Harbor Core Plus Fund Administrative Class (HRBDX)

Overview

The company operates as a diversified fixed income fund, focusing on investing a significant portion of its assets in a variety of fixed income instruments. With an investment strategy that predominantly targets investment-grade securities, the fund manages its portfolio by ensuring at least 80% of its net assets, alongside any borrowings for investment purposes, are allocated accordingly. The fund aims to maintain an average duration closely matched to that of its benchmark index, with a slight flexibility of plus or minus 0.5 years. This disciplined approach towards duration management helps in aligning the fund’s interest rate risk with its benchmark. Although the fund primarily invests in securities that are rated investment grade, it reserves the flexibility to invest up to 25% of its total assets in securities that are rated below investment grade, thereby introducing a calculated level of risk in pursuit of higher returns.

Products and Services

• Diversified Portfolio of Fixed Income Instruments:

The core service offered revolves around the management of a diversified portfolio comprising various fixed income instruments. By allocating at least 80% of its net assets, plus any borrowings for investment purposes, into this diversified mix, the fund seeks to achieve a balance between risk and return, focusing on delivering stable income to its investors.

• Investment in Investment-Grade Securities:

A significant portion of the fund’s investments is directed towards securities that are rated investment-grade. This strategy underscores the fund’s commitment to minimizing risk through investments in high-quality instruments that exhibit lower default risk compared to lower-rated securities.

• Allocation in Below Investment-Grade Securities:

As part of its strategy to enhance returns, the fund allocates up to 25% of its total assets in securities rated below investment grade. This allocation is carefully managed to ensure that the fund’s overall risk profile remains within acceptable bounds while attempting to capitalize on the potentially higher yields offered by these securities.

• Duration Management:

The fund employs a meticulous approach to duration management, aiming to maintain its average duration close to that of its benchmark index, with a variance of plus or minus 0.5 years. This strategy is pivotal in managing the fund’s sensitivity to interest rate changes, thereby aligning its performance with the expected movements of its benchmark.