Harbor International Compounders Fund Institutional Class (HSICX)

Overview

The fund described is a global investment entity that focuses primarily on investing in the common stock of non-U.S. companies, encompassing a wide geographic range that includes both developed markets outside of the United States and emerging market countries. The fund has a non-diversified status, meaning it may choose to invest a greater portion of its assets in fewer securities, potentially increasing its risk and volatility. In addition to direct investments in stocks, the fund engages in transactions involving depositary receipts, which are negotiable securities issued by banks that represent shares in foreign stocks, allowing for easier trading on local stock exchanges. Furthermore, the fund actively participates in foreign currency transactions and may employ various strategies to hedge against currency risk or to speculate on currency movements, aiming to protect or enhance its investment returns.

Products and Services

The fund offers a variety of investment products and services tailored to meet the needs of investors looking to diversify their portfolio internationally:

• Investment in Non-U.S. Common Stocks: The core of the fund's investment strategy revolves around purchasing common stocks of companies based outside the United States. This includes a broad range of industries and sectors, providing exposure to global economies and markets.
• Emerging Market Investments: A significant part of the fund's portfolio may be allocated to emerging markets. These are markets in countries that are in the process of rapid industrialization and have the potential for higher returns, albeit with increased risk.
• Depositary Receipts: The fund invests in depositary receipts, which are a type of financial security that represents a share in a foreign company and trades on a local stock exchange. This allows the fund and its investors to gain exposure to foreign stocks with the ease of trading in local markets.
• Foreign Currency Investments: Engaging in foreign currency transactions is another service provided by the fund. It may invest directly in foreign currencies or use various financial instruments to achieve its investment objectives or to hedge against currency risk.
• Hedging and Other Currency Transactions: The fund may also engage in hedging and other currency-related transactions to manage risk associated with currency fluctuations. This can involve complex strategies designed to protect the value of the fund’s investments.