Harbor International Compounders Fund Retirement Class (HNICX)

Overview

The fund is designed for investors seeking to diversify their investment portfolio by incorporating exposure to non-U.S. markets, including emerging markets. It primarily focuses on investing in common stocks of companies located outside the United States. The fund's strategy includes investing in both direct securities of foreign companies and depositary receipts that represent shares of foreign companies. This approach allows for a broad spectrum of investment opportunities in various countries and sectors. Furthermore, the fund actively engages in foreign currency transactions, both for investment purposes and for hedging against currency risk. This can help to protect the fund from currency fluctuations that may negatively impact international investments. Despite its international focus, the fund is non-diversified, meaning it may invest a larger portion of its assets in fewer issuers than a diversified fund. This strategy can lead to higher volatility and risk, as the fund's performance may be more closely tied to the fortunes of fewer companies or economic conditions in specific countries.

Products and Services

• Common Stock of Non-U.S. Companies

  The fund invests in the common stock of companies based outside of the United States, providing investors with the opportunity to participate in the growth potential of these businesses. This includes companies from developed markets as well as those in emerging market countries, which may offer higher growth potential but also come with increased risk.

• Depositary Receipts

  As part of its investment strategy, the fund may invest in depositary receipts, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). These financial instruments represent ownership in a foreign company and trade on U.S. or other international exchanges, providing a more accessible way for investors to gain exposure to foreign companies without the complexities of investing directly in foreign markets.

• Foreign Currencies and Currency Transactions

  The fund has the capability to invest directly in foreign currencies and engage in currency transactions, including forwards and options. This allows the fund to manage currency risk associated with investing in non-U.S. markets, potentially enhancing returns or mitigating losses due to currency fluctuations. Currency transactions can be used for hedging purposes or as an integral part of the fund's investment strategy to capitalize on currency movements.