The Business Brew Podcast: Kristof Gleich - Choosing Managers
May 31, 2023
Hear Kristof Gleich, President and CIO of Harbor Capital Advisors, speak on "The Business Brew" with Bill Brewster about his career background, picking managers that can handle scale, Harbor's approach to active investing and more.
- Visit the Podcast Website
- Download the Podcast Transcript as a PDF
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 standardized performance click here.
This material is for informational purposes and is not intended to be relied upon as a forecast, research, investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or adopt any investment strategy. The opinions expressed are as of March 30, 2023, and are subject to change. The opinions expressed by the speakers do not necessarily represent the views of Harbor Capital Advisors, Inc. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Harbor Capital Advisors, Inc. to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. This material may contain forward-looking information that is not purely historical in nature. Such information may include, among other things, projections, and forecasts. There is no guarantee that any of these views will come to pass. This material may not be representative of the experience of other individuals. Reliance upon information in this material is at the sole discretion of the viewer. This material is not legal, tax, or accounting advice. Please consult with qualified professionals for this type of advice.
Investing involves risk, principal loss is possible. 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.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. A non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political, or regulatory occurrence than a more diversified portfolio.
Commodity Risk: The Fund has exposure to commodities through its and/or the Subsidiary’s investments in commodity-linked derivative instruments. Authorized Participant Concentration/Trading Risk: Only authorized participants (“APs”) may engage in creation or redemption transactions directly with the Fund. Commodity-Linked Derivatives Risk: The Fund’s investments in commodity-linked derivative instruments (either directly or through the Subsidiary) and the tracking of an Index comprised of commodity futures may subject the Fund to significantly greater volatility than investments in traditional securities.
Holdings are subject to risk and change. Harbor Commodity All-Weather Strategy ETF (HGER) – Current Holdings
Diversification does not assure a profit or protect against loss in a declining market.
The Quantix Commodity Index (QCITR) is calculated on a total return basis, which combines the returns of the futures contracts with the returns on cash collateral invested in 13-week U.S. Treasury Bills. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Quantix Commodity Index was developed by Quantix Commodities LP and is owned by Quantix Commodities Indices LLC (“Quantix”).
The QCITR was created with the objective of being a diversified inflation hedge for investors using commodity futures contracts, traded in the U.S. and the U.K., as part of their core investment. Commodity futures are distinctive in their relationship to inflation and are generally regarded as having the highest positive correlation to inflation of all the major asset classes. The QII is designed to provide a risk management framework to hedge inflation risk appropriately in connection with commodity investing, taking account of the relative inflation sensitivity of each commodity among a defined universe of commodities, the relative cost of holding a rolling, U.S. or U.K.-listed futures position in a given commodity and the relative impact of inflation on each particular commodity.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. The Fund may not exactly track the performance of the Index with perfect accuracy at all times. Tracking errors may occur because of pricing differences, timing and costs incurred by the fund or during times of heightened market volatility. The Fund relies on the Index provider's methodology in assessing whether a company may be considered a corporate culture leader. There is no guarantee that the construction methodology will accurately assess a company to include or exclude it from the index which could have an adverse effect on the Fund's returns. The Fund's assets may be concentrated in a particular sector or industries to the extent the Index is concentrated and is subject to the risk that economic, political, or other market conditions that have a negative effect on that sector or industry will negatively impact the value of the Fund.
The Human Capital Factor is a systematic measure of corporate culture that seeks to deeply understand the importance and value created between human capital and potential equity performance, which is based on the premise that happy and motivated employees can generate better outcomes for companies and investors. The index underlying HAPY takes a socially conscious approach that seeks to access the potential alpha opportunity of strong corporate culture.
CIBC is a third-party index provider to the Harbor Corporate Culture ETF (HAPI) and the Harbor Corporate Culture Small Cap ETF (HAPS).
Irrational Capital LLC is a third-party index provider to the Harbor Corporate Culture Leaders ETF (HAPY). The Fund is managed by Harbor Capital Advisors, Inc.
C WorldWide Asset Management is a third-party subadvisor to the Harbor International Compounders ETF.
Note about tax-efficiency: ETFs are subject to capital gains tax and taxation of dividend income. However, ETFs are structured in such a manner that taxes are generally minimized for the holder of the ETF. An ETF manager accommodates investment inflows and outflows by creating or redeeming “creation units,” which are baskets of assets. As a result, the investor usually is not exposed to capital gains on any individual security in the underlying portfolio. However, capital gains tax may be incurred by the investor after the ETF is sold.
Quantix Commodities LP is a third-party subadvisor to the Harbor Commodity All-Weather Strategy ETF (HGER).
Harbor Capital Advisors, Inc., Quantix Commodities LP, CIBC, Irrational Capital LLC, C WorldWide Asset Management and Foreside Funds Services, LLC are not affiliated with Bill Brewster, Sullimar Capital Group, or The Business Brew Podcast.