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Harbor Core Plus Fund Strategy Profile

Average Annual Returns as of 12/31/2023
3 MonthsYTD1 Yr.3 Yr.5 Yr.10 Yr.Since InceptionInception Date
Harbor Core Plus Fund (Instl)6.76%6.70%6.70%-2.74%1.66%2.11%6.08%12/29/1987
Bloomberg US Aggregate Bond Index6.82%5.53%5.53%-3.31%1.10%1.81%5.44%12/29/1987

Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.

For most current performance please click here.

Results Since IR&M’s Management
  • Since taking over management of Harbor Core Plus in Feb 2022 (first full month, Mar 2022), the Fund has ranked in the 40th percentile among peers in the Morningstar US Intermediate Core-Plus Category for performance
  • In addition, from a benchmark-relative risk perspective, Harbor Core Plus exhibited 84th percentile tracking error. This placed its risk-adjusted return (information ratio) near the category’s top third with a 36th percentile ranking
Harbor Core Plus Instl vs Morningstar US Intermediate Core-Plus Bond Category
Percentage Rankings: Mar 2022 - Dec 2023 (Monthly)
Harbor Small Cap Growth Instlvs. Russell 2000 Growth Index. Average Returns in Russell 2000 Growth Up & Down Months. 1/1/2019 -12/31/2023

Source: Morningstar Direct

Performance data shown represents past performance and is no guarantee of future results.

As of 12/31/2023 out of 640 funds. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. Fund performance used within the rankings, reflects any certain fee waivers, without which, returns and Morningstar rankings would have been lower.

Harbor Core Plus Instl vs Bloomberg US Agg Bond TR USD
Histogram of Monthly Excess Returns
Mar 2022 - Dec 2023
Harbor Small Cap Growth Instlvs. Russell 2000 Growth Index. Average Returns in Russell 2000 Growth Up & Down Months. 1/1/2019 -12/31/2023
  • Importantly, the Fund’s disciplined approach has led to consistency of monthly outperformance versus the Bloomberg US Aggregate Bond Index. Per the chart to the right, Harbor Core Plus outperformed its benchmark in 14 of 22 months (63.6% batting average) since taking over the fund in Feb 2022

Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.

Source: Morningstar Direct. 

The Investment Team
  • Founded in 1987, Income Research & Management (IR+M) is an independent, privately owned boutique investment firm based in Boston, MA
  • Ownership is widely dispersed at the firm across 66 employee shareholders, including the majority of the firm’s investment team
  • As of 12/31/2023, the firm has $97B in AUM, exclusively across US dollar-denominated fixed income. Unlike many competing fixed income organizations, IR&M utilizes no derivatives, foreign currency or leverage across its strategies
  • The firm’s Core Plus strategy incepted in July 2017 and represents an expanded toolkit of the firm’s flagship Aggregate strategy which incepted more than 30 years ago in Dec 1991. Core Plus Assets as of 12/31/2023 are $1.65B
  • IR+M utilizes a team-oriented, bottom-up investment approach utilizing sector-specialized research analysts, portfolio managers and traders. Portfolio managers have an average 13-year tenure at the firm
    • Whereas many firms silo research, portfolio management and trading, IR+M employs a collaborative approach to these important functions. They believe this is particularly important within fixed income as individual issuers may have hundreds of bonds outstanding, making collaboration across the investment team to populate portfolios with the best raw material available paramount to success.
Harbor Core Plus Fund Portfolio Management Team
William O' Malley headshot

William O' Malley, CFA
CEO, Co-CIO
36 years experience

James Gubitosi headshot

James Gubitosi, CFA
Co-CIO
20 years experience

Bill O'Neill headshot

Bill O'Neill, CFA
Principal, Senior PM
24 years experience

Jake Remley headshot

Jake Remley, CFA
Principal, Senior PM
23 years experience

Matt Walker headshot

Matt Walker, CFA
Senior PM
21 years experience

Rachel Campbell headshot

Rachel Campbell
PM, Director of Securitized Research
18 years experience

The Investment Process
  • IR+M’s investment process is driven by bottom-up security selection, with sector allocations driven through relative value and risk/liquidity assessments by the firm’s investment committee
  • The firm employs a duration and key-rate neutral approach to investing (+/- 0.5 yrs of the benchmark), believing that this leads to more consistent results over time relative to potentially more volatile macro decisions. IR&M believes that very few professionals, if any, can consistently and accurately predict the direction and magnitude of interest rate changes
  • Individual issues are evaluated by sector specialized research analysts and are assessed through a disciplined framework evaluating the credit, structure and price dynamics of each bond. Given IR&M’s relatively modest size they believe that they can be highly selective and can access smaller sub-sectors that larger managers struggle to tap into
  • Portfolios are managed using an active risk management overlay. IR+M aims to build a portfolio with a yield advantage over the benchmark with similar average quality. The team will provide liquidity when spreads are generous but maintains a quality bias across a full market cycle. The firm’s mantra is to “take what the market gives you…”
Share ClassInstitutional
Cusip411512189
Fund Number2014
Net Expense Ratio0.38%
Gross Expense Ratio0.39%
Inception Date12/29/1987
Manager NameIncome Research + Management
BenchmarkBloomberg US Aggregate Bond Index
Morningstar CategoryIntermediate Core-Plus Bond

*The net expense ratios for this fund are subject to a contractual management fee waiver and/or an expense limitation agreement excluding interest expense and acquired fund fees and expenses (if any) through 02/29/2024.

Harbor Small Cap Growth Instl vs. Russell 2000 Growth Index. Rolling 5YR Beta & Excess Return: Jan 2014 -Dec 2023 (Monthly).


Important Information

For Institutional use only.

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 investments are affected by interest rate changes and the creditworthiness of the issues held by the Fund. As interest rates rise, the values of fixed income securities held by the Fund are likely to decrease and reduce the value of the Fund's portfolio. There may be a greater risk that the Fund could lose money due to prepayment and extension risks because the Fund invests, at times, in mortgage-related and/or asset backed securities.

The Morningstar Rankings are based on total returns, with distributions reinvested and operating expenses deducted. Morningstar does not take into account sales charges and other classes may have different performance characteristics. Harbor Core Plus Instl was ranked against Morningstar’s Intermediate Core-Plus Bond category, monthly, in absolute ranks: 187 out of 640 investments in the category for the 1-year period, 144 out of 582 investments in the category for the 3-year period, 213 out of 566 investments in the category for the 5-year period, 172 out of 482 investments in the category for the 10-year period as of 12/31/2023. Using the same category, Harbor Core Plus Instl was ranked in standard deviation ranks: 386 out of 640 investments in the category for the 1-year period, 439 out of 582 investments in the category for the 3-year period, 506 out of 566 investments in the category for the 5-year period, 420 out of 482 investments in the category for the 10-year period as of 12/31/2023. Using the same category, Harbor Core Plus Instl was ranked in beta ranks: 357 out of 640 investments in the category for the 1-year period, 409 out of 582 investments in the category for the 3-year period, 416 out of 566 investments in the category for the 5-year period, 332 out of 482 investments in the category for the 10-year period as of 12/31/2023. Using the same category, Harbor Core Plus Instl was ranked in tracking error ranks: 422 out of 640 investments in the category for the 1-year period, 519 out of 582 investments in the category for the 3-year period, 538 out of 566 investments in the category for the 5-year period, 419 out of 482 investments in the category for the 10-year period as of 12/31/2023. Using the same category, Harbor Core Plus Instl was ranked in information ratio ranks: 155 out of 640 investments in the category for the 1-year period, 98 out of 582 investments in the category for the 3-year period, 57 out of 566 investments in the category for the 5-year period, 117 out of 482 investments in the category for the 10-year period as of 12/31/2023. Using the same category, Harbor Core Plus Instl was ranked batting average ranks: 6 out of 640 investments in the category for the 1-year period, 87 out of 582 investments in the category for the 3-year period, 108 out of 566 investments in the category for the 5-year period, 91 out of 482 investments in the category for the 10-year period as of 12/31/2023. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.

The Bloomberg US Aggregate Bond Index is an unmanaged index of investment-grade fixed-rate debt issues with maturities of at least one year. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

Standard deviation measures the dispersion of a dataset relative to its mean.

Beta is a measure of systematic risk, or the sensitivity of a fund to movements in the benchmark. A beta of 1 implies that the expected movement of a fund's return would match that of the benchmark used to measure beta.

Tracking Error is the standard deviation of a portfolio’s relative return (relative to some benchmark). It measures the volatility of the return differences between the portfolio and the benchmark over time.

The Information Ratio (Info Ratio) of a manager series vs. a benchmark series is the quotient of the annualized excess return and the annualized standard deviation of excess return.

The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice.

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.

Income Research + Management is a third-party subadvisor to the Harbor Core Plus Fund.

Distributed by Harbor Funds Distributors, Inc.

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Investing involves risk and the potential loss of capital.

Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. To obtain a summary prospectus or prospectus for this and other information, click here or call 800-422-1050. Read it carefully before investing.

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