield Bond Fund | 248 | 300 | 102 | 64 | — | (25) | |||||
Harbor Bond Fund | 708 | 690 | 161 | (25) | 77 | (62) | |||||
Harbor Real Return Fund | 281 | 297 | 38 | 42 | — | (57) | |||||
Harbor Money Market Fund | 167 | 184 | 10 | — | — | — | |||||
Total | $2,128 | $2,711 | $337 | $583 | $115 | $(91) |
Notes to Financial Statements—Continued
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2015 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 38 | $ 103 | $ — | $ 38 | $ 13 | $ 7 | |||||
Harbor Mid Cap Growth Fund | 16 | 52 | — | 29 | — | — | |||||
Harbor Small Cap Growth Fund | 16 | 45 | — | 24 | 1 | (1) | |||||
Harbor Large Cap Value Fund | 39 | 111 | 2 | 30 | 9 | 15 | |||||
Harbor Mid Cap Value Fund | 34 | 75 | 3 | 17 | 2 | 7 | |||||
Harbor Small Cap Value Fund | 20 | 63 | — | 23 | — | 11 | |||||
Harbor International Fund | 41 | 256 | 7 | 51 | — | (19) | |||||
Harbor Diversified International Fund | 213 | 47 | — | 27 | — | 4 | |||||
Harbor International Growth Fund | 29 | 138 | 4 | 33 | — | 8 | |||||
Harbor Global Leaders Fund | 11 | 40 | — | 18 | — | — | |||||
Harbor Commodity Real Return Fund | 3 | 85 | — | 2 | — | 2 | |||||
Harbor High-Yield Bond Fund | 145 | 229 | 50 | 39 | — | (19) | |||||
Harbor Bond Fund | 490 | 507 | 70 | (14) | 34 | (24) | |||||
Harbor Real Return Fund | 220 | 199 | 15 | 8 | — | (13) | |||||
Harbor Money Market Fund | 118 | 107 | 4 | — | — | — | |||||
Total | $1,433 | $2,057 | $155 | $325 | $ 59 | $(22) |
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2020 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 248 | $ 364 | $ 1 | $ 213 | $ 63 | $ 47 | |||||
Harbor Mid Cap Growth Fund | 137 | 183 | — | 174 | — | (9) | |||||
Harbor Small Cap Growth Fund | 145 | 165 | — | 132 | 2 | (6) | |||||
Harbor Large Cap Value Fund | 225 | 346 | 13 | 171 | 42 | 81 | |||||
Harbor Mid Cap Value Fund | 237 | 262 | 13 | 38 | 12 | 91 | |||||
Harbor Small Cap Value Fund | 145 | 226 | 2 | 135 | — | 50 | |||||
Harbor International Fund | 267 | 1,087 | 37 | 297 | — | (118) | |||||
Harbor Diversified International Fund | 1,243 | 215 | — | 166 | — | 15 | |||||
Harbor International Growth Fund | 223 | 528 | 18 | 199 | — | 32 | |||||
Harbor Global Leaders Fund | 67 | 130 | — | 100 | — | 1 | |||||
Harbor Commodity Real Return Fund | 37 | 723 | — | 107 | — | (74) | |||||
Harbor Convertible Securities Fund | 32 | 803 | 5 | (4) | — | 17 | |||||
Harbor High-Yield Bond Fund | 1,033 | 665 | 251 | 152 | — | (55) | |||||
Harbor Bond Fund | 2,594 | 1,277 | 250 | (20) | 116 | (92) | |||||
Harbor Real Return Fund | 792 | 435 | 48 | 27 | — | (44) | |||||
Harbor Money Market Fund | 587 | 141 | 8 | — | — | — | |||||
Total | $8,012 | $7,550 | $646 | $1,887 | $235 | $ (64) |
Notes to Financial Statements—Continued
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2025 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 355 | $ 186 | $ 1 | $ 194 | $ 40 | $ 23 | |||||
Harbor Mid Cap Growth Fund | 207 | 102 | — | 142 | — | (12) | |||||
Harbor Small Cap Growth Fund | 214 | 95 | — | 102 | 2 | (6) | |||||
Harbor Large Cap Value Fund | 433 | 202 | 10 | 153 | 26 | 44 | |||||
Harbor Mid Cap Value Fund | 366 | 164 | 8 | 54 | 7 | 42 | |||||
Harbor Small Cap Value Fund | 250 | 151 | 1 | 110 | — | 33 | |||||
Harbor International Fund | 457 | 723 | 24 | 231 | — | (84) | |||||
Harbor Diversified International Fund | 1,004 | 66 | — | 144 | — | 5 | |||||
Harbor International Growth Fund | 339 | 288 | 11 | 180 | — | 11 | |||||
Harbor Global Leaders Fund | 113 | 61 | — | 82 | — | (3) | |||||
Harbor Commodity Real Return Fund | 81 | 617 | — | 66 | — | (40) | |||||
Harbor Convertible Securities Fund | 95 | 778 | 4 | (4) | — | 17 | |||||
Harbor High-Yield Bond Fund | 1,949 | 290 | 194 | 93 | — | (24) | |||||
Harbor Bond Fund | 2,917 | 421 | 147 | (15) | 56 | (17) | |||||
Harbor Real Return Fund | 874 | 139 | 27 | 2 | — | (7) | |||||
Total | $9,654 | $4,283 | $427 | $1,534 | $131 | $(18) |
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2030 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 315 | $ 417 | $ 1 | $ 319 | $ 84 | $ 69 | |||||
Harbor Mid Cap Growth Fund | 178 | 208 | — | 248 | — | (7) | |||||
Harbor Small Cap Growth Fund | 193 | 177 | — | 190 | 3 | (8) | |||||
Harbor Large Cap Value Fund | 334 | 390 | 19 | 182 | 56 | 180 | |||||
Harbor Mid Cap Value Fund | 375 | 316 | 18 | 32 | 16 | 151 | |||||
Harbor Small Cap Value Fund | 237 | 292 | 3 | 198 | — | 68 | |||||
Harbor International Fund | 336 | 1,368 | 49 | 338 | — | (72) | |||||
Harbor Diversified International Fund | 1,720 | 237 | — | 246 | — | 25 | |||||
Harbor International Growth Fund | 291 | 645 | 24 | 295 | — | 50 | |||||
Harbor Global Leaders Fund | 78 | 158 | — | 121 | — | 25 | |||||
Harbor Commodity Real Return Fund | 82 | 1,256 | — | 206 | — | (150) | |||||
Harbor Convertible Securities Fund | 58 | 1,052 | 6 | (5) | — | 23 | |||||
Harbor High-Yield Bond Fund | 1,826 | 544 | 284 | 157 | — | (56) | |||||
Harbor Bond Fund | 2,574 | 786 | 199 | (5) | 83 | (53) | |||||
Harbor Real Return Fund | 636 | 202 | 28 | 5 | — | (12) | |||||
Total | $9,233 | $8,048 | $631 | $2,527 | $242 | $ 233 |
Notes to Financial Statements—Continued
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2035 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 269 | $ 190 | $ 1 | $ 207 | $ 49 | $ 21 | |||||
Harbor Mid Cap Growth Fund | 164 | 111 | — | 156 | — | (15) | |||||
Harbor Small Cap Growth Fund | 163 | 96 | — | 114 | 2 | (8) | |||||
Harbor Large Cap Value Fund | 309 | 212 | 11 | 182 | 33 | 31 | |||||
Harbor Mid Cap Value Fund | 282 | 167 | 10 | 79 | 9 | 27 | |||||
Harbor Small Cap Value Fund | 176 | 142 | 2 | 128 | — | 28 | |||||
Harbor International Fund | 302 | 769 | 29 | 254 | — | (101) | |||||
Harbor Diversified International Fund | 1,052 | 88 | — | 151 | — | 6 | |||||
Harbor International Growth Fund | 260 | 332 | 14 | 194 | — | 6 | |||||
Harbor Global Leaders Fund | 85 | 76 | — | 88 | — | (3) | |||||
Harbor Commodity Real Return Fund | 33 | 633 | — | 81 | — | (52) | |||||
Harbor Convertible Securities Fund | 11 | 181 | 1 | (5) | — | 8 | |||||
Harbor High-Yield Bond Fund | 850 | 179 | 114 | 56 | — | (16) | |||||
Harbor Bond Fund | 1,162 | 243 | 81 | (16) | 35 | (14) | |||||
Harbor Real Return Fund | 226 | 42 | 8 | (1) | — | (1) | |||||
Total | $5,344 | $3,461 | $271 | $1,668 | $128 | $ (83) |
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2040 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 346 | $ 248 | $ 2 | $ 361 | $ 96 | $ 89 | |||||
Harbor Mid Cap Growth Fund | 192 | 130 | — | 283 | — | (7) | |||||
Harbor Small Cap Growth Fund | 209 | 116 | — | 214 | 4 | (8) | |||||
Harbor Large Cap Value Fund | 392 | 254 | 22 | 313 | 64 | 106 | |||||
Harbor Mid Cap Value Fund | 405 | 220 | 20 | 88 | 18 | 118 | |||||
Harbor Small Cap Value Fund | 245 | 218 | 3 | 231 | — | 74 | |||||
Harbor International Fund | 408 | 1,396 | 57 | 337 | — | (35) | |||||
Harbor Diversified International Fund | 1,962 | 109 | — | 303 | — | 8 | |||||
Harbor International Growth Fund | 336 | 549 | 27 | 344 | — | 51 | |||||
Harbor Global Leaders Fund | 102 | 97 | — | 141 | — | 31 | |||||
Harbor Commodity Real Return Fund | 36 | 930 | — | 144 | — | (103) | |||||
Harbor High-Yield Bond Fund | 854 | 142 | 148 | 68 | — | (15) | |||||
Harbor Bond Fund | 1,311 | 181 | 109 | (30) | 46 | (7) | |||||
Harbor Real Return Fund | 168 | 23 | 8 | (1) | — | (1) | |||||
Total | $6,966 | $4,613 | $396 | $2,796 | $228 | $ 301 |
Notes to Financial Statements—Continued
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2045 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 272 | $ 196 | $ 1 | 170 | $ 43 | $ 36 | |||||
Harbor Mid Cap Growth Fund | 136 | 95 | — | 132 | — | (8) | |||||
Harbor Small Cap Growth Fund | 139 | 86 | — | 98 | 2 | (6) | |||||
Harbor Large Cap Value Fund | 317 | 210 | 10 | 125 | 28 | 64 | |||||
Harbor Mid Cap Value Fund | 266 | 154 | 9 | 43 | 8 | 48 | |||||
Harbor Small Cap Value Fund | 160 | 133 | 1 | 110 | — | 25 | |||||
Harbor International Fund | 333 | 716 | 25 | 208 | — | (72) | |||||
Harbor Diversified International Fund | 974 | 144 | — | 129 | — | 13 | |||||
Harbor International Growth Fund | 286 | 344 | 12 | 156 | — | 24 | |||||
Harbor Global Leaders Fund | 93 | 72 | — | 75 | — | 4 | |||||
Harbor Commodity Real Return Fund | 27 | 332 | — | 23 | — | (9) | |||||
Harbor High-Yield Bond Fund | 379 | 130 | 43 | 22 | — | (7) | |||||
Harbor Bond Fund | 575 | 188 | 30 | 2 | 12 | (9) | |||||
Harbor Real Return Fund | 78 | 22 | 2 | (1) | — | 1 | |||||
Total | $4,035 | $2,822 | $133 | $1,292 | $ 93 | $104 |
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2050 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 502 | $ 540 | $ 2 | $ 403 | $121 | $ 135 | |||||
Harbor Mid Cap Growth Fund | 275 | 299 | — | 355 | — | (27) | |||||
Harbor Small Cap Growth Fund | 279 | 263 | — | 266 | 5 | (18) | |||||
Harbor Large Cap Value Fund | 529 | 543 | 26 | 275 | 80 | 238 | |||||
Harbor Mid Cap Value Fund | 494 | 403 | 25 | 44 | 22 | 211 | |||||
Harbor Small Cap Value Fund | 289 | 369 | 4 | 270 | — | 99 | |||||
Harbor International Fund | 589 | 2,000 | 71 | 517 | — | (158) | |||||
Harbor Diversified International Fund | 2,447 | 295 | — | 347 | — | 21 | |||||
Harbor International Growth Fund | 498 | 928 | 34 | 399 | — | 68 | |||||
Harbor Global Leaders Fund | 163 | 197 | — | 162 | — | 47 | |||||
Harbor Commodity Real Return Fund | 53 | 723 | — | 69 | — | (38) | |||||
Harbor High-Yield Bond Fund | 509 | 167 | 63 | 33 | — | (10) | |||||
Harbor Bond Fund | 678 | 226 | 39 | 2 | 16 | (13) | |||||
Total | $7,305 | $6,953 | $264 | $3,142 | �� | $244 | $ 555 |
Notes to Financial Statements—Continued
Purchases of affiliated funds (000s) | Sales of affiliated funds (000s) | Investment income from affiliated funds (000s) | Net Realized Gain/(Loss) | ||||||||
Harbor Target Retirement 2055 Fund | Change in Unrealized Gain/(Loss) from affiliated funds (000s) | Distributions received from affiliated funds (000s) | Sale of affiliated funds (000s) | ||||||||
Underlying Funds | |||||||||||
Harbor Capital Appreciation Fund | $ 178 | $ 59 | $— | $ 56 | $ 9 | $ 3 | |||||
Harbor Mid Cap Growth Fund | 93 | 30 | — | 33 | — | — | |||||
Harbor Small Cap Growth Fund | 86 | 24 | — | 24 | — | (1) | |||||
Harbor Large Cap Value Fund | 206 | 53 | 2 | 45 | 6 | 6 | |||||
Harbor Mid Cap Value Fund | 150 | 38 | 2 | 20 | 2 | 2 | |||||
Harbor Small Cap Value Fund | 98 | 32 | — | 30 | — | 5 | |||||
Harbor International Fund | 210 | 177 | 6 | 45 | — | (8) | |||||
Harbor Diversified International Fund | 317 | 37 | — | 36 | — | 3 | |||||
Harbor International Growth Fund | 180 | 86 | 3 | 46 | — | 5 | |||||
Harbor Global Leaders Fund | 69 | 19 | — | 21 | — | 1 | |||||
Harbor Commodity Real Return Fund | 9 | 48 | — | (1) | — | 3 | |||||
Harbor High-Yield Bond Fund | 55 | 10 | 4 | 1 | — | — | |||||
Harbor Bond Fund | 69 | 13 | 2 | — | 1 | — | |||||
Total | $1,720 | $626 | $ 19 | $356 | $ 18 | $ 19 |
Notes to Financial Statements—Continued
Transfer Agent Fees | |
Institutional Class | 0.00% of the average daily net assets of all Institutional shares |
Administrative Class | 0.00% of the average daily net assets of all Administrative shares |
Investor Class | 0.12% of the average daily net assets of all Investor shares |
Number of Shares Owned by Harbor Capital, Harbor Funds Distributors, and Harbor Services Group | Percentage of Outstanding Shares | ||||
Institutional Class | Total | ||||
Harbor Target Retirement 2020 Fund | 13,976 | 13,976 | 0.5% | ||
Harbor Target Retirement 2025 Fund | 81,007 | 81,007 | 4.9 | ||
Harbor Target Retirement 2030 Fund | 31,268 | 31,268 | 1.0 | ||
Harbor Target Retirement 2035 Fund | 23,357 | 23,357 | 2.2 | ||
Harbor Target Retirement 2040 Fund | 139 | 139 | 0.0 | ||
Harbor Target Retirement 2045 Fund | 1,576 | 1,576 | 0.2 | ||
Harbor Target Retirement 2050 Fund | 11,710 | 11,710 | 0.5 | ||
Harbor Target Retirement 2055 Fund | 6,182 | 6,182 | 2.7 |
Notes to Financial Statements—Continued
Undistributed Net Investment Income/(Loss) (000s) | Accumulated Net Realized Gain/(Loss) (000s) | Paid-In Capital (000s) | |||
Harbor Target Retirement Income Fund | $ 78 | $ (78) | $— | ||
Harbor Target Retirement 2015 Fund | 35 | (35) | — | ||
Harbor Target Retirement 2020 Fund | 119 | (119) | — | ||
Harbor Target Retirement 2025 Fund | 58 | (58) | — | ||
Harbor Target Retirement 2030 Fund | 87 | (87) | — | ||
Harbor Target Retirement 2035 Fund | 37 | (37) | — | ||
Harbor Target Retirement 2040 Fund | 51 | (51) | — | ||
Harbor Target Retirement 2045 Fund | 14 | (14) | — | ||
Harbor Target Retirement 2050 Fund | 22 | (22) | — | ||
Harbor Target Retirement 2055 Fund | 1 | (1) | — |
As of October 31, 2017 | As of October 31, 2016 | ||||||||||
Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | Ordinary Income (000s) | Long-Term Capital Gains (000s) | Total (000s) | ||||||
Harbor Target Retirement Income Fund | $410 | $ 51 | $ 461 | $450 | $ 467 | $ 917 | |||||
Harbor Target Retirement 2015 Fund | 179 | — | 179 | 262 | 219 | 481 | |||||
Harbor Target Retirement 2020 Fund | 682 | 304 | 986 | 865 | 1,702 | 2,567 | |||||
Harbor Target Retirement 2025 Fund | 351 | 180 | 531 | 353 | 503 | 856 | |||||
Harbor Target Retirement 2030 Fund | 591 | 857 | 1,448 | 702 | 1,479 | 2,181 | |||||
Harbor Target Retirement 2035 Fund | 257 | 224 | 481 | 238 | 405 | 643 | |||||
Harbor Target Retirement 2040 Fund | 388 | 932 | 1,320 | 451 | 1,317 | 1,768 | |||||
Harbor Target Retirement 2045 Fund | 121 | 274 | 395 | 106 | 274 | 380 | |||||
Harbor Target Retirement 2050 Fund | 260 | 1,222 | 1,482 | 306 | 1,983 | 2,289 | |||||
Harbor Target Retirement 2055 Fund | 18 | 28 | 46 | 12 | 3 | 15 |
Undistributed Ordinary Income (000s) | Undistributed Long-Term Capital Gains (000s) | Unrealized Appreciation/ (Depreciation) (000s) | |||
Harbor Target Retirement Income Fund | $ 28 | $ 82 | $ (155) | ||
Harbor Target Retirement 2015 Fund | 93 | — | (76) | ||
Harbor Target Retirement 2020 Fund | 385 | — | 624 | ||
Harbor Target Retirement 2025 Fund | 280 | — | 991 | ||
Harbor Target Retirement 2030 Fund | 410 | 38 | 1,930 | ||
Harbor Target Retirement 2035 Fund | 150 | — | 1,230 | ||
Harbor Target Retirement 2040 Fund | 213 | 252 | 3,096 | ||
Harbor Target Retirement 2045 Fund | 76 | 113 | 1,172 | ||
Harbor Target Retirement 2050 Fund | 112 | 537 | 3,568 | ||
Harbor Target Retirement 2055 Fund | 10 | 33 | 310 |
Notes to Financial Statements—Continued
Capital Loss Carryforward | |||||
Short-Term (000s) | Long- Term (000s) | Total (000s) | |||
Harbor Target Retirement 2015 Fund | $— | $61 | $61 | ||
Harbor Target Retirement 2020 Fund | — | 60 | 60 | ||
Harbor Target Retirement 2025 Fund | — | 17 | 17 | ||
Harbor Target Retirement 2035 Fund | — | 78 | 78 |
Identified Cost (000s) | Gross Unrealized | Net Unrealized Appreciation/ (Depreciation) (000s) | |||||
Appreciation (000s) | (Depreciation) (000s) | ||||||
Harbor Target Retirement Income Fund | $13,901 | $ 79 | $(234) | $ (155) | |||
Harbor Target Retirement 2015 Fund* | 6,364 | — | (76) | (76) | |||
Harbor Target Retirement 2020 Fund* | 27,119 | 804 | (180) | 624 | |||
Harbor Target Retirement 2025 Fund* | 20,227 | 1,032 | (41) | 991 | |||
Harbor Target Retirement 2030 Fund | 26,688 | 2,060 | (130) | 1,930 | |||
Harbor Target Retirement 2035 Fund* | 13,775 | 1,259 | (29) | 1,230 | |||
Harbor Target Retirement 2040 Fund | 21,844 | 3,143 | (47) | 3,096 | |||
Harbor Target Retirement 2045 Fund | 8,691 | 1,172 | — | 1,172 | |||
Harbor Target Retirement 2050 Fund | 19,253 | 3,568 | — | 3,568 | |||
Harbor Target Retirement 2055 Fund | 2,418 | 310 | — | 310 |
* | Capital loss carryforwards are available which may reduce taxable income from future net realized gain on investments. |
Report of Independent Registered Public Accounting Firm
December 21, 2017
Fees and Expenses Example (Unaudited)
Annualized Expense Ratios | Expenses Paid During Period* | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Target Retirement Income Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,035.50 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2015 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,040.60 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2020 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,049.80 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2025 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,055.40 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2030 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,062.00 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 |
Fees and Expenses Example—Continued
Annualized Expense Ratios | Expenses Paid During Period* | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | |||||
Harbor Target Retirement 2035 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,071.20 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2040 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,078.90 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2045 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,087.40 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2050 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,095.70 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 | |||||
Harbor Target Retirement 2055 Fund | ||||||||
Institutional Class | 0.00% | |||||||
Actual | $0.00** | $1,000 | $1,099.20 | |||||
Hypothetical (5% return) | 0.00 | 1,000 | 1,025.21 |
* | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
** | Transfer agent fees and 12b-1 fees have been waived for the reporting period. |
Additional Information (Unaudited)
Amount (000s) | |
Harbor Target Retirement Income Fund | $ 51 |
Harbor Target Retirement 2015 Fund | — |
Harbor Target Retirement 2020 Fund | 304 |
Harbor Target Retirement 2025 Fund | 181 |
Harbor Target Retirement 2030 Fund | 856 |
Harbor Target Retirement 2035 Fund | 224 |
Harbor Target Retirement 2040 Fund | 932 |
Harbor Target Retirement 2045 Fund | 273 |
Harbor Target Retirement 2050 Fund | 1,222 |
Harbor Target Retirement 2055 Fund | 28 |
Additional Information—Continued
Trustee | For | Withhold | ||
Scott M. Amero | 1,047,869,265 | 14,860,642 | ||
Joseph L. Dowling III | 1,046,335,272 | 16,394,636 | ||
Robert A. Kasdin | 1,047,514,035 | 15,215,872 | ||
Charles F. McCain | 1,047,667,935 | 15,061,973 | ||
Kathryn L. Quirk | 1,046,812,694 | 15,917,214 | ||
Ann M. Spruill | 1,047,274,165 | 15,455,742 |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Target Retirement Income Fund | 1,512,041 | - | - | - | ||||
Harbor Target Retirement 2015 Fund | 580,094 | - | - | - | ||||
Harbor Target Retirement 2020 Fund | 2,817,680 | - | - | - | ||||
Harbor Target Retirement 2025 Fund | 1,514,721 | - | - | - | ||||
Harbor Target Retirement 2030 Fund | 3,147,718 | - | - | - | ||||
Harbor Target Retirement 2035 Fund | 961,496 | - | - | - | ||||
Harbor Target Retirement 2040 Fund | 2,551,273 | - | - | - | ||||
Harbor Target Retirement 2045 Fund | 632,365 | - | - | - | ||||
Harbor Target Retirement 2050 Fund | 2,097,942 | - | - | - | ||||
Harbor Target Retirement 2055 Fund | 181,834 | - | - | - |
Fund Name | For | Against | Abstain | Broker Non-Vote | ||||
Harbor Target Retirement Income Fund | 1,512,041 | - | - | - | ||||
Harbor Target Retirement 2015 Fund | 580,094 | - | - | - | ||||
Harbor Target Retirement 2020 Fund | 2,817,680 | - | - | - | ||||
Harbor Target Retirement 2025 Fund | 1,514,721 | - | - | - | ||||
Harbor Target Retirement 2030 Fund | 3,147,718 | - | - | - | ||||
Harbor Target Retirement 2035 Fund | 961,496 | - | - | - | ||||
Harbor Target Retirement 2040 Fund | 2,551,273 | - | - | - | ||||
Harbor Target Retirement 2045 Fund | 632,365 | - | - | - | ||||
Harbor Target Retirement 2050 Fund | 2,097,942 | - | - | - | ||||
Harbor Target Retirement 2055 Fund | 181,834 | - | - | - |
Additional Information—Continued
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 (54) Trustee | Since 2014 | Chairman (2015-Present) and Trustee (2011-2015), Rare (conservation nonprofit); Trustee, Berkshire School (2014-Present); 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), BlackRock, Inc., (publicly traded investment management firm). | 32 | None |
Raymond J. Ball (73) 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). | 32 | None |
Donna J. Dean (66) Trustee | Since 2010 | Chief Investment Officer of the Rockefeller Foundation (a private foundation) (1995-Present). | 32 | None |
Joseph L. Dowling III (53) Trustee | Since 2017 | Chief Investment Officer, Brown University (2013-Present); Advisory Board Member, Stage Point Capital (private mortgage specialist) (2016-Present); Advisory Board Member, Harbor Funds (2016-2017); and Founder and Managing Member, Narragansett Asset Management (private investment management firm) (1998-2013). | 32 | Director of Integrated Electrical Services (2011-Present). |
Randall A. Hack (70) Trustee | Since 2010 | Founder and Senior Managing Director of Capstone Capital LLC (private investment firm) (2003-Present); Director of Tower Development Corporation (cell tower developer) (2009-2016); and Advisory Director of Berkshire Partners (private equity firm) (2002-2013). | 32 | None |
Robert Kasdin (59) Trustee | Since 2014 | Senior Vice President and Chief Operating Officer, Johns Hopkins Medicine (2015-Present); Senior Executive Vice President, Columbia University (2002-2015); Trustee and Co-Chair of the Finance Committee, National September 11 Memorial & Museum at the World Trade Center (2005-Present); Director, Apollo Commercial Real Estate Finance, Inc. (2014-Present); and Director, Noranda Aluminum Holdings Corp. (2007-2014). | 32 | Director of Noranda Aluminum Holdings Corporation (2007-2014); and Director of Apollo Commercial Real Estate Finance, Inc. (2014-Present). |
Additional Information—Continued
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—Continued | ||||
Kathryn L. Quirk (65) Trustee | Since 2017 | Retired; Vice President, Senior Compliance Officer and Head, U.S. Regulatory Compliance, Goldman Sachs Asset Management (2013-2017); Deputy Chief Legal Officer, Asset Management, and Vice President and Corporate Counsel, Prudential Insurance Company of America (2010-2012); Co-Chief Legal Officer, Prudential Investment Management, Inc., and Chief Legal Officer, Prudential Investments and Prudential Mutual Funds (2008-2012); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America, and Chief Legal Officer, Prudential Investments (2005-2008); Vice President and Corporate Counsel and Chief Legal Officer, Mutual Funds, Prudential Insurance Company of America (2004-2005); Member, Management Committee (2000-2002), General Counsel and Chief Compliance Officer, Zurich Scudder Investments, Inc. (1997-2002). | 32 | None |
Ann M. Spruill (63) 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). | 32 | None |
INTERESTED TRUSTEE | ||||
Charles F. McCain (48)* Chairman, Trustee and President | Since 2017 | Chief Executive Officer (2017-Present), Director (2007-Present), President and Chief Operating Officer (2017), Executive Vice President and General Counsel (2004-2017), and Chief Compliance Officer (2004-2014), Harbor Capital Advisors, Inc.; Director (2007-Present) and Chief Compliance Officer (2004-2017), Harbor Services Group, Inc.; and Chief Executive Officer (2017-Present), Director (2007-Present), Chief Compliance Officer and Executive Vice President (2007-2017), Harbor Funds Distributors, Inc. | 32 | None |
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE** | ||
Erik D. Ojala (42) Chief Compliance Officer and Secretary | Since 2017 Since 2007 | Executive Vice President and General Counsel (2017-Present) and Secretary (2010-Present); Senior Vice President and Associate General Counsel (2007-2017), Harbor Capital Advisors, Inc.; Director, Executive Vice President and Chief Compliance Officer (2017-Present), Harbor Funds Distributors, Inc.; and Director (2017-Present) and Assistant Secretary (2014-Present), Harbor Services Group, Inc. |
Anmarie S. Kolinski (46) 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. |
Brian L. Collins (49) Vice President | Since 2005 | Executive Vice President and Chief Investment Officer (2004-Present), Harbor Capital Advisors, Inc. |
Charles P. Ragusa (58) 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) and OFAC Officer (2015-Present), Harbor Funds Distributors, Inc. |
Jodie L. Crotteau (45) Assistant Secretary | Since 2014 | Senior Vice President and Chief Compliance Officer, Harbor Capital Advisors, Inc. (2014-Present); Chief Compliance Officer and Secretary (2017-present) and Assistant Secretary (2015-2016), Harbor Services Group, Inc.; Assistant Secretary (2016-present), Harbor Funds Distributors, Inc.; Vice President and Chief Compliance Officer, Grosvenor Registered Funds (2011-2014); and Vice President, Grosvenor Capital Management, L.P. (2010-2014). |
Additional Information—Continued
Name (Age) Position(s) with Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past Five Years |
FUND OFFICERS NOT LISTED ABOVE**—Continued | ||
Lana M. Lewandowski (38) AML Compliance Officer and Assistant Secretary | Since 2017 | Legal & Compliance Manager (2016-Present) and Legal Specialist (2012-2015), Harbor Capital Advisors, Inc. |
Lora A. Kmieciak (53) Assistant Treasurer | Since 2017 | Senior Vice President – Fund Administration and Analysis (2017-Present) and Senior Vice President - Business Analysis (2015-2017), Harbor Capital Advisors, Inc.; and Assurance Executive Director (1999-2015), Ernst & Young LLP. |
John M. Paral (49) Assistant Treasurer | Since 2013 | Director of Fund Administration and Analysis (2017-Present), Vice President (2012-Present) and Financial Reporting Manager (2007-2017), Harbor Capital Advisors, Inc. |
1 | Each Trustee serves for an indefinite term, until his successor is elected. Each Officer is elected annually. |
* | Mr. McCain 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. |
111 South Wacker Drive, 34th Floor | Chicago, IL 60606-4302 | 800-422-1050 | harborfunds.com |
Chairman, President & Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Treasurer
Chief Compliance Officer
& Secretary
Vice President
Vice President
Assistant Secretary
AML Compliance Officer
& Assistant Secretary
Assistant Treasurer
Assistant Treasurer
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4400
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
312-443-4600
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
State Street Financial Center
1 Lincoln Street
Boston, MA 02111-2900
Table of Contents
(a) | The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party (the “Code of Ethics”). |
(c) | The Registrant has not amended its Code of Ethics during the period covered by this report. |
(d) | The Registrant has not granted any waivers, including an implicit waiver, from any provisions of its Code of Ethics during the period covered by this report. |
Fiscal Year Ended October 31, 2017 | Fiscal Year Ended October 31, 2016 | ||||||||||
All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | ||||||
(a) Audit Fees. | $770,169 | N/A | N/A | $699,400 | N/A | N/A | |||||
(b) Audit-Related Fees. | $ 3,0001 | $51,250 2 | N/A | $ 3,0001 | $51,250 2 | N/A | |||||
(c) Tax Fees. | $345,618 3 | $ 04 | N/A | $492,550 3 | $ 8,4004 | N/A | |||||
(d) All Other Fees. | $ 16,8505 | $ 2,5506 | N/A | $ 19,5505 | $ 2,7606 | N/A |
1 | Includes fees related to the issuance of consents for N-1A filings. |
2 | Includes fees related to the procedures performed for Harbor Services Group, Inc. required by Rule 17Ad-13(a)(3) of the Securities Exchange Act of 1934. |
3 | Includes fees related to tax compliance, including foreign tax reclaim filings. |
4 | Includes fees billed in connection with tax consulting services provided to Harbor Capital Advisors, Inc. (the “Adviser”). |
5 | Includes fees billed in connection with the Registrant’s subscription to the Ernst & Young PFIC Analyzer, a database used to determine whether foreign equity securities are passive foreign investment companies. |
6 | Includes fees billed in connection with the Adviser’s subscription to Ernst & Young Online, a database of accounting rules and regulations. |
(e) | (1) | Pre-Approval Policies. |
(2) | None of the principal accountant’s fees or services rendered to the Registrant, the Adviser or Harbor Services Group, Inc. were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) | Not applicable. |
(g) | Aggregate Non-Audit Fees. |
Aggregate Non-Audit Fees of the Registrant | |
Fiscal Year Ended October 31, 2017: $365,468 | |
Fiscal Year Ended October 31, 2016: $515,100 | |
Aggregate Non-Audit Fees of Other Entities Required to be Pre-approved Pursuant to Paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X | |
Fiscal Year Ended October 31, 2017: $53,800 | |
Fiscal Year Ended October 31, 2016: $62,440 | |
(h) | For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services to service affiliates was compatible with maintaining the principal accountant’s independence. |
(a) | The Registrant has elected to include the schedule of investments in securities of unaffiliated issuers as part of the report to shareholders filed under Item 1 of this report on Form N-CSR. |
(b) | Not applicable. |
(a) | The Registrant’s Principal Executive and Principal Financial Officers concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective, based on the evaluation of these disclosure controls and procedures as of a date within 90 days of the filing of this report. |
(b) | There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
(a)(1) | Code of Ethics referred to in Item 2 is attached hereto. |
(a)(2) | A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) is attached hereto. |
(b) | Certification as required by Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) is attached hereto. |
Chairman, President and Trustee
(Principal Executive Officer)
By: | /s/Charles F. McCain, Esq. Charles F. McCain, Esq. | Chairman, President and Trustee (Principal Executive Officer) | December 21, 2017 |
By: | /s/Anmarie S. Kolinski Anmarie S. Kolinski | Treasurer (Principal Financial and Accounting Officer) | December 21, 2017 |
Number | Description | |
99.CODE ETH | Code of Business Conduct and Ethics. | |
99.CERT1 | Certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)). | |
99.CERT2 | Certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)). | |
99.906CERT | Certification as required by Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350). |