Harbor Capital Advisors, Inc. (“Harbor”), a premier multi-manager investment firm offering access to specialized expertise across a range of investment strategies and vehicles, today announced the merger of the Harbor High-Yield Bond Fund, reorganizing into the Harbor Scientific Alpha High-Yield ETF, and a subadvisory change for the Harbor Convertible Securities Fund.
Effective on February 24, 2023, the Harbor High-Yield Bond Fund will be merged and reorganized into the Harbor Scientific Alpha High-Yield ETF. BlueCove serves as subadvisor to the Harbor Scientific Alpha High-Yield ETF.
Effective on March 1, 2023, BlueCove will become the subadvisor to the Harbor Convertible Securities Fund.
As a result of these changes, for Institutional Class shareholders currently in the Harbor High Yield Bond Fund, the gross expense ratios will decrease from 65 basis points (one hundredth of 1 percentage point) to 48 basis points in the Harbor Scientific Alpha High-Yield ETF. For Institutional Class shareholders currently in the Harbor Convertible Securities Fund, the gross expense ratio will be reduced from 76 basis points to 66 basis points with the management fee decreasing to 50 basis points.
“Against a dynamically evolving market and industry backdrop it is important we carefully assess our roster of funds to make sure we continue to deliver investment solutions that resonate with our clients in the best possible vehicle or wrapper,” Kristof Gleich, President and CIO of Harbor Capital Advisors, stated.
“We look forward to extending our BlueCove offering to the U.S. market and believe their scientific approach to discovering value within fixed income markets is well positioned to deliver compelling risk-adjusted returns for clients in the years ahead,” added Gleich.
About Harbor
Harbor is dedicated to helping clients achieve investment objectives with an active, cost-aware investing approach. For more than 30 years, our investment team has served as a guide for clients, developing portfolio strategies based on rigorous research and market analysis; sourcing select specialists and deep insights in each asset class; and evaluating performance to ensure that decisions remain in the best interests of our clients. Headquartered in Chicago, Harbor Capital Advisors had total assets under management of approximately $38 billion as of September 30, 2022. For more information, visit harborcapital.com.
About BlueCove
BlueCove was founded in 2018 to research and develop state-of-the-art scientific investment processes applicable to the asset class of fixed income. Its scientific fixed income investment solutions are designed to offer investors both an alternative and a complement to the traditional discretionary fixed income strategies that dominate their portfolios today. Its core investment, research and engineering teams have been at the forefront of the development of the scientific fixed income industry since 2005.
Investors should carefully consider the investment objectives, risks, charges and expenses of a Harbor fund before investing. To obtain a summary prospectus or prospectus for this and other information, visit harborcapital.com or call 800-422-1050. Read it carefully before investing.
All investments involve risk including the possible loss of principal. There is no guarantee that the investment objective of the Fund will be achieved. Fixed income securities fluctuate in price in response to various factors, including changes in interest rates, changes in market conditions and issuer-specific events, and the value of your investment in the Fund may go down. There is a greater risk that the Funds will lose money because they invest in below investment-grade fixed income securities and unrated securities of similar credit quality (commonly referred to as “high-yield securities” or “junk bonds”). These securities are considered speculative because they have a higher risk of issuer default, are subject to greater price volatility and may be illiquid. Because the Funds may invest in securities of foreign issuers, an investment in the Funds is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by government bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Convertible securities generally tend to be of lower credit quality and the value of a convertible security generally increases and decreases with the value of the underlying common stock, but may also be sensitive to changes in interest rates. As interest rates rise, the values of convertible securities held by the Fund are likely to decrease and reduce the value of the Fund's portfolio. Credit risk is higher for the Fund because it invests primarily in convertible securities of companies with debt rated below investment grade. High yield investing poses additional credit risk related to lower-rated bonds.
Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.
Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.
Foreside Fund Services, LLC. is the Distributor of the Harbor Scientific Alpha High-Yield ETF and the Harbor Scientific Alpha Income ETF
Harbor Funds Distributors, Inc. is the Distributor of the Harbor High Yield Bond Fund and the Harbor Convertible Securities Fund
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Contacts
MEDIA:
Hedda Nadler – Hedda@mountandnadler.com
Andrew Greene – Andrew@mountandnadler.com 212-759-4440
