Harbor Funds Prospectus
 
Prospectus
Harbor Funds
March 1, 2023 
Harbor Funds
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
 
Harbor Capital Appreciation Fund
HNACX
HACAX
HRCAX
HCAIX
Harbor Convertible Securities Fund
HNCVX
HACSX
HRCSX
HICSX
Harbor Core Bond Fund
HCBRX
HACBX
–
–
Harbor Core Plus Fund
HBFRX
HABDX
HRBDX
–
Harbor Disruptive Innovation Fund
HNMGX
HAMGX
HRMGX
HIMGX
Harbor Diversified International All Cap Fund
HNIDX
HAIDX
HRIDX
HIIDX
Harbor Global Leaders Fund
HNGIX
HGGAX
HRGAX
HGGIX
Harbor International Fund
HNINX
HAINX
HRINX
HIINX
Harbor International Core Fund
(formerly, Harbor Overseas Fund)
HAORX
HAOSX
HAOAX
HAONX
Harbor International Growth Fund
HNGFX
HAIGX
HRIGX
HIIGX
Harbor International Small Cap Fund
HNISX
HAISX
HRISX
HIISX
Harbor Large Cap Value Fund
HNLVX
HAVLX
HRLVX
HILVX
Harbor Mid Cap Fund
HMCRX
HMCLX
HMCDX
HMCNX
Harbor Mid Cap Value Fund
HNMVX
HAMVX
HRMVX
HIMVX
Harbor Small Cap Growth Fund
HNSGX
HASGX
HRSGX
HISGX
Harbor Small Cap Value Fund
HNVRX
HASCX
HSVRX
HISVX
The Securities and Exchange Commission (SEC) has not approved any Fund’s shares as an investment or determined whether this Prospectus is accurate or complete. Anyone who tells you otherwise is committing a crime.
(Harbor Funds Lighthouse Logo) 
 
Table of Contents
 
 
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76
 
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95
97
99
101
103
 
 
 
 
 
Harbor Capital Appreciation Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees1
0.60%
0.60%
0.60%
0.60%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.04%
0.12%
0.12%
0.23%
Total Annual Fund
Operating Expenses
0.64%
0.72%
0.97%
1.08%
Fee Waiver1
(0.05)%
(0.05)%
(0.05)%
(0.05)%
Total Annual Fund
Operating Expenses
After Fee Waiver1
0.59%
0.67%
0.92%
1.03%
1 The Advisor has contractually agreed to reduce the management fee to 0.56% on assets between $5 billion and $10 billion, 0.54% on assets between $10 billion and $20 billion and 0.53% on assets over $20 billion through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$60
$200
$352
$794
Institutional
$68
$225
$396
$890
Administrative
$94
$304
$531
$1,185
Investor
$105
$339
$591
$1,313
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 34%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common and preferred stocks, of U.S. companies with market capitalizations of at least $1 billion at the time of purchase and that the Subadvisor considers to have above average prospects for growth.
The Subadvisor uses a bottom-up approach, researching and evaluating individual companies, to manage the Fund’s portfolio. This research includes visits to companies and discussions with company management.
In selecting stocks for the Fund’s portfolio, the Subadvisor looks for companies that it believes have the following financial characteristics:
◾
Superior absolute and relative earnings growth
◾
Superior sales growth, improving sales momentum and high levels of unit growth
◾
High or improving profitability
◾
Strong balance sheets
In addition, the Subadvisor looks for companies that have actually achieved or exceeded expected earnings results and, in the opinion of the Subadvisor, are attractively valued relative to their growth prospects.
The Subadvisor focuses on stocks of companies that it believes have distinct attributes such as:
◾
Strong market position with a defensible franchise
◾
Unique marketing competence
◾
Strong research and development leading to superior new product flow
◾
Capable and disciplined management
The Subadvisor prefers companies that are in the early stages of demonstrating the above financial characteristics and other attributes.
The stocks of mid and large cap companies in the Fund’s portfolio are those the Subadvisor expects to maintain or achieve above average earnings growth. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer. Sector allocations are the outcome of the Subadvisor’s bottom-up investment process and may, from time to time, result in more substantial investments in particular sectors.
The Fund may invest up to 20% of its total assets in the securities of foreign issuers, including issuers located or doing business in emerging markets.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first three risks) include:
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse
1
Fund Summary
Harbor Capital Appreciation Fund
economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Growth Style Risk: Over time, a growth oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Depositary Receipts Risk: Depositary receipts are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the U.S. or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Depositary receipts are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. Depositary receipts are subject to the risks associated with investing directly in foreign securities.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Securities Risk: Because the Fund may invest in securities of foreign issuers, an investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. These risks are more significant for issuers in emerging market countries. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Large Cap Risk: Large cap stocks may fall out of favor relative to small or mid cap stocks, which may cause the Fund to underperform other equity funds that focus on small or mid cap stocks.
Mid Cap Risk: The Fund’s performance may be more volatile because it invests in mid cap stocks. Mid cap companies may have limited product lines, markets and financial resources. Securities of mid cap companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, mid cap stocks may fall out of favor relative to small or large cap stocks, which may cause the Fund to underperform other equity funds that focus on small or large cap stocks.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Sector Risk: Because the Fund may, from time to time, be more heavily invested in particular sectors, the value of its shares may be especially sensitive to factors and economic risks that specifically affect those sectors. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual fund that invests in a broader range of sectors.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared with those of the Fund’s benchmark index and other comparative indices, which include securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
2
Fund Summary
Harbor Capital Appreciation Fund
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
34.29%
Q2 2020
Worst Quarter
-25.49%
Q2 2022
 
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Capital Appreciation Fund
Retirement Class*
Before Taxes
-37.67%
8.05%
12.84%
11.23%
03-01-2016
Institutional Class
Before Taxes
-37.72%
7.97%
12.78%
11.21%
12-29-1987
After Taxes on
Distributions
-37.72%
5.62%
10.71%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-22.33%
6.61%
10.59%
N/A
 
Administrative
Class
Before Taxes
-37.87%
7.70%
12.50%
9.82%
11-01-2002
Investor Class
Before Taxes
-37.94%
7.57%
12.37%
9.66%
11-01-2002
Comparative Indices
(reflects no deduction for fees, expenses or taxes)
Russell 1000®
Growth^
-29.14%
10.96%
14.10%
10.51%
 
S&P 500^
-18.11%
9.42%
12.56%
10.51%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Jennison Associates LLC (“Jennison”) has subadvised the Fund since May 1990.
 
Portfolio Managers
The co- portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Kathleen A. McCarragher
Jennison Associates LLC
Ms. McCarragher is a Director, Managing Director and the Head of Growth Equity of Jennison and has co-managed the Fund since 2013 and been involved in portfolio management for the Fund since 1998. 
 
Blair A. Boyer
Jennison Associates LLC
Mr. Boyer is a Managing Director and the Co-Head of Large Cap Growth Equity of Jennison and has co-managed the Fund since 2019. 
 
Natasha Kuhlkin, CFA
Jennison Associates LLC
Ms. Kuhlkin is a Managing Director and a Large Cap Growth Equity Portfolio Manager of Jennison and has co-managed the Fund since 2019.
3
Fund Summary
Harbor Capital Appreciation Fund
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
4
 
 
 
 
Harbor Convertible Securities Fund
 
Fund Summary
Investment Objective
The Fund seeks to maximize total returns (i.e., current income and capital appreciation).
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees1
0.50%
0.50%
0.50%
0.50%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses1
0.16%
0.24%
0.24%
0.35%
Total Annual Fund
Operating Expenses
0.66%
0.74%
0.99%
1.10%
Expense
Reimbursement2
(0.03)%
(0.03)%
(0.03)%
(0.03)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement2
0.63%
0.71%
0.96%
1.07%
1 Restated to reflect current fees.
2 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.63%, 0.71%, 0.96%, and 1.07% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate these agreements.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$64
$208
$365
$820
Institutional
$73
$234
$409
$916
Administrative
$98
$312
$544
$1,210
Investor
$109
$347
$603
$1,338
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 66%.
Principal Investment Strategy
Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in a diversified portfolio of convertible securities.
Convertible securities are “hybrid” securities that possess both fixed income and equity characteristics. These convertible securities include corporate bonds; and preferred stocks that are convertible into common stock or its equivalent value. A convertible security generally performs more like a common stock when the price of the underlying stock is closer to or above the conversion price because it is more likely that the convertible security will be converted into stock. A convertible security generally performs more like a bond when the price of the underlying stock is well below the conversion price because it is more likely that the convertible security will mature without being converted. While the Fund has broad discretion to invest in all types of convertible securities, the Fund primarily invests in convertible bonds, which may be unrated, or may have ratings assigned by credit rating agencies, including below investment-grade ratings (known as “junk bonds”). To assess the quality of unrated securities, the Subadviser evaluates an issuer’s probability of default using a proprietary default probability model that considers multiple variables, including capital structure of the firm, asset volatility, and annual cash outflows of interest and dividend payments. The Fund invests primarily in U.S. dollar denominated securities, including those of foreign issuers; however, the Fund may invest in securities denominated in other currencies.
The Subadvisor follows a structured investment process based on the testing of investment hypotheses using historical data. The Subadvisor’s investment process utilizes proprietary quantitative models to produce investment recommendations. The Subadvisor’s portfolio management team retains discretion with respect to all investment decisions. The Subadvisor generates proprietary insights based on its experience and reasoned intuition to form an investment hypothesis. Insights are a means to express isolated drivers of returns that the Subadvisor believes are likely to generate excess returns over time.
Using historical market data, the Subadvisor back-tests each investment hypothesis to determine whether actual observations appear consistent with the hypothesis over time. Insights are weighted in the Subadvisor’s models according to their deemed strength in predicting returns, as determined by the Subadvisor through this testing process. In managing the Fund, the Subadvisor will rely on insights that seek to target company specific risk, which form the basis of security selection decisions and assess metrics such as company strength, company outlook, and valuation. The Subadvisor’s models consider data from multiple sources, including issuer specific information such as company cash flow, default risk, earnings expectations, and price volatility.
The Subadvisor expects that the majority of the Fund’s total returns will be generated from security selection of convertible securities. The Subadvisor’s optimization process seeks to maximize total returns while minimizing expected risk and transaction costs. The Subadvisor measures risk at the portfolio level and on each instrument. The Subadvisor conducts performance measurement and risk analysis to seek to validate the accuracy of the investment process with the aim of achieving continuous improvement over time.
Duration/Maturity: Although duration may be one of the characteristics considered in security selection, the Fund does not focus on securities with any particular duration or maturity
5
Fund Summary
Harbor Convertible Securities Fund
and does not seek to maintain the maturity of the Fund’s portfolio in any particular range.
Credit Quality: The Fund invests primarily in convertible securities, which may be unrated, or may have ratings assigned by credit rating agencies, including below investment-grade ratings. The Subadvisor does not target a given weighted average portfolio quality; this varies from time to time, depending on the level of assets allocated to such securities.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Convertible securities fluctuate in price in response to various factors, including changes in interest rates, changes in the price of equity securities, changes in market conditions and issuer-specific events, and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other possible investments. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Convertible Securities Risk: Convertible securities have investment characteristics of both equity and debt securities. Investments in convertible securities are subject to risks associated with debt instruments, including interest rate and credit risk. The values of convertible securities also react to changes in the value of the common stock into which they convert, and are thus subject to many of the same risks as investing in common stock. Convertible securities generally tend to be of lower credit quality. A convertible security may also be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem the security, convert it into the underlying common stock or sell it to a third party, which could result in a loss to the Fund. Additionally, the Fund could lose money if the issuer of a convertible security is unable to meet its financial obligations or declares bankruptcy.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Model Risk: There are limitations inherent in every quantitative model. The value of securities selected using quantitative analysis can react differently to issuer, political, market, and economic developments than the market as a whole or securities selected using only fundamental analysis. The factors used in quantitative analysis and the weight placed on those factors may not be predictive of a security’s value. In addition, historical trends in data may not be predictive going forward. The strategies and techniques employed in a quantitative model cannot fully match the complexity of the financial markets and therefore sudden unanticipated changes in underlying market conditions can significantly impact their performance. The effectiveness of the given strategy or technique may deteriorate in an unpredictable fashion for any number of reasons including, but not limited to, an increase in the amount of assets managed or the use of similar strategies or techniques by other market participants and/or market dynamic shifts over time. In addition, factors that affect a security’s value can change over time, and these changes may not be reflected in the quantitative
model. Any model may contain flaws the existence and effect of which may be discovered only after the fact or not at all. There can be no assurances that the strategies pursued or the techniques implemented in the quantitative model will be profitable, and various market conditions may be materially less favorable to certain strategies than others. Even in the absence of flaws, a model may not perform as anticipated.
Credit Risk: The issuer or guarantor of a security owned by the Fund could default on its obligation to pay principal or interest or its credit rating could be downgraded. Convertible securities are generally junior to the company’s non-convertible debt so the company would normally have to pay interest on its nonconvertible debt before interest can be paid on the convertible securities. Credit risk may be higher for the Fund because it invests primarily in convertible securities of companies with debt rated below investment-grade.
Foreign Securities Risk: Because the Fund may invest in securities of foreign issuers, an investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. These risks are more significant for issuers in emerging market countries. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
High-Yield Risk: There is a greater risk that the Fund will lose money because it invests primarily in below investment-grade convertible securities and unrated securities of similar credit quality (commonly referred to as “high-yield” or “junk” bonds). These securities are considered speculative because they have a higher risk of issuer default, are subject to greater price volatility and may be illiquid.
Interest Rate Risk: As interest rates rise, the values of convertible securities held by the Fund are likely to decrease and reduce the value of the Fund’s portfolio. Convertible securities are normally much more sensitive to interest rate changes when they are valued more like the company’s bonds than the company’s common stock, such as when the conversion price for the convertible security is well above the common stock price. Rising interest rates may lead to increased redemptions, increased volatility and decreased liquidity in the fixed income markets, making it more difficult for the Fund to sell its convertible securities when the Subadvisor may wish to sell or must sell to meet redemptions. During periods when interest rates are low or there are negative interest rates, the Fund’s yield (and total return) also may be low or the Fund may be unable to maintain positive returns or minimize the volatility of the Fund’s net asset value per share. Changing interest rates may have unpredictable effects on the markets, may result in heightened market volatility and may detract from Fund performance. In addition, changes in monetary policy may exacerbate the risks associated with changing interest rates.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Liquidity Risk: The market for convertible securities is less liquid than the market for non-convertible corporate bonds. The Fund may at times have greater difficulty buying or selling specific
6
Fund Summary
Harbor Convertible Securities Fund
convertible securities at prices the Subadvisor believes are reasonable, which would be adverse to the Fund. Valuation of investments may be difficult, particularly during periods of market volatility or reduced liquidity and for investments that trade infrequently or irregularly. In these circumstances, among others, an investment may be valued using fair value methodologies that are inherently subjective and reflect good faith judgments based on available information.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Performance
Effective March 1, 2023, BlueCove Limited (“BlueCove”) became the Fund’s Subadvisor. Performance prior to that date is not attributable to BlueCove.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
23.06%
Q2 2020
Worst Quarter
-13.17%
Q1 2020
7
Fund Summary
Harbor Convertible Securities Fund
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Convertible Securities Fund
Retirement Class*
Before Taxes
-15.24%
6.31%
5.95%
5.49%
03-01-2016
Institutional Class
Before Taxes
-15.26%
6.21%
5.89%
5.44%
05-01-2011
After Taxes on
Distributions
-15.52%
3.73%
3.68%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-9.02%
4.06%
3.82%
N/A
 
Administrative
Class
Before Taxes
-15.48%
5.90%
5.61%
5.15%
05-01-2011
Investor Class
Before Taxes
-15.55%
5.83%
5.51%
5.05%
05-01-2011
Comparative Indices
(reflects no deduction for fees, expenses or taxes)
ICE BofA
U.S. Convertible
Bond Index**
-18.71%
9.29%
10.01%
8.69%
 
ICE BofA
U.S. Convertible Ex
Mandatory^
-19.58%
9.51%
10.46%
9.16%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
**
Effective March 1, 2023, the Fund’s benchmark index changed from the ICE BofA U.S. Convertible Ex Mandatory to the ICE BofA U.S. Convertible Bond Index as the Adviser believes this index is a more appropriate comparison in light of the Fund’s new investment strategy.Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
BlueCove Limited (“BlueCove”) has subadvised the Fund since March 2023.
 
Portfolio Managers
BlueCove employs a team approach in which a number of portfolio management individuals will be involved in the day-to-day investment decision making of the Fund. Mr. Brodsky, Mr. Harper and Mr. Thomas are jointly responsible for managing the Fund. 
(Benjamin Brodsky photo)
 
Benjamin Brodsky, CFA
BlueCove Limited
Mr. Brodsky is Chief Investment Officer of BlueCove and has managed the Fund since 2023. 
(Mike Harper photo)
 
Michael Harper, CFA
BlueCove Limited
Mr. Harper is Head of Portfolio Management of BlueCove and has managed the Fund since 2023. 
(Benoy Thomas photo)
 
Benoy Thomas, CFA
BlueCove Limited
Mr. Thomas is Head of Credit of BlueCove and has managed the Fund since 2023.
8
Fund Summary
Harbor Convertible Securities Fund
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$1,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$1,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$1,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
9
 
 
 
 
Harbor Core Bond Fund
 
Fund Summary
Investment Objective
The Fund seeks total return.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Management Fees1
0.23%
0.23%
Distribution and Service (12b-1) Fees
None
None
Other Expenses
0.13%
0.21%
Total Annual Fund Operating Expenses
0.36%
0.44%
Expense Reimbursement2
(0.10)%
(0.10)%
Total Annual Fund Operating Expenses After
Expense Reimbursement2
0.26%
0.34%
1 Restated to reflect current fees.
2 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.26% and 0.34% for the Retirement Class and Institutional Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$27
$106
$192
$446
Institutional
$35
$131
$236
$545
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 60%.
Principal Investment Strategy
The Fund invests primarily in investment-grade fixed income securities of issuers located in the U.S. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in a diversified portfolio of fixed income instruments. Fixed income instruments include bonds, debt securities and other similar instruments issued by various public- or private-sector entities.
The Subadvisor’s approach is grounded in detailed bottom-up research and emphasizes careful security selection through:
◾
Rigorous fundamental credit analysis of the issuer,
◾
A detailed review of the structural features of the security, and
◾
Relative-value comparisons to other opportunities.
In order to be selected for the portfolio, a security must be attractive with respect to all three of these factors. If one factor deteriorates, the security becomes a candidate for sale.
When forming an opinion on the creditworthiness of an issuer, the Subadvisor evaluates many factors, including financial performance, balance sheet strength, management quality, operating risk, market position, industry fundamentals, event risk, and economic sensitivity. The Subadvisor’s analysis also includes a detailed review of the underlying structural features of a bond, such as coupon type, redemption features, level of subordination, and collateral. For securitized bonds (such as mortgage-backed and asset-backed), the Subadvisor assesses factors such as issue sponsorship, structure, deal history, regulation, and liquidity. The Subadvisor also evaluates issuers with respect to environmental, social and governance (“ESG”) factors and integrates consideration of these factors into its investment process. The key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer. The ESG criteria utilized by the Subadvisor is only one factor among others considered in the investment process.
The Subadvisor believes that it is difficult to predict the timing, direction, and magnitude of future interest-rate changes. Therefore, duration management and yield-curve positioning are not part of the Fund’s strategy.
The portfolio is constructed from the bottom up and is comprised of U.S. dollar-denominated securities. The Subadvisor sets sector allocations based on its views of relative values between sectors and opportunities at the security level. A comprehensive risk overlay also influences portfolio construction. The Subadvisor systematically measures and monitors the Fund’s key risk exposures. The overall aim of the portfolio construction process is to craft a portfolio of attractively priced securities (relative to other opportunities in the universe) that when combined together in a portfolio provide what the Subadvisor believes will be attractive expected return, reasonable risk exposures, and adequate liquidity.
At times, the Fund may invest a large percentage of its assets in investment-grade mortgage-backed and asset-backed securities.
Credit Quality: The Fund invests primarily in investment-grade securities.
Duration: The Fund’s average duration, as calculated by the Subadvisor, is normally equal to that of its benchmark, plus or minus 10%. The duration of the Bloomberg U.S. Aggregate Bond Index as of December 31, 2022 was 6.22 years. Average duration is a weighted average of all bond durations in the Fund’s portfolio, and is an approximate measure of the sensitivity of the market
10
Fund Summary
Harbor Core Bond Fund
value of the Fund’s holdings to changes in interest rates. If the Fund’s duration is longer than the market’s duration, the Fund would be expected to experience a greater change in the value of its assets when interest rates are rising or falling than would the market as a whole.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Fixed income securities fluctuate in price in response to various factors, including changes in interest rates, changes in market conditions and issuer-specific events, and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other possible investments. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Interest Rate Risk: 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. Securities with longer durations tend to be more sensitive to changes in interest rates and are usually more volatile than securities with shorter durations. For example, a 5 year average duration generally means the price of a fixed income security will decrease in value by 5% if interest rates rise by 1%. Rising interest rates may lead to increased redemptions, increased volatility and decreased liquidity in the fixed income markets, making it more difficult for the Fund to sell its fixed income securities when the Subadvisor may wish to sell or must sell to meet redemptions. During periods when interest rates are low or there are negative interest rates, the Fund’s yield (and total return) also may be low or the Fund may be unable to maintain positive returns or minimize the volatility of the Fund’s net asset value per share. Changing interest rates may have unpredictable effects on the markets, may result in heightened market volatility and may detract from Fund performance. In addition, changes in monetary policy may exacerbate the risks associated with changing interest rates.
Credit Risk: The issuer or guarantor of a security owned by the Fund could default on its obligation to pay principal or interest or its credit rating could be downgraded. Likewise, a counterparty to a contractual instrument owned by the Fund could default on its obligation.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Mortgage- and Asset-Backed Securities Risk: Mortgage and other asset-backed securities in the Fund’s portfolio may have especially volatile prices because the embedded leverage can magnify the impact of the extension or contraction event on the underlying cash flow. Mortgage-related securities are also subject to prepayment and extension risks.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors
if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Extension Risk: When interest rates are rising, certain callable fixed income securities may be extended because of slower than expected principal payments. This would lock in a below-market interest rate, increase the security’s duration and reduce the value of the security.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Liquidity Risk: A particular investment may be difficult to purchase or sell and the Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity. Valuation of investments may be difficult, particularly during periods of market volatility or reduced liquidity and for investments that trade infrequently or irregularly. In these circumstances, among others, an investment may be valued using fair value methodologies that are inherently subjective and reflect good faith judgments based on available information.
Prepayment Risk: When interest rates are declining, the issuer of a fixed income security, including a pass-through security such as a mortgage-backed or an asset-backed security, may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower yielding securities.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
U.S. Government Securities Risk: Securities issued or guaranteed by U.S. government agencies or government-sponsored entities may not be backed by the full faith and credit of the U.S. government. As a result, no assurance can be given that the U.S. government will provide financial support to these securities or issuers (such as securities issued by the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation). Although certain government securities are backed by the full faith and credit of the U.S. government (such as securities issued by the Government National Mortgage Association), circumstances could arise that would delay or prevent the payment of interest or principal. It is possible that issuers of U.S. government securities will not have the funds to meet their payment obligations in the future and, in these circumstances, the Fund’s returns may be adversely affected.
11
Fund Summary
Harbor Core Bond Fund
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
4.20%
Q2 2020
Worst Quarter
-5.96%
Q1 2022
 
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Core Bond Fund
Retirement Class
Before Taxes
-13.28%
N/A
N/A
0.57%
06-01-2018
Institutional Class
Before Taxes
-13.36%
N/A
N/A
0.49%
06-01-2018
After Taxes on
Distributions
-14.41%
N/A
N/A
-0.75%
 
After Taxes on
Distributions and Sale
of Fund Shares
-7.89%
N/A
N/A
-0.05%
 
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Bloomberg
U.S. Aggregate Bond^
-13.01%
N/A
N/A
0.35%
 
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for the Retirement Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Income Research + Management (“IR+M”) has subadvised the Fund since 2018.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
William A. O’Malley, CFA
Income Research + Management
Mr. O’Malley is a Managing Principal, Senior Portfolio Manager, and Director of Investment Team at IR+M and has served as a portfolio manager for the Fund since 2018. 
 
James E. Gubitosi, CFA
Income Research + Management
Mr. Gubitosi is a Principal and Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since 2018. 
 
Bill O’Neill, CFA
Income Research + Management
Mr. O’Neill is a Principal and Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since 2018. 
 
Jake Remley, CFA
Income Research + Management
Mr. Remley is a Principal and Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since 2018. 
12
Fund Summary
Harbor Core Bond Fund
 
Matt Walker, CFA
Income Research + Management
Mr. Walker is a Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since 2018. 
 
Rachel Campbell, CFA
Income Research + Management
Ms. Campbell is a Portfolio Manager and the Director of Securitized Research at IR+M and has served as a portfolio manager for the Fund since 2018.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Regular
$1,000,000
$1,000
Individual Retirement Account (IRA)
$1,000,000
$1,000
Custodial (UGMA/UTMA)
$1,000,000
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
13
 
 
 
 
Harbor Core Plus Fund
 
Fund Summary
Investment Objective
The Fund seeks total return.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Management Fees1
0.25%
0.25%
0.25%
Distribution and Service (12b-1)
Fees
None
None
0.25%
Other Expenses
0.06%
0.14%
0.14%
Total Annual Fund Operating
Expenses
0.31%
0.39%
0.64%
Expense Reimbursement2
(0.01)%
(0.01)%
(0.01)%
Total Annual Fund Operating
Expenses After Expense
Reimbursement2
0.30%
0.38%
0.63%
1 Restated to reflect current fees.
2 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.30%, 0.38%, and 0.63% for the Retirement Class, Institutional Class, and Administrative Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate these agreements.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$31
$99
$173
$392
Institutional
$39
$124
$218
$492
Administrative
$64
$204
$356
$797
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 219%.
Principal Investment Strategy
The Fund invests primarily in U.S. dollar denominated fixed income securities. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in a diversified portfolio of fixed income instruments. Fixed income instruments include, but are not limited to: obligations issued or guaranteed by the U.S. Government, its agencies, or instrumentalities; corporate debt securities; municipal debt securities; U.S. dollar-denominated debt of foreign issuers; and securitized securities including mortgage-backed and asset-backed securities, which may also include non-agency mortgage-backed securities. These securities may have different types of interest rate payment and reset terms.
The Subadvisor’s approach is grounded in detailed bottom-up research and emphasizes careful security selection through:
◾
Rigorous fundamental credit analysis of the issuer;
◾
A detailed review of the structural features of the security; and
◾
Relative-value comparisons to other opportunities.
In order to be selected for the portfolio, a security must be attractive with respect to all three of these factors. If one factor deteriorates, the security becomes a candidate for sale.
When forming an opinion on the creditworthiness of an issuer, the Subadvisor evaluates many factors, including financial performance, balance sheet strength, management quality, operating risk, market position, industry fundamentals, event risk, and economic sensitivity. The Subadvisor’s analysis also includes a detailed review of the underlying structural features of a bond, such as coupon type, redemption features, level of subordination, and collateral.
The Subadvisor also evaluates issuers with respect to environmental, social and governance (“ESG”) factors and integrates consideration of these factors into its investment process. The key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer. The ESG criteria utilized by the Subadvisor is only one factor among others considered in the investment process.
The Subadvisor believes that it is difficult to predict the timing, direction, and magnitude of future interest-rate changes. Therefore, duration management and yield-curve positioning are not part of the Fund’s strategy.
The portfolio is constructed from the bottom up and is comprised of U.S. dollar-denominated securities. The Subadvisor sets sector allocations based on its views of relative values between sectors and opportunities at the security level. A comprehensive risk overlay also influences portfolio construction. The Subadvisor systematically measures and monitors the Fund’s key risk exposures. The overall aim of the portfolio construction process is to craft a portfolio of attractively priced securities (relative to other opportunities in the universe) that when combined together in a portfolio provide what the Subadvisor believes will be attractive expected return, reasonable risk exposures, and adequate liquidity. The Fund may invest up to 10% of its total assets in preferred stock and convertible securities.
Credit Quality: The Fund invests primarily in investment-grade securities, but may invest up to 25% of its total assets in below investment-grade securities, commonly referred to as “high-yield” or “junk” bonds, as rated by Moody’s Investor Service, Inc., Standard & Poor’s Rating Services or Fitch, Inc., or, if unrated, as determined by the Fund’s Subadvisor.
14
Fund Summary
Harbor Core Plus Fund
Duration: The Fund’s average duration, as calculated by the Subadvisor, is normally equal to that of its benchmark, plus or minus 0.5 years. The duration of the Bloomberg U.S. Aggregate Bond Index as of December 31, 2022 was 6.22 years. Average duration is a weighted average of all bond durations in the Fund’s portfolio, and is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. If the Fund’s duration is longer than the market’s duration, the Fund would be expected to experience a greater change in the value of its assets when interest rates are rising or falling than would the market as a whole.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Fixed income securities fluctuate in price in response to various factors, including changes in interest rates, changes in market conditions and issuer-specific events, and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other possible investments. Principal risks impacting the Fund (in alphabetical order after the first five risks) include:
Interest Rate Risk: 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. Securities with longer durations tend to be more sensitive to changes in interest rates and are usually more volatile than securities with shorter durations. For example, a 5 year average duration generally means the price of a fixed income security will decrease in value by 5% if interest rates rise by 1%. Rising interest rates may lead to increased redemptions, increased volatility and decreased liquidity in the fixed income markets, making it more difficult for the Fund to sell its fixed income securities when the Subadvisor may wish to sell or must sell to meet redemptions. During periods when interest rates are low or there are negative interest rates, the Fund’s yield (and total return) also may be low or the Fund may be unable to maintain positive returns or minimize the volatility of the Fund’s net asset value per share. Changing interest rates may have unpredictable effects on the markets, may result in heightened market volatility and may detract from Fund performance. In addition, changes in monetary policy may exacerbate the risks associated with changing interest rates.
Credit Risk: The issuer or guarantor of a security owned by the Fund could default on its obligation to pay principal or interest or its credit rating could be downgraded. Likewise, a counterparty to a derivative or other contractual instrument owned by the Fund could default on its obligation. This risk may be higher for below investment-grade securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Mortgage- and Asset-Backed Securities Risk: Mortgage and other asset-backed securities in the Fund’s portfolio may have especially volatile prices because the embedded leverage can magnify the impact of the extension or contraction event on the underlying cash flow. Mortgage-related securities are also subject to prepayment and extension risks.
High-Yield Risk: There is a greater risk that the Fund will lose money because it invests in below investment-grade fixed income
securities and unrated securities of similar credit quality (commonly referred to as “high-yield” or “junk” bonds). These securities are considered speculative because they have a higher risk of issuer default, are subject to greater price volatility and may be illiquid.
Convertible Securities Risk: Convertible securities have investment characteristics of both equity and debt securities. Investments in convertible securities are subject to risks associated with debt instruments, including interest rate and credit risk. The values of convertible securities also react to changes in the value of the common stock into which they convert, and are thus subject to many of the same risks as investing in common stock. Convertible securities generally tend to be of lower credit quality. A convertible security may also be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem the security, convert it into the underlying common stock or sell it to a third party, which could result in a loss to the Fund. Additionally, the Fund could lose money if the issuer of a convertible security is unable to meet its financial obligations or declares bankruptcy.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Extension Risk: When interest rates are rising, certain callable fixed income securities may be extended because of slower than expected principal payments. This would lock in a below-market interest rate, increase the security’s duration and reduce the value of the security.
High Portfolio Turnover Risk: Higher portfolio turnover may adversely affect Fund performance by increasing Fund transaction costs and may lead to the realization and distribution to shareholders of higher capital gains, which may increase a shareholder’s tax liability.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Liquidity Risk: A particular investment may be difficult to purchase or sell and the Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity. Valuation of investments may be difficult, particularly during periods of market volatility or reduced liquidity and for investments that trade infrequently or irregularly. In these circumstances, among others, an investment may be valued using fair value methodologies that are inherently subjective and reflect good faith judgments based on available information.
Municipal Risk: Municipal securities are debt issues of governmental bodies, other than the U.S. Government, within the United States, including securities issued by or on behalf of states, territories, and possessions of the United States, by the District of Columbia, and by political subdivisions and their duly constituted agencies and instrumentalities. Municipal securities are subject to the risk that legislative changes and local and business
15
Fund Summary
Harbor Core Plus Fund
developments may adversely affect the yield or value of the Fund’s investments in such securities. In addition, in order to be tax-exempt, municipal securities must meet certain legal requirements. Failure to meet such requirements may cause the interest received by the Fund on the municipal securities to be taxable. The interest on these issues generally is not included in “gross income” for regular federal income tax purposes, subject, however, to many exceptions and limitations. Legislation to restrict or eliminate the federal income tax exemption for interest on municipal securities has, from time to time, been introduced before Congress. If such a proposal were enacted, the availability of municipal securities for investment by the Fund could be adversely affected.
Preferred Securities Risk: Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities may defer payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also be substantially less liquid than other securities, including common stock.
Prepayment Risk: When interest rates are declining, the issuer of a fixed income security, including a pass-through security such as a mortgage-backed or an asset-backed security, may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower yielding securities.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
U.S. Government Securities Risk: Securities issued or guaranteed by U.S. government agencies or government-sponsored entities may not be backed by the full faith and credit of the U.S. government. As a result, no assurance can be given that the U.S. government will provide financial support to these securities or issuers (such as securities issued by the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation). Although certain government securities are backed by the full faith and credit of the U.S. government (such as securities issued by the Government National Mortgage Association), circumstances could arise that would delay or prevent the payment of interest or principal. It is possible that issuers of U.S. government securities will not have the funds to meet their payment obligations in the future and, in these circumstances, the Fund’s returns may be adversely affected.
Performance
Effective February 2, 2022, IR+M became the Fund’s Subadvisor. Performance prior to that date is not attributable to IR+M.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
4.20%
Q2 2020
Worst Quarter
-5.74%
Q1 2022
16
Fund Summary
Harbor Core Plus Fund
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Core Plus Fund
Retirement Class*
Before Taxes
-13.01%
0.41%
1.35%
6.07%
06-01-2018
Institutional Class
Before Taxes
-13.22%
0.31%
1.30%
6.06%
12-29-1987
After Taxes on
Distributions
-14.37%
-0.97%
-0.18%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-7.81%
-0.26%
0.37%
N/A
 
Administrative
Class
Before Taxes
-13.51%
0.06%
1.05%
3.63%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Bloomberg
U.S. Aggregate
Bond^
-13.01%
0.02%
1.06%
5.43%
 
*
Retirement Class shares commenced operations on June 1, 2018. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to June 1, 2018 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement and Administrative Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Income Research + Management (“IR+M”) has subadvised the Fund since 2022.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
William A. O’Malley, CFA
Income Research + Management
Mr. O’Malley is a Managing Principal, Senior Portfolio Manager, and Director of Investment Team at IR+M and has served as a portfolio manager for the Fund since February 2022. 
 
James E. Gubitosi, CFA
Income Research + Management
Mr. Gubitosi is a Principal and Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since February 2022. 
 
Bill O’Neill, CFA
Income Research + Management
Mr. O’Neill is a Principal and Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since February 2022. 
 
Jake Remley, CFA
Income Research + Management
Mr. Remley is a Principal and Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since February 2022. 
 
Matt Walker, CFA
Income Research + Management
Mr. Walker is a Senior Portfolio Manager at IR+M and has served as a portfolio manager for the Fund since February 2022. 
 
Rachel Campbell, CFA
Income Research + Management
Ms. Campbell is a Portfolio Manager and the Director of Securitized Research at IR+M and has served as a portfolio manager for the Fund since February 2022.
17
Fund Summary
Harbor Core Plus Fund
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Regular
$1,000,000
$1,000
$50,000
Individual Retirement
Account (IRA)
$1,000,000
$1,000
N/A
Custodial
(UGMA/UTMA)
$1,000,000
$1,000
N/A
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
18
 
 
 
 
Harbor Disruptive Innovation Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.70%
0.70%
0.70%
0.70%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.13%
0.21%
0.21%
0.32%
Total Annual Fund
Operating Expenses
0.83%
0.91%
1.16%
1.27%
Expense
Reimbursement1
(0.08)%
(0.08)%
(0.08)%
(0.08)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.75%
0.83%
1.08%
1.19%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.75%, 0.83%, 1.08%, and 1.19% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$77
$257
$453
$1,018
Institutional
$85
$282
$496
$1,112
Administrative
$110
$361
$631
$1,402
Investor
$121
$395
$689
$1,527
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 75%.
Principal Investment Strategy
Under normal market conditions, the Fund invests primarily in equity securities, principally common stocks, of companies selected based on their potential for growth tied to disruptive innovation. The Fund defines “disruptive innovation” as the development of new products, services, technologies and/or other advancements that could disrupt and displace existing businesses and business models over time. While the Fund invests primarily in securities of U.S. companies, the Fund may invest up to 25% of its assets in foreign securities, including those located in emerging market countries. The Fund invests in securities across the market capitalization spectrum.
The Fund employs a multi-manager approach to achieve its investment objective. The Fund’s investment adviser, Harbor Capital Advisors, Inc. (the “Advisor”) is responsible for selecting and overseeing investment subadvisors (each, a “Subadvisor”) for the Fund. Each Subadvisor is responsible for providing the Advisor with a model portfolio, which the Advisor will implement in its discretion in managing the Fund. Each Subadvisor has its own process for identifying and evaluating companies that, in the Subadvisor’s view, have the potential for growth tied to disruptive innovation. A Subadvisor may recommend selling holdings when it believes that such company’s prospects have deteriorated, future growth is unlikely, or for other reasons that a Subadvisor may identify. The Advisor is responsible for allocating the Fund’s assets among each Subadvisor’s strategy as well as implementing each strategy (which includes buying and selling securities as recommended by each Subadvisor). The Advisor does not expect to independently identify securities for investment for the Fund. The Advisor will determine allocations between each Subadvisor’s strategy and adjust those allocations over time based upon its qualitative and quantitative assessment of each strategy and how those strategies work in combination to produce what the Advisor believes is an enhanced risk-adjusted investment outcome for the Fund.
Holdings are expected to be diversified across sectors, but the Fund may, from time to time, have substantial exposure to a particular sector. Sector allocations are the result of the investment process for the Fund.
The equity securities in which the Fund invests include common stocks as well as preferred securities. The Fund may invest in securities issued by equity real estate investment trusts (REITs). The Fund may also purchase American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), and Global Depositary Receipts (GDRs), which are certificates typically issued by a bank or trust company that represent ownership interests in securities issued by a foreign or domestic company.
The Advisor has selected 4BIO Partners LLP (“4BIO Capital”), NZS Capital, LLC (“NZS Capital”), Sands Capital Management, LLC (“Sands Capital”), Tekne Capital Management, LLC (“Tekne”) and Westfield Capital Management Company, L.P. (“Westfield”) to each serve as a Subadvisor to the Fund.
4BIO Capital recommends securities to the Advisor that reflect 4BIO Capital’s focus on new companies developing emerging technologies to disrupt the advanced therapies space, which includes gene therapy, gene editing, cell therapy, ribonucleic acid (RNA) therapy (treatments that target RNA or deliver it to cells), targeted therapies (cancer treatments targeted at specific genes and proteins) and microbiome (the collection of microorganisms living in or on the human body). 4BIO Capital assesses company valuations with a view toward their future potential value creation and typically recommends divestment either upon the company’s acquisition
19
Fund Summary
Harbor Disruptive Innovation Fund
by another market player or when 4BIO Capital believes that future growth is unlikely.
NZS Capital recommends securities of companies to the Advisor that it believes to be highly adaptable to the disruption presented by the transition of economies from analog to digital. Though many of the companies identified by NZS Capital for investment are in the technology and communication segments of the market, NZS Capital believes that disruption is increasingly impacting all sectors of the economy and may identify companies for investment across sectors.
Sands Capital recommends securities to the Advisor based on Sands Capital’s belief that disruptive innovation improves upon the status quo, whether the innovations are on a large or small scale. Sands Capital identifies companies that it believes to have a leadership position in a promising business space, a significant competitive advantage, a clear mission, a value-add focus, financial strength and a rational valuation relative to the market and their business prospects. Sands Capital uses bottom-up research to identify companies across all sectors that it believes are benefitting from structural changes and secular trends that are distinct from cyclical economic factors.
Tekne recommends securities to the Advisor based on Tekne’s belief that a disruptive innovation company is one that creates, uses or enables technology to change or influence an existing or new workflow, product or service. Tekne seeks to identify investments that it believes will derive success from longer-term growth rather than near-term momentum. Tekne relies on its expertise in the telecommunications, media and technology sectors as well as related industries such as fin-tech.
Westfield recommends securities to the Advisor based on Westfield’s belief that disruptive innovation companies are those providing disruptive products or services to large addressable markets and that maintain a culture of continued innovation as they gain market share. Westfield will primarily focus on U.S. markets with a specialization in technology and health care.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first five risks) include:
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Disruptive Innovation Risk: Companies that the Subadvisor and/or Advisor, as applicable, believes have the potential for growth tied to disruptive innovation may not in fact be successful. Companies developing new technologies, creating solutions, providing disruptive products or services, or which the Subadvisor and/or Advisor, as applicable, believes to have leadership positions or competitive advantages may not be able to capitalize on those developments or positions. Such companies may encounter competition, regulation or other barriers. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation theme
for which they are chosen, and the securities issued by these companies may underperform the securities of other companies. The Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations in the future. A disruptive innovation may constitute a small portion of a company’s overall business. As a result, the success of a disruptive innovation may not affect the value of the equity securities issued by the company.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Multi-Manager Risk: The Subadvisors’ investment styles and security recommendations may not always be complementary, which could affect the performance of the Fund. Moreover, the allocation of Fund assets among Subadvisors may lead the Fund to underperform relative to how it could have performed with a different allocation between Subadvisors.
Non-Discretionary Implementation Risk: Because the Fund is managed pursuant to model portfolios provided by non-discretionary Subadvisors, it is expected that trades will be effected on a periodic basis and therefore less frequently than would typically be the case if discretionary subadvisors were employed. Given that values of investments change with market conditions, this could cause the Fund’s return to be lower than if the Fund employed discretionary subadvisors.
Depositary Receipts Risk: Depositary receipts are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the U.S. or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Depositary receipts are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. Depositary receipts are subject to the risks associated with investing directly in foreign securities.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency
20
Fund Summary
Harbor Disruptive Innovation Fund
risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Foreign Securities Risk: Because the Fund may invest in securities of foreign issuers, an investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. These risks are more significant for issuers in emerging market countries. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Growth Style Risk: Over time, a growth oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
REIT Risk: Investing in REITs will subject the Fund to additional risks.  The REITs in which the Fund invests may decline in value as a result of factors affecting the real estate sector, such as changes in real estate values, changes in property taxes and government regulation affecting zoning, land use and rents, changes in interest rates, changes in the cash flow of underlying real estate assets, levels of occupancy, and market conditions, as well as the management skill and creditworthiness of the issuer.  Investments in REITs are also subject to additional risks, including the risk that REITs are unable to generate cash flow to make distributions to unitholders and fail to qualify for favorable tax treatment under the Internal Revenue Code of 1986, as amended.
Sector Risk: Because the Fund may, from time to time, be more heavily invested in particular sectors, the value of its shares may be especially sensitive to factors and economic risks that specifically affect those sectors. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual fund that invests in a broader range of sectors.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Small and Mid Cap Risk: The Fund’s performance may be more volatile because it may invest in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more
established companies. Additionally, small and mid cap stocks may fall out of favor relative to large cap stocks, which may cause the Fund to underperform other equity funds that focus on large cap stocks.
Performance
Effective September 1, 2021, Harbor Capital began to directly manage the Fund’s portfolio using a multi-manager approach and the name and strategy of the Fund were changed. Performance prior to that date is attributable to the Fund’s prior subadvisor utilizing a different strategy.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
41.44%
Q2 2020
Worst Quarter
-30.16%
Q2 2022
21
Fund Summary
Harbor Disruptive Innovation Fund
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Disruptive Innovation Fund
Retirement Class*
Before Taxes
-44.33%
3.82%
8.95%
4.52%
03-01-2016
Institutional Class
Before Taxes
-44.40%
3.75%
8.89%
4.49%
11-01-2000
After Taxes on
Distributions
-44.40%
-1.74%
4.43%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-26.28%
3.43%
6.96%
N/A
 
Administrative
Class
Before Taxes
-44.43%
3.50%
8.62%
9.42%
11-01-2002
Investor Class
Before Taxes
-44.48%
3.40%
8.51%
9.29%
11-01-2002
Comparative Indices
(reflects no deduction for fees, expenses or taxes)
S&P 500^
-18.11%
9.42%
12.56%
6.60%
 
Russell 3000®
Growth^
-28.97%
10.45%
13.75%
6.01%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Spenser P. Lerner, CFA, Head of Multi-Asset Solutions, Managing Director and Portfolio Manager of Harbor Capital Advisors, Inc., has managed the Fund since 2021.
Kristof Gleich, CFA, President & CIO of Harbor Capital Advisors, Inc., has managed the Fund since 2021.
 
Subadvisors
The Advisor has engaged 4BIO Capital, NZS Capital, Sands Capital, Tekne and Westfield as subadvisors since 2021 to provide investment management services to the Fund on a non-discretionary basis.
22
Fund Summary
Harbor Disruptive Innovation Fund
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
23
 
 
 
 
Harbor Diversified International All Cap Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.09%
0.17%
0.17%
0.28%
Total Annual Fund
Operating Expenses
0.84%
0.92%
1.17%
1.28%
Expense
Reimbursement1
(0.12)%
(0.12)%
(0.12)%
(0.12)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.72%
0.80%
1.05%
1.16%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.72% 0.80%, 1.05%, and 1.16% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$74
$256
$454
$1,026
Institutional
$82
$281
$498
$1,120
Administrative
$107
$360
$632
$1,410
Investor
$118
$394
$691
$1,535
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 24%.
Principal Investment Strategy
The Fund invests primarily (no less than 65% of its total assets under normal market conditions) in common and preferred stocks of foreign companies, including those located in emerging market countries.
The Subadvisor’s investment strategy focuses on identifying attractive long-term investment opportunities that can arise as a result of certain capital cycle, or supply-side, conditions. Capital cycle investing is based on the concept that the prospect of high returns will attract excessive capital and competition and the prospect of low returns will excessively depress new capital investments and discourage competition. The assessments of how management responds to the forces of the capital cycle through its capital allocation strategy and how it is incentivized are both critical to the investment outcome. While capital cycles are often observed at an industry level, particularly where the investment merits of an individual business are influenced by the rationality of actors within a given competitive ecosystem, they are first identified through bottom-up analysis at the company level. The Subadvisor broadly characterizes investments within two opposite points of the capital cycle:
◾
High Return Phase: Investments in the top half of the capital cycle, where high rates of return within a business and/or industry are being attained, are often characterized as having intrinsic pricing power that allow them to fend off competition and excess capital that would otherwise be drawn to the prospects of high returns. These types of investments can also be characterized as having a consolidated industry market structure with high barriers to entry.
◾
Depressed Return Phase: Investments in the bottom half of the capital cycle, where rates of return have fallen to or below the cost of capital and where capital is being repelled as a result, are often characterized as contrarian, deep value investments where an improvement in the economic returns of a business are not accurately discounted by the broad market. A consolidating market structure, where supply and competition are removed, or a radical shift in management strategy, are often conditions leading to these types of investments.
The Subadvisor uses fundamental, bottom-up qualitative analysis to evaluate businesses and the industry within which they operate. Research meetings with company management represent a significant aspect of the analysis conducted by the Subadvisor. Companies that the Subadvisor finds attractive include those that:
◾
Deploy capital effectively and efficiently
◾
Have high insider ownership and/or where company management are appropriately incentivized to focus on long-term results
◾
Operate in a monopolistic, oligopolistic or consolidating industry
◾
Show improving or high and sustainable returns on invested capital
◾
Generate attractive or improving free cash-flow
Given the contrarian and long-term nature of the capital cycle, the Subadvisor’s investment strategy tends to result in a portfolio of investments that can differ significantly from the Fund’s benchmark index, with average holding periods of seven years or more for individual company investments. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material
24
Fund Summary
Harbor Diversified International All Cap Fund
impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer.
The Subadvisor allocates responsibility for sourcing investment opportunities among its portfolio managers by regions of the world, with different portfolio managers responsible for each of Europe, Japan, the Pacific Basin, emerging markets, and North America. The Subadvisor maintains an aggregate portfolio that is broadly regionally neutral relative to the benchmark index. All of the portfolio managers employ the capital cycle approach to investing across their respective regions in order to identify individual companies for investment. The investment ideas generated across each of the four regions are then combined into the Fund’s overall portfolio. This results in a portfolio that generally maintains investments in between 450 and 550 companies. While inherently diversified, a bias towards smaller and mid cap businesses in niche industries, coupled with a particularly long holding period, result in a portfolio that is significantly differentiated from the Fund’s benchmark index. The Fund may invest in securities denominated in, and/or receiving revenues in, foreign currencies.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Capital Cycle Risk: The Subadvisor’s assessment of the capital cycle for a particular industry or company may be incorrect. Investing in companies at inopportune phases of the capital cycle can result in the Fund purchasing company stock at pricing levels that are higher than the market dynamics would support and therefore subject the Fund to greater risk that the stock price would decline rather than increase over time.
Foreign Securities Risk: An investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. If foreign securities are denominated and traded in a foreign currency, the value of the Fund’s foreign holdings can be affected by currency exchange rates and exchange control regulations. The Fund’s investments in foreign securities may also be subject to foreign withholding taxes.
Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Geographic Focus Risk: The Fund may invest a substantial amount of its assets in securities of issuers located in a single country or geographic region. As a result, any changes to the regulatory, political, social or economic conditions in such country or geographic region will generally have greater impact on the Fund than such changes would have on a more geographically diversified fund and may result in increased volatility and greater losses.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
25
Fund Summary
Harbor Diversified International All Cap Fund
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Small and Mid Cap Risk: The Fund’s performance may be more volatile because it may invest in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, small and mid cap stocks may fall out of favor relative to large cap stocks, which may cause the Fund to underperform other equity funds that focus on large cap stocks.
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
19.80%
Q4 2020
Worst Quarter
-27.37%
Q1 2020
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Diversified International All Cap Fund
Retirement Class*
Before Taxes
-14.30%
1.84%
N/A
4.09%
03-01-2016
Institutional Class
Before Taxes
-14.30%
1.76%
N/A
4.03%
11-02-2015
After Taxes on
Distributions
-14.38%
1.14%
N/A
3.45%
 
After Taxes on
Distributions and
Sale of Fund Shares
-8.05%
1.49%
N/A
3.26%
 
Administrative Class
Before Taxes
-14.53%
1.50%
N/A
3.77%
11-02-2015
Investor Class
Before Taxes
-14.63%
1.39%
N/A
3.64%
11-02-2015
Comparative Index
(reflects no deduction for fees, expenses or taxes)
MSCI All Country
World Ex. U.S. (ND)^
-16.00%
0.88%
N/A
4.11%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Marathon Asset Management Limited (“Marathon-London”) has subadvised the Fund since 2015.
26
Fund Summary
Harbor Diversified International All Cap Fund
Portfolio Managers
Marathon-London employs a team approach, in which each portfolio manager is allocated a distinct portion of assets to manage within the Fund’s portfolio. Each portfolio manager selects stocks within their region independently from the other portfolio managers. Mr. Ostrer and Mr. Arah are jointly responsible for determining the allocations to each portfolio manager.
REGIONAL FOCUS: EUROPE
Neil M. Ostrer
Marathon Asset Management Limited
Mr. Ostrer is a Portfolio Manager and co-founder of Marathon-London and has co-managed the Fund since 2015.
Charles Carter
Marathon Asset Management Limited
Mr. Carter is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2015.
Nick Longhurst
Marathon Asset Management Limited
Mr. Longhurst is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2015.
REGIONAL FOCUS: JAPAN
William J. Arah
Marathon Asset Management Limited
Mr. Arah is a Portfolio Manager and co-founder of Marathon-London and has co-managed the Fund since 2015.
Simon Somerville
Marathon Asset Management Limited
Mr. Somerville is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2016.
Toma Kobayashi
Marathon Asset Management Limited
Mr. Kobayashi is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2022.
REGIONAL FOCUS: EMERGING MARKETS
Alex Duffy
Marathon Asset Management Limited
Mr. Duffy is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2021.
REGIONAL FOCUS: ASIA PACIFIC EX JAPAN
Justin Hill
Marathon Asset Management Limited
Mr. Hill is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2021.
REGIONAL FOCUS: NORTH AMERICA
Robert Anstey, CFA
Marathon Asset Management Limited
Mr. Anstey is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2015.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
27
 
 
 
 
Harbor Global Leaders Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees1
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.17%
0.25%
0.25%
0.36%
Total Annual Fund
Operating Expenses
0.92%
1.00%
1.25%
1.36%
Fee Waiver and
Expense
Reimbursement1
(0.14)%
(0.14)%
(0.14)%
(0.14)%
Total Annual Fund
Operating Expenses
After Fee Waiver and
Expense
Reimbursement1
0.78%
0.86%
1.11%
1.22%
1 The Advisor has contractually agreed to waive 0.05% of its management fee and to limit the Total Annual Fund Operating Expenses, excluding interest expense (if any), to 0.78%, 0.86%, 1.11%, and 1.22% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate these agreements.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$80
$279
$496
$1,118
Institutional
$88
$304
$539
$1,212
Administrative
$113
$383
$673
$1,499
Investor
$124
$417
$731
$1,623
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the
Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 29%.
Principal Investment Strategy
The Fund invests primarily in the equity securities of companies located anywhere in the world, including in developed and emerging markets. Under normal market conditions, the Fund expects to invest in at least three countries, including the United States, and invest at least 40% of its assets in foreign companies.
The Fund may invest in companies at any stage of their growth lifecycles but will focus on companies that the Subadvisor believes are capable of generating sustainable, above-average, and relatively stable rates of earnings per share growth and strong free cash flows. The Subadvisor seeks investment opportunities in companies that the Subadvisor believes are leaders in their country, industry, or globally in terms of products, services, or execution. While the Fund may invest in equity securities of companies of any size, the Fund will primarily invest in large and mid-capitalization companies. As such, the Fund will generally not invest in companies with a market capitalization of less than $2 billion at the time of acquisition, and its total median market capitalization will typically be significantly greater than that of the MSCI All Country World Index, the Fund’s benchmark.
In selecting securities for the Fund, the Subadvisor utilizes a fundamental, bottom-up, business-focused research approach. The Subadvisor seeks to identify growing businesses that meet the following six investment criteria:
◾
Sustainable above-average earnings growth;
◾
Leadership position in a promising business space;
◾
Significant competitive advantages;
◾
Clear mission and value-added focus;
◾
Financial strength; and
◾
Rational valuation relative to the market and business prospects.
Companies that the Subadvisor determines may meet all six investment criteria are then analyzed with in-depth qualitative and quantitative research, including competitive analysis and proprietary financial modeling. The Subadvisor integrates environmental, social, and governance factors into its investment process and as part of its overall portfolio decision making process.
The investment process generally results in a portfolio of 30-50 companies and, from time to time, may result in more substantial investments in particular sectors. Sector allocations are the outcome of the Subadvisor’s bottom-up investment process. From time to time, the Fund may have significant investments in one or more countries. The Fund may invest up to the greater of 30% of its assets or three times the emerging markets component of the Index, in securities of companies located in emerging markets. As of December 31, 2022, the emerging markets component of the Index comprised 10.4% of the total index.
The Subadvisor believes that environmental, social and governance (“ESG”) factors are implicit in the six investment criteria discussed above. The Subadvisor considers the context for each business when determining the ESG issues that matter to its investment case and their relative importance in expected business outcomes and long-term investment results. Accordingly, ESG factors may vary depending on region, country, industry and company. Analysis of ESG factors is integrated into the investment decision-making
28
Fund Summary
Harbor Global Leaders Fund
process to the extent the Subadvisor believes it may affect the sustainability of a company’s value-creating potential.
The Fund intends to hold securities for the longer term, generally three to five years. The Subadvisor may sell or trim back a particular holding as a result of the Subadvisor’s identification of an issue that negatively impacts the Subadvisor’s assessment of one or more of the six investment criteria discussed above that the Subadvisor believes cannot be resolved within an acceptable time frame. The Subadvisor may also sell a holding if it believes the security has become materially overvalued relative to its underlying business, for risk management purposes, and/or if a more attractive investment opportunity is identified.
The equity securities in which the Fund invests include common stocks as well as preferred securities. The Fund may also purchase American Depositary Receipts (ADRs), European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs and, together with ADRs and EDRs, “Depositary Receipts”), which are certificates typically issued by a bank or trust company that represent ownership interests in securities issued by a foreign or domestic company. The Fund may invest in securities denominated in, and/or receiving revenues in, foreign currencies.
The Fund may use foreign exchange spot contracts and foreign exchange forwards to seek to hedge currency exposure. A foreign exchange spot contract is an agreement to buy or sell a specific currency for immediate delivery (i.e., “on the spot”) as opposed to a set date in the future. The Fund may also invest in market access products, such as low exercise price warrants (“LEPWs”) and participatory notes (“P-notes”), to seek to gain economic exposure to markets where holding an underlying local security is not feasible or economical. A “market access product” is a derivative security that provides market exposure to an underlying foreign issuer.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first five risks) include:
Foreign Securities Risk: An investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. If foreign securities are denominated and traded in a foreign currency, the value of the Fund’s foreign holdings can be affected by currency exchange rates and exchange control regulations. The Fund’s investments in foreign securities may also be subject to foreign withholding taxes.
Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Limited Number of Holdings Risk: The Fund may invest in a limited number of companies. As a result, an adverse event affecting
a particular company may hurt the Fund’s performance more than if it had invested in a larger number of companies. In addition, the Fund’s performance may be more volatile than a fund that invests in a larger number of companies.
Growth Style Risk: Over time, a growth oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Depositary Receipts Risk: Depositary receipts are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the U.S. or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Depositary receipts are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. Depositary receipts are subject to the risks associated with investing directly in foreign securities.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign
29
Fund Summary
Harbor Global Leaders Fund
currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Geographic Focus Risk: The Fund may invest a substantial amount of its assets in securities of issuers located in a single country or geographic region. As a result, any changes to the regulatory, political, social or economic conditions in such country or geographic region will generally have greater impact on the Fund than such changes would have on a more geographically diversified fund and may result in increased volatility and greater losses.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Large Cap Risk: Large cap stocks may fall out of favor relative to small or mid cap stocks, which may cause the Fund to underperform other equity funds that focus on small or mid cap stocks.
Mid Cap Risk: The Fund’s performance may be more volatile because it invests primarily in mid cap stocks. Mid cap companies may have limited product lines, markets and financial resources. Securities of mid cap companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, mid cap stocks may fall out of favor relative to small or large cap stocks, which may cause the Fund to underperform other equity funds that focus on small or large cap stocks.
Participatory Notes Risk: The return on a P-note is linked to the performance of the issuers of the underlying securities. The performance of P-notes will not replicate exactly the performance of the issuers that they seek to replicate due to transaction costs and other expenses.  P-notes are subject to counterparty risk since the notes constitute general unsecured contractual obligations of the financial institutions issuing the notes, and the Fund is relying on the creditworthiness of such institutions and has no rights under the notes against the issuers of the underlying securities.  P-notes may also be less liquid and more difficult to sell.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Sector Risk: Because the Fund may, from time to time, be more heavily invested in particular sectors, the value of its shares may be especially sensitive to factors and economic risks that specifically affect those sectors. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual fund that invests in a broader range of sectors.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Warrants Risk: Warrants are rights to purchase securities at specific prices valid for a specific period of time.  While LEPWs seek to track the value of the underlying security, their prices will not necessarily move in parallel to the prices of the underlying securities, and warrant holders receive no dividends and have no voting rights or rights to the assets of the issuer of the underlying security.  Warrants are also subject to counterparty risk since the Fund is relying on the creditworthiness of the financial institution issuing the warrant to meet its obligations under the terms of the warrant.
30
Fund Summary
Harbor Global Leaders Fund
Performance
Effective March 1, 2017, Sands Capital Management, LLC became the Fund’s Subadvisor.  Performance prior to that date is not attributable to Sands Capital.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
23.30%
Q2 2020
Worst Quarter
-21.50%
Q2 2022
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Global Leaders Fund
Retirement Class*
Before Taxes
-29.63%
5.95%
9.66%
13.25%
03-01-2016
Institutional Class
Before Taxes
-29.69%
5.86%
9.61%
13.21%
03-01-2009
After Taxes on
Distributions
-31.01%
4.16%
7.82%
N/A
 
After Taxes on
Distributions and
Sale of Fund Shares
-16.64%
4.76%
7.67%
N/A
 
Administrative
Class
Before Taxes
-29.84%
5.61%
9.34%
12.93%
03-01-2009
Investor Class
Before Taxes
-29.92%
5.48%
9.21%
12.79%
03-01-2009
Comparative Index
(reflects no deduction for fees, expenses or taxes)
MSCI All Country
World (ND)^
-18.36%
5.23%
7.98%
11.04%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
31
Fund Summary
Harbor Global Leaders Fund
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Sands Capital Management, LLC (“Sands Capital”) has subadvised the Fund since March 1, 2017.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Sunil H. Thakor, CFA
Sands Capital Management, LLC
Mr. Thakor, CFA is a Senior Portfolio Manager, Research Analyst at Sands Capital and has managed the Fund since 2017. 
 
Michael F. Raab, CFA
Sands Capital Management, LLC
Mr. Raab, CFA is a Portfolio Manager, Senior Research Analyst at Sands Capital and has managed the Fund since 2019.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
32
 
 
 
 
Harbor International Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term total return, principally from growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.06%
0.14%
0.14%
0.25%
Total Annual Fund
Operating Expenses
0.81%
0.89%
1.14%
1.25%
Expense
Reimbursement1
(0.12)%
(0.12)%
(0.12)%
(0.12)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.69%
0.77%
1.02%
1.13%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.69%, 0.77%, 1.02%, and 1.13% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate these agreements.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$70
$247
$438
$991
Institutional
$79
$272
$481
$1,085
Administrative
$104
$350
$616
$1,375
Investor
$115
$385
$675
$1,501
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 14%.
Principal Investment Strategy
The Fund invests primarily (no less than 65% of its total assets under normal market conditions) in common and preferred stocks of foreign companies located principally in developed markets across Europe, Japan and Asia Pacific ex Japan.
The Subadvisor’s investment strategy focuses on identifying attractive long-term investment opportunities that can arise as a result of certain capital cycle, or supply-side, conditions. Capital cycle investing is based on the concept that the prospect of high returns will attract excessive capital and competition and the prospect of low returns will excessively depress new capital investments and discourage competition. The assessments of how management responds to the forces of the capital cycle through its capital allocation strategy and how it is incentivized are both critical to the investment outcome. While capital cycles are often observed at an industry level, particularly where the investment merits of an individual business are influenced by the rationality of actors within a given competitive ecosystem, they are first identified through bottom-up analysis at the company level. The Subadvisor broadly characterizes investments within two opposite points of the capital cycle:
◾
High Return Phase: Investments in the top half of the capital cycle, where high rates of return within a business and/or industry are being attained, are often characterized as having intrinsic pricing power that allow them to fend off competition and excess capital that would otherwise be drawn to the prospects of high returns. These types of investments can also be characterized as having a consolidated industry market structure with high barriers to entry.
◾
Depressed Return Phase: Investments in the bottom half of the capital cycle, where rates of return have fallen to or below the cost of capital and where capital is being repelled as a result, are often characterized as contrarian, deep value investments where an improvement in the economic returns of a business are not accurately discounted by the broad market. A consolidating market structure, where supply and competition are removed, or a radical shift in management strategy, are often conditions leading to these types of investments.
The Subadvisor uses fundamental, bottom-up qualitative analysis to evaluate businesses and the industry within which they operate. Research meetings with company management represent a significant aspect of the analysis conducted by the Subadvisor. Companies that the Subadvisor finds attractive include those that:
◾
Deploy capital effectively and efficiently
◾
Have high insider ownership and/or where company management are appropriately incentivized to focus on long-term results
◾
Operate in a monopolistic, oligopolistic or consolidating industry
◾
Show improving or high and sustainable returns on invested capital
◾
Generate attractive or improving free cash-flow
Given the contrarian and long-term nature of the capital cycle, the Subadvisor’s investment strategy tends to result in a portfolio of investments that can differ significantly from the Fund’s benchmark index, with average holding periods of seven years or more for individual company investments. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material
33
Fund Summary
Harbor International Fund
impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer.
The Subadvisor allocates responsibility for sourcing investment opportunities among its portfolio managers by regions of the world, with different portfolio managers responsible for each of Europe, Japan, and the Pacific Basin and emerging markets. The Subadvisor maintains an aggregate portfolio that is broadly regionally neutral relative to the benchmark index. The portfolio also may have a modest exposure to emerging markets. All of the portfolio managers employ the capital cycle approach to investing across their respective regions in order to identify individual companies for investment. The investment ideas generated across each of the three regions are then combined into the Fund’s overall portfolio. This results in an inherently diversified portfolio that generally maintains investments in between 350 and 450 companies. The Fund may invest in securities denominated in, and/or receiving revenues in, foreign currencies.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Capital Cycle Risk: The Subadvisor’s assessment of the capital cycle for a particular industry or company may be incorrect. Investing in companies at inopportune phases of the capital cycle can result in the Fund purchasing company stock at pricing levels that are higher than the market dynamics would support and therefore subject the Fund to greater risk that the stock price would decline rather than increase over time.
Foreign Securities Risk: An investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. If foreign securities are denominated and traded in a foreign currency, the value of the Fund’s foreign holdings can be affected by currency exchange rates and exchange control regulations. The Fund’s investments in foreign securities may also be subject to foreign withholding taxes.
Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within
an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Geographic Focus Risk: The Fund may invest a substantial amount of its assets in securities of issuers located in a single country or geographic region. As a result, any changes to the regulatory, political, social or economic conditions in such country or geographic region will generally have greater impact on the Fund than such changes would have on a more geographically diversified fund and may result in increased volatility and greater losses.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will
34
Fund Summary
Harbor International Fund
be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Small and Mid Cap Risk: The Fund’s performance may be more volatile because it may invest in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, small and mid cap stocks may fall out of favor relative to large cap stocks, which may cause the Fund to underperform other equity funds that focus on large
cap stocks.
Performance
Effective August 22, 2018, Marathon Asset Management London (“Marathon-London) became the Fund’s Subadvisor.  Performance prior to that date is not attributable to Marathon-London.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
19.40%
Q4 2022
Worst Quarter
-24.85%
Q1 2020
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor International Fund
Retirement Class*
Before Taxes
-13.71%
1.14%
3.18%
9.38%
03-01-2016
Institutional Class
Before Taxes
-13.79%
1.06%
3.12%
9.36%
12-29-1987
After Taxes on
Distributions
-14.48%
-1.19%
1.58%
N/A
 
After Taxes on
Distributions and
Sale of Fund Shares
-7.72%
0.64%
2.33%
N/A
 
Administrative
Class
Before Taxes
-14.03%
0.81%
2.86%
7.34%
11-01-2002
Investor Class
Before Taxes
-14.11%
0.69%
2.74%
7.20%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
MSCI EAFE (ND)^
-14.45%
1.54%
4.67%
4.99%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. In some cases, average annual total return “After Taxes on Distributions and Sale of Fund Shares” may exceed the return “Before Taxes” and/or “After Taxes on Distributions” due to an assumed tax benefit for any losses on a sale of Fund shares at the end of the measurement period.After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
35
Fund Summary
Harbor International Fund
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Marathon-London has subadvised the Fund since August 2018.
 
Portfolio Managers
Marathon-London employs a team approach, in which each portfolio manager is allocated a distinct portion of assets to manage within the Fund’s portfolio. Each portfolio manager selects stocks within their region independently from the other portfolio managers. Mr. Ostrer and Mr. Arah are jointly responsible for determining the allocations to each portfolio manager.
REGIONAL FOCUS: EUROPE
Neil M. Ostrer
Marathon Asset Management Limited
Mr. Ostrer is a Portfolio Manager and co-founder of Marathon-London and has co-managed the Fund since 2018.
Charles Carter
Marathon Asset Management Limited
Mr. Carter is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2018.
Nick Longhurst
Marathon Asset Management Limited
Mr. Longhurst is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2018.
REGIONAL FOCUS: JAPAN
William J. Arah
Marathon Asset Management Limited
Mr. Arah is a Portfolio Manager and co-founder of Marathon-London and has co-managed the Fund since 2018.
Simon Somerville
Marathon Asset Management Limited
Mr. Somerville is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2018.
Toma Kobayashi
Marathon Asset Management Limited
Mr. Kobayashi is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2022.
REGIONAL FOCUS: EMERGING MARKETS
Alex Duffy
Marathon Asset Management Limited
Mr. Duffy is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2021.
REGIONAL FOCUS: ASIA PACIFIC ex JAPAN
Justin Hill
Marathon Asset Management Limited
Mr. Hill is a Portfolio Manager of Marathon-London and has co-managed the Fund since 2021.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
36
 
 
 
 
Harbor International Core Fund (formerly, Harbor Overseas Fund)
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.41%
0.49%
0.49%
0.60%
Total Annual Fund
Operating Expenses
1.16%
1.24%
1.49%
1.60%
Expense
Reimbursement1
(0.39)%
(0.39)%
(0.39)%
(0.39)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.77%
0.85%
1.10%
1.21%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any) to 0.77% 0.85%, 1.10%, and 1.21% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$79
$330
$601
$1,374
Institutional
$87
$355
$643
$1,466
Administrative
$112
$433
$776
$1,746
Investor
$123
$467
$834
$1,867
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 100%.
Principal Investment Strategy
Under normal market conditions, the Fund invests at least 80% of its assets in a diversified portfolio of non-U.S. equity securities. The Fund invests primarily in the stocks of foreign companies located in developed markets, but it may also invest up to 15% of its assets in the securities of companies located in emerging markets. The Fund invests in stocks across the market capitalization spectrum.
The Subadvisor manages the Fund using an active, quantitative investment strategy. In selecting investments for the Fund, the Subadvisor forecasts expected returns for global equity markets and individual securities using a range of quantitative factors, including:
◾
Valuation
◾
Earnings
◾
Quality
◾
Price patterns
◾
Economic data
◾
Risk
The Subadvisor emphasizes those factors that it believes to have proven most effective in predicting returns.
In constructing the Fund’s portfolio, the Subadvisor considers the company, country, and industry weightings of the Fund’s benchmark index, the MSCI EAFE Index, as well as the portfolio’s level of risk, estimated transaction costs, liquidity, and other considerations. In making buy and sell decisions, the Subadvisor analyzes the risk and expected return characteristics of the portfolio’s current holdings as compared to the entire universe of companies. The Subadvisor also considers companies’ environmental, social and governance (“ESG”) initiatives that it believes may have a material impact on an issuer and the value of its securities. The Subadvisor engages with company management and seeks to identify inconsistencies between stated positions and actions.
The Subadvisor purchases securities that in its view have higher risk-adjusted expected returns and sells securities that in its view have lower risk-adjusted expected returns, provided that the costs of implementing the purchases and sales of such securities do not exceed the expected value added to the portfolio of such investment decisions, as determined by the Subadvisor. Throughout this process, the Subadvisor utilizes proprietary quantitative models to make its assessments and, except in very limited circumstances, follows the output of those models when making buy and sell decisions for the Fund’s portfolio.
The equity securities in which the Fund invests include common stocks as well as preferred securities and securities issued by real estate investment trusts (REITs). The Fund may also purchase American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs), and other similar depositary receipts, which are certificates typically issued by a bank or trust company that represent ownership interests in securities issued by a foreign or domestic company. The Fund may invest in securities denominated in, and/or receiving revenues in, foreign currencies.
37
Fund Summary
Harbor International Core Fund (formerly, Harbor Overseas Fund)
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Foreign Securities Risk: An investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. If foreign securities are denominated and traded in a foreign currency, the value of the Fund’s foreign holdings can be affected by currency exchange rates and exchange control regulations. The Fund’s investments in foreign securities may also be subject to foreign withholding taxes.
Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Model Risk: There are limitations inherent in every quantitative model. The value of securities selected using quantitative analysis can react differently to issuer, political, market, and economic developments than the market as a whole or securities selected using only fundamental analysis. The factors used in quantitative analysis and the weight placed on those factors may not be predictive of a security’s value. In addition, historical trends in data may not be predictive going forward. The strategies and techniques employed in a quantitative model cannot fully match the complexity of the financial markets and therefore sudden unanticipated changes in underlying market conditions can significantly impact their performance. The effectiveness of the given strategy or technique may deteriorate in an unpredictable fashion for any number of reasons including, but not limited to, an increase in the amount of assets managed or the use of similar strategies or techniques by other market participants and/or market dynamic shifts over time. In addition, factors that affect a security’s value can change over time, and these changes may not be reflected in the quantitative model. Any model may contain flaws the existence and effect of which may be discovered only after the fact or not at all. There can be no assurances that the strategies pursued or the techniques implemented in the quantitative model will be profitable, and various market conditions may be materially less favorable to certain strategies than others. Even in the absence of flaws, a model may not perform as anticipated.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Depositary Receipts Risk: Depositary receipts are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the U.S. or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Depositary receipts are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. Depositary receipts are subject to the risks associated with investing directly in foreign securities.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Geographic Focus Risk: The Fund may invest a substantial amount of its assets in securities of issuers located in a single country or geographic region. As a result, any changes to the regulatory, political, social or economic conditions in such country or geographic region will generally have greater impact on the Fund than such changes would have on a more geographically diversified fund and may result in increased volatility and greater losses.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
38
Fund Summary
Harbor International Core Fund (formerly, Harbor Overseas Fund)
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
REIT Risk: Investing in REITs will subject the Fund to additional risks.  The REITs in which the Fund invests may decline in value as a result of factors affecting the real estate sector, such as changes in real estate values, changes in property taxes and government regulation affecting zoning, land use and rents, changes in interest rates, changes in the cash flow of underlying real estate assets, levels of occupancy, and market conditions, as well as the management skill and creditworthiness of the issuer.  Investments in REITs are also subject to additional risks, including the risk that REITs are unable to generate cash flow to make distributions to unitholders and fail to qualify for favorable tax treatment under the Internal Revenue Code of 1986, as amended.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Small and Mid Cap Risk: The Fund’s performance may be more volatile because it may invest in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, small and mid cap stocks may fall out of favor relative to large cap stocks, which may cause the Fund to underperform other equity funds that focus on large cap stocks.
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows the performance of the Fund’s Institutional Class during the period shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
17.47%
Q2 2020
Worst Quarter
-20.62%
Q1 2020
 
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor International Core Fund
Retirement Class
Before Taxes
-15.10%
N/A
N/A
6.12%
03-01-2019
Institutional Class
Before Taxes
-15.22%
N/A
N/A
6.03%
03-01-2019
After Taxes on
Distributions
-15.63%
N/A
N/A
5.07%
 
After Taxes on
Distributions and Sale
of Fund Shares
-8.57%
N/A
N/A
4.84%
 
Investor Class
Before Taxes
-15.52%
N/A
N/A
5.64%
03-01-2019
Comparative Index
(reflects no deduction for fees, expenses or taxes)
MSCI EAFE (ND)
-14.45%
N/A
N/A
3.61%
 
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement and Investor Class of shares will vary.
39
Fund Summary
Harbor International Core Fund (formerly, Harbor Overseas Fund)
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Acadian Asset Management LLC (“Acadian”) has subadvised the Fund since 2019.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Brendan O. Bradley, Ph.D.
Acadian Asset Management LLC
Mr. Bradley is an Executive Vice President and Chief Investment Officer at Acadian and has managed the Fund since its inception in 2019. 
 
Ryan D. Taliaferro, Ph.D.
Acadian Asset Management LLC
Mr. Taliaferro is a Senior Vice President and Director of Equity Strategies at Acadian and has managed the Fund since its inception in 2019.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
40
 
 
 
 
Harbor International Growth Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.08%
0.16%
0.16%
0.27%
Total Annual Fund
Operating Expenses
0.83%
0.91%
1.16%
1.27%
Expense
Reimbursement1
(0.06)%
(0.06)%
(0.06)%
(0.06)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.77%
0.85%
1.10%
1.21%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.77%, 0.85%, 1.10%, and 1.21% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$79
$259
$455
$1,020
Institutional
$87
$284
$498
$1,114
Administrative
$112
$363
$633
$1,404
Investor
$123
$397
$691
$1,529
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 18%.
Principal Investment Strategy
The Fund invests primarily (no less than 65% of its total assets under normal market conditions) in equity securities, including common and preferred stocks, of foreign companies that the Subadvisor believes will experience growth and benefit from sustainable competitive advantages in their markets. The Fund may invest in companies of any size located in, or economically tied to, any country or region outside of the United States, including developed foreign and emerging markets. The Fund normally invests in at least three different countries outside of the United States. The Fund may invest in securities denominated in, and/or receiving revenues in, foreign currencies.
The Subadvisor primarily uses proprietary, fundamental research to seek to identify companies for investment that can exhibit sustained, above-average growth with attractive financial characteristics, such as superior profit margins and returns on invested capital. The Subadvisor normally evaluates these characteristics over a three- to five-year time horizon.
When evaluating individual companies for investment, the Subadvisor normally focuses on the following:
◾
Opportunity: The Subadvisor looks for companies that have identifiable and sustainable competitive advantages, which will enable the company to achieve above average growth rates. These competitive advantages include the degree to which there are barriers to entry in the market, the uniqueness of the company’s product offerings, any enduring cost or technology advantages and the loyalty of the company’s customers.
◾
Execution: The Subadvisor looks for companies that have management teams that are capable of capitalizing on the opportunities available to them. This analysis involves an assessment of the strength of the company’s financial position, including its ability to fund growth opportunities internally through sufficiently attractive profit margins, and an assessment of the management team’s actions, including how management chooses to put excess capital to work through reinvestment or acquisitions.
◾
Valuation: After assessing the growth opportunity and management team at each company being evaluated, the Subadvisor then compares the current stock price with the Subadvisor’s view of the value of the company’s future growth potential. The Subadvisor seeks to invest in companies which appear to be undervalued on this basis.
In addition to the investment considerations outlined above, the Subadvisor considers governance matters and integrates social and environmental (collectively, “ESG”) factors into the decision-making process when the Subadvisor believes they are material to the long-term sustainable growth prospects for a company. The Subadvisor utilizes in-house ESG-related research to enhance its evaluation of individual companies. The extent to which ESG considerations are incorporated into the evaluation of individual companies is based on the materiality of any particular matter to the long-term sustainability of the company’s business, as determined by the Subadvisor. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each company.
The Subadvisor may, from time to time and at its discretion, seek to hedge the value of a portion of the Fund’s foreign currency exposure to attempt to preserve the value of the Fund’s investments
41
Fund Summary
Harbor International Growth Fund
in U.S. dollar terms. However, the Subadvisor does not normally expect to hedge the Fund’s foreign currency exposure.
The Subadvisor may sell or reduce the Fund’s investment in a portfolio security if the Subadvisor detects a material diminution to either the company’s growth opportunity or in the level of confidence the Subadvisor has in company management’s ability to exploit that opportunity. The Subadvisor also regularly considers the company’s valuation, and whether the current stock price has risen to a level that better reflects the Subadvisor’s view of the company’s future growth potential. However, the Subadvisor does not normally trade based upon short-term price movements, as it considers such moves to be poor predictors of long-term results.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first five risks) include:
Foreign Securities Risk: An investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. If foreign securities are denominated and traded in a foreign currency, the value of the Fund’s foreign holdings can be affected by currency exchange rates and exchange control regulations. The Fund’s investments in foreign securities may also be subject to foreign withholding taxes.
Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Growth Style Risk: Over time, a growth oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate
earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Geographic Focus Risk: The Fund may invest a substantial amount of its assets in securities of issuers located in a single country or geographic region. As a result, any changes to the regulatory, political, social or economic conditions in such country or geographic region will generally have greater impact on the Fund than such changes would have on a more geographically diversified fund and may result in increased volatility and greater losses.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
42
Fund Summary
Harbor International Growth Fund
Performance
Effective May 21, 2013, Baillie Gifford Overseas Limited (“Baillie Gifford”) became the Fund’s Subadvisor. Performance data prior to that date is not attributable to Baillie Gifford.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
26.14%
Q2 2020
Worst Quarter
-20.31%
Q1 2020
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor International Growth Fund
Retirement Class*
Before Taxes
-32.02%
0.43%
4.10%
3.45%
03-01-2016
Institutional Class
Before Taxes
-32.05%
0.36%
4.04%
3.43%
11-01-1993
After Taxes on
Distributions
-31.92%
-0.12%
3.68%
N/A
 
After Taxes on
Distributions and
Sale of Fund Shares
-18.84%
0.48%
3.34%
N/A
 
Administrative
Class
Before Taxes
-32.26%
0.11%
3.77%
5.23%
11-01-2002
Investor Class
Before Taxes
-32.32%
-0.01%
3.66%
5.11%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
MSCI All Country
World Ex. U.S.
(ND)^
-16.00%
0.88%
3.80%
N/A
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return not available since the index has not been in existence as long as the Fund.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
43
Fund Summary
Harbor International Growth Fund
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Baillie Gifford has subadvised the Fund since May 2013.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Iain Campbell
Baillie Gifford
Mr. Campbell is a Portfolio Manager and member of the International All Cap Portfolio Construction Group at Baillie Gifford and has co-managed the Fund since 2013. 
 
Joseph M. Faraday, CFA
Baillie Gifford
Mr. Faraday is a Portfolio Manager and member of the International All Cap Portfolio Construction Group at Baillie Gifford and has co-managed the Fund since 2013. 
(STEPHEN PAICE PHOTO)
 
Stephen Paice
Baillie Gifford
Mr. Paice is a Portfolio Manager and member of the International All Cap Portfolio Construction Group at Baillie Gifford and has co-managed the Fund since 2022. 
 
Sophie Earnshaw, CFA
Baillie Gifford
Ms. Earnshaw is a Portfolio Manager and member of the International All Cap Portfolio Construction Group at Baillie Gifford and has co-managed the Fund since 2014. 
 
Milena Mileva
Baillie Gifford
Ms. Mileva is a Portfolio Manager and member of the International All Cap Portfolio Construction Group at Baillie Gifford and has co-managed the fund since 2022.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
44
 
 
 
 
Harbor International Small Cap Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.85%
0.85%
0.85%
0.85%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.26%
0.34%
0.34%
0.45%
Total Annual Fund
Operating Expenses
1.11%
1.19%
1.44%
1.55%
Expense
Reimbursement1
(0.23)%
(0.23)%
(0.23)%
(0.23)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.88%
0.96%
1.21%
1.32%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.88%, 0.96%, 1.21%, and 1.32% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$90
$330
$589
$1,331
Institutional
$98
$355
$632
$1,423
Administrative
$123
$433
$765
$1,704
Investor
$134
$467
$823
$1,826
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 23%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common and preferred stocks, of foreign companies. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in the securities of small cap companies. The Fund defines small cap companies as those with market capitalizations that fall within the range of the MSCI EAFE (Europe, Australasia and Far East) Small Cap (ND) Index at the time of purchase. As of December 31, 2022, the range of the Index was $99 million to $8.78 billion, but it is expected to change frequently.
The Subadvisor’s investment process utilizes a range of screening and idea sourcing methodologies to shrink the universe of securities to a manageable level. The Subadvisor primarily utilizes bottom-up research to identify companies with attractive valuations, as determined by the Subadvisor, while taking into account macro-economic considerations. The Subadvisor’s evaluation of companies includes an analysis of the corporate governance framework. The Subadvisor looks to identify companies that:
◾
demonstrate traditional value metrics primarily on a price to book, price to earnings, and/or dividend yield basis;
◾
have well-capitalized and transparent balance sheets and funding sources; and
◾
they believe have business models that are undervalued by the market.
From time to time, the investment process may result in substantial investments in one or more sectors, geographic regions and/or countries. 
The Subadvisor may sell or trim a holding when the investment thesis with respect to a holding is realized or the investment thesis is negatively impacted by macro-economic, industry or company-specific considerations. The Subadvisor may also sell or trim a holding in order to manage position-size risk and/or if a more attractive investment opportunity is identified. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer.
Up to 15% of the Fund’s total assets may be invested in emerging market companies, which the Fund defines as those countries included in the MSCI Emerging Markets Index, which currently includes countries located in the Americas, Europe, Middle East, Africa and Asia. The Fund also may invest in American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), and Global Depository Receipts (GDRs) (collectively, “Depositary Receipts”). Depositary Receipts are certificates typically issued by a bank or trust company that represent ownership interests in securities issued by a foreign or domestic company. The Fund may invest in securities denominated in, and/or receiving revenues in, foreign currencies.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks
45
Fund Summary
Harbor International Small Cap Fund
impacting the Fund (in alphabetical order after the first five risks) include:
Foreign Securities Risk: An investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. If foreign securities are denominated and traded in a foreign currency, the value of the Fund’s foreign holdings can be affected by currency exchange rates and exchange control regulations. The Fund’s investments in foreign securities may also be subject to foreign withholding taxes.
Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Small Cap Risk: The Fund’s performance may be more volatile because it invests primarily in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, small cap stocks may fall out of favor relative to mid or large cap stocks, which may cause the Fund to underperform other equity funds that focus on mid or large cap stocks.
Value Style Risk: Over time, a value oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Depositary Receipts Risk: Depositary receipts are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the U.S. or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Depositary receipts are alternatives to directly purchasing the underlying foreign securities in their national markets and
currencies. Depositary receipts are subject to the risks associated with investing directly in foreign securities.
Emerging Market Risk: Foreign securities risks are more significant in emerging market countries. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities exchanges in emerging markets may suspend listed securities from trading for substantially longer periods of time than exchanges in developed markets, including for periods of a year or longer. If the Fund is holding a suspended security, that security would become completely illiquid as the Fund would not be able to dispose of the security until the suspension is lifted. In such instances, it can also be difficult to determine an appropriate valuation for the security because of a lack of trading and uncertainty as to when trading may resume.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Currency Risk: As a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Fund would be adversely affected.
Geographic Focus Risk: The Fund may invest a substantial amount of its assets in securities of issuers located in a single country or geographic region. As a result, any changes to the regulatory, political, social or economic conditions in such country or geographic region will generally have greater impact on the Fund than such changes would have on a more geographically diversified fund and may result in increased volatility and greater losses.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Sector Risk: Because the Fund may, from time to time, be more heavily invested in particular sectors, the value of its shares may be especially sensitive to factors and economic risks that specifically affect those sectors. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual fund that invests in a broader range of sectors.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market
46
Fund Summary
Harbor International Small Cap Fund
disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Performance
Effective May 23, 2019, Cedar Street Asset Management LLC (“Cedar Street”) became the Fund’s Subadvisor.  Performance prior to that date is not attributable to Cedar Street.
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
21.41%
Q4 2020
Worst Quarter
-29.16%
Q1 2020
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor International Small Cap Fund
Retirement Class
Before Taxes
-8.25%
2.79%
N/A
7.69%
02-01-2016
Institutional Class
Before Taxes
-8.29%
2.73%
N/A
7.62%
02-01-2016
After Taxes on
Distributions
-8.75%
1.98%
N/A
6.99%
 
After Taxes on
Distributions and
Sale of Fund Shares
-4.43%
2.15%
N/A
6.13%
 
Administrative
Class
Before Taxes
-8.55%
2.45%
N/A
7.34%
02-01-2016
Investor Class
Before Taxes
-8.69%
2.33%
N/A
7.22%
02-01-2016
Comparative Index
(reflects no deduction for fees, expenses or taxes)
MSCI EAFE Small
Cap (ND)^
-21.39%
-0.05%
N/A
5.75%
 
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
47
Fund Summary
Harbor International Small Cap Fund
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Cedar Street has subadvised the Fund since 2019.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Jonathan P. Brodsky
Cedar Street
Mr. Brodsky, Founder and Principal at Cedar Street, has co-managed the Fund since 2019. 
 
Waldemar A. Mozes
Cedar Street
Mr. Mozes is the Director of Investments, Portfolio Manager, and Partner at Cedar Street and has co-managed the Fund since 2019.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
48
 
 
 
 
Harbor Large Cap Value Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term total return.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.60%
0.60%
0.60%
0.60%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.04%
0.12%
0.12%
0.23%
Total Annual Fund
Operating Expenses
0.64%
0.72%
0.97%
1.08%
Expense
Reimbursement1
(0.03)%
(0.03)%
(0.03)%
(0.03)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.61%
0.69%
0.94%
1.05%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.61%, 0.69%, 0.94%, and 1.05% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$62
$202
$354
$796
Institutional
$70
$227
$398
$892
Administrative
$96
$306
$533
$1,187
Investor
$107
$340
$593
$1,314
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 24%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common and preferred stocks of large cap companies. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in securities of large cap companies.
The Fund defines large cap companies as those with market capitalizations that fall within the range of the Russell 1000® Value Index. As of December 31, 2022, the range of the Index was $306 million to $2.2 trillion, but it is expected to change frequently.
The Subadvisor employs a fundamental, bottom-up research driven approach to identify approximately 35 to 45 companies for investment by the Fund. The Subadvisor focuses on those companies that it believes are higher quality businesses that are undervalued by the market relative to what the Subadvisor believes to be their fair value.
The Subadvisor seeks to identify higher quality companies by focusing on the following attributes:
◾
Attractive business fundamentals
◾
Strong financials
◾
Experienced, motivated company management
◾
High and/or consistently improving market position, return on invested capital and operating margins
The Subadvisor then assesses the attractiveness of the valuations of those higher quality companies by analyzing a variety of valuation metrics, such as cash flow return on enterprise value, price-to-earnings, sales and free cash flow ratios and break-up values, among others.
The Subadvisor looks for potential catalysts for the company’s business that could help unlock what the Subadvisor believes is the company’s true value, including:
◾
Productive use of strong free cash flow
◾
Restructuring and/or productivity gains
◾
Change in management or control
◾
Innovative, competitively superior products
◾
Accretive acquisitions or divestitures
The Subadvisor also considers environmental, social and governance (“ESG”) factors to be integral components its analysis and engages with companies on these topics. The key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer.
The Fund may invest up to 20% of its total assets in the securities of foreign issuers, including issuers located or doing business in emerging markets.
The Subadvisor may sell a holding if the value potential is realized, if warning signals emerge of fundamental deterioration, or if the valuation is no longer compelling relative to other investment opportunities.
49
Fund Summary
Harbor Large Cap Value Fund
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Limited Number of Holdings Risk: The Fund may invest in a limited number of companies. As a result, an adverse event affecting a particular company may hurt the Fund’s performance more than if it had invested in a larger number of companies. In addition, the Fund’s performance may be more volatile than a fund that invests in a larger number of companies.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
Value Style Risk: Over time, a value oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Depositary Receipts Risk: Depositary receipts are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the U.S. or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Depositary receipts are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. Depositary receipts are subject to the risks associated with investing directly in foreign securities.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Foreign Securities Risk: Because the Fund may invest in securities of foreign issuers, an investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by governmental
bodies of other countries and less stringent investor protection and disclosure standards of foreign markets. Foreign securities are sometimes less liquid and harder to value than securities of U.S. issuers. These risks are more significant for issuers in emerging market countries. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Large Cap Risk: Large cap stocks may fall out of favor relative to small or mid cap stocks, which may cause the Fund to underperform other equity funds that focus on small or mid cap stocks.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
50
Fund Summary
Harbor Large Cap Value Fund
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
20.89%
Q2 2020
Worst Quarter
-24.01%
Q1 2020
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Large Cap Value Fund
Retirement Class*
Before Taxes
-14.90%
8.10%
12.10%
9.97%
03-01-2016
Institutional Class
Before Taxes
-14.94%
8.03%
12.04%
9.96%
12-29-1987
After Taxes on
Distributions
-15.95%
7.23%
11.03%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-8.15%
6.27%
9.79%
N/A
 
Administrative
Class
Before Taxes
-15.16%
7.74%
11.74%
9.13%
11-01-2002
Investor Class
Before Taxes
-15.26%
7.62%
11.63%
8.97%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Russell 1000®
Value^
-7.54%
6.67%
10.29%
10.24%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
51
Fund Summary
Harbor Large Cap Value Fund
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Aristotle Capital Management, LLC (“Aristotle”) has subadvised the Fund since May 2012.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Howard Gleicher, CFA
Aristotle Capital Management, LLC
Mr. Gleicher is the Chief Executive Officer and Chief Investment Officer of Aristotle and has managed the Fund since 2012. 
 
Gregory D. Padilla, CFA
Aristotle Capital Management, LLC
Mr. Padilla is a Portfolio Manager and Senior Global Research Analyst of Aristotle and has managed the Fund since 2018.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
52
 
 
 
 
Harbor Mid Cap Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term total return.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.17%
0.25%
0.25%
0.36%
Total Annual Fund
Operating Expenses
0.92%
1.00%
1.25%
1.36%
Expense
Reimbursement1
(0.12)%
(0.12)%
(0.12)%
(0.12)%
Total Annual Fund
Operating Expenses
After Expense
Reimbursement1
0.80%
0.88%
1.13%
1.24%
1 The Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.80%, 0.88%, 1.13%, and 1.24% for the Retirement Class, Institutional Class, Administrative Class, and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$82
$281
$498
$1,120
Institutional
$90
$306
$541
$1,214
Administrative
$115
$385
$675
$1,501
Investor
$126
$419
$733
$1,625
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 42%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common and preferred stocks, of U.S. mid cap companies. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in securities of mid cap companies.
The Fund defines mid cap companies as those with market capitalizations that fall within the range of the Russell Midcap® Index, provided that if the upper end of the capitalization range of that Index falls below $15 billion, the Fund will continue to define those companies with market capitalizations between the upper end of the range of the Index and $15 billion as mid cap companies. As of December 31, 2022, the range of the Index was $306 million to $53 billion, but it is expected to change frequently.
The Subadvisor employs a disciplined investment approach that seeks to identify companies that, in the Subadvisor’s view, demonstrate strong business fundamentals and earnings prospects that are not fully captured in the companies’ current market valuations. The Subadvisor uses a bottom-up investment process, employing fundamental and qualitative criteria to identify individual companies for potential investment in the Fund’s portfolio. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer. The Subadvisor employs statistical analysis, which is designed to limit certain risks in the Fund’s portfolio versus the Fund’s benchmark. The Fund’s sector weightings are a result of, and secondary to, individual stock selections.
The Subadvisor may sell a stock if one of the following situations arises:
◾
The company executes according to the Subadvisor’s investment thesis and the market recognizes it in the stock’s valuation;
◾
The investment process identifies a company the Subadvisor believes has superior return and risk characteristics. In this situation, the more attractive stock would force them to sell the less attractive stock so that they continue to own only their best investment ideas; or
◾
The company’s prospects deteriorate as a result of poor business plan execution, new competitors, management changes, a souring business environment or other adverse effects.
The Fund expects to invest in approximately 50 to 70 companies.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first three risks) include:
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that
53
Fund Summary
Harbor Mid Cap Fund
affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Mid Cap Risk: The Fund’s performance may be more volatile because it invests primarily in mid cap stocks. Mid cap companies may have limited product lines, markets and financial resources. Securities of mid cap companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, mid cap stocks may fall out of favor relative to small or large cap stocks, which may cause the Fund to underperform other equity funds that focus on small or large cap stocks.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows the performance of the Fund’s Institutional Class during the period shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar
to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
23.60%
Q2 2020
Worst Quarter
-24.25%
Q1 2020
54
Fund Summary
Harbor Mid Cap Fund
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Mid Cap Fund
Retirement Class
Before Taxes
-17.06%
N/A
N/A
8.17%
12-01-2019
Institutional Class
Before Taxes
-17.15%
N/A
N/A
8.08%
12-01-2019
After Taxes on
Distributions
-17.82%
N/A
N/A
7.59%
 
After Taxes on
Distributions and Sale
of Fund Shares
-9.75%
N/A
N/A
6.26%
 
Investor Class
Before Taxes
-17.43%
N/A
N/A
7.70%
12-01-2019
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Russell Midcap®
-17.32%
N/A
N/A
6.49%
 
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
EARNEST Partners LLC (“EARNEST Partners”) has subadvised the Fund since 2019.
 
Portfolio Manager
The portfolio manager is responsible for the day-to-day investment decision making for the Fund. 
 
Paul E. Viera
EARNEST Partners LLC
Mr. Viera is the Chief Executive Officer, a Portfolio Manager and the founder of EARNEST Partners and has managed the Fund since 2019.
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
55
 
 
 
 
Harbor Mid Cap Value Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term total return.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees1
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.06%
0.14%
0.14%
0.25%
Total Annual Fund
Operating Expenses
0.81%
0.89%
1.14%
1.25%
Fee Waiver and
Expense
Reimbursement1
(0.04)%
(0.04)%
(0.04)%
(0.04)%
Total Annual Fund
Operating Expenses
After Fee Waiver and
Expense
Reimbursement1
0.77%
0.85%
1.10%
1.21%
1 The Advisor has contractually agreed to reduce the management fee to 0.70% on assets between $350 million and $1 billion and 0.65% on assets over $1 billion through February 29, 2024. Additionally, the Advisor has contractually agreed to limit the Fund’s operating expenses, excluding interest expense (if any), to 0.77%, 0.85%, 1.10% and 1.21% for the Retirement Class, Institutional Class, Administrative Class and Investor Class, respectively, through February 29, 2024. Only the Fund’s Board of Trustees may modify or terminate this agreement.
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$79
$255
$446
$998
Institutional
$87
$280
$489
$1,092
Administrative
$112
$358
$624
$1,383
Investor
$123
$393
$682
$1,508
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund
Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 9%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common stocks, of mid cap companies. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in securities of mid cap companies.
The Fund defines mid cap companies as those with market capitalizations that fall within the range of the Russell Midcap® Index, provided that if the upper end of the capitalization range of that Index falls below $15 billion, the Fund will continue to define those companies with market capitalizations between the upper end of the range of the Index and $15 billion as mid cap companies. As of December 31, 2022, the range of the Index was $306 million to $53 billion, but it is expected to change frequently.
The Subadvisor looks to identify companies that it believes are out of favor and thus undervalued in the marketplace at the time of purchase and have the potential for appreciation. The Subadvisor’s active investment strategy uses a quantitative investment model to evaluate and recommend investment decisions for the Fund in a bottom-up, contrarian value approach. The primary components of the quantitative model are:
◾
Indicators of fundamental undervaluation, such as low price-to-cash flow or low price-to-earnings ratios
◾
Indicators of past negative market sentiment, such as poor past stock price performance
◾
Indicators of recent momentum, such as high recent stock price performance
◾
Control of incremental risk relative to the benchmark index
All such indicators are measured relative to the overall universe of mid cap companies. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer.
The Subadvisor utilizes its proprietary quantitative model to make its assessments and, except in very limited circumstances, follows the output of those models when making buy and sell decisions for the Fund’s portfolio.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first five risks) include:
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within
56
Fund Summary
Harbor Mid Cap Value Fund
an industry. Equity securities generally have greater price volatility than fixed income securities.
Value Style Risk: Over time, a value oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Model Risk: There are limitations inherent in every quantitative model. The value of securities selected using quantitative analysis can react differently to issuer, political, market, and economic developments than the market as a whole or securities selected using only fundamental analysis. The factors used in quantitative analysis and the weight placed on those factors may not be predictive of a security’s value. In addition, historical trends in data may not be predictive going forward. The strategies and techniques employed in a quantitative model cannot fully match the complexity of the financial markets and therefore sudden unanticipated changes in underlying market conditions can significantly impact their performance. The effectiveness of the given strategy or technique may deteriorate in an unpredictable fashion for any number of reasons including, but not limited to, an increase in the amount of assets managed or the use of similar strategies or techniques by other market participants and/or market dynamic shifts over time. In addition, factors that affect a security’s value can change over time, and these changes may not be reflected in the quantitative model. Any model may contain flaws the existence and effect of which may be discovered only after the fact or not at all. There can be no assurances that the strategies pursued or the techniques implemented in the quantitative model will be profitable, and various market conditions may be materially less favorable to certain strategies than others. Even in the absence of flaws, a model may not perform as anticipated.
Mid Cap Risk: The Fund’s performance may be more volatile because it invests primarily in mid cap stocks. Mid cap companies may have limited product lines, markets and financial resources. Securities of mid cap companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, mid cap stocks may fall out of favor relative to small or large cap stocks, which may cause the Fund to underperform other equity funds that focus on small or large cap stocks.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an
advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
23.43%
Q4 2020
Worst Quarter
-39.73%
Q1 2020
57
Fund Summary
Harbor Mid Cap Value Fund
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Mid Cap Value Fund
Retirement Class*
Before Taxes
-5.50%
3.71%
9.52%
7.39%
03-01-2016
Institutional Class
Before Taxes
-5.55%
3.63%
9.47%
7.36%
03-01-2002
After Taxes on
Distributions
-7.28%
2.53%
8.54%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-2.08%
2.67%
7.62%
N/A
 
Administrative
Class
Before Taxes
-5.84%
3.36%
9.19%
8.36%
11-01-2002
Investor Class
Before Taxes
-5.90%
3.25%
9.07%
8.24%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Russell Midcap®
Value^
-12.03%
5.72%
10.11%
9.26%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. In some cases, average annual total return “After Taxes on Distributions and Sale of Fund Shares” may exceed the return “Before Taxes” and/or “After Taxes on Distributions” due to an assumed tax benefit for any losses on a sale of Fund shares at the end of the measurement period. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
LSV Asset Management (“LSV”) has subadvised the Fund since September 2004.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
Josef Lakonishok, Ph.D.
LSV Asset Management
Dr. Lakonishok is the Chief Executive Officer, Chief Investment Officer, a Portfolio Manager and Founding Partner of LSV and has co-managed the Fund since 2004. 
 
Menno Vermeulen, CFA
LSV Asset Management
Mr. Vermeulen is a Portfolio Manager and Partner of LSV and has co-managed the Fund since 2004. 
 
Puneet Mansharamani, CFA
LSV Asset Management
Mr. Mansharamani is a Portfolio Manager and Partner of LSV and has co-managed the Fund since 2006. 
 
Greg Sleight
LSV Asset Management
Mr. Sleight is a Portfolio Manager and Partner of LSV, has co-managed the Fund since 2015 and been involved in portfolio management for the Fund since 2014. 
 
Guy Lakonishok, CFA
LSV Asset Management
Mr. Lakonishok is a Portfolio Manager and Partner of LSV, has co-managed the Fund since 2015 and been involved in portfolio management for the Fund since 2014.
58
Fund Summary
Harbor Mid Cap Value Fund
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
59
 
 
 
 
Harbor Small Cap Growth Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.05%
0.13%
0.13%
0.24%
Total Annual Fund
Operating Expenses
0.80%
0.88%
1.13%
1.24%
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$82
$255
$444
$990
Institutional
$90
$281
$488
$1,084
Administrative
$115
$359
$622
$1,375
Investor
$126
$393
$681
$1,500
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 75%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common and preferred stocks of small cap companies. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in securities of small cap companies.
The Fund defines small cap companies as those with market capitalizations that fall within the range of the Russell 2000® Growth Index, provided that if the upper end of the capitalization range of that Index falls below $2.5 billion, the Fund will continue to define those companies with market capitalizations between the upper end of the range of the Index and $2.5 billion as small cap companies. As of December 31, 2022, the range of the Index was $6 million to $7.93 billion, but it is expected to change frequently.
The Subadvisor uses a bottom-up process to identify companies that meet the Subadvisor’s strict fundamental criteria and then performs a qualitative review on each identified company to select approximately 60 to 80 companies for inclusion in the Fund’s portfolio. The Subadvisor’s research may include personal interviews and other contact with company management. Sector allocations are the outcome of the Subadvisor’s bottom-up investment process.
In selecting stocks for the Fund’s portfolio, the Subadvisor looks for companies that it believes possess the following characteristics:
◾
Accelerating earnings growth
◾
Strong balance sheets
◾
Attractive valuations as measured by price/earnings to growth ratios
In addition, the Subadvisor prefers companies that it believes possess the following qualitative characteristics:
◾
Superior company management
◾
Significant insider ownership
◾
Unique market positions and broad market opportunities
◾
Solid financial controls and accounting processes
In addition to the investment considerations outlined above, the Subadvisor integrates research into environmental, social and governance (“ESG”) factors into its investment process. The key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer.
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Small Cap Risk: The Fund’s performance may be more volatile because it invests primarily in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, small cap stocks may fall out of favor relative to mid or large cap stocks, which may cause the Fund to underperform other equity funds that focus on mid or large cap stocks.
60
Fund Summary
Harbor Small Cap Growth Fund
Growth Style Risk: Over time, a growth oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Sector Risk: Because the Fund may, from time to time, be more heavily invested in particular sectors, the value of its shares may be especially sensitive to factors and economic risks that specifically affect those sectors. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual fund that invests in a broader range of sectors.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
31.89%
Q2 2020
Worst Quarter
-23.69%
Q1 2020
61
Fund Summary
Harbor Small Cap Growth Fund
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Small Cap Growth Fund
Retirement Class*
Before Taxes
-25.45%
7.61%
11.46%
8.65%
03-01-2016
Institutional Class
Before Taxes
-25.53%
7.53%
11.40%
8.62%
11-01-2000
After Taxes on
Distributions
-26.35%
4.11%
8.21%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-14.54%
5.46%
8.63%
N/A
 
Administrative
Class
Before Taxes
-25.74%
7.24%
11.07%
10.03%
11-01-2002
Investor Class
Before Taxes
-25.81%
7.14%
10.98%
9.90%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Russell 2000®
Growth^
-26.36%
3.51%
9.20%
5.64%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
Westfield Capital Management Company, L.P. (“Westfield”) has subadvised the Fund since 2000.
 
Portfolio Managers
The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
 
William A. Muggia
Westfield Capital Management Company, L.P.
Mr. Muggia is the President, Chief Investment Officer, Chief Executive Officer, a Portfolio Manager and Managing Partner of Westfield and has co-managed the Fund since 2000. 
 
Richard D. Lee, CFA
Westfield Capital Management Company, L.P.
Mr. Lee is the Deputy Chief Investment Officer, a Portfolio Manager and Managing Partner of Westfield and has co-managed the Fund since 2018. He has been a member of Westfield’s Investment Committee since 2004. 
 
Ethan J. Meyers, CFA
Westfield Capital Management Company, L.P.
Mr. Meyers is the Director of Research, a Portfolio Manager and Managing Partner of Westfield and has co-managed the Fund since its inception in 2000. 
 
John M. Montgomery
Westfield Capital Management Company, L.P.
Mr. Montgomery is the Chief Operating Officer, a Managing Partner and Portfolio Strategist of Westfield and has co-managed the Fund since 2011.
62
Fund Summary
Harbor Small Cap Growth Fund
Buying and Selling Fund Shares
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
63
 
 
 
 
Harbor Small Cap Value Fund
 
Fund Summary
Investment Objective
The Fund seeks long-term total return.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
 
Retirement
Class
Institutional
Class
Administrative
Class
Investor
Class
Management Fees
0.75%
0.75%
0.75%
0.75%
Distribution and
Service (12b-1) Fees
None
None
0.25%
0.25%
Other Expenses
0.05%
0.13%
0.13%
0.24%
Total Annual Fund
Operating Expenses
0.80%
0.88%
1.13%
1.24%
 
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions, your costs would be: 
 
One
Year
Three
Years
Five
Years
Ten
Years
Retirement
$82
$255
$444
$990
Institutional
$90
$281
$488
$1,084
Administrative
$115
$359
$622
$1,375
Investor
$126
$393
$681
$1,500
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, do affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 15%.
Principal Investment Strategy
The Fund invests primarily in equity securities, principally common and preferred stocks, of small cap companies. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in securities of small cap companies.
The Fund defines small cap companies as those with market capitalizations that fall within the range of the Russell 2000® Index, provided that if the upper end of the capitalization range of that Index falls below $2.5 billion, the Fund will continue to define those companies with market capitalizations between the upper end of the range of the Index and $2.5 billion as small cap companies. As of December 31, 2022, the range of the Index was $6 million to $7.93 billion, but it is expected to change frequently.
The Subadvisor employs a disciplined investment approach that seeks to identify companies that, in the Subadvisor’s view, demonstrate strong business fundamentals and earnings prospects that are not fully captured in the companies’ current market valuations. The Subadvisor uses a bottom-up investment process, employing fundamental and qualitative criteria to identify individual companies for potential investment in the Fund’s portfolio. As part of its investment process, the Subadvisor considers environmental, social and governance (“ESG”) factors that it believes may have a material impact on an issuer and the value of its securities. As a result, the key ESG considerations may vary depending on the industry, sector, geographic region or other factors and the core business of each issuer. The Subadvisor employs statistical analysis, which is designed to limit certain risks in the Fund’s portfolio versus the Fund’s benchmark. The Fund’s sector weightings are a result of, and secondary to, individual stock selections.
The Subadvisor may sell a stock if one of the following situations arises:
◾
The company executes according to the Subadvisor’s investment thesis and the market recognizes it in the stock’s valuation;
◾
The investment process identifies a company the Subadvisor believes has superior return and risk characteristics. In this situation, the more attractive stock would force them to sell the less attractive stock so that they continue to own only their best investment ideas; or
◾
The company’s prospects deteriorate as a result of poor business plan execution, new competitors, management changes, a souring business environment or other adverse effects.
The Fund expects to invest in approximately 55 to 70 companies.
64
Fund Summary
Harbor Small Cap Value Fund
Principal Risks
There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other investment options. Principal risks impacting the Fund (in alphabetical order after the first four risks) include:
Small Cap Risk: The Fund’s performance may be more volatile because it invests primarily in issuers that are smaller companies. Smaller companies may have limited product lines, markets and financial resources. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Additionally, small cap stocks may fall out of favor relative to mid or large cap stocks, which may cause the Fund to underperform other equity funds that focus on mid or large cap stocks.
Value Style Risk: Over time, a value oriented investing style may go in and out of favor, which may cause the Fund to underperform other equity funds that use different investing styles.
Equity Risk: The values of equity or equity-related securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than fixed income securities.
Market Risk: Securities markets are volatile and can decline significantly in response to adverse market, economic, political, regulatory or other developments, which may lower the value of securities held by the Fund, sometimes rapidly or unpredictably. Events such as war, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and its investments.
ESG Factors Risk: The consideration of ESG factors by the Subadvisor and/or Advisor, as applicable, could cause the Fund to perform differently than other funds. ESG factors are not the only consideration used by the Subadvisor and/or Advisor, as applicable, in making investment decisions for the Fund and the Fund may invest in a company that scores poorly on ESG factors if it scores well on other criteria. ESG factors may not be considered for every investment decision.
Issuer Risk: An adverse event affecting a particular issuer in which the Fund is invested, such as an unfavorable earnings report, may depress the value of that issuer’s stock, sometimes rapidly or unpredictably.
Preferred Stock Risk: Preferred stocks in which the Fund may invest are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company’s assets in the event of a liquidation are generally subordinate to the rights associated with a company’s debt securities.
Sector Risk: Because the Fund may, from time to time, be more heavily invested in particular sectors, the value of its shares may be especially sensitive to factors and economic risks that specifically affect those sectors. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual fund that invests in a broader range of sectors.
Selection Risk: The Subadvisor’s judgment about the attractiveness, value and growth potential of a particular security may be incorrect.  The Subadvisor and/or Advisor, as applicable, potentially will be prevented from executing investment decisions at an advantageous time or price as a result of domestic or global market disruptions, particularly disruptions causing heightened market volatility and reduced market liquidity, as well as increased or changing regulations.  Thus, investments that the Subadvisor and/or Advisor, as applicable, believes represent an attractive opportunity or in which the Fund seeks to obtain exposure may be unavailable entirely or in the specific quantities or prices sought by the Subadvisor and/or Advisor, as applicable, and the Fund may need to obtain the exposure through less advantageous or indirect investments or forgo the investment at the time.
65
Fund Summary
Harbor Small Cap Value Fund
Performance
The following bar chart and tables are intended to help you understand the risks and potential rewards of investing in the Fund. The bar chart shows how the performance of the Fund’s Institutional Class has varied from one calendar year to another over the periods shown. The table shows how the Fund’s average annual total returns  of the share classes presented compared to the returns of the Fund’s benchmark index, which includes securities with investment characteristics similar to those held by the Fund. Please note that the Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. To obtain updated performance information please visit the Fund’s website at harborcapital.com or call 800-422-1050.
 
Calendar Year Total Returns for Institutional Class Shares
 
During the time periods shown in the bar chart, the Fund’s highest and lowest returns for a calendar quarter were: 
 
Total Returns
Quarter/Year
Best Quarter
30.00%
Q4 2020
Worst Quarter
-30.15%
Q1 2020
Average Annual Total Returns — As of December 31, 2022
 
 
One
Year
Annualized
Inception
Date
Five
Years
Ten
Years
Since
Inception
Harbor Small Cap Value Fund
Retirement Class*
Before Taxes
-9.47%
5.01%
10.47%
9.68%
03-01-2016
Institutional Class
Before Taxes
-9.53%
4.93%
10.41%
9.65%
12-14-2001
After Taxes on
Distributions
-11.02%
3.71%
9.10%
N/A
 
After Taxes on
Distributions and
Sale of Fund
Shares
-4.62%
3.70%
8.27%
N/A
 
Administrative
Class
Before Taxes
-9.77%
4.66%
10.13%
9.85%
11-01-2002
Investor Class
Before Taxes
-9.87%
4.54%
10.00%
9.70%
11-01-2002
Comparative Index
(reflects no deduction for fees, expenses or taxes)
Russell 2000®
Value^
-14.48%
4.13%
8.48%
8.12%
 
*
Retirement Class shares commenced operations on March 1, 2016. The performance attributed to the Retirement Class shares prior to that date is that of the Institutional Class shares. Performance prior to March 1, 2016 has not been adjusted to reflect the lower expenses of Retirement Class shares. During this period, Retirement Class shares would have had returns similar to, but potentially higher than, Institutional Class shares due to the fact that Retirement Class shares represent interests in the same portfolio as Institutional Class shares but are subject to lower expenses.
^
Since Inception return based on the inception date of the Institutional Class shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on a shareholder’s individual tax situation and may differ from those shown. The after-tax returns shown are not relevant to tax-exempt shareholders or shareholders who hold their Fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. After-tax returns are shown for Institutional Class shares only. After-tax returns for each of the Retirement, Administrative, and Investor Class of shares will vary.
66
Fund Summary
Harbor Small Cap Value Fund
Portfolio Management
Investment Advisor
Harbor Capital Advisors, Inc.
 
Subadvisor
EARNEST Partners LLC (“EARNEST Partners”) has subadvised the Fund since 2001.
 
Portfolio Manager
The portfolio manager is responsible for the day-to-day investment decision making for the Fund. 
 
Paul E. Viera
EARNEST Partners LLC
Mr. Viera is the Chief Executive Officer, a Portfolio Manager and the founder of EARNEST Partners and has managed the Fund since 2001.
Buying and Selling Fund Shares
Effective at 4:00 p.m. Eastern Time on Tuesday, June 1, 2021, Harbor Small Cap Value Fund will be closed to new investors subject to limited exceptions. Please see the additional information regarding the closing parameters for the Fund in "How to Purchase Shares."
Shareholders may purchase or sell (redeem) Fund shares on any business day (normally any day the New York Stock Exchange is open). You may conduct transactions by mail, by telephone or through our website. 
By Mail
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
By Telephone
800-422-1050
By Visiting Our Website
harborcapital.com
Investors who wish to purchase, exchange or redeem shares held through a financial intermediary should contact the financial intermediary directly.
The minimum initial investment amounts are shown below. The minimums may be reduced or waived in some cases. There are no minimums for subsequent investments. 
Type of Account
Retirement
Class1
Institutional
Class
Administrative
Class2
Investor
Class
Regular
$1,000,000
$50,000
$50,000
$2,500
Individual Retirement
Account (IRA)
$1,000,000
$50,000
N/A
$1,000
Custodial
(UGMA/UTMA)
$1,000,000
$50,000
N/A
$1,000
1 There is no minimum investment for (1) employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans; and (2) certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
2 Limited only to employer-sponsored retirement or benefit plans and financial intermediaries. There is no minimum investment for employer-sponsored retirement or benefit plans.
Tax Information
Distributions you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes. These distributions will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred retirement account, such as a 401(k) plan or individual retirement account. Investments in tax-deferred accounts may be subject to tax when they are withdrawn.
Payments to Broker-Dealers and Other Financial Intermediaries
The Fund, the Advisor and/or its related companies have in the past and could in the future pay intermediaries, which may include banks, broker-dealers, or financial professionals, for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services. These payments create a conflict of interest by influencing the broker-dealer or other intermediary and your sales representative to recommend the Fund over another investment. Ask your sales representative or visit your financial intermediary’s website for more information.
67
Additional Information about the Funds' Investments
Investment Objectives
Harbor Funds' Board of Trustees (the “Board of Trustees”) may change a Fund’s investment objective without shareholder approval.
 
Investment Policies
For each of Harbor Convertible Securities Fund, Harbor Core Bond Fund, Harbor Core Plus Fund, Harbor International Small Cap Fund, Harbor Large Cap Value Fund, Harbor Mid Cap Fund, Harbor Mid Cap Value Fund, Harbor Small Cap Growth Fund, and Harbor Small Cap Value Fund, the Fund’s 80% investment policy may be changed by the Fund upon 60 days’ advance notice to the shareholders.
 
Principal Investments
Each Fund’s principal investment strategies are described in the Fund Summary section.
The main risks associated with investing in each Fund are summarized in the respective Fund Summary section at the front of this Prospectus.
For additional risk factors that are not discussed in this Prospectus because they are not considered main risk factors, see Harbor Funds' Statement of Additional Information.
An investment in a Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. A Fund’s shares will go up and down in price, meaning that you could lose money by investing in a Fund. Many factors influence a fund’s performance and a Fund’s investment strategy may not produce the intended results.
More detailed descriptions of certain of the main risks and additional risks of certain of the Funds are described below. For purposes of those descriptions, Domestic Equity funds include Harbor Capital Appreciation Fund, Harbor Disruptive Innovation Fund, Harbor Large Cap Value Fund, Harbor Mid Cap Fund, Harbor Mid Cap Value Fund, Harbor Small Cap Growth Fund and Harbor Small Cap Value Fund. International and Global Equity Funds include Harbor Diversified International All Cap Fund,  Harbor Global Leaders Fund, Harbor International Fund, Harbor International Core Fund (formerly, Harbor Overseas Fund), Harbor International Growth Fund and Harbor International Small Cap Fund. Fixed Income Funds include Harbor Convertible Securities Fund, Harbor Core Bond Fund and Harbor Core Plus Fund.
The name, investment objective and policies of Harbor Disruptive Innovation Fund are similar to those of other funds advised by the Advisor. However, the investment results of the Fund may be higher or lower than, and there is no guarantee that the investment results of the Fund will be comparable to, any other of these funds.
EQUITY SECURITIES
Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Each Equity Fund may invest in common and preferred stocks as part of its principal investment strategy. Harbor Capital Appreciation Fund, Harbor Disruptive Innovation Fund, Harbor Large Cap Value Fund and each International and Global Fund may also invest in depositary receipts.
COMMON STOCK
Common stocks are shares of a corporation or other entity that entitle the holder to a pro rata share of the profits of the corporation, if any, without preference over any other shareholder or class of shareholders. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock. Common stock usually carries with it the right to vote and frequently, an exclusive right to do so.
PREFERRED STOCK
Preferred stock generally has a preference as to dividends and upon liquidation over an issuer’s common stock but ranks junior to debt securities in an issuer’s capital structure. Preferred stock generally pays dividends in cash or in additional shares of preferred stock at a defined rate. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Dividends on preferred stock may be cumulative, meaning that, in the event the issuer fails to make one or more dividend payments on the preferred stock, no dividends may be paid on the issuer’s common stock until all unpaid preferred stock dividends have been paid. Preferred stock also may be subject to optional or mandatory redemption provisions and generally carry no voting rights.
DEPOSITARY RECEIPTS
Depositary receipts include American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), International Depositary Receipts (“IDRs”), and Global Depositary Receipts (“GDRs”). ADRs (sponsored or unsponsored) are receipts typically issued by a U.S. bank or trust company evidencing ownership of the underlying foreign securities. Most ADRs are traded on a U.S. stock exchange. Issuers of unsponsored ADRs are not contractually obligated to disclose material information in the U.S., so there may not be a correlation between such information and the market value of the unsponsored ADR. EDRs and IDRs are receipts typically issued by a European bank or trust company evidencing ownership of the underlying
68
Additional Information about the Funds' Investments
foreign securities. GDRs are receipts issued by either a U.S. or non-U.S. banking institution evidencing ownership of the underlying foreign securities.
FOREIGN SECURITIES
Harbor Capital Appreciation Fund, Harbor Disruptive Innovation Fund, Harbor Large Cap Value Fund and each International and Global Fund may invest in equity securities of foreign developed market companies as part of their principal investment strategies. Harbor Capital Appreciation Fund, Harbor Disruptive Innovation Fund and Harbor Large Cap Value Fund and each International and Global Fund may invest in equity securities of emerging market companies as part of their principal investment strategies. Harbor Convertible Securities Fund is permitted to invest in convertible securities of foreign issuers.
The Advisor and/or Subadvisor, as applicable, is responsible for determining, with respect to the Fund(s) that it manages, whether a particular issuer would be considered a foreign or emerging market issuer. Normally, foreign or emerging market governments and their agencies and instrumentalities are considered foreign or emerging market issuers, respectively. In the case of non-governmental issuers, the Advisor and/or Subadvisor, as applicable, may consider an issuer to be a foreign or emerging market issuer if:
◾
the company has been classified by MSCI, FTSE, or S&P indices or another major index provider as a foreign or emerging market issuer;
◾
the equity securities of the company principally trade on stock exchanges in one or more foreign or emerging market countries;
◾
a company derives a substantial portion of its total revenue from goods produced, sales made or services performed in one or more foreign or emerging market countries or a substantial portion of its assets are located in one or more foreign or emerging market countries;
◾
the company is organized under the laws of a foreign or emerging market country or its principal executive offices are located in a foreign or emerging market country; and/or
◾
the Subadvisor and/or Advisor, as applicable, otherwise determines an issuer to be a foreign or emerging market issuer in its discretion based on any other factors relevant to a particular issuer.
Each Subadvisor and/or Advisor, as applicable, may weigh those factors differently when making a classification decision. Because the global nature of many companies can make the classification of those companies difficult and because the Subadvisors do not consult with one another with respect to the management of the Funds, the Subadvisors may, on occasion, classify the same issuer differently. Certain companies which are organized under the laws of a foreign or emerging market country may nevertheless be classified by a Subadvisor and/or Advisor, as applicable, as a domestic issuer. This may occur when the company’s economic fortunes and risks are primarily linked to the U.S. and the company’s principal operations are conducted from the U.S. or when the company’s equity securities trade principally on a U.S. stock exchange.
Investing in securities of foreign companies and governments may involve risks which are not ordinarily associated with investing in domestic securities. These risks include changes in currency exchange rates and currency exchange control regulations or other foreign or U.S. laws or restrictions applicable to such investments. A decline in the exchange rate may also reduce the value of certain portfolio securities. Even though the securities are denominated in U.S. dollars, exchange rate changes may adversely affect the company’s operations or financial health.
Fixed commissions on foreign securities exchanges are generally higher than negotiated commissions on U.S. exchanges, although each Fund endeavors to achieve the most favorable net results on portfolio transactions. There is generally less government supervision and regulation of securities exchanges, brokers, dealers and listed companies than in the U.S. Mail service between the U.S. and foreign countries may be slower or less reliable than within the U.S., thus increasing the risk of delayed settlements of portfolio transactions or loss of certificates for portfolio securities. Individual foreign economies may also differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position.
In addition, investments in foreign countries could be affected by other factors generally not thought to be present in the U.S. Such factors include the unavailability of financial information or the difficulty of interpreting financial information prepared under foreign accounting standards; less liquidity and more volatility in foreign securities markets; the possibility of expropriation; the imposition of foreign withholding and other taxes; the impact of political, social or diplomatic developments; limitations on the movement of funds or other assets of a Fund between different countries; difficulties in invoking legal process abroad and enforcing contractual obligations; and the difficulty of assessing economic trends in foreign countries.
Foreign markets also have different clearance and settlement procedures, and in certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions. These delays in settlement could result in temporary periods when a portion of the assets of a Fund is uninvested and no return is earned thereon. The inability of a Fund to make intended security purchases due to settlement problems could cause a Fund to miss attractive investment opportunities. An inability to dispose of portfolio securities due to settlement problems could result either in losses to a Fund due
69
Additional Information about the Funds' Investments
to subsequent declines in value of the portfolio securities or, if a Fund has entered into a contract to sell the securities, could result in possible liability to the purchaser.
The Funds’ custodian, State Street Bank and Trust Company, has established and monitors subcustodial relationships with banks and certain other financial institutions in the foreign countries in which the Funds may invest to permit the Funds’ assets to be held in those foreign countries. These relationships have been established pursuant to Rule 17f-5 of the Investment Company Act of 1940, which governs the establishment of foreign subcustodial arrangements for funds. The Funds’ subcustodial arrangements may be subject to certain risks including: (i) the inability of the Funds to recover assets in the event of the subcustodian’s bankruptcy; (ii) legal restrictions on the Funds’ ability to recover assets lost while under the care of the subcustodian; (iii) the likelihood of expropriation, confiscation or a freeze of the Funds’ assets; and (iv) difficulties in converting the Funds’ cash and cash equivalents to U.S. dollars. The Advisor and the Subadvisors have evaluated the political risk associated with an investment in a particular country.
Investing in securities of non-U.S. companies may entail additional risks especially in emerging countries due to the potential political and economic instability of certain countries. These risks include expropriation, nationalization, confiscation or the imposition of restrictions on foreign investment and on repatriation of capital invested and the imposition of sanctions. Should one of these events occur, a Fund could lose its entire investment in any such country. A Fund’s investments would similarly be adversely affected by exchange control regulation in any of those countries.
Even though opportunities for investment may exist in foreign countries, any changes in the leadership or policies of the governments of those countries, or in any other government that exercises a significant influence over those countries, may halt the expansion of or reverse the liberalization of foreign investment policies and thereby eliminate any investment opportunities that may currently exist. This is particularly true of emerging markets.
Certain countries in which the Funds may invest may have minority groups that advocate religious or revolutionary philosophies or support ethnic independence. Any action on the part of such individuals could carry the potential for destruction or confiscation of property owned by individuals and entities foreign to such country and could cause the loss of a Fund’s investment in those countries.
Certain countries prohibit or impose substantial restrictions on investments in their capital and equity markets by foreign entities like the Funds. Certain countries require governmental approval prior to foreign investments or limit the amount of foreign investment in a particular company or limit the investment to only a specific class of securities of a company that may have less advantageous terms than securities of the company available for purchase by nationals. Moreover, the national policies of certain countries may restrict investment opportunities in issuers or industries deemed sensitive to national interests. In addition, some countries require governmental approval for the repatriation of investment income, capital or the proceeds of securities sales by foreign investors. A Fund could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation, as well as by the application to it of other restrictions on investments. In particular, restrictions on repatriation could make it more difficult for a Fund to obtain cash necessary to satisfy the tax distribution requirements that must be satisfied in order for the Fund to avoid federal income or excise tax.
Global economies and financial markets are becoming increasingly interconnected and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. In January 2020, the United Kingdom withdrew from the EU (referred to as “Brexit”). Brexit has resulted in volatility in European and global markets and could have significant negative impacts on financial markets in the United Kingdom and throughout Europe. Many areas of economic activity were outside the scope of the negotiating mandate and, therefore, the longer term economic, legal, political and social framework to be put in place between the United Kingdom and the EU is still unclear at this stage and is likely to lead to ongoing political and economic uncertainty and periods of exacerbated volatility in both the United Kingdom and in wider European markets for some time. This uncertainty may have an adverse effect on the economy generally and on the value of a Fund’s investments.
Emerging Markets Risk
Investments in emerging markets involve risks in addition to those generally associated with investments in foreign securities.
Political and economic structures in many emerging markets may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristic of more developed countries. As a result, the risks described above relating to investments in foreign securities, including the risks of nationalization or expropriation of assets, would be heightened. In addition, unanticipated political or social developments may affect the values of a Fund’s investments and the availability to the Fund of additional investments in such emerging markets. The small size and inexperience of the securities markets in certain emerging markets and the limited volume of trading in securities in those markets may make a Fund’s investments in such countries less liquid and more volatile than investments
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Additional Information about the Funds' Investments
in countries with more developed securities markets (such as the U.S., Japan and most Western European countries). In addition, emerging market countries may have more or less government regulation and generally do not impose as extensive and frequent accounting, auditing, financial and other reporting requirements as the securities markets of more developed countries. As a result, there could be less information available about issuers in emerging market countries, which could negatively affect the Advisor’s or a Subadvisor’s ability to evaluate local companies or their potential impact on a Fund’s performance. The imposition of exchange controls (including repatriation restrictions), sanctions, confiscations, trade restrictions (including tariffs) and other government restrictions by the U.S. and other governments, or from problems in share registration, settlement or custody, may also result in losses.
In addition, the U.S. and other nations and international organizations may impose economic sanctions or take other actions that may adversely affect issuers located in certain countries. In particular, the U.S. and/or other countries have imposed economic sanctions on certain Russian and Chinese individuals and/or corporate entities.  The U.S. or other countries could also institute additional sanctions on Russia or China. Such sanctions, any future sanctions or other actions, or even the threat of further sanctions or other actions, may negatively affect the value and liquidity of a Fund’s portfolio. For example, a Fund may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, the sanctions may require a Fund to freeze its existing investments in companies located in certain countries, prohibiting the Fund from buying, selling or otherwise transacting in these investments. Countries subject to sanctions may undertake countermeasures or retaliatory actions which may further impair the value and liquidity of a Fund’s portfolio and potentially disrupt its operations. Such events may have an adverse impact on the economies and debts of other emerging markets as well.
As a part of their principal investment strategies, Harbor International Core Fund and Harbor International Growth Fund may invest in eligible securities, such as China A-Shares, that are listed and traded on the Shanghai and Shenzhen Stock Exchanges through the China–Hong Kong Stock Connect program.
MARKET ACCESS PRODUCTS
Harbor Global Leaders Fund may invest in market access products.  A market access product is a derivative security that provides market exposure to an underlying foreign issuer. Examples of market access products are LEPWs and P-notes, both of which allow the holder to gain exposure to issuers in certain emerging market countries. A LEPW entitles the holder to purchase a security with an exercise price significantly below the market price of the underlying security. Because of its low exercise price, a LEPW is virtually certain to be exercised and the value and performance of its intrinsic value is effectively identical to that of the underlying security. These features are designed to allow participation in the performance of a security where there are legal or financial obstacles to purchasing the underlying security directly. Typically, when the LEPW is cash-settled, the buyer profits to the same extent as with a direct holding in the underlying security, but without having to transact in it. P-notes are derivatives that are generally traded over the counter and constitute general unsecured contractual obligations of the banks and broker-dealers that issue them. Generally, these banks and broker-dealers buy securities listed on certain foreign exchanges and then issue P-notes which are designed to replicate the performance of certain issuers and markets.
REAL ESTATE INVESTMENT TRUSTS
As part of its principal investment strategy, each of Harbor Disruptive Innovation Fund and Harbor International Core Fund may gain exposure to the real estate sector by investing in real estate investment trusts (“REITs”), and common, preferred and convertible securities of issuers in real estate-related industries. Each of these types of investments are subject, directly or indirectly, to risks associated with ownership of real estate, including changes in the general economic climate or local conditions (such as an oversupply of space or a reduction in demand for space), loss to casualty or condemnation, increases in property taxes and operating expenses, zoning law amendments, changes in interest rates, overbuilding and increased competition, including competition based on rental rates, variations in market value, changes in the financial condition of tenants, changes in operating costs, attractiveness and location of the properties, adverse changes in the real estate markets generally or in specific sectors of the real estate industry and possible environmental liabilities. Real estate-related investments may entail leverage and may be highly volatile.
REITs are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is not generally taxed on the income distributed to shareholders. REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its proportionate share of the costs of the REITs’ operations.
Nontraditional real estate carries additional risks. Income expectations may not be met, competitive new supply may emerge, and specialized property may be difficult to sell at its full expected value or require substantial investment before it can be adapted to an alternate use should its original purpose falter.
Along with the risks common to different types of real estate-related securities, REITs, no matter the type, involve additional risk factors. These include poor performance by the REIT’s manager, changes to the
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Additional Information about the Funds' Investments
tax laws, and failure by the REIT to qualify for tax-free distribution of income or exemption under the Investment Company Act of 1940. Furthermore, REITs are not diversified and are heavily dependent on cash flow.
FIXED INCOME SECURITIES
Fixed income securities, as used generally in this Prospectus, includes:
◾
securities issued or guaranteed by the U.S. government, its agencies or government-sponsored enterprises;
◾
securities issued or guaranteed by a foreign government, governmental entity, supranational organization or government-sponsored enterprise;
◾
corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper, issued publicly or through private placements, including Rule 144A securities and Regulation S bonds;
◾
preferred stocks;
◾
when issued or delayed delivery debt securities;
◾
mortgage-backed and other asset-backed securities;
◾
inflation-indexed bonds issued both by governments and corporations;
◾
structured notes, including hybrid or “indexed” securities and event-linked bonds;
◾
loan participations and assignments;
◾
bank capital and trust preferred securities;
◾
delayed funding loans and revolving credit facilities;
◾
bank certificates of deposit, fixed time deposits and bankers’ acceptances; and
◾
repurchase agreements on fixed income instruments and reverse repurchase agreements on fixed income instruments.
Each Fixed Income Fund invests in fixed income securities as part of its principal investment strategy. 
Securities issued by U.S. government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury.
Certain fixed-income securities may have all types of interest rate payment and reset terms, including fixed rate, adjustable rate, inflation indexed, zero coupon, contingent, deferred, payment in-kind and auction rate features.
Changing interest rates may have unpredictable effects on the markets, may result in heightened market volatility and may detract from Fund performance. In addition, changes in monetary policy may exacerbate the risks associated with changing interest rates. A sudden or unpredictable increase in interest rates may cause volatility in the market and may decrease liquidity in the fixed-income securities markets, making it harder for the Funds to sell their fixed-income investments at an advantageous time. Decreased market liquidity also may make it more difficult to value some or all of a Fund’s fixed-income securities holdings. Certain countries have experienced negative interest rates on certain fixed-income securities. A low or negative interest rate environment may pose additional risks to the Funds because low or negative yields on a Fund’s portfolio holdings may have an adverse impact on a Fund’s ability to provide a positive yield to its shareholders, pay expenses out of Fund assets, or minimize the volatility of the Fund’s net asset value per share. It is difficult to predict the magnitude, timing or direction of interest rate changes and the impact these changes will have on a Fund’s investments and the markets where it trades.
CREDIT QUALITY
Harbor Convertible Securities Fund invests primarily in below investment-grade securities, commonly referred to as “high-yield” or “junk” bonds. Harbor Core Bond Fund and Harbor Core Plus Fund may invest up to 20% and 25%, respectively, of its assets in below investment-grade securities. 
Securities are investment-grade if:
◾
They are rated in one of the top four long-term rating categories of a nationally recognized statistical rating organization (“NRSRO”).
◾
They have received a comparable short-term or other rating.
◾
They are unrated securities that the Subadvisor believes to be of comparable quality to rated investment-grade securities.
Securities are considered below investment-grade (“junk” bonds) if:
◾
They are rated below one of the top four long-term rating categories of a NRSRO.
◾
They are unrated securities that the Subadvisor believes to be of comparable quality.
If a security receives different ratings, a Fund will treat the security as being rated in the highest rating category.  A Fund may choose not to sell securities that are downgraded below the Fund’s minimum acceptable credit rating after their purchase. Each Fund’s credit standards also apply to counterparties to over-the-counter derivative contracts or repurchase agreements, as applicable. An issuer, guarantor or
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Additional Information about the Funds' Investments
counterparty could suffer a rapid decrease in credit quality rating, which would adversely affect the volatility of the value and liquidity of the Fund’s investment. Credit ratings may not be an accurate assessment of liquidity or credit risk.
MORTGAGE-RELATED AND ASSET-BACKED SECURITIES
Mortgage-related securities may be issued by private companies or by agencies of the U.S. government. Mortgage-related securities represent direct or indirect participations in, or are collateralized by and payable from, mortgage loans secured by real property.
At times, each of Harbor Core Bond Fund and Harbor Core Plus Fund may invest a large percentage of its assets in mortgage-backed and asset-backed securities.
Harbor Core Bond Fund and Harbor Core Plus Fund may use mortgage dollar rolls to finance the purchase of additional investments. A mortgage “dollar roll” transaction involves a sale by a Fund of a mortgage-backed security and a simultaneous agreement to repurchase a substantially similar (same type, coupon and maturity) security on a specified future day. Dollar rolls expose a Fund to the risk that it will lose money if the additional investments do not produce enough income to cover the Fund’s dollar roll obligations.
For mortgage derivatives and structured securities that have embedded leverage features, small changes in interest or prepayment rates may cause large and sudden price movements. Mortgage derivatives can also become illiquid and hard to value in declining markets. Holders of privately issued mortgage-backed securities are dependent on, yet may have limited access to, information enabling them to evaluate the competence and integrity of the underlying originators and mortgage lending institutions.
Asset-backed securities represent participations in, or are secured by and payable from, assets such as installment sales or loan contracts, leases, credit card receivables and other categories of receivables.
Mortgage-related and asset-backed securities are especially sensitive to prepayment and extension risk.
GOVERNMENT SECURITIES
“Government securities,” as defined under the Investment Company Act of 1940 and interpreted, include securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities. There are different types of government securities with different levels of credit risk, including the risk of default, depending on the nature of the particular government support for that security. For example, a U.S. government-sponsored entity, such as Federal National Mortgage Association or Federal Home Fixed income securities, as used, although chartered or sponsored by an Act of Congress, may issue securities that are neither insured nor guaranteed by the U.S. Treasury and are therefore riskier than those that are insured or guaranteed by the U.S. Treasury.
BELOW INVESTMENT-GRADE (“HIGH-YIELD”) RISK
Below investment-grade fixed income securities are considered predominantly speculative by traditional investment standards. In some cases, these securities may be highly speculative and have poor prospects for reaching investment-grade standing. Below investment-grade fixed income securities and unrated securities of comparable credit quality are subject to the increased risk of an issuer’s inability to meet principal and interest obligations. These securities may be subject to greater price volatility due to such factors as corporate developments, interest rate sensitivity, negative perceptions of the high-yield markets generally and limited secondary market liquidity. Such securities are also issued by less-established corporations desiring to expand. Risks associated with acquiring the securities of such issuers generally are greater than is the case with higher rated securities because such issuers are often less creditworthy companies or are highly leveraged and generally less able than more established or less leveraged entities to make scheduled payments of principal and interest.
The market values of high-yield, fixed income securities tend to reflect individual corporate developments to a greater extent than do those of higher rated securities, which react primarily to fluctuations in the general level of interest rates. Issuers of such high-yield securities may not be able to make use of more traditional methods of financing and their ability to service debt obligations may be more adversely affected than issuers of higher rated securities by economic downturns, specific corporate developments or the issuers’ inability to meet specific projected business forecasts. These below investment-grade securities also tend to be more sensitive to economic conditions than higher-rated securities. Negative publicity about the high-yield bond market and investor perceptions regarding lower rated securities, whether or not based on the Funds’ fundamental analysis, may depress the prices for such securities.
Since investors generally perceive that there are greater risks associated with below investment-grade securities of the type in which the Funds invest, the yields and prices of such securities may tend to fluctuate more than those for higher rated securities. In the lower quality segments of the fixed income securities market, changes in perceptions of issuers’ creditworthiness tend to occur more frequently and in a more pronounced manner than do changes in higher quality segments of the fixed income securities market, resulting in greater yield and price volatility.
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Additional Information about the Funds' Investments
Another factor which causes fluctuations in the prices of fixed income securities is the supply and demand for similarly rated securities. In addition, the prices of fixed income securities fluctuate in response to the general level of interest rates. Fluctuations in the prices of portfolio securities subsequent to their acquisition will not affect cash income from such securities but will be reflected in a Fund’s net asset value.
The risk of loss from default for the holders of high-yield, fixed income securities is significantly greater than is the case for holders of other debt securities because such high-yield, fixed income securities are generally unsecured and are often subordinated to the rights of other creditors of the issuers of such securities.
The secondary market for high-yield, fixed income securities is dominated by institutional investors, including mutual fund portfolios, insurance companies and other financial institutions. Accordingly, the secondary market for such securities is not as liquid as and is more volatile than the secondary market for higher rated securities. In addition, the trading volume for high-yield, fixed income securities is generally lower than that of higher rated securities and the secondary market for high-yield, fixed income securities could contract under adverse market or economic conditions independent of any specific adverse changes in the condition of a particular issuer. These factors may have an adverse effect on a Fund’s ability to dispose of particular portfolio investments. Prices realized upon the sale of such lower rated or unrated securities, under these circumstances, may be less than the prices used in calculating a Fund’s net asset value. A less liquid secondary market may also make it more difficult for a Fund to obtain precise valuations of the high-yield securities in its portfolio.
Federal legislation could adversely affect the secondary market for high-yield securities and the financial condition of issuers of these securities. The form of any proposed legislation and the probability of such legislation being enacted is uncertain.
Below investment-grade or high-yield, fixed income securities also present risks based on payment expectations. High-yield, fixed income securities frequently contain “call” or “buy-back” features, which permit the issuer to call or repurchase the security from its holder. If an issuer exercises such a “call option” and redeems the security, a Fund may have to replace such security with a lower yielding security, resulting in a decreased return for investors. A Fund may also incur additional expenses to the extent that it is required to seek recovery upon default in the payment of principal or interest on a portfolio security.
Credit ratings issued by credit rating agencies are designed to evaluate the safety of principal and interest payments of rated securities. They do not, however, evaluate the market value risk of below investment-grade securities and, therefore, may not fully reflect the true risks of an investment. In addition, credit rating agencies may or may not make timely changes in a rating to reflect changes in the economy or in the conditions of the issuer that affect the market value of the security. Consequently, credit ratings are used only as preliminary indicators of investment quality. Investments in below investment-grade and comparable unrated obligations will be more dependent on the Subadvisor’s credit analysis than would be the case with investments in investment-grade debt obligations. The Subadvisors employs their own credit research and analysis, which may include a study of an issuer’s existing debt, capital structure, ability to service debt and to pay dividends, the issuer’s sensitivity to economic conditions, its operating history and the current trend of earnings. The Subadvisors continually monitors the investments in each Fund’s portfolio and evaluates whether to dispose of or to retain below investment-grade and comparable unrated securities whose credit ratings or credit quality may have changed.
There are special tax considerations associated with investing in bonds, including high-yield bonds, structured as zero coupon or payment-in-kind securities. For example, a Fund is required to report the accrued interest on these securities as current income each year even though it may receive no cash interest until the security’s maturity or payment date. The Fund may be required to sell some of its assets to obtain cash to distribute to shareholders in order to satisfy the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to such accrued interest. These actions are likely to reduce the Fund’s assets and may thereby increase its expense ratio and decrease its rate of return.
DERIVATIVE INSTRUMENTS
Each Fund may use derivatives for any of the following purposes:
◾
To hedge against adverse changes in the market value of securities held by or to be bought for the Fund. These changes may be caused by changing stock market prices or currency exchange rates.
◾
As a substitute for purchasing or selling securities or foreign currencies.
◾
To manage the duration of a Fixed Income Fund’s fixed income portfolio
◾
In non-hedging situations, to attempt to profit from anticipated market developments.
In general, a derivative instrument will obligate or entitle a Fund to deliver or receive an asset or a cash payment that is based on the change in value of a designated security, index, or other asset. Examples of derivatives are futures contracts, options, forward contracts, hybrid instruments, swaps, caps, collars and floors.
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Additional Information about the Funds' Investments
Even a small investment in certain types of derivatives can have a big impact on a Fund’s portfolio interest rate, stock market or currency exposure. Therefore, using derivatives can disproportionately increase a Fund’s portfolio losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. A Fund may not fully benefit from or may lose money on derivatives if changes in their value do not correspond as expected to changes in the value of the Fund’s portfolio holdings.
To the extent a Fund uses derivative instruments to attempt to hedge certain exposures or risks, there can be no assurance that the Fund’s hedging will be effective. In addition, use of derivative instruments for hedging involves costs and may reduce gains or result in losses, which may adversely affect a Fund.
Counterparties to over-the-counter derivative contracts present the same types of credit risk as issuers of fixed income securities. Derivatives also can make a Fund’s portfolio less liquid and harder to value, especially in declining markets. In addition, government legislation or regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the use, value or performance of derivatives.
ESG INTEGRATION
As stated in the Fund Summary, the Subadvisors for certain Funds incorporate environmental, social and/or governance (“ESG”) considerations in ther investment processes. As applicable, a Subadvisor’s incorporation of ESG considerations in its investment process may cause it to make different investments for the Fund than funds that have a similar investment universe and/or investment style but that do not incorporate such considerations in their investment strategy or processes. As a result, the Fund may perform differently from funds that do not use such considerations. Additionally, the Fund’s relative investment performance may be affected depending on whether such investments are in or out of favor with the market.
A Subadvisor is dependent on available information to assist in the evaluation process, and, because there are few generally accepted standards to use in evaluation, the process employed for the Fund may differ from processes employed for other funds. When integrating ESG factors into the investment process, a Subadvisor may rely on third-party data that it believes to be reliable, but it does not guarantee the accuracy of such third-party data. ESG information from third-party data providers may be incomplete, inaccurate or unavailable, which may adversely impact the investment process.
A Fund may seek to identify companies that reflect certain ESG considerations, but investors may differ in their views of what constitutes positive or negative ESG-related outcomes. As a result, the Fund may invest in companies that do not reflect the beliefs and values of any particular investor.
The ESG factors that may be evaluated as part of a Subadvisor’s investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. Further, the regulatory landscape with respect to ESG integration in the United States is still developing and future rules and regulations may require a Fund to modify or alter its investment process with respect to ESG integration.
OPERATIONAL RISKS
An investment in a Fund, like any fund, can involve operational risks arising from factors such as processing errors, inadequate or failed processes, failure in systems and technology, cybersecurity breaches, changes in personnel and errors caused by third-party service providers. These errors or failures as well as other technological issues may adversely affect a Fund’s ability to calculate its net asset value in a timely manner, including over a potentially extended period, or may otherwise adversely affect a Fund and its shareholders. While each Fund seeks to minimize such events through controls and oversight, there may still be failures that could causes losses to a Fund. In addition, similar incidents affecting issuers of securities held by a Fund may negatively impact Fund performance.
 
Non-Principal Investments
In addition to the investment strategies described in this Prospectus, the Funds may also make other types of investments, and, therefore, may be subject to other risks.  For additional information about the Funds, their investments and related risks, please see the Funds’ Statement of Additional Information.
TEMPORARY DEFENSIVE POSITIONS
A Fund may temporarily depart from its normal investment policies and strategies when the Subadvisor and/or Advisor, as applicable, believes that doing so is in the Fund’s best interest, so long as the strategy or policy employed is consistent with the Fund’s investment objective. For instance, a Fund may invest beyond its normal limits (if applicable) in derivatives or exchange traded funds that are consistent with the Fund’s investment objective when those instruments are more favorably priced or provide needed liquidity, as might be the case if the Fund is transitioning assets from one Subadvisor to another or receives large cash flows that it cannot prudently invest immediately.
In addition, a Fund may take temporary defensive positions that are inconsistent with its normal investment policies and strategies—for instance, by allocating substantial assets to cash equivalent investments or other less volatile instruments—in response to adverse or unusual market, economic, political, or other
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Additional Information about the Funds' Investments
conditions. In doing so, the Fund may succeed in avoiding losses but may otherwise fail to achieve its investment objective.
 
Portfolio Turnover
The Funds do not expect to engage in frequent trading to achieve their principal investment strategies. The high portfolio turnover for Harbor Core Plus Fund in the most recent fiscal year was a result of the prior subadvisor’s approach to managing the Fund and turnover resulting from the change in subadvisor. Harbor Core Plus Fund is not expected to engage in frequent trading under the current Subadvisor. Active and frequent trading in the Fund’s portfolio may lead to the realization and distribution to shareholders of higher capital gains, which would increase the shareholders’ tax liability. Frequent trading also increases transaction costs, which could detract from the Fund’s performance. A portfolio turnover rate greater than 100% would indicate that a Fund sold and replaced the entire value of its securities holdings during the previous one-year period.
 
Portfolio Holdings Disclosure Policy
Each Fund’s full portfolio holdings are published quarterly on the 15th day following quarter end on harborcapital.com. In addition, the Funds’ top ten portfolio holdings as a percent of its total net assets will be published quarterly on the 10th day following quarter end on harborcapital.com. This information is available at harborcapital.com for the entire quarter.
Additional information about Harbor Funds' portfolio holdings disclosure policy is available in the Statement of Additional Information.
76
The Advisor
Harbor Capital Advisors, Inc.
Harbor Capital Advisors, Inc. (“Harbor Capital” or the “Advisor”) is the investment adviser to Harbor Funds. The Advisor, located at 111 South Wacker Drive, 34th Floor, Chicago, Illinois 60606-4302, is a wholly owned subsidiary of ORIX Corporation (“ORIX”), a global financial services company based in Tokyo, Japan. ORIX provides a range of financial services to corporate and retail customers around the world, including financing, leasing, real estate and investment banking services. The stock of ORIX trades publicly on both the New York (through American Depositary Receipts) and Tokyo Stock Exchanges.
The combined assets of Harbor Funds and the other products managed by the Advisor were approximately $38.3 billion as of December 31, 2022.
The Advisor may manage funds directly or employ a “manager-of-managers” approach in selecting and overseeing investment subadvisers (each, a “Subadvisor”). The Advisor makes day-to-day investment decisions with respect to each fund that it directly manages. In the case of subadvised funds, the Advisor evaluates and allocates each Harbor fund’s assets to one or more Subadvisors. For Harbor funds that employ one or more discretionary subadvisors, the Subadvisors are responsible for the day-to-day management of the assets of the Harbor funds allocated to them. For Harbor funds that employ one or more non-discretionary Subadvisors, the Advisor will make day-to-day investment decisions with respect to each such fund to implement model portfolios provided by the non-discretionary Subadvisors. Subject to the approval of the Board of Trustees, the Advisor establishes, and may modify whenever deemed appropriate, the investment strategy of each Fund. The Advisor also is responsible for overseeing each Subadvisor and recommending the selection, termination and replacement of Subadvisors.
The Advisor also:
◾
Seeks to ensure quality control in each Subadvisor’s investment process with the objective of adding value compared with returns of an appropriate risk and return benchmark or tracking an index, as applicable.
◾
Monitors and measures risk and return results against appropriate benchmarks and recommends whether a Subadvisor should be retained or changed.
◾
Focuses on cost control.
In order to more effectively manage the Funds, Harbor Funds and the Advisor have been granted an order from the Securities and Exchange Commission (“SEC”) permitting the Advisor, subject to the approval of the Board of Trustees, to select Subadvisors not affiliated with the Advisor to serve as portfolio managers for the Harbor funds, and to enter into new subadvisory agreements and to materially modify existing subadvisory agreements with such unaffiliated subadvisors, all without obtaining shareholder approval.
In addition to its investment management services, the Advisor administers Harbor Funds' business affairs. The Advisor has agreed to contractually reduce its advisory fee, excluding interest expense (if any), of Harbor Capital Appreciation Fund, Harbor Global Leaders Fund and Harbor Mid Cap Value Fund until February 29, 2024, as disclosed in each Fund’s “Fund Summary” section.  The Actual Advisory Fee Paid, as shown in the table below, is for the fiscal year ended October 31, 2022. The Advisor pays a subadvisory fee to each Subadvisor out of its own assets. The Funds are not responsible for paying any portion of the subadvisory fee to a Subadvisor.
77
The Advisor
Annual Advisory Fee Rates
(annual rate based on the Fund’s average net assets) 
 
Actual
Advisory
Fee Paid
Contractual
Advisory
Fee
Harbor Capital Appreciation Fund
0.55%
0.60%a
Harbor Convertible Securities Fund
0.60
0.50b
Harbor Core Bond Fund
0.25
0.23c
Harbor Core Plus Fund
0.31
0.25d
Harbor Disruptive Innovation Fund
0.70
0.70
Harbor Diversified International All Cap Fund
0.75
0.75
Harbor Global Leaders Fund
0.70
0.75e
Harbor International Fund
0.75
0.75
Harbor International Core Fund (formerly, Harbor Overseas Fund)
0.75
0.75
Harbor International Growth Fund
0.75
0.75
Harbor International Small Cap Fund
0.85
0.85
Harbor Large Cap Value Fund
0.60
 
Up to $4 billion
 
0.60
In excess of $4 billion
 
0.55
Harbor Mid Cap Fund
0.75
0.75
Harbor Mid Cap Value Fund
0.74
0.75f
Harbor Small Cap Growth Fund
0.75
0.75
Harbor Small Cap Value Fund
0.75
0.75
a
The Advisor has contractually agreed to reduce the management fee to 0.56% on assets between $5 billion and $10 billion, 0.54% on assets between $10 billion and $20 billion and 0.53% on assets over $20 billion through February 29, 2024.
b
The contractual management fee was reduced from 0.60% to 0.50% effective March 1, 2023.
c
The contractual management fee was reduced from 0.34% to 0.23% effective December 1, 2021.
d
The contractual management fee was reduced from 0.48% to 0.25% effective February 2, 2022.
e
The Advisor has contractually agreed to waive 0.05% of its management fee through February 29, 2024.
f
The Advisor has contractually agreed to reduce the management fee to 0.70% on assets between $350 million and $1 billion and 0.65% on assets over $1 billion through February 29, 2024.
A discussion of the factors considered by the Board of Trustees when approving the investment advisory and investment subadvisory agreements of the Funds is available in the Funds' most recent semi-annual report to shareholders (for the six-month period ended April 30). A discussion of the factors considered by the Board of Trustees when approving the investment advisory agreement and subadvisory agreement for Harbor Convertible Securities Fund will be available in the Fund’s next semi-annual report to shareholders.
From time to time, the Advisor or its affiliates may invest “seed” capital in a fund, typically to enable a fund to commence investment operations and/or achieve sufficient scale. The Advisor and its affiliates may hedge such seed capital exposure by investing in derivatives or other instruments expected to produce offsetting exposure. Such hedging transactions, if any, would occur outside of a fund.
78
The Advisor
Portfolio Management
The Statement of Additional Information provides additional information about each portfolio manager’s compensation, other accounts managed by each portfolio manager and each portfolio manager’s ownership of shares in the Funds.
 
Harbor Disruptive Innovation Fund
Harbor Capital Advisors, Inc. (“Harbor Capital”), located at 111 S. Wacker Drive, 34th Floor, Chicago, IL 60606, serves as investment adviser to Harbor Disruptive Innovation Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Harbor Capital manages the Fund’s assets based upon model portfolios provided by multiple non-discretionary Subadvisors. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Spenser P. Lerner, CFA
2021
Mr. Lerner joined Harbor Capital in 2020 and is the Head of
Multi-Asset Solutions, a Managing Director and Portfolio
Manager. Prior to joining Harbor Capital, Mr. Lerner was a
Vice President of Equity and Quantitative Investment Research
and Equity Manager Research for JP Morgan Asset Management.
Before that, he worked as a Research, Portfolio Management
and Quantitative Investment Strategy Associate for JP Morgan
Asset Management. Mr. Lerner began his investment career in
2009.
Kristof Gleich, CFA
2021
Mr. Gleich joined Harbor Capital in 2018 and is President &
CIO. Prior to joining Harbor Capital, Mr. Gleich was a Managing
Director and Global Head of Manager Selection at JP Morgan
Chase & Co. Before that, he served as a fund manager with
Architas. Mr. Gleich began his investment career in 2004.
79
The Subadvisors
Portfolio Management
The Statement of Additional Information provides additional information about each portfolio manager’s compensation, other accounts managed by each portfolio manager and each portfolio manager’s ownership of shares in the Funds. For those Subadvisors that utilize an investment committee to make investment decisions for a Fund, additional information about the operation of the investment committee is set forth below.
 
Harbor Capital Appreciation Fund
Jennison Associates LLC (“Jennison”), located at 466 Lexington Avenue, New York, NY 10017, serves as Subadvisor to the Fund. The Fund’s portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
The portfolio managers for the Fund are supported by other Jennison portfolio managers, research analysts and investment professionals. Team members conduct research, make securities recommendations and support the portfolio managers in all activities. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Kathleen A. McCarragher
2013
Ms. McCarragher joined Jennison in 1998 and serves as a
Managing Director, the Head of Growth Equity, and a Large
Cap Growth Equity Portfolio Manager. Prior to joining Jennison,
Ms. McCarragher was a Managing Director and the Director
of Large Cap Growth Equities at Weiss, Peck & Greer. Prior
to that, she held various roles at State Street Research &
Management. Ms. McCarragher began her investment career
in 1982.
Blair A. Boyer
2019
Mr. Boyer joined Jennison in 1993 and serves as Managing
Director, Co-Head of Large Cap Growth Equity. Mr. Boyer
co-managed international equity portfolios at Jennison for 10
years before joining the Growth Equity team in 2003. Prior to
joining Jennison, Mr. Boyer held various investment roles at
Bleichroeder. Mr. Boyer began his investment career in 1983.
Natasha Kuhlkin, CFA
2019
Ms. Kuhlkin joined Jennison in 2004 and serves as Managing
Director and a Large Cap Growth Equity Portfolio Manager
and Research Analyst. Prior to joining Jennison, Ms. Kuhlkin
was an Equity Research Analyst at Palisade Capital Management. 
Prior to that, she was an Analyst with Evergreen Investment
Management. Ms. Kuhlkin began her investment career in 1998.
 
Harbor Convertible Securities Fund
BlueCove Limited (“BlueCove”), located at 10 New Burlington Street, London, W1S 3BE, England, serves as Subadvisor to Harbor Convertible Securities Fund. The portfolio managers are jointly and primarily responsible for the day-to-day portfolio management of the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Benjamin Brodsky, CFA
2023
Mr. Brodsky joined BlueCove in 2018 and is Chief Investment
Officer. He was Co-Chief Investment Officer from 2018 until
2019. Prior to joining BlueCove, Mr. Brodsky was Managing
Director and Deputy Chief Investment Officer of Systematic
Fixed Income at BlackRock. Mr. Brodsky previously held the
role of Global Head of Fixed Income Asset Allocation for Barclays
Global Investors before it merged with BlackRock in 2009.
Mr. Brodsky started his career in 1999 at Salomon Brothers
Asset Management.
Michael Harper, CFA
2023
Mr. Harper joined BlueCove in 2018 and is Head of Portfolio
Management. Prior to joining BlueCove, Mr. Harper was
Managing Director and Head of Core Portfolio Management
at BlackRock (formerly Barclays Global Investors) from 2001
to 2018. While at BlackRock, Mr. Harper was responsible for
building three new investment styles for EMEA and managed
the development of Smart Beta, Factor, and new systematic
strategies.
80
The Subadvisors
Harbor Convertible Securities Fund — continued
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Benoy Thomas, CFA
2023
Mr. Thomas joined BlueCove in 2018 and is Head of Credit.
Prior to joining BlueCove, Mr. Thomas was a Managing Director
in Systematic Fixed Income at BlackRock focusing on Credit
and Capital structure investment strategies. During his 16 years
at BlackRock and Barclays Global Investors, Mr. Thomas helped
formulate investment insights and improve portfolio management
processes. Previously, Mr. Thomas was Assistant Vice President
of Global Markets at JP Morgan from 1999 to 2001.
 
Harbor Core Bond Fund
Income Research + Management (“IR+M”), located at 100 Federal Street, Boston, MA 02110, serves as Subadvisor to Harbor Core Bond Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Investment decisions for the Fund are made by the Investment Committee. IR+M lists the following Investment Committee members, who are also senior members of the investment team, as having ultimate management responsibilities for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
William A. O’Malley, CFA
2018
Mr. O’Malley joined IR+M in 1994 and serves as the firm’s Chief
Executive Officer, Co-Chief Investment Officer, and Senior
Portfolio Manager. He is also member of the Board of Trustees.
Prior to joining IR+M, Mr. O’Malley was a Vice President at
Wellington Management Company, LLP. Before joining
Wellington, he worked at The Vanguard Group and in Morgan
Stanley’s Fixed Income Division. Mr. O’Malley began his
investment career in 1988.
James E. Gubitosi, CFA
2018
Mr. Gubitosi joined IR+M in 2007 and serves as the firm’s
Co-Chief Investment Officer and Senior Portfolio Manager. Prior
to joining IR+M, he was a Senior Analyst at Financial Architects
Partners. Mr. Gubitosi began his investment career in 2004.
Bill O’Neill, CFA
2018
Mr. O’Neill joined IR+M in 2004 and is a Principal and Senior
Portfolio Manager. Prior to joining IR+M, he was a Trader at
Investors Bank and Trust. Mr. O’Neill began his investment
career in 2000.
Jake Remley, CFA
2018
Mr. Remley joined IR+M in 2004 and is a Principal and Senior
Portfolio Manager. Prior to joining IR+M, he was an associate
with Lehman Brothers Holdings. Mr. Remley began his
investment career in 2001.
Matt Walker, CFA
2018
Mr. Walker joined IR+M in 2007 and is a Senior Portfolio
Manager. Prior to joining IR+M, he was a Fixed Income
Operations Representative at State Street Corporation. Mr. Walker
began his investment career in 2003.
Rachel Campbell
2018
Ms. Campbell joined IR+M in 2009 and is a Portfolio Manager
and the Director of Securitized Research. Prior to joining IR+M,
she was a Junior Risk Analyst at Cypress Tree Investment
Management. Ms. Campbell began her investment career in 2006.
81
The Subadvisors
Harbor Core Plus Fund
Income Research + Management (“IR+M”), located at 100 Federal Street, Boston, MA 02110, serves as Subadvisor to Harbor Core Plus Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Investment decisions for the Fund are made by the Investment Committee. IR+M lists the following Investment Committee members, who are also senior members of the investment team, as having ultimate management responsibilities for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
William A. O’Malley, CFA
2022
Mr. O’Malley joined IR+M in 1994 and serves as the firm’s Chief
Executive Officer, Co-Chief Investment Officer, and Senior
Portfolio Manager. He is also member of the Board of Trustees.
Prior to joining IR+M, Mr. O’Malley was a Vice President at
Wellington Management Company, LLP. Before joining
Wellington, he worked at The Vanguard Group and in Morgan
Stanley’s Fixed Income Division. Mr. O’Malley began his
investment career in 1988.
James E. Gubitosi, CFA
2022
Mr. Gubitosi joined IR+M in 2007 and serves as the firm’s
Co-Chief Investment Officer and Senior Portfolio Manager. Prior
to joining IR+M, he was a Senior Analyst at Financial Architects
Partners. Mr. Gubitosi began his investment career in 2004.
Bill O’Neill, CFA
2022
Mr. O’Neill joined IR+M in 2004 and is a Principal and Senior
Portfolio Manager. Prior to joining IR+M, he was a Trader at
Investors Bank and Trust. Mr. O’Neill began his investment
career in 2000.
Jake Remley, CFA
2022
Mr. Remley joined IR+M in 2004 and is a Principal and Senior
Portfolio Manager. Prior to joining IR+M, he was an associate
with Lehman Brothers Holdings. Mr. Remley began his
investment career in 2001.
Matt Walker, CFA
2022
Mr. Walker joined IR+M in 2007 and is a Senior Portfolio
Manager. Prior to joining IR+M, he was a Fixed Income
Operations Representative at State Street Corporation. Mr. Walker
began his investment career in 2003.
Rachel Campbell
2022
Ms. Campbell joined IR+M in 2009 and is a Portfolio Manager
and the Director of Securitized Research. Prior to joining IR+M,
she was a Junior Risk Analyst at Cypress Tree Investment
Management. Ms. Campbell began her investment career in 2006.
 
Harbor Disruptive Innovation Fund
Each of the Subadvisors below provides a model portfolio to the Advisor, which the Advisor implements at its discretion with respect to a portion of the assets of the Fund. The Advisor is responsible for the day-to-day investment decision making for Harbor Disruptive Innovation Fund.
◾
4BIO Partners LLP, located at 78 Pall Mall, London SW1Y 5ES, United Kingdom
◾
NZS Capital, LLC, located at 1437 Larimer Street, Suite 200, Denver CO 80202
◾
Sands Capital Management, LLC, located at 1000 Wilson Boulevard, Suite 3000, Arlington, VA 22209
◾
Tekne Capital Management, LLC, located at 509 Madison Avenue, New York, NY 10022
◾
Westfield Capital Management Company, L.P., located at One Financial Center, 23rd Floor, Boston, MA 02111
 
82
The Subadvisors
Harbor Diversified International All Cap Fund
Marathon Asset Management Limited (“Marathon-London”), located at Orion House, 5 Upper St. Martin’s Lane, London, WC2H 9EA, England, serves as Subadvisor to Harbor Diversified International All Cap Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Marathon-London employs a team approach, in which the investment team is organized along regional lines and each portfolio manager is allocated his own distinct portion of assets within the Fund’s portfolio to manage independently of the other portfolio managers. Mr. Ostrer and Mr. Arah are jointly responsible for determining the regional allocation. 
REGIONAL FOCUS
PORTFOLIO MANAGERS
PROFESSIONAL EXPERIENCE
Europe
Neil M. Ostrer
Since 2015
Mr. Ostrer co-founded Marathon-London in 1986. Prior to that
he worked at Carnegie International as a Director of International
Sales. Mr. Ostrer began his investment career at G.T.
Management, where he began managing the G.T. European
Unit Trust before he was appointed Director, G.T. Management
UK. Mr. Ostrer began his investment career in 1981.
Charles Carter
Since 2015
Mr. Carter joined Marathon-London in 1998 and is a Portfolio
Manager focusing on investments in Europe. Mr. Carter began
his investment career 1989.
Nick Longhurst
Since 2015
Mr. Longhurst joined Marathon-London in 2003 and is a
Portfolio Manager focusing on investments in Europe. 
Mr. Longhurst began his investment career in 1994.
Japan
William J. Arah
Since 2015
Mr. Arah co-founded Marathon-London in 1986 and has
managed assets at Marathon-London since 1987. Previously,
he was employed at Rowe and Pitman and at Goldman Sachs
based in Tokyo. Mr. Arah began his investment career in 1982.
Simon Somerville
Since 2016
Mr. Somerville joined Marathon-London in 2016 and is a Japan
Equity Portfolio Manager.  Previously, he worked for Jupiter
Asset Management as Strategy Head, Head of Pan Asian Equities
and Co-Head of Asian Equities. Prior to that he worked for
Cazenove Fund Management as Head of Global and Japan
Equities. Mr. Somerville began his investment career in 1990.
Toma Kobayashi
Since 2022
Mr. Kobayashi joined Marathon-London in 2018 and is a
Portfolio Manager focusing on investments in Japan. Previously,
he worked for Orbis Investments as a Japanese equity analyst.
Mr. Kobayashi began his investment career in 2014.
Emerging
Markets
Alex Duffy
Since 2021
Mr. Duffy joined Marathon-London in 2021 and is an Emerging
Markets Portfolio Manager.  Prior to joining Marathon-London,
he worked at Fidelity International where he was a Portfolio
Manager of Global Emerging Markets.  Mr. Duffy began his
investment career in 2004.
Asia Pacific
ex Japan
Justin Hill
Since 2021
Mr. Hill joined Marathon-London in 2021 and is a Portfolio
Manager covering Asia Pacific ex Japan. Prior to joining
Marathon-London, he worked at BP Investment Management
where he was a Senior Portfolio Manager. Prior to that he worked
at Pictet Asset Management as a Senior Investment Manager.
Mr. Hill began his investment career in 1996.
North
America
Robert Anstey, CFA
Since 2015
Mr. Anstey joined Marathon-London in 2014 and is a North
American Equity Portfolio Manager. Previously, he was Head
of U.S. Equities at Hermes Fund Managers Ltd. Prior to that
he worked at Bear Stearns as the U.S. Equity Sales Director
as well as on the U.S. Equity Sales team at private bank Brown
Brothers Harriman. Mr. Anstey began his investment career
in 1994.
83
The Subadvisors
Harbor Global Leaders Fund
Sands Capital Management, LLC (“Sands Capital”), located at 1000 Wilson Boulevard, Suite 3000, Arlington, VA 22209, serves as Subadvisor to Harbor Global Leaders Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Sunil H. Thakor, CFA
2017
Mr. Thakor joined Sands Capital in 2004 and is a Senior Portfolio
Manager and Research Analyst. Prior to joining Sands Capital,
he was an Associate & Analyst at Charles River Associates, Inc.
Mr. Thakor began his investment career in 1999.
Michael F. Raab, CFA
2019
Mr. Raab joined Sands Capital in 2007 and is a Portfolio Manager
and Senior Research Analyst. Prior to joining Sands Capital,
he was an Analyst at SNL Financial. Mr. Raab began his
investment career in 2006.
 
Harbor International Fund
Marathon Asset Management Limited (“Marathon-London”), located at Orion House, 5 Upper St. Martin’s Lane, London, WC2H 9EA, England, serves as Subadvisor to Harbor International Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Marathon-London employs a team approach, in which each portfolio manager is allocated their own distinct portion of assets to manage within the Fund’s portfolio. Each portfolio manager selects stocks within their region independently from the other portfolio managers. Mr. Ostrer and Mr. Arah are jointly responsible for determining the allocations to each portfolio manager. 
REGIONAL FOCUS
PORTFOLIO MANAGERS
PROFESSIONAL EXPERIENCE
Europe
Neil M. Ostrer
Since 2018
Mr. Ostrer co-founded Marathon-London in 1986. Prior to that
he worked at Carnegie International as a Director of International
Sales. Mr. Ostrer began his investment career at G.T.
Management, where he began managing the G.T. European
Unit Trust before he was appointed Director, G.T. Management
UK. Mr. Ostrer began his investment career in 1981.
Charles Carter
Since 2018
Mr. Carter joined Marathon-London in 1998 and is a Portfolio
Manager focusing on investments in Europe. Mr. Carter began
his investment career 1989.
Nick Longhurst
Since 2018
Mr. Longhurst joined Marathon-London in 2003 and is a
Portfolio Manager focusing on investments in Europe. 
Mr. Longhurst began his investment career in 1994.
Japan
William J. Arah
Since 2018
Mr. Arah co-founded Marathon-London in 1986 and has
managed assets at Marathon-London since 1987. Previously,
he was employed at Rowe and Pitman and at Goldman Sachs
based in Tokyo. Mr. Arah began his investment career in 1982.
Simon Somerville
Since 2018
Mr. Somerville joined Marathon-London in 2016 and is a Japan
Equity Portfolio Manager.  Previously, he worked for Jupiter
Asset Management as Strategy Head, Head of Pan Asian Equities
and Co-Head of Asian Equities. Prior to that he worked for
Cazenove Fund Management as Head of Global and Japan
Equities. Mr. Somerville began his investment career in 1990.
Toma Kobayashi
Since 2022
Mr. Kobayashi joined Marathon-London in 2018 and is a
Portfolio Manager focusing on investments in Japan. Previously,
he worked for Orbis Investments as a Japanese equity analyst.
Mr. Kobayashi began his investment career in 2014.
Emerging
Markets
Alex Duffy
Since 2021
Mr. Duffy joined Marathon-London in 2021 and is an Emerging
Markets Portfolio Manager.  Prior to joining Marathon-London,
he worked at Fidelity International where he was a Portfolio
Manager of Global Emerging Markets.  Mr. Duffy began his
investment career in 2004.
84
The Subadvisors
Harbor International Fund — continued
REGIONAL FOCUS
PORTFOLIO MANAGERS
PROFESSIONAL EXPERIENCE
Asia Pacific
ex Japan
Justin Hill
Since 2021
Mr. Hill joined Marathon-London in 2021 and is a Portfolio
Manager covering Asia Pacific ex Japan. Prior to joining
Marathon-London, he worked at BP Investment Management
where he was a Senior Portfolio Manager. Prior to that he worked
at Pictet Asset Management as a Senior Investment Manager.
Mr. Hill began his investment career in 1996.
 
Harbor International Core Fund (formerly, Harbor Overseas Fund)
Acadian Asset Management LLC (“Acadian”), located at 260 Franklin Street, Boston, MA 02110, serves as Subadvisor to Harbor International Core Fund (formerly, Harbor Overseas Fund). The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Brendan O. Bradley, Ph.D.
2019
Mr. Bradley joined Acadian in 2004 and is an Executive Vice
President and Chief Investment Officer. Mr. Bradley has served
as Acadian’s Director of Portfolio Management, overseeing
portfolio management policy and was also previously the Director
of Acadian’s Managed Volatility Strategies. He is a member of
the Acadian Executive Committee. Prior to Acadian, Mr. Bradley
was a Vice President at Upstream Technologies, where he
designed and implemented investment management systems
and worked with asset managers to help them enhance and
implement their investment goals. His professional background
also includes work as a Research Analyst and Consultant at
Samuelson Portfolio Strategies. Mr. Bradley began his investment
career in 1999.
Ryan D. Taliaferro, Ph.D.
2019
Mr. Taliaferro joined Acadian in 2011 and currently serves as
a Senior Vice President and Director of Equity Strategies.
Previously he was the Lead Portfolio Manager for Acadian’s
Managed Volatility Strategies. Prior to joining Acadian,
Mr. Taliaferro was a faculty member at Harvard Business School
where he taught corporate finance and asset pricing. Earlier,
he was a consultant at the Boston Consulting Group.
Mr. Taliaferro began his investment career in 2011.
 
Harbor International Growth Fund
Baillie Gifford Overseas Limited (“Baillie Gifford”), located at Calton Square, 1 Greenside Row, Edinburgh, Scotland, serves as Subadvisor to Harbor International Growth Fund. Each of the Portfolio Managers listed below are members of Baillie Gifford Overseas Limited’s International All Cap Portfolio Construction Group, which has the responsibility for making the day-to-day investment decisions for the Fund using a team-based approach. The Portfolio Construction Group includes Portfolio Managers from Baillie Gifford Overseas Limited’s regional equity specialist teams who participate in the investment decision making process across the Fund’s portfolio. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Iain Campbell
2013
Mr. Campbell joined Baillie Gifford in 2004. He is Portfolio
Manager on the Japan Equity Team and a member of Baillie
Gifford’s International All Cap Portfolio Construction Group.
He previously served as an Analyst at Goldman Sachs.
Mr. Campbell began his investment career in 2004 and focuses
on developed Asian markets.
Joseph M. Faraday, CFA
2013
Mr. Faraday joined Baillie Gifford in 2002 and is a member of
the International All Cap Portfolio Construction Group.
Mr. Faraday began his investment career in 2002.
85
The Subadvisors
Harbor International Growth Fund — continued
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Stephen Paice
2022
Mr. Paice joined Baillie Gifford in 2005 and is the Head of the
European Equity Team. He is a member of the International
All Cap Portfolio Construction Group. Mr. Paice began his
investment career in 2005.
Sophie Earnshaw, CFA
2014
Ms. Earnshaw joined Baillie Gifford in 2010. She is an Investment
Manager on the Emerging Markets Equity Team and a member
of the International All Cap Portfolio Construction Group. Ms.
Earnshaw began her investment career in 2010.
Milena Mileva
2022
Ms. Mileva joined Baillie Gifford in 2009. She is an Investment
Manager in the UK Equity Team and will become a member
of the International All Cap Portfolio Construction Group in
April 2022. Ms. Mileva began her investment career in 2009.
 
Harbor International Small Cap Fund
Cedar Street Asset Management LLC (“Cedar Street”), located at 455 North Cityfront Plaza Drive, Suite 1710, Chicago, Illinois 60611, serves as Subadvisor to Harbor International Small Cap Fund. The portfolio managers of the Fund are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Jonathan P. Brodsky
2019
Mr. Brodsky founded Cedar Street in 2016. Prior to founding
Cedar Street, Mr. Brodsky established the non-U.S. investment
practice at Advisory Research, Inc., (“ARI”) a Chicago-based
asset management firm, with the two founders of ARI. Prior
to joining ARI in 2004, Mr. Brodsky worked for the U.S. Securities
and Exchange Commission’s (“SEC”) Office of International
Affairs, focusing on cross-border regulatory, corporate governance,
and enforcement matters. Prior to the SEC, Mr. Brodsky was
an investment banker in corporate finance for JPMorgan
Securities, Inc.  Mr. Brodsky also worked for Ogilvy & Mather
in Beijing, China. Mr. Brodsky began his investment career in
2000.
Waldermar A. Mozes
2019
Mr. Mozes joined Cedar Street in 2016 and is the Director of
Investments, Portfolio Manager, and a Partner. Prior to joining
Cedar Street, Mr. Mozes spent over 7 years at TAMRO Capital
Partners LLC, an Alexandria, VA-based investment adviser
specializing in small cap strategies for institutional investors,
where he developed and implemented the international
investment capability. Mr. Mozes’s previous investment experience
includes Equity Analyst – International Technology at Artisan
Partners; Associate Analyst – Semiconductors at JMP Securities;
and Equity Analyst Intern at Capital Group all in San Francisco,
CA. Mr. Mozes began his investment career in 2000.
86
The Subadvisors
Harbor Large Cap Value Fund
Aristotle Capital Management, LLC (“Aristotle”), located at 11100 Santa Monica Boulevard, Suite 1700, Los Angeles, CA 90025, serves as Subadvisor to Harbor Large Cap Value Fund. The portfolio managers are primarily responsible for the day-to-day portfolio management of the Fund. While the team aims for any portfolio decision to be unanimous among the two co-portfolio managers, Mr. Gleicher has ultimate responsibility for portfolio construction and investment decision making for the strategy. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Howard Gleicher, CFA
2012
Mr. Gleicher founded Aristotle in 2006 and is the Chief Executive
Officer and Chief Investment Officer. Prior to founding Aristotle,
Mr. Gleicher co-founded Metropolitan West Capital Management,
LLC and served as the Chief Executive Officer and Chief
Investment Officer. Prior to that he was a Principal, Portfolio
Manager, and Investment Policy Committee member at
Needelman Asset Management, Inc. Mr. Gleicher has also served
as an Equity Portfolio Manager at Pacific Investment Management
Company. Mr. Gleicher began his investment career in 1984.
Gregory D. Padilla, CFA
2018
Mr. Padilla joined Aristotle in 2014 and is a member of the
research team. Prior to joining Aristotle, Mr. Padilla was a
Managing Director and Portfolio Manager at Vinik Asset
Management, LP. and Tradewinds Global Investors, LLC. While
at Tradewinds, Mr. Padilla was a key member of the All-Cap
Equity strategy, the Global All-Cap strategy and Global Natural
Resource strategy. Mr. Padilla began his investment career in
2006.
 
Harbor Mid Cap Fund
EARNEST Partners LLC (“EARNEST Partners”), located at 1180 Peachtree Street NE, Suite 2300, Atlanta, GA 30309, serves as Subadvisor to Harbor Mid Cap Fund. The portfolio manager is primarily responsible for the day-to-day investment decision making for the Fund. 
PORTFOLIO MANAGER
SINCE
PROFESSIONAL EXPERIENCE
Paul E. Viera
2019
Mr. Viera founded EARNEST Partners in 1998 and is the Chief
Executive Officer and a Portfolio Manager. He conceived and
developed Return Pattern Recognition®, the investment
methodology used to screen equities at EARNEST Partners.
Prior to forming EARNEST Partners he was a Global Partner
at Invesco Advisers, Inc. and a senior member of its Investment
Team. Mr. Viera began his investment career in 1985 at Bankers
Trust.
87
The Subadvisors
Harbor Mid Cap Value Fund
LSV Asset Management (“LSV”), located at 155 North Wacker Drive, Suite 4600, Chicago, IL 60606, serves as Subadvisor to Harbor Mid Cap Value Fund. The portfolio managers are jointly and primarily responsible for the day-to-day investment decision making for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
Josef Lakonishok, Ph.D.
2004
Dr. Lakonishok founded LSV in 1994 and is the Chief Executive
Officer and Chief Investment Officer. He heads the research
and investment team at LSV and is involved in all portfolio
management and research functions. Prior to founding LSV,
he was a Professor of Finance at the Johnson Graduate School
of Management at Cornell University. Before that, he held staff
and visiting professorships at Tel Aviv University, the University
of North Carolina at Chapel Hill, and the University of British
Columbia. Dr. Lakonishok began his investment career in 1976.
Menno Vermeulen, CFA
2004
Menno Vermeulen joined LSV in 1995 and is a Partner and
Portfolio Manager. Prior to joining LSV, he worked at ABP,
the largest pension plan in Europe and one of the largest in
the world. Mr. Vermeulen worked closely with Dr. Lakonishok
to apply some of his academic theories initially to the Dutch
equity market. Mr. Vermeulen began his investment career in
1993.
Puneet Mansharamani, CFA
2006
Mr. Mansharamani joined LSV in 2000 and is a Partner and
Portfolio Manager. Mr. Mansharamani began his investment
career in 2000.
Greg Sleight
2015
Mr. Sleight joined LSV in 2006 and is a Partner and Portfolio
Manager. Prior to joining LSV, Mr. Sleight served as a Project
Engineer at Crown Cork & Seal and prior to that he was a
Scientist at The Clorox Co. Mr. Sleight began his investment
career in 2006.
Guy Lakonishok, CFA
2015
Mr. Lakonishok joined LSV in 2009 and is a Partner and Portfolio
Manager. Prior to joining LSV, Mr. Lakonishok served as a Vice
President at BlackRock. Mr. Lakonishok began his investment
career in 2002.
88
The Subadvisors
Harbor Small Cap Growth Fund
Westfield Capital Management Company, L.P. (“Westfield”), located at One Financial Center, 23rd Floor, Boston, MA 02111, serves as Subadvisor to Harbor Small Cap Growth Fund. Westfield’s Investment Committee (the “Investment Committee”) is jointly and primarily responsible for the day-to-day investment decision making for the Fund.
Investment decisions for the Fund are made by consensus of the Investment Committee, which is chaired by Mr. Muggia. Although the Investment Committee collectively acts as portfolio manager for the Fund, Westfield lists the following Investment Committee members, based either on seniority or role within the Investment Committee, as having day-to-day management responsibilities for the Fund. 
PORTFOLIO MANAGERS
SINCE
PROFESSIONAL EXPERIENCE
William A. Muggia
2000
Mr. Muggia joined Westfield in 1994 and is the Chief Executive
Officer, President, and Chief Investment Officer leading the
Investment Committee. Prior to joining Westfield, he worked
in the Technology Investment Banking Group at Alex Brown
& Sons, where his responsibilities included mergers and
acquisitions, restructuring, and spin-offs. Before that, he was
a Vice President at Kidder, Peabody & Company. Mr. Muggia
began his investment career in 1983.
Richard D. Lee, CFA
2018
Mr. Lee joined Westfield in 2004 and is a Managing Partner
and Deputy Chief Investment Officer. He has been a member
of the Investment Committee since joining Westfield. Prior to
joining Westfield, Mr. Lee held various analyst positions at KL
Financial Group, Wit Soundview Technology Group, Hambrecht
& Quist, LLC, and Smith Barney. Mr. Lee began his investment
career in 1994.
Ethan J. Meyers, CFA
2000
Mr. Meyers joined Westfield in 1999 and is a Managing Partner
and Director of Research as well as a member of the Investment
Committee. Prior to joining Westfield, Mr. Meyers worked as
a Research Analyst at Johnson Rice & Company LLC. Mr. Meyers
began his investment career in 1996.
John M. Montgomery
2011
Mr. Montgomery joined Westfield in 2006 and is a Managing
Partner, Portfolio Strategist and the Chief Operating Officer as
well as a member of the Investment Committee. Prior to joining
Westfield, Mr. Montgomery was a Managing Director in the
equities division at Lehman Brothers. He has also held equities-
related positions at JP Morgan Securities and Morgan Stanley.
Mr. Montgomery began his investment career at Procter and
Gamble in 1987.
 
Harbor Small Cap Value Fund
EARNEST Partners LLC, located at 1180 Peachtree Street NE, Suite 2300, Atlanta, GA 30309, serves as Subadvisor to Harbor Small Cap Value Fund. The portfolio manager is primarily responsible for the day-to-day investment decision making for the Fund. 
PORTFOLIO MANAGER
SINCE
PROFESSIONAL EXPERIENCE
Paul E. Viera
2001
Mr. Viera founded EARNEST Partners in 1998 and is the Chief
Executive Officer and a Portfolio Manager. He conceived and
developed Return Pattern Recognition®, the investment
methodology used to screen equities at EARNEST Partners.
Prior to forming EARNEST Partners he was a Global Partner
at Invesco Advisers, Inc. and a senior member of its Investment
Team. Mr. Viera began his investment career in 1985 at Bankers
Trust.
89
The Subadvisors
IR+M Aggregate Bond Composite Performance Information
The following table presents the past performance of the IR+M Aggregate Bond Composite (the “IR+M Composite”). IR+M is Subadvisor to Harbor Core Bond Fund. The IR+M Composite is comprised of all fee-paying accounts under discretionary management by IR+M that have investment objectives, policies and strategies substantially similar to those of the Fund. Returns include the reinvestment of interest, dividends and any other distributions. IR+M has prepared and presented the historical performance shown for the IR+M Composite (gross) in compliance with the Global Investment Performance Standards (GIPS®). The GIPS method for computing historical performance differs from the SEC’s method. The gross performance data shown in the table does not reflect the deduction of investment advisory fees paid by the accounts comprising the IR+M Composite or certain other expenses that would be applicable to mutual funds. To calculate the performance of the IR+M Composite net of expenses, the Advisor applied the net Fund operating expenses payable by the Retirement and Institutional Classes of shares of the Fund for the fiscal year ended October 31, 2022, as applicable, as disclosed in the “Total Annual Fund Operating Expenses After Expense Reimbursement” line item of the Fund’s fee table in the Fund Summary section. The net performance data may be more relevant to potential investors in the Fund in their analysis of the historical experience of IR+M in managing portfolios with substantially similar investment strategies and techniques to those of the Fund.
The historical performance of the IR+M Composite is not that of Harbor Core Bond Fund and is not indicative of the Fund’s future results. The Fund’s actual performance may vary significantly from the past performance of the IR+M Composite. While the accounts comprising the IR+M Composite incur inflows and outflows of cash from clients, there can be no assurance that the continuous offering of the Fund’s shares and the Fund’s obligation to redeem its shares will not adversely impact the Fund’s performance. Also, not all of the accounts currently comprising the IR+M Composite are subject to certain investment limitations, diversification requirements and other restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. If these limitations, requirements and restrictions were applicable to the accounts in the IR+M Composite, they may have had an adverse effect on the performance results of the IR+M Composite. However, IR+M does not believe that such accounts would have been managed in a significantly different manner had they been subject to such investment limitations, diversification requirements and other restrictions.
IR+M Aggregate Bond composite* 
 
Average Annual Total Returns for the Periods Ended December 31, 2022:
 
1 Year
3 Years
5 Years
10 Years
IR+M Composite net of Retirement Class expenses
-12.99%
-2.10%
0.42%
1.43%
IR+M Composite net of Institutional Class expenses
-13.05%
-2.16%
0.35%
1.37%
IR+M Composite (gross)
-12.75%
-1.83%
0.69%
1.71%
Bloomberg U.S. Aggregate Bond Index**
-13.01%
-2.71%
0.02%
1.06%
 
 
Calendar Year Total Returns for the Periods Ended December 31:
 
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
IR+M Composite net of Retirement
Class expenses
7.09%
-1.60%
6.81%
0.31%
3.29%
3.68%
-0.19%
9.02%
9.26%
-1.30%
-12.99%
IR+M Composite net of Institutional
Class expenses
7.02%
-1.66%
6.74%
0.24%
3.22%
3.62%
-0.25%
8.95%
9.19%
-1.37%
-13.05%
IR+M Composite (gross)
7.39%
-1.33%
7.10%
0.59%
3.57%
3.97%
0.09%
9.32%
9.56%
-1.03%
-12.75%
Bloomberg U.S. Aggregate Bond
Index**
4.21%
-2.02%
5.97%
0.55%
2.65%
3.54%
0.01%
8.72%
7.51%
-1.54%
-13.01%
*
This is not the performance of Harbor Core Bond Fund. As of December 31, 2022, the IR+M Composite was composed of 83 accounts, totaling approximately $14.4 billion. The inception date of the IR+M Composite was January 1, 1992.
**
The Bloomberg U.S. 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.
90
The Subadvisors
 
IR+M Core Plus Composite Performance Information
The following table presents the past performance of the IR+M Core Plus Composite (the “IR+M Composite”). IR+M is Subadvisor to Harbor Core Plus Fund. The IR+M Composite is comprised of all accounts under discretionary management by IR+M that have investment objectives, policies and strategies substantially similar to those of the Fund. Returns include the reinvestment of interest, dividends and any other distributions. IR+M has prepared and presented the historical performance shown for the IR+M Composite (gross) in compliance with the Global Investment Performance Standards (GIPS®). The GIPS method for computing historical performance differs from the SEC’s method. The gross performance data shown in the table does not reflect the deduction of investment advisory fees paid by the accounts comprising the IR+M Composite or certain other expenses that would be applicable to mutual funds. To calculate the performance of the IR+M Composite net of expenses, the Advisor applied the net Fund operating expenses payable by the Institutional and Administrative Classes of shares of the Fund for the fiscal year ended October 31, 2022, as amended and restated, and disclosed in the “Total Annual Fund Operating Expenses After Expense Reimbursement” line item of the Fund’s fee table in the Fund Summary section. The net performance data may be more relevant to potential investors in the Fund in their analysis of the historical experience of IR+M in managing portfolios with substantially similar investment strategies and techniques to those of the Fund.
The historical performance of the IR+M Composite is not that of Harbor Core Plus Fund and is not indicative of the Fund’s future results. The Fund’s actual performance may vary significantly from the past performance of the IR+M Composite. While the accounts comprising the IR+M Composite incur inflows and outflows of cash from clients, there can be no assurance that the continuous offering of the Fund’s shares and the Fund’s obligation to redeem its shares will not adversely impact the Fund’s performance. Also, not all of the accounts currently comprising the IR+M Composite are subject to certain investment limitations, diversification requirements and other restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. If these limitations, requirements and restrictions were applicable to the accounts in the IR+M Composite, they may have had an adverse effect on the performance results of the IR+M Composite. However, IR+M does not believe that such accounts would have been managed in a significantly different manner had they been subject to such investment limitations, diversification requirements and other restrictions.
IR+M CORE PLUS composite* 
 
Average Annual Total Returns for the Periods Ended December 31, 2022:
 
1 Year
3 Years
Since Inception
IR+M Composite net of Institutional Class expenses
-13.33%
-0.86%
1.43%
IR+M Composite net of Administrative Class expenses
-13.40%
-0.94%
1.35%
IR+M Composite (gross)
-13.07%
-0.57%
1.73%
Bloomberg U.S. Aggregate Bond Index**
-13.01%
-2.71%
0.17%
 
 
Calendar Year Total Returns for the Periods Ended December 31:
 
2017***
2018
2019
2020
2021
2022
IR+M Composite net of Institutional Class expenses
1.21%
-0.26%
9.79%
9.55%
2.62%
-13.33%
IR+M Composite net of Administrative Class expenses
1.17%
-0.34%
9.70%
9.47%
2.54%
-13.40%
IR+M Composite (gross)
1.21%
-0.26%
9.79%
9.55%
2.62%
-13.33%
Bloomberg U.S. Aggregate Bond Index**
3.54%
0.01%
8.72%
7.51%
-1.54%
-13.01%
*
This is not the performance of Harbor Core Plus Fund. As of December 31, 2022, the IR+M Composite was composed of 6 accounts, totaling approximately $1.3 billion. The inception date of the IR+M Composite is August 1, 2017.
**
The Bloomberg U.S. 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.
***
For the period of August 1, 2017 through December 31, 2017.
91
The Subadvisors
Marathon-London MSCI EAFE Composite Performance Information
The following table presents the past performance of the Marathon-London MSCI EAFE Composite (the “Marathon EAFE Composite”). Marathon-London is Subadvisor to Harbor International Fund. The Marathon EAFE Composite is comprised of all fee-paying accounts under discretionary management by Marathon-London that have investment objectives, policies and strategies substantially similar to those of the Fund. Returns include the reinvestment of interest, dividends and any other distributions and are presented in U.S. dollars. Marathon-London has prepared and presented the historical performance shown for the Marathon EAFE Composite (gross) in compliance with the Global Investment Performance Standards (GIPS®). The GIPS method for computing historical performance differs from the SEC’s method. The gross performance data shown in the table does not reflect the deduction of investment advisory fees paid by the accounts comprising the Marathon EAFE Composite or certain other expenses that would be applicable to mutual funds. To calculate the performance of the Marathon EAFE Composite net of expenses, the Advisor applied the net Fund operating expenses payable by the Retirement, Institutional, Administrative, and Investor Classes of shares of the Fund for the fiscal year ended October 31, 2022, as applicable, as disclosed in the “Total Annual Fund Operating Expenses After Expense Reimbursement” line item of the Fund’s fee table in the Fund Summary section. The net performance data may be more relevant to potential investors in the Fund in their analysis of the historical experience of Marathon-London in managing portfolios with substantially similar investment strategies and techniques to those of the Fund.
The historical performance of the Marathon EAFE Composite is not that of Harbor International Fund and is not indicative of the Fund’s future results. The Fund’s actual performance may vary significantly from the past performance of the Marathon EAFE Composite. While the accounts comprising the Marathon EAFE Composite incur inflows and outflows of cash from clients, there can be no assurance that the continuous offering of the Fund’s shares and the Fund’s obligation to redeem its shares will not adversely impact the Fund’s performance. Also, not all of the accounts currently comprising the Marathon EAFE Composite are subject to certain investment limitations, diversification requirements and other restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. If these limitations, requirements and restrictions were applicable to the accounts in the Marathon EAFE Composite, they may have had an adverse effect on the performance results of the Marathon EAFE Composite. However, Marathon-London does not believe that such accounts would have been managed in a significantly different manner had they been subject to such investment limitations, diversification requirements and other restrictions.
marathon EAFE composite* 
 
Average Annual Total Returns for the Periods Ended December 31, 2022:
 
1 Year
3 Years
5 Years
10 Years
Marathon EAFE Composite net of Retirement Class
expenses
-14.21%
0.77%
1.64%
5.52%
Marathon EAFE Composite net of Institutional Class
expenses
-14.28%
0.68%
1.56%
5.44%
Marathon EAFE Composite net of Administrative Class
expenses
-14.49%
0.43%
1.30%
5.17%
Marathon EAFE Composite net of Investor Class
expenses
-14.59%
0.32%
1.19%
5.06%
Marathon EAFE Composite (gross)
-13.61%
1.46%
2.34%
6.25%
MSCI EAFE (ND) Index**
-14.45%
0.87%
1.54%
4.67%
 
 
Calendar Year Total Returns for the Periods Ended December 31:
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Marathon EAFE Composite net of
Retirement Class expenses
17.14%
28.53%
-4.62%
6.34%
-1.93%
23.43%
-13.83%
23.03%
9.07%
9.34%
-14.21%
Marathon EAFE Composite net of
Institutional Class expenses
17.05%
28.43%
-4.70%
6.26%
-2.01%
23.33%
-13.90%
22.93%
8.98%
9.25%
-14.28%
Marathon EAFE Composite net of
Administrative Class expenses
16.75%
28.11%
-4.93%
5.99%
-2.26%
23.02%
-14.12%
22.63%
8.71%
8.98%
-14.49%
Marathon EAFE Composite net of
Investor Class expenses
16.62%
27.97%
-5.04%
5.88%
-2.36%
22.89%
-14.21%
22.49%
8.59%
8.86%
-14.59%
Marathon EAFE Composite (gross)
17.95%
29.42%
-3.96%
7.08%
-1.25%
24.28%
-13.24%
23.88%
9.83%
10.10%
-13.61%
MSCI EAFE (ND) Index**
17.32%
22.78%
-4.90%
-0.81%
1.00%
25.03%
-13.79%
22.01%
7.82%
11.26%
-14.45%
*
This is not the performance of Harbor International Fund. As of December 31, 2022, the Marathon EAFE Composite was composed of 18 accounts, totaling approximately $18.4 billion. The inception date of the Marathon EAFE Composite was May 2, 2003.
**
The MSCI EAFE (ND) Index is an unmanaged index generally representative of major overseas stock markets. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
92
The Subadvisors
EARNEST Partners Mid Capitalization Core Composite Performance Information
The following table presents the past performance of the EARNEST Partners Mid Capitalization Core Composite (the “EARNEST Composite”). EARNEST Partners is Subadvisor to Harbor Mid Cap Fund. The EARNEST Composite is comprised of all fee-paying accounts under fully discretionary management by EARNEST Partners that have investment objectives, policies and strategies substantially similar to those of the Fund. Returns include the reinvestment of interest, dividends and any other distributions and are presented in U.S. dollars. EARNEST Partners has prepared and presented the historical performance shown for the EARNEST Composite (gross) in compliance with the Global Investment Performance Standards (GIPS®). The GIPS method for computing historical performance differs from the SEC’s method. The gross performance data shown in the table does not reflect the deduction of investment advisory fees paid by the accounts comprising the EARNEST Composite or certain other expenses that would be applicable to mutual funds. To calculate the performance of the EARNEST Composite net of expenses, the Advisor applied the net Fund operating expenses payable by the Retirement, Institutional, Administrative, and Investor Classes of shares of the Fund for the fiscal year ended October 31, 2022, as applicable, as disclosed in the “Total Annual Fund Operating Expenses After Expense Reimbursement” line item of the Fund’s fee table in the Fund Summary section. The net performance data may be more relevant to potential investors in the Fund in their analysis of the historical experience of EARNEST Partners in managing portfolios with substantially similar investment strategies and techniques to those of the Fund.
The historical performance of the EARNEST Composite is not that of Harbor Mid Cap Fund and is not indicative of the Fund’s future results. The Fund’s actual performance may vary significantly from the past performance of the EARNEST Composite. While the accounts comprising the EARNEST Composite incur inflows and outflows of cash from clients, there can be no assurance that the continuous offering of the Fund’s shares and the Fund’s obligation to redeem its shares will not adversely impact the Fund’s performance. Also, not all of the accounts currently comprising the EARNEST Composite are subject to certain investment limitations, diversification requirements and other restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. If these limitations, requirements and restrictions were applicable to all accounts in the EARNEST Composite, they may have had an adverse effect on the performance results of the EARNEST Composite. However, EARNEST does not believe that such accounts would have been managed in a significantly different manner had they been subject to such investment limitations, diversification requirements and other restrictions.
EARNEST composite* 
 
Average Annual Total Returns for the Periods Ended December 31, 2022:
 
1 Year
3 Years
5 Years
10 Years
Composite net of Retirement Class expenses
-15.74%
8.21%
9.15%
12.42%
Composite net of Institutional Class expenses
-15.80%
8.12%
9.06%
12.33%
Composite net of Administrative Class expenses
-16.02%
7.85%
8.79%
12.04%
Composite net of Investor Class expenses
-16.11%
7.73%
8.89%
11.92%
EARNEST Composite (gross)
-15.06%
9.08%
10.02%
13.32%
Russell Midcap® Index**
-17.32%
5.88%
8.37%
11.27%
 
 
Calendar Year Total Returns for the Periods Ended December 31:
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Composite net of Retirement
Class expenses
15.52%
30.53%
9.69%
0.46%
15.57%
25.15%
-10.83%
37.12%
20.29%
24.99%
-15.74%
Composite net of Institutional
Class expenses
15.43%
30.43%
9.61%
0.38%
15.48%
25.05%
-10.90%
37.01%
20.20%
24.89%
-15.80%
Composite net of Administrative
Class expenses
15.14%
30.10%
9.33%
0.13%
15.19%
24.74%
-11.13%
36.67%
19.90%
24.58%
-16.02%
Composite net of Investor Class
expenses
15.01%
29.96%
9.21%
0.02%
15.06%
24.60%
-11.22%
36.52%
19.76%
24.44%
-16.11%
EARNEST Composite (gross)
16.45%
31.58%
10.58%
1.26%
16.50%
26.16%
-10.11%
38.23%
21.26%
25.99%
-15.06%
Russell Midcap® Index**
17.28%
34.76%
13.22%
-2.44%
13.80%
18.52%
-9.06%
30.54%
17.10%
22.58%
-17.32%
*
This is not the performance of Harbor Mid Cap Fund. As of December 31, 2022, the EARNEST Composite was composed of 39 accounts, totaling approximately $1.9 billion. The inception date of the EARNEST Composite was October 1, 2003.
**
The Russell Midcap® Index is an unmanaged index generally representative of the U.S. market for medium capitalization stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell Midcap® Index and Russell® are trademarks of Frank Russell Company.
93
The Subadvisors
Acadian Non-U.S. Equity Composite Performance Information
The following table presents the past performance of the Acadian Non-U.S. Composite (the “Acadian Composite”). Acadian is Subadvisor to Harbor International Core Fund. The Acadian Composite is comprised of all fee-paying accounts under discretionary management by Acadian that have investment objectives, policies and strategies substantially similar to those of the Fund. Returns include the reinvestment of interest, dividends and any other distributions and are presented in U.S. dollars. Acadian has prepared and presented the historical performance shown for the Acadian Composite (gross) in compliance with the Global Investment Performance Standards (GIPS®). The GIPS method for computing historical performance differs from the SEC’s method. The gross performance data shown in the table does not reflect the deduction of investment advisory fees paid by the accounts comprising the Acadian Composite or certain other expenses that would be applicable to mutual funds. To calculate the performance of the Acadian Composite net of expenses, the Advisor applied the net Fund operating expenses payable by the Retirement, Institutional, Administrative and Investor Classes of shares of the Fund for the fiscal year ended October 31, 2022, as applicable, as disclosed in the “Total Annual Fund Operating Expenses After Expense Reimbursement” line item of the Fund’s fee table in the Fund Summary section. The net performance data may be more relevant to potential investors in the Fund in their analysis of the historical experience of Acadian in managing portfolios with substantially similar investment strategies and techniques to those of the Fund.
The historical performance of the Acadian Composite is not that of Harbor International Core Fund and is not indicative of the Fund’s future results. The Fund’s actual performance may vary significantly from the past performance of the Acadian Composite. While the accounts comprising the Acadian Composite incur inflows and outflows of cash from clients, there can be no assurance that the continuous offering of the Fund’s shares and the Fund’s obligation to redeem its shares will not adversely impact the Fund’s performance. Also, not all of the accounts currently comprising the Acadian Composite are subject to certain investment limitations, diversification requirements and other restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. If these limitations, requirements and restrictions were applicable to all accounts in the Acadian Composite, they may have had an adverse effect on the performance results of the Acadian Composite. However, Acadian does not believe that such accounts would have been managed in a significantly different manner had they been subject to such investment limitations, diversification requirements and other restrictions.
ACADIAN composite* 
 
Average Annual Total Returns for the Periods Ended December 31, 2022:
 
1 Year
3 Years
5 Years
10 Years
Acadian Composite net of Retirement Class expenses
-15.76%
2.75%
1.88%
6.98%
Acadian Composite net of Institutional Class expenses
-15.83%
2.66%
1.80%
6.89%
Acadian Composite net of Administrative Class
expenses
-16.04%
2.41%
1.54%
6.63%
Acadian Composite net of Investor Class expenses
-16.13%
2.30%
1.43%
6.51%
Acadian Composite (gross)
-15.11%
3.54%
2.67%
7.81%
MSCI EAFE (ND) Index**
-14.45%
0.87%
1.54%
4.67%
 
 
Calendar Year Total Returns for the Periods Ended December 31:
 
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Acadian Composite net of
Retirement Class expenses
16.75%
26.14%
-2.05%
1.93%
5.95%
34.07%
-14.21%
17.05%
11.72%
15.26%
-15.76%
Acadian Composite net of
Institutional Class expenses
16.65%
26.04%
-2.13%
1.85%
5.87%
33.97%
-14.28%
17.86%
11.63%
15.16%
-15.83%
Acadian Composite net of
Administrative Class expenses
16.36%
25.72%
-2.38%
1.60%
5.60%
33.63%
-14.50%
17.56%
11.35%
14.88%
-16.04%
Acadian Composite net of Investor
Class expenses
16.23%
25.58%
-2.48%
1.49%
5.49%
33.48%
-14.59%
17.43%
11.21%
14.78%
-16.13%
Acadian Composite (gross)
17.65%
27.11%
-1.30%
2.72%
6.77%
35.11%
-13.55%
18.86%
12.59%
16.15%
-15.11%
MSCI EAFE (ND) Index**
17.32%
22.78%
-4.90%
-0.81%
1.00%
25.03%
-13.79%
22.01%
7.82%
11.26%
-14.45%
*
This is not the performance of Harbor International Core Fund. As of December 31, 2022, the Acadian Composite was composed of 17 accounts, totaling approximately $6.8 billion. The inception date of the Acadian Composite was January 1, 1995.
**
The MSCI EAFE (ND) Index is an unmanaged index generally representative of major overseas stock markets. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
94
Your Harbor Funds Account

Choosing a Share Class
 Other funds managed by the Advisor are offered by means of separate prospectuses. To obtain a prospectus for any of the Harbor Funds call 800-422-1050 or visit our website at harborcapital.com.
Each of the Harbor funds has multiple classes of shares, with each class representing an interest in the same portfolio of investments. However, the Funds’ separate share classes have different expenses and, as a result, their investment performances will differ. Harbor Funds, the Advisor, Harbor Funds Distributors, Inc. (the “Distributor”) and Harbor Services Group, Inc. (“Shareholder Services”) do not provide investment advice or recommendations or any form of tax or legal advice to existing or potential shareholders with respect to investment transactions involving the Funds. When choosing a share class, you should consider the factors below: 
Retirement Class
Retirement Class shares are available to individual and institutional investors.
 
◾ No 12b-1 fee and no intermediary fee of any kind paid by any Fund
 
◾ Transfer agent fee of up to 0.02% of average daily net assets
 
◾ $1,000,000 minimum investment in each Fund
 
Institutional Class
Institutional Class shares are available to individual and institutional investors.
 
◾ No 12b-1 fee
 
◾ Transfer agent fee of up to 0.10% of average daily net assets
 
◾ $50,000 minimum investment in each Domestic Equity Fund and
International and Global Equity Fund
 
◾ $1,000 minimum investment in each Fixed Income Fund
 
Administrative Class
Harbor Core Bond Fund does not offer Administrative Class shares.
Administrative Class shares are available only to employer-sponsored
retirement or benefit plans and other non-retirement accounts maintained
by financial intermediaries. Employer-sponsored retirement and benefit plans
include: (i) plans established under Internal Revenue Code Sections 401(a),
403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase
pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree
health benefit plans. Administrative Class shares are not available through
personal plans, such as individual retirement accounts (IRAs), SEP IRAs,
Simple IRAs or individual 403(b) plans, unless investing through an account
maintained by a financial intermediary.
 
◾ 12b-1 fee of up to 0.25% of average daily net assets
 
◾ Transfer agent fee of up to 0.10% of average daily net assets
 
◾ $50,000 minimum investment in each Fund for accounts maintained by
financial intermediaries
 
◾ No minimum investment for employer-sponsored retirement or benefit
plans
 
Investor Class
Harbor Core Bond Fund and Harbor Core Plus Fund do not offer Investor
Class shares. 
Investor Class shares are available to individual and institutional investors.
 
◾ 12b-1 fee of up to 0.25% of average daily net assets
 
◾ Transfer agent fee of up to 0.21% of average daily net assets
 
◾ $2,500 minimum investment in each Fund for regular accounts
 
◾ $1,000 minimum investment in each Fund for IRA and UTMA/UGMA
accounts
Meeting the minimum investment for a share class means you have purchased and maintained shares with a value at the time of purchase that is at least equal to that minimum investment amount. Redemptions out of your account can cause your account to fail to meet the minimum investment amount requirement. Changes in the market value of your account alone will not cause your account to either meet the minimum investment amount or fall below the minimum investment amount. See “Accounts Below Share Class Minimums”
Distribution and Service (12b-1) Fees
Harbor Funds has adopted a distribution plan for each Fund’s Administrative and Investor Classes of shares in accordance with Rule 12b-1 under the Investment Company Act of 1940. Under each plan, the Funds pay distribution and service fees to the Distributor for the sale, distribution and servicing of the Administrative and Investor Class shares. All or a substantial portion of these fees are paid to financial intermediaries, such as broker-dealers, banks and trust companies, that maintain accounts in Harbor Funds for their customers. Because the Funds pay these fees out of the Administrative and Investor Class
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Your Harbor Funds Account

Choosing a Share Class
assets on an ongoing basis, over time these fees will increase the cost of your investment in Administrative and Investor Class shares and may cost you more than paying other types of sales charges.
Transfer Agent Fees
The Funds pay Shareholder Services transfer agent fees (specified above) on a per-class basis for its services as shareholder servicing agent for each Fund. For each class except for the Retirement Class of shares, Shareholder Services uses a portion of these fees to pay unaffiliated financial intermediaries for providing certain recordkeeping, subaccounting and/or similar services to shareholders who hold their shares through accounts that are maintained by the financial intermediaries. These fees may consist of per fund or per sub-account charges that are assessed on a periodic basis (i.e., quarterly) and/or an asset based fee that is determined based upon the value of the assets maintained by the financial intermediary.
 
Investing Through a Financial Intermediary
You may purchase Fund shares through a financial intermediary, which may include banks, broker-dealers, or financial professionals, or an organization that provides recordkeeping and consulting services to 401(k) plans or other employee benefit plans. These intermediaries may charge you a fee for this service and may require different minimum initial and subsequent investments than Harbor Funds. They may also impose other charges or restrictions in addition to those applicable to shareholders who invest in the Funds directly.
The Distributor and Shareholder Services have contracted with certain intermediaries to accept and forward purchase orders to the Funds on your behalf. These contracts may permit a financial intermediary to forward the purchase order and transmit the funds for the purchase order to Harbor Funds by the next business day. Your purchase order must be received in good order by these intermediaries before the close of regular trading on the NYSE to receive that day’s share price.
The Distributor, Shareholder Services and/or the Advisor and their related companies have in the past and could in the future pay intermediaries for providing shareholder recordkeeping, subaccounting and other similar services to shareholders who hold their Institutional, Administrative and/or Investor Classes of shares of the Funds through accounts that are maintained by the intermediaries.
The Advisor has in the past and could in the future pay intermediaries for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems and data or other services related to the sale of Fund shares and related services, including making shares of a Fund and certain other Harbor funds available to their customers generally and in certain investment programs. Such payments, which may be significant to the intermediary or its representatives, are not made by a Fund. Rather, such payments are made by the Advisor or its affiliates from their own resources, which come directly or indirectly in part from fees paid by the Harbor fund complex. Payments of this type are sometimes referred to as revenue-sharing payments.
A financial intermediary may make decisions about which investment options it recommends or makes available, or the level of services provided, to its customers based on the payments or financial incentives it is eligible to receive. Therefore, such payments or other financial incentives offered or made to an intermediary create conflicts of interest between the intermediary (or its representatives) and its customers and may cause the intermediary to recommend a Fund or other Harbor funds over another investment. See the Statement of Additional Information for more information. Ask your sales representative or visit your financial intermediary’s website for more information.
Harbor Funds, the Advisor, the Distributor, Shareholder Services and their respective trustees, directors, officers, employees and agents are not responsible for the failure of any intermediary to carry out its obligations to its customers, including any errors made by the intermediary when submitting purchase, redemption and exchange orders to Harbor Funds. Harbor Funds will not correct transactions that are submitted to Harbor Funds in error by the intermediary unless the intermediary has notified Harbor Funds of the error by 9:00 a.m. Eastern time on the following business day or prior to the deadline established between Harbor and the intermediary (i.e., on a trade date plus one [T+1] basis).
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Your Harbor Funds Account

Minimum Investment Exceptions
Retirement Class
You may purchase Retirement Class shares, notwithstanding the $1,000,000 minimum investment amount, if you qualify for any of the exceptions discussed below. You may be required to provide written confirmation of your eligibility.
(a)
Employer-sponsored group retirement or benefit plans (with more than one participant) that maintain accounts with Harbor Funds at an omnibus or plan level, including: (i) plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, (ii) profit-sharing plans, cash balance plans and money purchase pension plans, (iii) non-qualified deferred compensation plans, and (iv) retiree health benefit plans.
(b)
Certain wrap or model-driven asset allocation program accounts for the benefit of clients of financial intermediaries, as approved by the Distributor.
(c)
Omnibus accounts maintained by financial intermediaries, including investment firms, banks and broker-dealers, provided that no asset-based fees are paid to such intermediaries with respect to assets invested in Retirement Class shares.
 
Institutional Class
You may purchase Institutional Class shares, notwithstanding the minimum investment amount, if you qualify for any of the exceptions discussed below. You may be required to provide written confirmation of your eligibility. All of the exceptions below apply to Equity Funds and exceptions (e) and (i) below apply to Fixed Income Funds.
(a)
Shareholders who held shares of Harbor Funds on October 31, 2002 and have maintained a balance in a Harbor Funds account (hereinafter referred to as “original shareholders” or “grandfathered shareholders”). You will lose your “grandfathered” status if you deplete your account to a zero balance.
(b)
Shareholders who received all or a portion of a grandfathered account due to death, divorce, a partnership dissolution, or as a gift of shares to a charitable organization.
(c)
Current officers, partners, employees or registered representatives of financial intermediaries which have entered into sales agreements with the Distributor.
(d)
Members of the immediate family living in the same household of any of the persons included in items (a), (b) or (c).
(e)
Current trustees and officers of Harbor Funds, partners and employees of legal counsel to Harbor Funds, directors, officers or employees of the Advisor and its affiliates, and current directors, officers, or employees of any Subadvisor to any Harbor Funds, and members of the immediate family of any of the foregoing.
(f)
Any trust, custodian, pension, profit-sharing or other benefit plan of the foregoing persons.
(g)
Employer-sponsored retirement plan participants that transfer into a separate account with Harbor Funds within 60 days from withdrawal out of their employer-sponsored retirement plan account at Harbor Funds.
(h)
Individuals that transfer directly into a separate account with Harbor Funds from an omnibus account at Harbor Funds, provided those individuals beneficially owned shares of the same Harbor fund through the omnibus account for a reasonable period of time, as determined by the Distributor, prior to the transfer.
(i)
Omnibus accounts, mutual fund advisory platforms and investment platforms via a custodian or clearing firm, and employer-sponsored plans.
(j)
Certain family trust accounts as approved by the Distributor.
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Your Harbor Funds Account

Minimum Investment Exceptions
Administrative Class
You may purchase Administrative Class shares, notwithstanding the $50,000 minimum investment amount, if you qualify for any of the exceptions discussed below. You may be required to provide written confirmation of your eligibility.
(a)
Employer-sponsored retirement or benefit plans, including: qualified retirement plans, plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, profit-sharing plans, cash balance plans, money purchase pension plans, nonqualified deferred compensation plans and retiree health benefit plans.
(b)
Omnibus accounts established by financial intermediaries where the investment in the Fund is expected to meet the investment minimum amount within a reasonable period of time as determined by the Distributor.
 
Investor Class
Harbor Funds may, in its discretion, waive or lower the investment minimum for the Investor Class of any Harbor fund.
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Your Harbor Funds Account

How to Purchase Shares
 
Harbor Funds will not accept cash, money orders, cashier’s checks, official checks, starter checks, third-party checks, credit card convenience checks, traveler’s checks or checks drawn on banks outside the U.S.
Harbor Funds does not issue share certificates.
All orders to purchase shares received in good order by Harbor Funds or its agent before the close of regular trading on the New York Stock Exchange (“NYSE”), usually 4:00 p.m. Eastern time, will receive that day’s share price. Orders received in good order after the close of the NYSE will receive the next business day’s share price. All purchase orders are subject to acceptance by Harbor Funds. Checks and funds sent by wire or Automated Clearing House (“ACH”) for direct purchases must be received by Harbor Funds prior to the close of regular trading of the NYSE to receive that day’s share price. See “Investing Through a Financial Intermediary” if you are purchasing shares through a financial intermediary.
Harbor Funds at all times reserves the right to reject any purchase for any reason without prior notice, including if Harbor Funds determines that a shareholder or client of an intermediary has engaged in excessive short-term trading that Harbor Funds believes may be harmful to the Fund involved. For more information about Harbor Funds’ policy on excessive trading, see “Excessive Trading/Market Timing.”
Harbor Funds reserves the right to verify the accuracy of the submitted banking information (ACH, wire) prior to activation of the banking instructions on your account. The verification may take as long as 10 business days.
The Funds are available for sale in all 50 United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam.
Harbor Small Cap Value Fund
Harbor Small Cap Value Fund (“Small Cap Value Fund”) is closed to new investors effective at 4:00 p.m. Eastern Time on Tuesday, June 1, 2021 (the “Small Cap Value Fund Close Date”). Small Cap Value Fund will continue to accept investments from existing shareholders and permit exchanges from other Harbor funds as long as the exchanging shareholder has an existing Small Cap Value Fund account. Shares of the Small Cap Value Fund will also continue to be sold to:
◾
Any participant in an employer-sponsored retirement or benefit plan that already includes the Small Cap Value Fund or has expressed in writing an interest in including the Small Cap Value Fund as an investment option on the Small Cap Value Fund Close date;
◾
Any participant in an employer-sponsored retirement or benefit plan who roll over into an IRA account with the Small Cap Value Fund some or all of the proceeds from a distribution if the participant held shares of the Small Cap Value Fund through such plan immediately prior to the distribution;
◾
Clients participating in retirement discretionary investment services, asset allocation programs sponsored by broker-dealers, banks, trust companies or other financial intermediaries, or as part of a financial advisors’ discretionary investment or financial planning services who currently uses the Small Cap Value Fund, provided the Small Cap Value Fund is offered through such a service or program on the Small Cap Value Fund Close Date;
◾
Certain institutional and financial intermediary investors and shareholders investing through such intermediaries which have expressed an interest in investing in the Small Cap Value Fund, if approved by an officer of the Trust;
◾
Other investment services or products managed by the Advisor, including multi-asset strategies;
◾
Certain advisory clients and affiliated parties of the Small Cap Value Fund’s Subadvisor upon the request of the Subadvisor if the investment is determined by an officer of the Trust not to adversely affect the Small Cap Value Fund; and
◾
Trustees and officers of the Trust and directors, officers and employees of the Advisor and the Small Cap Value Fund’s Subadvisor.
The Small Cap Value Fund will remain closed until further notice. The Small Cap Value Fund reserves the right to modify the foregoing closure policy at any time and to reject any investment for any reason.
 
By Mail
First class mail to:
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
Express or
registered mail to:
Harbor Funds
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302 
Open a new account
Add to an existing account
Complete and sign the appropriate new account
application. If you are an institution, include a certified
copy of a corporate resolution identifying authorized
signers.
Mail a completed Letter of Instruction or an
Additional Investments form (available from
harborcapital.com). The Additional Investments form
may also be included with your most recent
confirmation statement.
Make your check payable to: “Harbor Funds.”
Shares purchased by check may be sold on any business day but the proceeds may not be available for up to 10 business days after the purchase of such shares to make sure the funds from your account have cleared.
If your check does not clear for any reason, your purchase will be cancelled and $25 may be deducted from your account. You may also be prohibited from future purchases.
Harbor Funds and Shareholder Services are not responsible for any mail that is lost, delayed or misdirected by the U.S. Postal Service or any other delivery service.
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Your Harbor Funds Account

How to Purchase Shares
 
By Telephone
Call Harbor Funds at:
800-422-1050
Please make note of your confirmation number when transacting via the telephone.
Add to an existing account
You may submit orders for the purchase of shares by contacting a Shareholder Services Representative during our normal business hours, Monday through Friday between 8:00 a.m. and 6:00 p.m. Eastern time. If your order is submitted on a day that the NYSE is not open for regular trading, or if it is submitted after the close of regular trading on the NYSE, it will be effected, subject to acceptance, with the next business day’s share price.
Payment for purchase of shares via the telephone may be made only through an ACH debit of your bank account. If your ACH transaction does not clear, your purchase will be cancelled and a service fee of $25 may be deducted from your account. You may be prohibited from future telephone purchases.
Shares purchased via the telephone may be sold on any business day but the proceeds may not be available for up to 3 business days after the purchase of such shares to make sure the funds from your account have cleared.
If you are unable to reach a Shareholder Services Representative by telephone (for example, during unusual market activity), you may send the purchase request by mail or via our website.
You must establish banking instructions on your account to purchase shares via the telephone. If banking instructions were not established at the time you opened your account, you can do this via telephone or in one of the following ways: (1) log in to your Harbor Funds account online and follow the menu steps to establish banking instructions, (2) complete the Account Services form through the DocuSign option at harborcapital.com, (3) or download the Account Services form return that form to Harbor Funds by mail.
 
By Wire
Wire to:
State Street Bank and
Trust Company
Boston, MA
ABA#: 0110 0002 8
Acct: DDA #3018-065-7 Supply Fund name, Fund number, account registration and account number 
Open a new account
Add to an existing account
Send the completed account application to
Shareholder Services at the address listed under
“By Mail.”
Instruct your bank to wire the amount of the
additional investment to State Street Bank and Trust
Company.
Instruct your bank to wire the purchase amount to
State Street Bank and Trust Company.
 
Call a Shareholder Services Representative at 800-422-1050 if you are sending a wire of $100,000 or more.
 
Online Access
Visit our website:
harborcapital.com
Please make note of your confirmation number when transacting online.
Add to an existing account
If you have established online access for your account, you may submit an order to purchase shares via our website 24 hours a day. If your order is submitted on a day that the NYSE is not open for regular trading, or if it is submitted after the close of regular trading on the NYSE, it will be effected, subject to acceptance, with the next business day’s share price.
Payment for purchase of shares through online access may be made only through an ACH debit of your bank account. If your ACH transaction does not clear, your purchase will be cancelled and $25 may be deducted from your account. You may be prohibited from future online purchases.
Shares purchased through online access may be sold on any business day, but the proceeds may not be available for up to 3 business days after the purchase of such shares to ensure the funds from your account have cleared.
If you are unable to access our website (for example, during unusual market activity), you may call a Shareholder Services Representative during normal business hours or send the purchase request by mail.
You must establish banking instructions on your account to purchase shares through the online account access system. If banking instructions were not established at the time you opened your account, you may add them to your account via the online account access system, by calling a Shareholder Services Representative at 800-422-1050 during our normal business hours, or you may download the Account Services form from our website at harborcapital.com and send it by mail.
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Your Harbor Funds Account

How to Exchange Shares
 
An exchange is a redemption of shares from one Harbor fund and a purchase of shares into another Harbor fund.
Exchanges are taxable transactions for shareholders that are subject to tax, and you may realize a gain or a loss.
Class-to-class exchanges within the same Fund, however, are generally not taxable.
All orders to exchange shares received in good order by Harbor Funds or its agent before the close of regular trading on the NYSE, usually 4:00 p.m. Eastern time, will receive that day’s share price. Orders received in good order after the close of the NYSE will receive the next day’s share price. All exchanges are subject to acceptance by Harbor Funds.
The exchange privilege is not intended as a means for short-term or excessive trading. Harbor Funds at all times reserves the right to reject the purchase portion of any exchange transaction for any reason without prior notice if Harbor Funds determines that a shareholder or client of an intermediary has engaged in excessive short-term trading that Harbor Funds believes may be harmful to a Fund. For more information about Harbor Funds’ policy on excessive trading, see “Excessive Trading/Market Timing.”
Exchanges must meet the applicable minimum initial investment amounts for each class of shares of each Harbor fund. You should consider the differences in investment objectives and expenses of a Harbor fund before making an exchange.
Harbor Funds may change or terminate its exchange policy on 60 days’ prior notice.
Retirement CLASS SHAREHOLDERS
The Retirement Class of shares is available to both individual and institutional investors who meet the minimum investment and other eligibility requirements.
You may exchange your shares of the Retirement Class for Retirement Class shares of any other Harbor fund. In addition, you may exchange your shares of the Retirement Class for shares of the Institutional, Administrative or Investor Class of another Harbor fund subject to the eligibility and minimum investment requirements for the Fund and class to be acquired.
Institutional CLASS SHAREHOLDERS
This class of shares is available to both individual and institutional investors who meet the minimum investment requirement.
If you are an original shareholder (a shareholder of any Harbor fund as of October 31, 2002), you may exchange your Institutional Class shares for Institutional Class shares of any Harbor fund.
If you are not an original shareholder or do not qualify for another exception, you must meet the minimum initial investment requirements for each Fund.
You may exchange your shares of the Institutional Class for shares of the Retirement Class of another Harbor fund subject to the eligibility and minimum investment requirements for the Fund to be acquired.
Administrative CLASS SHAREHOLDERS
You may exchange your shares of the Administrative Class for Administrative Class shares of any other Harbor fund available through your retirement plan or financial intermediary. In addition, you may exchange your shares of the Administrative Class for shares of either the Institutional or Investor Class of another Harbor fund if such class of shares is available through your retirement plan or financial intermediary.
Investor CLASS SHAREHOLDERS
If you are an Investor Class shareholder, you may exchange your shares for Investor Class shares of another Harbor fund and for Institutional Class shares of any Harbor fund that does not currently offer Investor Class shares. Your exchanges out of any Harbor fund that does not currently offer Investor Class shares into another Harbor fund would be subject to the eligibility and minimum investment requirements for the Fund and class to be acquired.
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Your Harbor Funds Account

How to Exchange Shares
By Mail
First class mail to:
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
Express or
registered mail to:
Harbor Funds
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
You may mail an exchange request to Shareholder Services. Indicate the Fund name, the Fund number, the number of shares or dollar amount to be exchanged and the account number. Sign the request exactly as the account holder’s name(s) appear on the account registration.
Harbor Funds and Shareholder Services are not responsible for any mail that is lost, delayed or misdirected by the U.S. Postal Service or any other delivery service.
 
By Telephone
Call Harbor Funds at:
800-422-1050
Please make note of your confirmation number when transacting via the telephone.
If your account has telephone exchange privileges, you may contact a Shareholder Services Representative during our normal business hours, Monday through Friday between 8:00 a.m. and 6:00 p.m. Eastern time. If your order is submitted on a day that the NYSE is not open for regular trading, or if it is submitted after the close of regular trading on the NYSE, it will be effected, subject to acceptance, with the next business day’s share price.
If you are unable to reach a Shareholder Services Representative by telephone (for example, during unusual market activity), you may send the exchange request by mail or via our website.
 
Online Access
Visit our website:
harborcapital.com
Please make note of your confirmation number when transacting online.
If you have established online access, you may submit an order to exchange shares via our website 24 hours a day. If your order is submitted on a day that the NYSE is not open for regular trading, or if it is submitted after the close of regular trading on the NYSE, it will be effected, subject to acceptance, with the next business day’s share price.
If you are unable to access our website (for example, during unusual market activity), you may call a Shareholder Services Representative during normal business hours or send the exchange request by mail.
102
Your Harbor Funds Account

How to Sell Shares
 
Redemptions are taxable transactions for shareholders that are subject to tax, and you may realize a gain or a loss. Certain shareholders may be subject to backup withholding.
A Medallion signature guarantee may be required. See “Shareholder and Account Policies” for more information.
All orders to sell shares received in good order by Harbor Funds or its agent before the close of regular trading on the NYSE, usually 4:00 p.m. Eastern time, will receive that day’s share price. Orders received in good order after the close of the NYSE will receive the next business day’s share price. Harbor Funds has the right to suspend redemptions of shares and to postpone payment of proceeds for up to seven days, as permitted by law. Proceeds of the redemption (reduced by the amount of any tax withholding, if applicable) will be mailed by check payable to the shareholder of record at the address of record, wired or sent via ACH to the current banking instructions already on file.
The length of time Harbor Funds typically expects to pay proceeds from redemption requests varies based on the method by which you elect to receive the proceeds. Harbor Funds typically expects to pay redemption proceeds as follows: (i) for proceeds by check, Harbor Funds typically expects to mail the check by the next business day following the receipt of a redemption request that is in good order; (ii) for proceeds by wire, Harbor Funds typically expects to pay proceeds by the next business day following the receipt of a redemption request that is in good order; and (iii) for proceeds by ACH, Harbor Funds typically expects to transfer the proceeds to the shareholder’s bank on the next business day following the receipt of the redemption request which will be made available to the redeeming shareholder on the second business day. For redemption requests settled through the National Securities Clearing Corporation, Harbor Funds typically expects the redemption transaction to settle (and proceeds to be paid) the next business day following the receipt of the redemption request in good order. For redemptions through an intermediary, Harbor Funds typically expects to pay redemption proceeds to the intermediary in accordance with the preceding statement. As previously noted, payments of redemption proceeds may take up to seven days, as permitted by law.
If withholding information on IRA redemption requests is not specified, Harbor Funds will withhold the mandatory federal amount (currently 10%) and any applicable state amount.
For information about Harbor Funds’ policy on excessive trading, see “Excessive Trading/Market Timing.”
Harbor Funds and Shareholder Services do not pay interest on redemption proceeds.
Redemption proceeds, except for IRA redemption proceeds, sent by check that are not cashed within 180 days may be reinvested (without interest), in your account in the same Fund from which they were redeemed at the current day’s net asset value (“NAV”). Redemption proceeds that are reinvested are subject to the risk of loss like any Fund investment. Additionally, if redemption checks are not cashed within 180 days, your account options will be changed to have future dividend and capital gains distributions reinvested.
 
By Mail
First class mail to:
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
Express or
registered mail to:
Harbor Funds
111 South Wacker Drive
34th Floor
Chicago, IL 60606-4302
You may mail a written redemption request to Shareholder Services. State the Fund name, the Fund number, the number of shares or dollar amount to be sold and the account number. Sign the request exactly as the name or names (if more than one name) appear on the account registration.
Harbor Funds and Shareholder Services are not responsible for any mail that is lost, delayed or misdirected by the U.S. Postal Service or any other delivery service.
 
By Telephone
Call Harbor Funds at:
800-422-1050
Please make note of your confirmation number when transacting via the telephone.
If your account has telephone redemption privileges, you may contact a Shareholder Services Representative during our normal business hours, Monday through Friday between 8:00 a.m. and 6:00 p.m. Eastern time. If your order is submitted on a day that the NYSE is not open for regular trading, or if it is submitted after the close of regular trading on the NYSE, it will be effected, subject to acceptance, with the next business day’s share price.
Redemptions via the telephone will be paid by check, wire or ACH transfer only to the address or bank account of record.
Shares purchased via the telephone may be sold on any business day, but the proceeds may not be available for up to 3 business days after the purchase of such shares to make sure the funds from your account have cleared.
If you are unable to reach a Shareholder Services Representative by telephone (for example, during unusual market activity), you may send the redemption request by mail or via our website.
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Your Harbor Funds Account

How to Sell Shares
 
Online Access
Visit our website:
harborcapital.com
Please make note of your confirmation number when transacting online.
If you have established online access, you may submit an order to redeem shares via our website 24 hours a day. If your order is submitted on a day that the NYSE is not open for regular trading, or if it is submitted after the close of regular trading on the NYSE, it will be effected, subject to acceptance, with the next business day’s share price.
Redemptions through online access will be paid by check, wire or ACH transfer only to the address or bank account of record.
Shares purchased through online access may be sold on any business day, but the proceeds may not be available for up to 3 business days after the purchase of such shares to ensure the funds from your account have cleared.
If you are unable to access our website (for example, during unusual market activity), you may call a Shareholder Services Representative during normal business hours or send the redemption request by mail.
104
Shareholder and Account Policies
Transaction and Account Policies
Important Information About Opening an Account
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions, including Harbor Funds, to obtain, verify and record information that identifies each person who opens an account. This information is used to determine whether such person’s name appears on government lists of known or suspected terrorists and terrorist organizations or is from a sanctioned country or associated with a sanctioned entity. As a result, unless this information is collected by the broker/dealer or other financial intermediary pursuant to an agreement, Harbor Funds must obtain the following information for each person that opens a new account:
◾
Name;
◾
Date of birth (for individuals);
◾
Residential or business street address (although post office boxes may be used as a mailing address); and
◾
Social Security number, taxpayer identification number or other identifying number.
You may also be asked for a copy of your driver’s license, passport or other identifying document in order to verify your identity. In addition, it may be necessary to verify your identity by cross-referencing your identification information with a consumer report or other electronic database. Additional information may be required to open accounts for corporations and other legal entities.
Legal entity customers are required to provide the name, date of birth, address and social security number (or other government identification number such as a passport number or other similar information in the case of foreign persons) of individual(s), referred to as “beneficial owner(s)”, who own 25% or more of the equity interest of the legal entity, as applicable, and an individual with significant responsibility to control, manage or direct the legal entity at the time that a new account is opened.
Federal law prohibits Harbor Funds and other financial institutions from opening a new account unless they receive the minimum identifying information listed above. After an account is opened, Harbor Funds may restrict your ability to purchase additional shares until your identity is verified. Harbor Funds may close your account or take other appropriate action if they are unable to verify your identity within a reasonable time. If your account is closed for this reason, your shares will be redeemed at the NAV next calculated after the account is closed. If the NAV on the redemption date is lower than the NAV on your original purchase date, you will receive less than your original investment amount when the account is closed.
Rights Reserved by Harbor Funds
Harbor Funds reserves the following rights: (1) to accept initial purchases by telephone, online access, or mail; (2) to refuse any purchase or exchange order for any reason; (3) to cancel or rescind a purchase order for non-payment; (4) to cease offering a Fund’s shares at any time to all or certain groups of investors; (5) to freeze any account and suspend account services when notice has been received of a dispute between the registered or beneficial account owners, or there is reason to believe a fraudulent transaction may occur; (6) to otherwise modify the conditions of purchases and any services at any time; (7) to act on instructions reasonably believed to be genuine; and (8) to involuntarily redeem your account at the net asset value calculated the day the account is redeemed if a Fund or its agent is unable to verify the identity of the person(s) or entity opening an account or becomes aware of information regarding a shareholder or shareholder’s account, which indicates that the identity of the shareholder can no longer be verified.
These actions will be taken when, in the sole discretion of management, they are deemed to be in the best interest of the Fund or if required by law.
If the NYSE is closed because of inclement weather, technology problems or any other reason on a day it would normally be open for business, or the NYSE has an unscheduled early closing on a day it has opened for business, Harbor Funds reserves the right to treat such day as a business day and accept purchase and redemption orders until (and calculate a Fund’s NAV as of) the normally scheduled close of regular trading on the NYSE for that day.
Important Information Regarding State Escheatment Laws
Mutual fund accounts can be considered abandoned property. States are looking at inactive mutual fund accounts as possible abandoned or unclaimed property. Under certain circumstances determined by your state, Harbor Funds may be legally obligated to escheat (or transfer) an investor’s account to the appropriate state’s unclaimed property administrator. Harbor Funds will not be liable to investors or their representatives for good faith compliance with state unclaimed or abandoned property (escheatment) laws. If you invest in a Fund through a financial intermediary, we encourage you to contact the financial intermediary regarding applicable state escheatment laws.
Escheatment laws vary by state, and states have different criteria for defining inactivity and abandoned property. Generally, a mutual fund account may be subject to “escheatment” (i.e., considered to be abandoned or unclaimed property) if the account owner has not initiated any activity in the account or established
105
Shareholder and Account Policies
contact with a Fund for an “inactivity period” as specified in applicable state laws. If a Fund is unable to establish contact with an investor, the Fund will determine whether the investor’s account must legally be considered abandoned and whether the assets in the account must be transferred to the appropriate state’s unclaimed property administrator. Typically, an investor’s last known address of record determines the state that has jurisdiction.
Shareholders that reside in the state of Texas may designate a representative to receive escheatment notifications by completing and submitting a designation form that can be found on the website of the Texas Comptroller. Other states may provide similar processes for shareholders.
Retirement accounts that are considered abandoned may be subject to state and federal withholding in addition to an early withdrawal penalty, if applicable, upon remittance to the state in which the account is registered.
We strongly encourage you to contact us at least once every year to review your account information. Below are ways in which you can assist us in safeguarding your Fund investments.
◾
If you have established online access for your account, log in to your account at harborcapital.com to view your account information. Please note, simply visiting our public website does not establish contact with us under state escheatment laws.
◾
Call one of our Shareholder Services Representatives at 800-422-1050, Monday through Friday, between 8:00 a.m. and 6:00 p.m. Eastern time.
◾
Take action on letters received in the mail from Harbor Funds concerning account inactivity, outstanding checks and/or escheatment or abandoned property and follow the directions in these letters. To avoid escheatment, we advise that you promptly respond to any such letters.
Excessive Trading/Market-Timing
Some investors try to profit from a strategy called market-timing — moving money into mutual funds for the short-term when they expect prices to rise and taking money out when they expect prices to fall. The Funds are intended for long-term investment purposes only. Harbor Funds has taken reasonable steps to identify and seek to discourage excessive short-term trading.
Excessive short-term trading into and out of a Fund can disrupt portfolio investment strategies, increase expenses, and negatively impact investment returns for all shareholders, including long-term shareholders who do not generate these costs. Certain Funds invest a significant portion of their assets in small cap stocks, stocks of emerging market companies or high-yield bonds. Some of these holdings may not trade every day or may not trade frequently throughout a trading day. As a result, these Funds may be more susceptible to a short-term trading strategy by which an investor seeks to profit based upon the investor’s belief that the values of a Fund’s portfolio securities, as reflected by the Fund’s net asset value on any given day, do not fully reflect the current fair market value of such securities. In the case of Funds that invest primarily in foreign securities, some investors may also seek to profit from the fact that foreign markets or exchanges normally close earlier in the day than U.S. markets or exchanges. These investors may seek to take advantage of information that becomes available after the close of the foreign markets or exchanges, but before a Fund prices its shares, which may affect the prices of the foreign securities held by the Fund. If those investors are successful, long-term shareholders could experience dilution in the value of their shares.
The Board of Trustees has adopted policies and procedures and has authorized Harbor Funds to take the following actions to discourage excessive short-term trading activity in the Funds.
You may make no more than four round trips in the same Fund in any 12-month period. A “round trip” is a purchase into a Fund followed by a redemption out of the same Fund (including by exchange) or a redemption out of a Fund (including by exchange) followed by a purchase into the same Fund within a 30-day period. When a purchase or redemption transaction is paired with another transaction to make one round trip, neither of those transactions is paired with a third transaction to make a second round trip. For example, if a shareholder purchases shares of a Fund on May 1, redeems those shares of the same Fund on May 15 and then purchases shares in the same Fund again on June 5, the shareholder would have engaged in one round trip. The purchase on May 1 would be paired with the redemption on May 15 because the transactions occurred within a 30-day period. However, the redemption on May 15 would not be paired with the purchase on June 5 to create a second round trip because the May 15 redemption already constituted part of the earlier round trip. Different restrictions may apply if you invest through an intermediary.
Harbor Funds will limit, for a period of 60 days, future purchases into a Fund by any investor who makes more than four round trips in the same Fund in a 12-month period. Harbor Funds monitors trading activity in all accounts maintained directly with Harbor Funds. If Harbor Funds discovers what it believes to be excessive trading or market timing activity in any Fund, it may limit future purchases or terminate the exchange privilege for a shareholder on a temporary or permanent basis at any time, including after one round trip. Harbor Funds may also prohibit a shareholder from opening new accounts or adding to existing
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Shareholder and Account Policies
accounts in any Harbor fund. The trading history of accounts under common ownership or control within any of the Funds may be considered in enforcing these policies. As described under “Pricing of Fund Shares,” Harbor Funds has also implemented fair value pricing procedures, which may have the effect of reducing market timing activity in some Funds. In addition, the Funds reserve the right to reject any purchase request (including the purchase portion of any exchange) by any investor or group of investors for any reason without prior notice, including, if they believe the trading activity in the account(s) would be harmful or disruptive to a Fund. For example, a Fund may refuse a purchase order if the Fund’s portfolio manager believes he or she would be unable to invest the money effectively in accordance with the Fund’s investment policies or the Fund would otherwise be adversely affected due to the size of the transaction, frequency of trading or other factors. Purchases placed (directly or through a financial intermediary) in violation of the Funds’ exchange limits or excessive trading policy may be rejected by a Fund.
The four round trip limitation imposed under the excessive trading policy does not apply to (i) minimum required distributions from retirement accounts; (ii) return of excess contributions in retirement accounts where the excess is reinvested into the same Funds; (iii) purchases of shares in retirement accounts with participant payroll or employer contributions or loan repayments; (iv) transaction requests submitted by mail to Harbor Funds from shareholders who hold their accounts directly with Harbor Funds (transactions submitted by fax or wire are not considered mail transactions); (v) transactions involving the reinvestment of dividend and capital gains distributions; (vi) transactions initiated through an automatic investment, exchange or withdrawal plan; (vii) transactions pursuant to an automatic rebalancing or asset allocation program established with Harbor Funds; (viii) transactions involving the transfer of shares from one account to another account of the same shareholder in the same Fund and the conversion of shares from one class to another class in the same Fund; (ix) transactions initiated by a plan sponsor; (x) Section 529 College Savings Plans; (xi) Harbor funds that invest in other Harbor funds; (xii) involuntary redemptions of shares to pay Fund or account fees; (xiii) transactions below a dollar amount applicable to all accounts in a Fund that Harbor has determined, in its sole discretion, are not likely to adversely affect the management of the Fund; and (xiv) omnibus accounts maintained by financial intermediaries.
When financial intermediaries establish omnibus accounts with Harbor Funds, Harbor Funds monitors trading activity in the account at the omnibus level. Because activity in the omnibus account represents the aggregate trading activity of the intermediary’s underlying customers, Harbor Funds monitors trading activity in omnibus accounts in a different manner than it does in accounts which Harbor Funds believes are owned directly by the investor. If Harbor Funds detects what it believes may be excessive short-term trading or market timing activity in an omnibus account, Harbor Funds will seek to investigate and take appropriate action. This may include requesting that the intermediary provide its customers’ underlying transaction information so that Harbor Funds can assess whether an underlying customer’s transaction activity was reflective of excessive short-term trading or market timing activity. If necessary, Harbor Funds may limit or prohibit additional purchases of Fund shares by an intermediary or by certain of the intermediary’s customers. Because Harbor Funds normally monitors trading activity at the omnibus account level, Harbor Funds may not be able to detect or prevent excessive short-term trading or market timing activity at the underlying customer level.
In addition, certain financial intermediaries may impose restrictions on short-term trading that may differ from those of Harbor Funds. Harbor Funds may choose to rely on the intermediary’s restrictions on short-term trading in place of its own if Harbor Funds determines, in its discretion, that the intermediary’s restrictions provide reasonable protection for the Funds from excessive short-term trading activity.
Pricing of Fund Shares
Each Fund’s share price, called its net asset value (NAV) per share, is generally calculated each day the NYSE is open for trading as of the close of regular trading on the NYSE, generally 4:00 p.m. Eastern time. The NAV per share for each class of shares outstanding is computed by dividing the net assets of the Fund attributable to that class by the number of Fund shares outstanding for that class. On holidays or other days when the NYSE is closed, the NAV is generally not calculated and the Funds generally do not transact purchase or redemption requests. However, on those days the value of a Fund’s assets may be affected to the extent that the Fund holds foreign securities that trade on foreign markets that are open.
If the NYSE is closed because of inclement weather, technology problems or any other reason on a day it would normally be open for business, or the NYSE has an unscheduled early closing on a day it has opened for business, Harbor Funds reserves the right to treat such day as a business day and accept purchase and redemption orders until, and calculate a Fund’s NAV as of, the normally scheduled close of regular trading on the NYSE for that day, so long as the Advisor believes there generally remains an adequate market to obtain reliable and accurate market quotations. Harbor Funds may elect to remain open and price Fund shares on days when the NYSE is closed but the primary securities markets on which the Funds’ securities trade remain open.
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Shareholder and Account Policies
Investments are valued pursuant to valuation procedures approved by the Board of Trustees. The valuation procedures permit the Advisor to use a variety of valuation methodologies, consider a number of subjective factors, analyze applicable facts and circumstances and, in general, exercise judgment, when valuing Fund investments.  The methodology used for a specific type of investment may vary based on the circumstances and relevant considerations, including available market data. As a general matter, accurately fair valuing investments is difficult and can be based on inputs and assumptions that may not always be correct.
Each Fund generally values portfolio securities and other assets for which market quotes are readily available at market value for purposes of calculating the Fund’s NAV. In the case of equity securities, market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on quotes obtained from a quotation reporting system, established market makers, or independent pricing vendors. In the case of fixed income securities and non-exchange traded derivative instruments, fair market value is generally determined using prices provided by independent pricing vendors. The prices provided by independent pricing vendors reflect the pricing vendor’s assessment using various market inputs of what it believes are the fair market values of the securities at the time of pricing. Those market inputs include recent transaction prices and dealer quotations for the securities, transaction prices for what the independent pricing vendor believes are similar securities and various relationships between factors such as interest rate changes and security prices that are believed to affect the prices of individual securities. Because many fixed income securities trade infrequently, the independent pricing vendor often does not have as a market input, current transaction price information when determining a price for a particular security on any given day. When current transaction price information is available, it is one input into the independent pricing vendor’s evaluation process, which means that the price supplied by the pricing vendor may differ from that transaction price. Short-term fixed income investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair value. Exchange-traded options, futures and options on futures are generally valued at the settlement price determined by the relevant exchange.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from independent pricing vendors. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and an investor is not able to purchase, redeem or exchange shares.
When reliable market quotations or prices supplied by an independent pricing vendor are not readily available or are not believed to accurately reflect fair value, securities are generally priced at their fair value, determined according to fair value pricing procedures adopted by the Board of Trustees. A Fund may also use fair value pricing if the value of some or all of the Fund’s securities have been materially affected by events occurring before the Fund’s pricing time but after the close of the primary markets or exchanges on which the security is traded. This most commonly occurs with foreign securities, but may occur with other securities as well. When fair value pricing is employed, the prices of securities used by a Fund to calculate its NAV may differ from market quotations, official closing prices or prices supplied by an independent pricing vendor for the same securities. This means a Fund may value those securities higher or lower than another given fund that uses market quotations, official closing prices or prices supplied by an independent pricing vendor. The fair value prices used by a Fund may also differ from the prices that the Fund could obtain for those securities if the Fund were to sell those securities at the time the Fund determines its NAV.
Current day share prices are normally available after 7:00 p.m. Eastern time at harborcapital.com.
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Shareholder and Account Policies
Paying for Shares by Check
If you purchase Fund shares by check:
◾
Make your check payable to: “Harbor Funds.”
◾
No third-party checks, starter checks, money orders, cashier’s checks, official checks, credit card convenience checks, traveler’s checks or checks drawn on banks outside the U.S. are accepted.
◾
If your check does not clear for any reason, your purchase will be cancelled and a service fee of $25 may be deducted from your Harbor Funds account. You also may be prohibited from future purchases.
◾
Although you can redeem shares at any time, proceeds may not be made available to you until the Fund collects payment for your purchase. This may take up to 10 business days for shares purchased by check, up to 3 business days for shares purchased by ACH or up to 1 business day for shares purchased by wire.
In-Kind Redemptions
Harbor Funds agrees to redeem shares of each Fund solely in cash up to the lesser of $250,000 or 1% of the NAV of the Fund during any 90-day period for any one shareholder. Harbor Funds reserves the right to pay redemptions exceeding $250,000 or 1% of the NAV of the redeeming Fund, either totally or partially, by an in-kind redemption of securities (instead of cash) from the applicable Fund. The securities redeemed in-kind would be valued for this purpose by the same method as is used to calculate the Fund’s NAV per share. Redemptions, whether made in cash or in-kind, are taxable transactions for those shareholders who are subject to tax. If you receive an in-kind redemption, you should expect to incur transaction costs. You also may incur an additional tax liability upon the disposition of the securities received in the redemption.
Methods to Meet Redemption Requests
In order to meet redemption requests, Harbor Funds typically expects to use holdings of cash or cash equivalents and/or proceeds from the sale of portfolio holdings. On a less regular basis, a Fund may meet redemption requests by accessing a custodian overdraft facility, borrowing through Harbor Funds’ interfund lending program, or borrowing through other sources. These methods may be used during both normal and stressed conditions. In addition, Harbor Funds reserves the right to pay redemption proceeds in-kind as described above.
Accounts Below Share Class Minimums
If your account balance falls below the required minimum investment due to redemptions and/or exchanges out of the class of shares in which you are invested, Shareholder Services may request that the account balance be increased. If your account balance is not increased within 60 days, Harbor Funds reserves the right to redeem your account in full at the then-current NAV or the account may be moved into a share class that has a lower minimum investment. If you are an Institutional Class investor and do not maintain the required minimum investment, Harbor Funds reserves the right to exchange your Institutional Class shares at the then-current NAV for shares of that Fund’s Investor Class.  If you are a Retirement Class investor and do not maintain the required minimum investment, Harbor Funds reserves the right to exchange your Retirement Class shares at the then-current NAV for shares of that Fund’s Institutional Class. 
Shareholders seeking to establish accounts with amounts that are below the $50,000 Institutional Class required minimum investment for the applicable Harbor fund and who are not eligible for an exemption or waiver of this minimum will automatically be invested in the Investor Class shares for that Fund.
Statements and Reports
You will receive a confirmation statement from Harbor Funds after each transaction affecting your account unless your account is maintained by a financial intermediary. Shareholders participating in an automatic plan, however, will receive only quarterly confirmations for all transactions occurring during the relevant quarter. Dividend information will be confirmed quarterly. You should verify the accuracy of your confirmation statements immediately after you receive them and contact a Shareholder Services Representative regarding any errors or discrepancies.
Each Fund produces financial reports, which includes a list of the Fund’s portfolio holdings semi-annually, and updates its prospectus at least annually.
Unless you instruct Harbor Funds otherwise by contacting a Shareholder Services Representative, Harbor Funds will mail only one financial report, prospectus or proxy statement to shareholders with the same last name in your household, even if more than one person in your household has a Harbor Funds account. This process is known as “householding.” Please call a Shareholder Services Representative at 800-422-1050 if you would like to receive additional copies of these documents. Individual copies will be sent within 30 days after Shareholder Services receives your instructions. Your consent to householding is considered valid until revoked.
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Shareholder and Account Policies
Signature Guarantees
Harbor Funds believes that certain redemption instructions may involve a greater risk of potential fraud. In seeking to ensure that the redemption instructions are genuine, Harbor Funds requires that the shareholder obtain and provide a Medallion signature guarantee to Harbor Funds with the instructions. A Medallion signature guarantee assures that a signature is genuine and protects shareholders from unauthorized account transfers.
A Medallion signature guarantee is required if any of the following are applicable:
◾
You would like a check made payable to anyone other than the shareholder(s) of record.
◾
You would like a check mailed to an address that has been changed within 10 business days of the redemption request.
◾
You would like a check mailed to an address other than the address of record.
◾
You would like your redemption proceeds sent by wire or ACH to a bank account that has been changed on Harbor Funds’ records within 10 business days of the redemption request or to an account other than a bank account of record.
Harbor Funds may waive or require a Medallion signature guarantee under certain circumstances at Harbor Funds’ sole discretion. Harbor Funds may also accept or require a Signature Validation stamp (SVP) under certain circumstances at Harbor Funds’ sole discretion.
A Medallion signature guarantee may be refused if any of the following are applicable:
◾
It does not appear valid or in good form.
◾
The transaction amount exceeds the surety bond limit of the Medallion guarantee.
◾
The guarantee stamp has been reported as stolen, missing or counterfeit.
How to Obtain a Medallion Signature Guarantee
A Medallion signature guarantee may be obtained from a domestic bank or trust company, broker, dealer, clearing agency, savings association, or other financial institution which participates in a Medallion program recognized by the Securities Transfer Association. Signature guarantees from financial institutions that do not participate in a Medallion program will not be accepted. A signature guarantee cannot be provided by a notary public.
If you are a Harbor Funds shareholder and are visiting outside the United States, a foreign bank properly authorized to do business in that country or a U.S. consulate may be able to authenticate your signature. In its discretion, Shareholder Services may accept such an authentication in lieu of a Medallion signature guarantee.
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Shareholder and Account Policies
 
You may receive dividends and capital gains distributions in cash or reinvest them. Dividends and capital gains distributions will be reinvested in additional shares of the same Fund unless you elect otherwise.
This Prospectus provides general tax information only. You should consult your tax adviser about particular federal, state, local or foreign taxes that may apply to you. If you are investing through a tax-deferred retirement account, such as an IRA, special tax rules apply.
Dividends, Distributions and Taxes
Each Fund expects to distribute all or substantially all of its net investment income and realized capital gains, if any, each year. Each Fund, except as indicated below, declares and pays any dividends from net investment income and capital gains at least annually in December. Harbor Core Bond Fund and Harbor Core Plus Fund declare and pay any dividends from net investment income monthly. Harbor Convertible Securities Fund and Harbor Large Cap Value Fund declare and pay any dividends from net investment income quarterly. Each Fund may also pay dividends and capital gain distributions at other times if necessary to avoid federal income or excise tax. Each Fund expects distributions, if any, to be from capital gains and/or net investment income.
For U.S. federal income tax purposes, distributions of net long-term capital gains are taxable as long-term capital gains which may be taxable at different rates depending on their source and other factors. Distributions of net short-term capital gains are taxable as ordinary income. Dividends from net investment income are taxable either as ordinary income or, if so reported by a Fund and certain other conditions (including holding period requirements) are met by the Fund and the shareholder, as “qualified dividend income” (“QDI”). QDI is taxable to individual shareholders at a maximum rate of 15% or 20% for U.S. federal income tax purposes (depending on whether the individual’s income exceeds certain threshold amounts). More information about QDI is included in the Funds’ Statement of Additional Information. Dividends and capital gains distributions are taxable whether you receive them in cash or reinvest them in additional Fund shares.
Generally, you should avoid investing in a Fund shortly before an anticipated dividend or capital gain distribution. If you purchase shares of a Fund just before the distribution, you will pay the full price for the shares and receive a portion of the purchase price back as a taxable distribution. Dividends paid to you may be included in your gross income for tax purposes, even though you may not have participated in the increase in the NAV of the Fund. This is referred to as “buying a dividend.” For example: On December 16, you invest $5,000, buying 250 shares for $20 each. If the Fund pays a distribution of $1 per share on December 17, the Fund’s net asset value per share will drop to $19 (excluding any market value change). You would still have an investment worth only $5,000 (250 shares x $19 = $4,750 in share value, plus 250 shares x $1 = $250 in distributions), but you would owe tax on the $250 distribution you received — even if you reinvest the distribution in more shares.
When you sell or exchange Fund shares, you generally will realize a capital gain or capital loss in an amount equal to the difference between the net amount of the sale proceeds (or in the case of an exchange, the fair market value of the shares) you receive and your tax basis for the shares that you sell or exchange. Early each year, each Fund will send you information about each Fund’s dividends and distributions and any shares you sold during the previous calendar year unless your account is maintained by a financial intermediary.
An additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gains distributions received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) earned by U.S. individuals, estates and trusts to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust) exceeds a threshold amount.
If you do not provide Harbor Funds with your correct social security number or other taxpayer identification number, along with certifications required by the Internal Revenue Service (“IRS”), you may be subject to a backup withholding tax, currently at a rate of 24%, on any dividends and capital gain distributions, redemptions, exchanges and any other payments to you. Investors other than U.S. persons may be subject to different U.S. federal income tax treatment, including withholding tax at the rate of 30% (or lower applicable treaty rate) on amounts treated as ordinary dividends or otherwise “withholdable payments” from a Fund, as discussed in more detail in the Funds’ Statement of Additional Information.
Each Fund will send dividends and capital gain distributions elected to be received as cash to the address of record or bank of record on the account. Your distribution option will automatically be converted to having all dividends and other distributions reinvested in additional shares if any of the following occur:
◾
Postal or other delivery service is unable to deliver checks to the address of record;
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Dividends and capital gains distributions are not cashed within 180 days; or
◾
Bank account of record is no longer valid.
Dividends and capital gains distribution checks that are not cashed within 180 days may be reinvested in your account in the same Fund that was the source of the payments at the current day’s NAV. When reinvested, those amounts are subject to the risk of loss like any investment.
Harbor Funds and Shareholder Services do not have any obligation, under any circumstances, to pay interest on dividends or capital gains distributions sent to a shareholder.
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Shareholder and Account Policies
Cost Basis
Shares acquired after January 1, 2012 are referred to as “covered” shares, while shares acquired prior to January 1, 2012 are referred to as “non-covered” shares. For covered shares, Harbor Funds is required to report cost basis information to you as well as the IRS on Form 1099-B. The cost basis information provided to you for non-covered shares will not be reported to the IRS. Both covered and non-covered shares will each receive their own individual cost basis calculation.
Harbor Funds offers average cost basis information, if available, to shareholders for noncovered shares on quarterly statements in addition to the required cost basis information for covered shares. Cost basis information on taxable transactions that represent noncovered shares will be noted on Form 1099-B, but not reported to the IRS.
Under cost basis regulations that began in 2012, you can select a different cost basis method for the covered shares in your Harbor Funds account. You can do this in one of four ways: (1) log in to your Harbor Funds account online and follow the menu steps to select a different cost basis method, (2) complete the Cost Basis Election form through the DocuSign option at harborcapital.com, (3) download the Cost Basis Election form and return that form to Harbor Funds by mail or by fax, or (4) contact Shareholder Services at 800-422-1050 to request that a copy of the Cost Basis Election form be mailed to you for completion and return to Harbor Funds by mail or fax.
If you do not elect a cost basis method, Harbor Funds will use the average cost method for calculating cost basis of your covered shares.
For more information on cost basis and which method is right for you, please contact your tax advisor.
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Investor Services
 
Harbor Funds provides a variety of services to manage your account.
If you already have a Harbor Funds account, call a Shareholder Services Representative at 800-422-1050 to request an Account Services form to add these features or you may download the form from our website at harborcapital.com.
Online Services
harborcapital.com
Our website is normally available 24 hours a day. It provides you with the ability to access your account information, submit transactions, request forms and applications, and obtain additional information on each of the Funds.
When you establish an account, you will automatically be granted online transaction privileges.
To perform transactions via our website, you must first register for online access in order to authorize us to transmit account information online and to accept online instructions. Go to harborcapital.com to register for online access.
Online transactions are subject to the same minimums and terms as other transactions.
Shareholder Services uses procedures designed to confirm that instructions communicated via online access are genuine, including requiring that certain identifying information be provided, prior to acting upon instructions and sending written confirmation of online transactions. To the extent that Shareholder Services uses reasonable procedures to confirm that instructions received through our website are genuine, Harbor Funds, Shareholder Services and the Distributor are not liable for acting on these instructions.
Telephone Services
800-422-1050
You may contact a Shareholder Services Representative during our normal business hours, Monday through Friday between 8:00 a.m. and 6:00 p.m. Eastern time. When you establish an account, you will be granted telephone transaction privileges unless you specifically instruct us otherwise in writing.
Telephone transactions are subject to the same minimums and terms as other transactions.
Procedures designed to confirm that instructions communicated by telephone are genuine, including requiring that certain identifying information be provided prior to acting upon instructions, recording all telephone instructions and sending written confirmation of telephone instructions, are used by Shareholder Services. To the extent that reasonable procedures are used to confirm that instructions given by telephone are genuine, Harbor Funds, Shareholder Services, or the Distributor will not be liable for acting in accordance with these instructions.
Retirement Accounts
For information on establishing retirement accounts, please call 800-422-1050 or visit our website at harborcapital.com.
◾
Traditional IRA — An individual retirement account. You may be able to deduct the contribution from taxable income, thereby reducing your current income taxes. Taxes on investment earnings are deferred until the money is withdrawn. Withdrawals are taxed as additional ordinary income when received. Non-deductible contributions, if any, are withdrawn tax-free. Withdrawals before age 59½ are assessed a 10% premature withdrawal penalty in addition to income tax, unless an exception applies. There is no age limit on making contributions to Traditional IRAs. If your 70th birthday is after July 1, 2019, you do not need to take withdrawals until you reach age 73. Those who have already begun taking Required Minimum Distributions (RMDs) must continue to do so.
◾
Roth IRA — An individual retirement account. Your contributions are never tax deductible; however, all earnings in the account are tax-free. You do not pay income taxes on qualified withdrawals from your Roth IRA if certain requirements are met. There is no age limitation on making contributions to Roth IRAs and there is no requirement that you begin making minimum withdrawals at any age.
◾
SEP IRA — A type of Traditional IRA funded by employer contributions. A Harbor Funds Traditional IRA may be used in connection with a Simplified Employee Pension (SEP) plan maintained by your employer. Assets grow tax-deferred and distributions are taxable as income.
◾
Other Retirement Plans — a Fund may be used as an investment option in many other kinds of employer-sponsored retirement plans. All of these accounts need to be established by the trustee of the plan.
◾
SIMPLE IRA — A Savings Incentive Match Plan for Employees IRA (SIMPLE IRA) is a plan that certain small employers can set up for the benefit of their employees. Harbor Funds does not offer SIMPLE IRAs.
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Investor Services
 
Shareholders participating in an automatic investment, exchange or withdrawal plan, or dividend exchange plan will receive only quarterly confirmations of all transactions.
Harbor Funds may amend or terminate the automatic plans without notice to participating shareholders.
Your automatic investment plan, automatic exchange plan, automatic withdrawal plan, or dividend exchange plan may be suspended if postal or other delivery services are unable to deliver the transaction confirmation statements to you at the address of record. In case of a suspended dividend exchange plan, your distributions will be reinvested in the current Fund, and shares represented by such reinvested dividends will not be exchanged.
Automatic Investment Plan
You may direct Harbor Funds to purchase a specific dollar amount of a Fund on a scheduled basis through an ACH transaction by providing valid banking instructions on your account application or Automatic Transactions form.
If your ACH transaction does not clear, your purchase will be cancelled and a service fee of $25 may be deducted from your account. You may also be prohibited from future automatic investment plan purchases.
If you already have a Harbor Funds account, you may: (1) log in to your Harbor Funds account online and follow the menu steps to establish an automatic investment plan, (2) complete the Automatic Transactions form through the DocuSign option at harborcapital.com, (3) download the Automatic Transactions form and return that form to Harbor Funds by mail or by fax, or (4) contact Shareholder Services at 800-422-1050.
By using the automatic investment or exchange plans, you are purchasing shares of a Fund on a scheduled basis without regard to fluctuations in NAV per share. Over time, your average cost per share may be higher or lower than if you tried to time the market. While regular investment plans do not guarantee a profit and will not protect you against loss in a declining market, they can be an effective way to invest for retirement, a home, educational expenses, and other long-term financial goals. See “Dividends, Distributions and Taxes” regarding the potential adverse tax consequences of purchasing shares shortly before an anticipated dividend or capital gains distribution.
Automatic Exchange Plan
You may direct Harbor Funds to automatically exchange between Funds on a scheduled basis. The Fund being exchanged out of and the Fund being exchanged into must already be established with an account balance greater than zero and must continue to meet the minimum requirements for its respective class of shares. Exchanges may be taxable transactions depending on the type of account and you may realize a gain or a loss.
Automatic Withdrawal Plan
You may direct Harbor Funds to withdraw a specific dollar amount on a scheduled basis during the year.
If automatic withdrawals continuously exceed reinvested dividends and capital gain distributions, the account will eventually be depleted. Withdrawals are redemptions of shares and therefore may be taxable transactions depending on the type of account, and you may realize a gain or a loss. To understand how such withdrawals will affect you, you should consult your tax adviser.
Dividend Exchange Plan
You may invest dividends and capital gain distributions from one Harbor fund in shares of another Harbor fund, provided you have opened an account in the other Harbor fund with a balance greater than zero and have satisfied the applicable minimum investment requirements. When dividends and/or capital gain distributions from one Harbor fund are used to purchase shares in another Harbor fund, the shares are purchased on the date the dividends and/or capital gains would have otherwise been paid to you (the “ex-dividend date”) at the share price in effect as of the ex-dividend date. Purchases are credited to your account on the ex-dividend date.
114
Financial Highlights
The financial highlights table is intended to help you understand the financial performance of each Fund. Certain information reflects financial results for a single Fund share. Total returns represent the rate that a shareholder would have earned/lost on an investment in a Fund (assuming reinvestment of all dividends and distributions). 
HARBOR CAPITAL APPRECIATION FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$124.89
$99.19
$75.79
$73.98
$75.34
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.06)
(0.27)
(0.08)
0.13
0.23
Net realized and unrealized gain/(loss) on investments
(39.22)
38.73
30.27
8.54
6.50
Total from investment operations
(39.28)
38.46
30.19
8.67
6.73
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
(0.12)
(0.21)
(0.17)
Distributions from net realized capital gains
(18.79)
(12.76)
(6.67)
(6.65)
(7.92)
Total distributions
(18.79)
(12.76)
(6.79)
(6.86)
(8.09)
Net asset value end of period
66.82
124.89
99.19
75.79
73.98
Net assets end of period (000s)
$7,108,919
$11,385,191
$9,549,061
$6,970,617
$5,393,675
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(36.03)%
41.33% 
42.79% 
13.73% 
9.50% 
Ratio of total expenses to average net assets^
0.64
0.63
0.64
0.63
0.62
Ratio of net expenses to average net assetsa
0.58
0.57
0.58
0.58
0.57
Ratio of net investment income/(loss) to average net assetsa
(0.07)
(0.25)
(0.09)
0.18
0.30
Portfolio turnover
34
48
51
40
40
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$120.94
$96.68
$74.15
$72.54
$74.08
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.33)
(0.61)
(0.34)
(0.09)
(0.01)
Net realized and unrealized gain/(loss) on investments
(37.74)
37.63
29.54
8.35
6.39
Total from investment operations
(38.07)
37.02
29.20
8.26
6.38
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
—
—
—
Distributions from net realized capital gains
(18.79)
(12.76)
(6.67)
(6.65)
(7.92)
Total distributions
(18.79)
(12.76)
(6.67)
(6.65)
(7.92)
Net asset value end of period
64.08
120.94
96.68
74.15
72.54
Net assets end of period (000s)
$187,390
$414,600
$420,324
$345,550
$448,241
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(36.23)%
40.86% 
42.32% 
13.35% 
9.16% 
Ratio of total expenses to average net assets^
0.97
0.96
0.97
0.96
0.95
Ratio of net expenses to average net assetsa
0.91
0.90
0.91
0.91
0.90
Ratio of net investment income/(loss) to average net assetsa
(0.41)
(0.57)
(0.41)
(0.13)
(0.01)
Portfolio turnover
34
48
51
40
40
See page 147 for notes to the Financial Highlights.
 
115
This information has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Funds’ financial statements, are included in the Funds’ most recent annual report to shareholders, which is available upon request. 
 
Institutional Class
2022
2021
2020
2019
2018
$124.78
$99.18
$75.78
$73.97
$75.32
 
 
 
 
 
(0.13)
(0.36)
(0.14)
0.08
0.18
(39.17)
38.72
30.26
8.53
6.50
(39.30)
38.36
30.12
8.61
6.68
 
 
 
 
 
—
—
(0.05)
(0.15)
(0.11)
(18.79)
(12.76)
(6.67)
(6.65)
(7.92)
(18.79)
(12.76)
(6.72)
(6.80)
(8.03)
66.69
124.78
99.18
75.78
73.97
$13,590,549
$28,902,862
$25,579,181
$21,311,587
$22,366,214
 
 
 
 
 
(36.08)%
41.22% 
42.68% 
13.63% 
9.44% 
0.72
0.71
0.72
0.71
0.70
0.66
0.65
0.66
0.66
0.65
(0.16)
(0.33)
(0.16)
0.11
0.23
34
48
51
40
40
  
 
Investor Class
2022
2021
2020
2019
2018
$117.30
$94.19
$72.48
$71.15
$72.88
 
 
 
 
 
(0.40)
(0.72)
(0.43)
(0.17)
(0.10)
(36.43)
36.59
28.81
8.15
6.29
(36.83)
35.87
28.38
7.98
6.19
 
 
 
 
 
—
—
—
—
—
(18.79)
(12.76)
(6.67)
(6.65)
(7.92)
(18.79)
(12.76)
(6.67)
(6.65)
(7.92)
61.68
117.30
94.19
72.48
71.15
$797,250
$1,564,732
$1,282,355
$1,083,896
$1,327,790
 
 
 
 
 
(36.31)%
40.71% 
42.15% 
13.21% 
9.03% 
1.08
1.08
1.09
1.08
1.07
1.02
1.01
1.03
1.03
1.02
(0.52)
(0.69)
(0.53)
(0.25)
(0.13)
34
48
51
40
40
116
Financial Highlights
 
HARBOR CONVERTIBLE SECURITIES FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$13.69
$12.49
$10.82
$10.47
$11.27
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.04
0.02
0.07
0.10
0.10
Net realized and unrealized gain/(loss) on investments
(2.22)
2.43
2.02
0.92
0.19
Total from investment operations
(2.18)
2.45
2.09
1.02
0.29
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.08)
(0.09)
(0.09)
(0.18)
(0.09)
Distributions from net realized capital gains
(1.61)
(1.16)
(0.33)
(0.49)
(1.00)
Total distributions
(1.69)
(1.25)
(0.42)
(0.67)
(1.09)
Proceeds from redemption fees
—
—*
—*
—*
—*
Net asset value end of period
9.82
13.69
12.49
10.82
10.47
Net assets end of period (000s)
$33,711
$41,250
$34,307
$24,697
$25,412
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(17.59)%
20.23% 
19.93% 
10.48% 
2.80% 
Ratio of total expenses to average net assets^
0.74
0.73
0.74
0.74
0.74
Ratio of net expenses to average net assetsa
0.68
0.67
0.69
0.69
0.69
Ratio of net investment income/(loss) to average net assetsa
0.35
0.15
0.60
0.98
0.95
Portfolio turnover
66
50
101
74
94
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$13.63
$12.46
$10.80
$10.44
$11.26
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
—*
(0.02)
0.03
0.07
0.07
Net realized and unrealized gain/(loss) on investments
(2.20)
2.42
2.01
0.91
0.17
Total from investment operations
(2.20)
2.40
2.04
0.98
0.24
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.04)
(0.07)
(0.05)
(0.13)
(0.06)
Distributions from net realized capital gains
(1.61)
(1.16)
(0.33)
(0.49)
(1.00)
Total distributions
(1.65)
(1.23)
(0.38)
(0.62)
(1.06)
Proceeds from redemption fees
—
—*
—*
—*
—*
Net asset value end of period
9.78
13.63
12.46
10.80
10.44
Net assets end of period (000s)
$70
$85
$70
$59
$53
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(17.84)%
19.87% 
19.48% 
10.11% 
2.27% 
Ratio of total expenses to average net assets^
1.07
1.06
1.07
1.07
1.07
Ratio of net expenses to average net assetsa
1.01
1.00
1.02
1.02
1.01
Ratio of net investment income/(loss) to average net assetsa
0.02
(0.18)
0.29
0.64
0.63
Portfolio turnover
66
50
101
74
94
See page 147 for notes to the Financial Highlights.
 
117
 
 
Institutional Class
2022
2021
2020
2019
2018
$13.68
$12.48
$10.83
$10.48
$11.27
 
 
 
 
 
0.03
0.01
0.06
0.09
0.09
(2.21)
2.43
2.00
0.92
0.20
(2.18)
2.44
2.06
1.01
0.29
 
 
 
 
 
(0.07)
(0.08)
(0.08)
(0.17)
(0.08)
(1.61)
(1.16)
(0.33)
(0.49)
(1.00)
(1.68)
(1.24)
(0.41)
(0.66)
(1.08)
—
—*
—*
—*
—*
9.82
13.68
12.48
10.83
10.48
$126,865
$161,772
$117,269
$114,130
$93,424
 
 
 
 
 
(17.62)%
20.18% 
19.63% 
10.39% 
2.82% 
0.82
0.81
0.82
0.82
0.82
0.76
0.75
0.77
0.77
0.76
0.27
0.06
0.55
0.89
0.88
66
50
101
74
94
  
 
Investor Class
2022
2021
2020
2019
2018
$13.62
$12.46
$10.80
$10.45
$11.25
 
 
 
 
 
(0.01)
(0.04)
0.02
0.05
0.05
(2.20)
2.43
2.00
0.92
0.19
(2.21)
2.39
2.02
0.97
0.24
 
 
 
 
 
(0.03)
(0.07)
(0.03)
(0.13)
(0.04)
(1.61)
(1.16)
(0.33)
(0.49)
(1.00)
(1.64)
(1.23)
(0.36)
(0.62)
(1.04)
—
—*
—*
—*
—*
9.77
13.62
12.46
10.80
10.45
$2,076
$2,853
$2,420
$2,066
$1,861
 
 
 
 
 
(17.92)%
19.76% 
19.33% 
9.99% 
2.35% 
1.18
1.17
1.19
1.19
1.19
1.12
1.11
1.14
1.14
1.13
(0.10)
(0.29)
0.17
0.52
0.51
66
50
101
74
94
118
Financial Highlights
 
HARBOR CORE BOND FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018h
Net asset value beginning of period
$10.61
$11.06
$10.64
$9.84
$10.00
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.22
0.19
0.26
0.31
0.12
Net realized and unrealized gain/(loss) on investments
(1.90)
(0.19)
0.50
0.79
(0.19)
Total from investment operations
(1.68)
—
0.76
1.10
(0.07)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.29)
(0.23)
(0.27)
(0.30)
(0.09)
Distributions from net realized capital gains
—
(0.22)
(0.07)
—
—
Total distributions
(0.29)
(0.45)
(0.34)
(0.30)
(0.09)
Net asset value end of period
8.64
10.61
11.06
10.64
9.84
Net assets end of period (000s)
$41,312
$36,557
$29,428
$5,298
$3,061
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(16.14)%
(0.01)%
7.36% 
11.34% 
(0.73)%c
Ratio of total expenses to average net assets^
0.37
0.43
0.43
0.45
0.77d
Ratio of net expenses to average net assetsa
0.27
0.37
0.37
0.37
0.37d
Ratio of net investment income/(loss) to average net assetsa
2.28
1.77
2.35
2.98
2.98d
Portfolio turnover
60
47
70
61
97c
See page 147 for notes to the Financial Highlights.
 
119
 
 
Institutional Class
2022
2021
2020
2019
2018h
$10.61
$11.06
$10.64
$9.84
$10.00
 
 
 
 
 
0.20
0.18
0.26
0.30
0.12
(1.89)
(0.19)
0.50
0.79
(0.19)
(1.69)
(0.01)
0.76
1.09
(0.07)
 
 
 
 
 
(0.28)
(0.22)
(0.27)
(0.29)
(0.09)
—
(0.22)
(0.07)
—
—
(0.28)
(0.44)
(0.34)
(0.29)
(0.09)
8.64
10.61
11.06
10.64
9.84
$28,065
$105,931
$86,173
$79,458
$52,249
 
 
 
 
 
(16.21)%
(0.09)%
7.28% 
11.26% 
(0.75)%c
0.45
0.51
0.51
0.53
0.85d
0.36
0.45
0.45
0.45
0.45d
2.03
1.70
2.35
2.89
2.86d
60
47
70
61
97c
120
Financial Highlights
 
HARBOR CORE PLUS FUND
 
Retirement Class
Year Ended October 31,
2022l
2021
2020
2019
2018h
Net asset value beginning of period
$12.06
$12.35
$11.90
$11.09
$11.28
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.32
0.32
0.31
0.38
0.16
Net realized and unrealized gain/(loss) on investments
(2.18)
(0.21)
0.49
0.80
(0.16)
Total from investment operations
(1.86)
0.11
0.80
1.18
—*
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.40)
(0.27)
(0.35)
(0.37)
(0.19)
Distributions from net realized capital gains
(0.02)
(0.13)
—
—
—
Total distributions
(0.42)
(0.40)
(0.35)
(0.37)
(0.19)
Net asset value end of period
9.78
12.06
12.35
11.90
11.09
Net assets end of period (000s)
$12,389
$172,699
$166,740
$12,802
$6,921
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(15.78)%
0.88% 
6.82% 
10.84% 
0.01%c
Ratio of total expenses to average net assets^
0.42
0.53
0.58
1.06
1.16d
Ratio of net expenses to average net assetsa
0.36
0.43
0.48
0.96
1.06d
Ratio of net expenses excluding interest expense to average net assetsa
0.36
0.43
0.43
0.43
0.43d
Ratio of net investment income/(loss) to average net assetsa
2.83
2.63
2.56
3.30
3.44d
Portfolio turnover
219
370
558
644
674c
  
 
 
Administrative Class
Year Ended October 31,
2022l
2021
2020
2019
2018
Net asset value beginning of period
$12.08
$12.37
$11.92
$11.11
$11.69
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.29
0.28
0.28
0.35
0.31
Net realized and unrealized gain/(loss) on investments
(2.21)
(0.21)
0.48
0.79
(0.53)
Total from investment operations
(1.92)
0.07
0.76
1.14
(0.22)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.36)
(0.23)
(0.31)
(0.33)
(0.36)
Distributions from net realized capital gains
(0.02)
(0.13)
—
—
—
Total distributions
(0.38)
(0.36)
(0.31)
(0.33)
(0.36)
Net asset value end of period
9.78
12.08
12.37
11.92
11.11
Net assets end of period (000s)
$11,223
$17,270
$18,302
$19,498
$31,111
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(16.20)%
0.54% 
6.44% 
10.44% 
(1.88)%
Ratio of total expenses to average net assets^
0.71
0.86
0.97
1.39
1.16
Ratio of net expenses to average net assetsa
0.67
0.76
0.87
1.29
1.06
Ratio of net expenses excluding interest expense to average net assetsa
0.67
0.76
0.76
0.76
0.76
Ratio of net investment income/(loss) to average net assetsa
2.64
2.29
2.32
3.01
2.69
Portfolio turnover
219
370
558
644
674
See page 147 for notes to the Financial Highlights.
 
121
 
 
Institutional Class
2022l
2021
2020
2019
2018
$12.07
$12.36
$11.91
$11.10
$11.68
 
 
 
 
 
0.32
0.31
0.31
0.37
0.33
(2.21)
(0.21)
0.48
0.80
(0.52)
(1.89)
0.10
0.79
1.17
(0.19)
 
 
 
 
 
(0.39)
(0.26)
(0.34)
(0.36)
(0.39)
(0.02)
(0.13)
—
—
—
(0.41)
(0.39)
(0.34)
(0.36)
(0.39)
9.77
12.07
12.36
11.91
11.10
$924,416
$1,376,349
$1,844,961
$1,958,600
$1,899,680
 
 
 
 
 
(15.99)%
0.79% 
6.72% 
10.74% 
(1.63)%
0.46
0.61
0.73
1.14
0.90
0.42
0.51
0.62
1.04
0.80
0.42
0.51
0.51
0.51
0.51
2.88
2.52
2.58
3.23
2.93
219
370
558
644
674
122
Financial Highlights
 
HARBOR DISRUPTIVE INNOVATION FUND
 
Retirement Class
Year Ended October 31,
2022
2021g
2020
2019
2018
Net asset value beginning of period
$14.40
$12.93
$10.91
$10.88
$11.25
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.01)
(0.08)
(0.06)
(0.04)
(0.03)
Net realized and unrealized gain/(loss) on investments
(4.60)
3.48
4.25
1.85
0.88
Total from investment operations
(4.61)
3.40
4.19
1.81
0.85
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
—
—
—
Distributions from net realized capital gains
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
Total distributions
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
Net asset value end of period
4.37
14.40
12.93
10.91
10.88
Net assets end of period (000s)
$16,353
$64,310
$64,242
$31,265
$144,137
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(46.85)%
27.41% 
46.03% 
21.38% 
8.02% 
Ratio of total expenses to average net assets^
0.83
0.85
0.83
0.82
0.80
Ratio of net expenses to average net assetsa
0.52
0.74
0.79
0.81
0.80
Ratio of net investment income/(loss) to average net assetsa
(0.15)
(0.56)
(0.53)
(0.37)
(0.28)
Portfolio turnover
75
182
113
70
85
  
 
 
Administrative Class
Year Ended October 31,
2022
2021g
2020
2019
2018
Net asset value beginning of period
$13.08
$11.93
$10.26
$10.37
$10.81
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.03)
(0.11)
(0.08)
(0.06)
(0.06)
Net realized and unrealized gain/(loss) on investments
(3.97)
3.19
3.92
1.73
0.84
Total from investment operations
(4.00)
3.08
3.84
1.67
0.78
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
—
—
—
Distributions from net realized capital gains
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
Total distributions
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
Net asset value end of period
3.66
13.08
11.93
10.26
10.37
Net assets end of period (000s)
$2,492
$5,518
$3,666
$2,687
$26,936
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(46.96)%
26.98% 
45.42% 
21.04% 
7.68% 
Ratio of total expenses to average net assets^
1.16
1.17
1.16
1.15
1.13
Ratio of net expenses to average net assetsa
0.86
1.06
1.12
1.14
1.12
Ratio of net investment income/(loss) to average net assetsa
(0.48)
(0.88)
(0.84)
(0.66)
(0.55)
Portfolio turnover
75
182
113
70
85
See page 147 for notes to the Financial Highlights.
 
123
 
 
Institutional Class
2022
2021g
2020
2019
2018
$14.31
$12.87
$10.88
$10.86
$11.24
 
 
 
 
 
(0.01)
(0.09)
(0.06)
(0.05)
(0.04)
(4.56)
3.46
4.22
1.85
0.88
(4.57)
3.37
4.16
1.80
0.84
 
 
 
 
 
—
—
—
—
—
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
4.32
14.31
12.87
10.88
10.86
$72,988
$220,842
$236,863
$198,544
$158,680
 
 
 
 
 
(46.87)%
27.29% 
45.84% 
21.32% 
7.94% 
0.91
0.93
0.91
0.90
0.88
0.61
0.82
0.87
0.89
0.87
(0.24)
(0.64)
(0.58)
(0.48)
(0.36)
75
182
113
70
85
  
 
Investor Class
2022
2021g
2020
2019
2018
$12.36
$11.37
$9.88
$10.07
$10.54
 
 
 
 
 
(0.03)
(0.12)
(0.09)
(0.08)
(0.08)
(3.64)
3.04
3.75
1.67
0.83
(3.67)
2.92
3.66
1.59
0.75
 
 
 
 
 
—
—
—
—
—
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
(5.42)
(1.93)
(2.17)
(1.78)
(1.22)
3.27
12.36
11.37
9.88
10.07
$16,387
$56,531
$36,399
$20,891
$16,929
 
 
 
 
 
(47.05)%
26.88% 
45.32% 
20.83% 
7.57% 
1.27
1.29
1.28
1.27
1.25
0.96
1.17
1.24
1.26
1.24
(0.59)
(0.99)
(0.96)
(0.85)
(0.72)
75
182
113
70
85
124
Financial Highlights
 
HARBOR DIVERSIFIED INTERNATIONAL ALL CAP FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$13.83
$10.25
$11.17
$10.41
$11.79
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.23
0.21
0.14
0.26
0.21
Net realized and unrealized gain/(loss) on investments
(3.36)
3.50
(0.81)
0.92
(1.19)
Total from investment operations
(3.13)
3.71
(0.67)
1.18
(0.98)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.23)
(0.13)
(0.25)
(0.13)
(0.12)
Distributions from net realized capital gains
(0.72)
—
—
(0.29)
(0.28)
Total distributions
(0.95)
(0.13)
(0.25)
(0.42)
(0.40)
Net asset value end of period
9.75
13.83
10.25
11.17
10.41
Net assets end of period (000s)
$543,857
$853,454
$533,318
$499,288
$420,056
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(24.03)%
36.32% 
(6.25)%
11.99% 
(8.55)%
Ratio of total expenses to average net assets^
0.84
0.84
0.85
0.87
0.90
Ratio of net expenses to average net assetsa
0.72
0.71
0.70
0.68
0.74
Ratio of net investment income/(loss) to average net assetsa
1.98
1.54
1.32
2.42
1.87
Portfolio turnover
24
51
25
22
42
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$13.77
$10.22
$11.14
$10.39
$11.76
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.20
0.16
0.10
0.22
0.22
Net realized and unrealized gain/(loss) on investments
(3.35)
3.48
(0.80)
0.92
(1.22)
Total from investment operations
(3.15)
3.64
(0.70)
1.14
(1.00)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.19)
(0.09)
(0.22)
(0.10)
(0.09)
Distributions from net realized capital gains
(0.72)
—
—
(0.29)
(0.28)
Total distributions
(0.91)
(0.09)
(0.22)
(0.39)
(0.37)
Net asset value end of period
9.71
13.77
10.22
11.14
10.39
Net assets end of period (000s)
$7,419
$9,213
$6,446
$6,800
$5,734
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(24.24)%
35.76% 
(6.54)%
11.58% 
(8.76)%
Ratio of total expenses to average net assets^
1.17
1.17
1.18
1.20
1.23
Ratio of net expenses to average net assetsa
1.05
1.04
1.03
1.01
1.06
Ratio of net investment income/(loss) to average net assetsa
1.73
1.17
0.99
2.06
1.96
Portfolio turnover
24
51
25
22
42
See page 147 for notes to the Financial Highlights.
 
125
 
 
Institutional Class
2022
2021
2020
2019
2018
$13.82
$10.25
$11.17
$10.41
$11.79
 
 
 
 
 
0.23
0.19
0.13
0.25
0.20
(3.36)
3.50
(0.81)
0.92
(1.18)
(3.13)
3.69
(0.68)
1.17
(0.98)
 
 
 
 
 
(0.22)
(0.12)
(0.24)
(0.12)
(0.12)
(0.72)
—
—
(0.29)
(0.28)
(0.94)
(0.12)
(0.24)
(0.41)
(0.40)
9.75
13.82
10.25
11.17
10.41
$248,130
$332,503
$247,212
$257,860
$238,470
 
 
 
 
 
(24.04)%
36.12% 
(6.33)%
11.90% 
(8.62)%
0.92
0.92
0.93
0.95
0.98
0.80
0.79
0.78
0.76
0.82
1.99
1.43
1.25
2.34
1.72
24
51
25
22
42
  
 
Investor Class
2022
2021
2020
2019
2018
$13.70
$10.17
$11.08
$10.33
$11.71
 
 
 
 
 
0.18
0.14
0.09
0.21
0.15
(3.33)
3.47
(0.80)
0.91
(1.17)
(3.15)
3.61
(0.71)
1.12
(1.02)
 
 
 
 
 
(0.17)
(0.08)
(0.20)
(0.08)
(0.08)
(0.72)
—
—
(0.29)
(0.28)
(0.89)
(0.08)
(0.20)
(0.37)
(0.36)
9.66
13.70
10.17
11.08
10.33
$8,330
$10,072
$7,037
$9,122
$5,456
 
 
 
 
 
(24.32)%
35.56% 
(6.58)%
11.43% 
(8.93)%
1.28
1.29
1.30
1.32
1.35
1.16
1.15
1.15
1.13
1.19
1.60
1.07
0.86
1.99
1.34
24
51
25
22
42
126
Financial Highlights
 
HARBOR GLOBAL LEADERS FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$41.81
$33.89
$30.81
$25.52
$25.33
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.04)
(0.09)
0.02
0.13
0.02
Net realized and unrealized gain/(loss) on investments
(13.64)
10.84
4.89
5.76
2.40
Total from investment operations
(13.68)
10.75
4.91
5.89
2.42
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
(0.09)
—
(0.03)
Distributions from net realized capital gains
(3.70)
(2.83)
(1.74)
(0.60)
(2.20)
Total distributions
(3.70)
(2.83)
(1.83)
(0.60)
(2.23)
Net asset value end of period
24.43
41.81
33.89
30.81
25.52
Net assets end of period (000s)
$15,702
$24,324
$17,703
$12,245
$6,846
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(35.22)%
33.12% 
16.56% 
23.72% 
10.01% 
Ratio of total expenses to average net assets^
0.92
0.87
0.90
0.92
0.96
Ratio of net expenses to average net assetsa
0.78
0.78
0.78
0.80
0.82
Ratio of net investment income/(loss) to average net assetsa
(0.14)
(0.24)
0.07
0.46
0.09
Portfolio turnover
29
27
55
47
20
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$40.63
$33.10
$30.15
$25.06
$24.97
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.14)
(0.22)
(0.08)
0.06
(0.05)
Net realized and unrealized gain/(loss) on investments
(13.21)
10.58
4.77
5.63
2.34
Total from investment operations
(13.35)
10.36
4.69
5.69
2.29
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
—
—
—
Distributions from net realized capital gains
(3.70)
(2.83)
(1.74)
(0.60)
(2.20)
Total distributions
(3.70)
(2.83)
(1.74)
(0.60)
(2.20)
Net asset value end of period
23.58
40.63
33.10
30.15
25.06
Net assets end of period (000s)
$914
$1,757
$2,067
$3,050
$1,111
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(35.45)%
32.71% 
16.13% 
23.35% 
9.61% 
Ratio of total expenses to average net assets^
1.25
1.20
1.23
1.25
1.29
Ratio of net expenses to average net assetsa
1.11
1.11
1.11
1.13
1.15
Ratio of net investment income/(loss) to average net assetsa
(0.48)
(0.58)
(0.25)
0.22
(0.21)
Portfolio turnover
29
27
55
47
20
See page 147 for notes to the Financial Highlights.
 
127
 
 
Institutional Class
2022
2021
2020
2019
2018
$41.67
$33.80
$30.75
$25.49
$25.31
 
 
 
 
 
(0.08)
(0.13)
—*
0.11
0.01
(13.57)
10.83
4.86
5.75
2.38
(13.65)
10.70
4.86
5.86
2.39
 
 
 
 
 
—
—
(0.07)
—
(0.01)
(3.70)
(2.83)
(1.74)
(0.60)
(2.20)
(3.70)
(2.83)
(1.81)
(0.60)
(2.21)
24.32
41.67
33.80
30.75
25.49
$40,193
$90,307
$78,120
$72,429
$33,574
 
 
 
 
 
(35.27)%
33.02% 
16.46% 
23.63% 
9.90% 
1.00
0.95
0.98
1.00
1.04
0.86
0.86
0.86
0.88
0.90
(0.25)
(0.33)
0.01
0.37
0.03
29
27
55
47
20
  
 
Investor Class
2022
2021
2020
2019
2018
$39.90
$32.59
$29.74
$24.76
$24.72
 
 
 
 
 
(0.18)
(0.25)
(0.11)
(0.01)
(0.09)
(12.93)
10.39
4.70
5.59
2.33
(13.11)
10.14
4.59
5.58
2.24
 
 
 
 
 
—
—
—
—
—
(3.70)
(2.83)
(1.74)
(0.60)
(2.20)
(3.70)
(2.83)
(1.74)
(0.60)
(2.20)
23.09
39.90
32.59
29.74
24.76
$10,744
$26,160
$20,865
$18,748
$12,416
 
 
 
 
 
(35.50)%
32.53% 
16.01% 
23.18% 
9.50% 
1.36
1.31
1.35
1.37
1.41
1.22
1.22
1.23
1.25
1.27
(0.61)
(0.69)
(0.35)
(0.03)
(0.35)
29
27
55
47
20
128
Financial Highlights
 
HARBOR INTERNATIONAL FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018j
Net asset value beginning of period
$48.47
$36.52
$39.00
$58.31
$69.91
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
1.09
0.72
0.91
0.91
1.21
Net realized and unrealized gain/(loss) on investments
(12.60)
11.73
(2.10)
1.62
(8.51)
Total from investment operations
(11.51)
12.45
(1.19)
2.53
(7.30)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(1.05)
(0.50)
(1.29)
(0.97)
(1.30)
Distributions from net realized capital gains
—
—
—
(20.87)
(3.00)
Total distributions
(1.05)
(0.50)
(1.29)
(21.84)
(4.30)
Net asset value end of period
35.91
48.47
36.52
39.00
58.31
Net assets end of period (000s)
$461,129
$872,647
$871,743
$1,299,776
$2,703,360
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(24.19)%
34.23% 
(3.35)%
10.29% 
(11.24)%
Ratio of total expenses to average net assets^
0.81
0.80
1.61m
0.80
0.74
Ratio of net expenses to average net assetsa
0.69
0.69
0.69m
0.67
0.64
Ratio of net investment income/(loss) to average net assetsa
2.57
1.55
2.52m
2.33
1.80
Portfolio turnover
14
21
12
12
64
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018j
Net asset value beginning of period
$48.95
$36.78
$39.26
$58.08
$69.57
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
1.02
0.57
0.47
0.76
0.88
Net realized and unrealized gain/(loss) on investments
(12.80)
11.84
(1.81)
1.70
(8.37)
Total from investment operations
(11.78)
12.41
(1.34)
2.46
(7.49)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.87)
(0.24)
(1.14)
(0.41)
(1.00)
Distributions from net realized capital gains
—
—
—
(20.87)
(3.00)
Total distributions
(0.87)
(0.24)
(1.14)
(21.28)
(4.00)
Net asset value end of period
36.29
48.95
36.78
39.26
58.08
Net assets end of period (000s)
$10,375
$15,464
$15,825
$70,981
$90,009
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(24.46)%
33.80% 
(3.67)%
9.94% 
(11.53)%
Ratio of total expenses to average net assets^
1.14
1.13
1.65m
1.13
1.07
Ratio of net expenses to average net assetsa
1.02
1.02
1.02m
1.00
0.97
Ratio of net investment income/(loss) to average net assetsa
2.40
1.22
1.25m
1.94
1.30
Portfolio turnover
14
21
12
12
64
See page 147 for notes to the Financial Highlights.
 
129
 
 
Institutional Class
2022
2021
2020
2019
2018j
$48.64
$36.64
$39.12
$58.31
$69.90
 
 
 
 
 
1.12
0.70
0.92
0.84
1.04
(12.71)
11.76
(2.15)
1.67
(8.39)
(11.59)
12.46
(1.23)
2.51
(7.35)
 
 
 
 
 
(1.01)
(0.46)
(1.25)
(0.83)
(1.24)
—
—
—
(20.87)
(3.00)
(1.01)
(0.46)
(1.25)
(21.70)
(4.24)
36.04
48.64
36.64
39.12
58.31
$2,298,600
$3,307,683
$2,750,824
$3,814,616
$8,577,147
 
 
 
 
 
(24.25)%
34.15% 
(3.43)%
10.18% 
(11.31)%
0.89
0.89
1.76m
0.88
0.82
0.77
0.77
0.77m
0.75
0.72
2.68
1.50
2.52m
2.11
1.53
14
21
12
12
64
  
 
Investor Class
2022
2021
2020
2019
2018j
$48.08
$36.22
$38.65
$57.66
$69.14
 
 
 
 
 
0.95
0.52
0.75
0.70
0.81
(12.57)
11.64
(2.12)
1.65
(8.33)
(11.62)
12.16
(1.37)
2.35
(7.52)
 
 
 
 
 
(0.83)
(0.30)
(1.06)
(0.49)
(0.96)
—
—
—
(20.87)
(3.00)
(0.83)
(0.30)
(1.06)
(21.36)
(3.96)
35.63
48.08
36.22
38.65
57.66
$246,731
$374,773
$323,686
$510,270
$895,711
 
 
 
 
 
(24.53)%
33.66% 
(3.79)%
9.80% 
(11.65)%
1.25
1.25
2.10m
1.25
1.19
1.13
1.13
1.14m
1.12
1.09
2.28
1.13
2.06m
1.80
1.21
14
21
12
12
64
130
Financial Highlights
 
HARBOR INTERNATIONAL CORE FUND (FORMERLY, HARBOR OVERSEAS FUND)
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019i
Net asset value beginning of period
$14.02
$10.12
$10.31
$10.00
Income from Investment Operations
 
 
 
 
Net investment income/(loss)a,e
0.46
0.28
0.17
0.24
Net realized and unrealized gain/(loss) on investments
(3.14)
3.79
(0.09)
0.07
Total from investment operations
(2.68)
4.07
0.08
0.31
Less Distributions
 
 
 
 
Dividends from net investment income
(0.36)
(0.17)
(0.27)
—
Distributions from net realized capital gains
(1.00)
—
—
—
Total distributions
(1.36)
(0.17)
(0.27)
—
Net asset value end of period
9.98
14.02
10.12
10.31
Net assets end of period (000s)
$21,221
$19,742
$13,790
$13,090
Ratios and Supplemental Data (%)
 
 
 
 
Total returnb
(20.93)%
40.51% 
0.64% 
3.10%c
Ratio of total expenses to average net assets^
1.16
1.19
1.35
1.79d
Ratio of net expenses to average net assetsa
0.77
0.77
0.77
0.77d
Ratio of net investment income/(loss) to average net assetsa
4.05
2.14
1.73
3.61d
Portfolio turnover
100
108
80
73c
  
 
 
Investor Class
Year Ended October 31,
2022
2021
2020
2019i
Net asset value beginning of period
$13.96
$10.08
$10.28
$10.00
Income from Investment Operations
 
 
 
 
Net investment income/(loss)a,e
0.38
0.23
0.14
0.21
Net realized and unrealized gain/(loss) on investments
(3.10)
3.78
(0.11)
0.07
Total from investment operations
(2.72)
4.01
0.03
0.28
Less Distributions
 
 
 
 
Dividends from net investment income
(0.32)
(0.13)
(0.23)
—
Distributions from net realized capital gains
(1.00)
—
—
—
Total distributions
(1.32)
(0.13)
(0.23)
—
Net asset value end of period
9.92
13.96
10.08
10.28
Net assets end of period (000s)
$2,331
$101
$35
$31
Ratios and Supplemental Data (%)
 
 
 
 
Total returnb
(21.29)%
39.98% 
0.14% 
2.80%c
Ratio of total expenses to average net assets^
1.60
1.63
1.80
2.24d
Ratio of net expenses to average net assetsa
1.21
1.21
1.22
1.22d
Ratio of net investment income/(loss) to average net assetsa
3.67
1.73
1.41
3.17d
Portfolio turnover
100
108
80
73c
See page 147 for notes to the Financial Highlights.
 
131
 
 
Institutional Class
2022
2021
2020
2019i
$14.01
$10.11
$10.31
$10.00
 
 
 
 
0.43
0.29
0.17
0.24
(3.12)
3.77
(0.11)
0.07
(2.69)
4.06
0.06
0.31
 
 
 
 
(0.35)
(0.16)
(0.26)
—
(1.00)
—
—
—
(1.35)
(0.16)
(0.26)
—
9.97
14.01
10.11
10.31
$66,908
$33,230
$13,226
$13,131
 
 
 
 
(21.00)%
40.46% 
0.48% 
3.10%c
1.24
1.27
1.43
1.87d
0.85
0.85
0.85
0.85d
3.85
2.16
1.65
3.54d
100
108
80
73c
132
Financial Highlights
 
HARBOR INTERNATIONAL GROWTH FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$23.53
$19.10
$16.14
$13.70
$15.71
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.06
0.02
0.03
0.30
0.17
Net realized and unrealized gain/(loss) on investments
(8.96)
4.56
3.25
2.25
(1.99)
Total from investment operations
(8.90)
4.58
3.28
2.55
(1.82)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.14)
(0.15)
(0.32)
(0.11)
(0.19)
Distributions from net realized capital gains
(1.73)
—
—
—
—
Total distributions
(1.87)
(0.15)
(0.32)
(0.11)
(0.19)
Net asset value end of period
12.76
23.53
19.10
16.14
13.70
Net assets end of period (000s)
$72,107
$147,545
$163,202
$143,276
$93,815
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(40.76)%
24.00% 
20.56% 
18.81% 
(11.74)%
Ratio of total expenses to average net assets^
0.83
0.81
0.83
0.83
0.81
Ratio of net expenses to average net assetsa
0.77
0.77
0.77
0.77
0.77
Ratio of net investment income/(loss) to average net assetsa
0.34
0.08
0.19
2.01
1.07
Portfolio turnover
18
12
24
16
17
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$23.42
$19.05
$16.10
$13.66
$15.67
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.02)
(0.06)
(0.02)
0.22
0.08
Net realized and unrealized gain/(loss) on investments
(8.91)
4.54
3.24
2.28
(1.95)
Total from investment operations
(8.93)
4.48
3.22
2.50
(1.87)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.03)
(0.11)
(0.27)
(0.06)
(0.14)
Distributions from net realized capital gains
(1.73)
—
—
—
—
Total distributions
(1.76)
(0.11)
(0.27)
(0.06)
(0.14)
Net asset value end of period
12.73
23.42
19.05
16.10
13.66
Net assets end of period (000s)
$148
$662
$507
$390
$330
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(40.93)%
23.54% 
20.17% 
18.45% 
(12.03)%
Ratio of total expenses to average net assets^
1.16
1.14
1.16
1.16
1.14
Ratio of net expenses to average net assetsa
1.10
1.10
1.10
1.10
1.10
Ratio of net investment income/(loss) to average net assetsa
(0.09)
(0.24)
(0.15)
1.50
0.51
Portfolio turnover
18
12
24
16
17
See page 147 for notes to the Financial Highlights.
 
133
 
 
Institutional Class
2022
2021
2020
2019
2018
$23.50
$19.08
$16.13
$13.69
$15.69
 
 
 
 
 
0.04
—*
0.02
0.26
0.13
(8.94)
4.55
3.24
2.28
(1.95)
(8.90)
4.55
3.26
2.54
(1.82)
 
 
 
 
 
(0.12)
(0.13)
(0.31)
(0.10)
(0.18)
(1.73)
—
—
—
—
(1.85)
(0.13)
(0.31)
(0.10)
(0.18)
12.75
23.50
19.08
16.13
13.69
$267,148
$709,080
$600,240
$414,528
$399,911
 
 
 
 
 
(40.78)%
23.92% 
20.42% 
18.73% 
(11.75)%
0.91
0.89
0.91
0.91
0.89
0.85
0.85
0.85
0.85
0.85
0.21
0.01
0.11
1.75
0.84
18
12
24
16
17
  
 
Investor Class
2022
2021
2020
2019
2018
$23.30
$18.93
$16.00
$13.58
$15.57
 
 
 
 
 
(0.02)
(0.11)
(0.04)
0.21
0.11
(8.89)
4.54
3.22
2.26
(1.98)
(8.91)
4.43
3.18
2.47
(1.87)
 
 
 
 
 
—
(0.06)
(0.25)
(0.05)
(0.12)
(1.73)
—
—
—
—
(1.73)
(0.06)
(0.25)
(0.05)
(0.12)
12.66
23.30
18.93
16.00
13.58
$6,788
$13,523
$32,757
$34,238
$32,225
 
 
 
 
 
(41.00)%
23.41% 
20.06% 
18.29% 
(12.12)%
1.27
1.26
1.28
1.28
1.26
1.21
1.22
1.22
1.22
1.22
(0.10)
(0.49)
(0.27)
1.40
0.69
18
12
24
16
17
134
Financial Highlights
 
HARBOR INTERNATIONAL SMALL CAP FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019k
2018
Net asset value beginning of period
$16.39
$11.37
$12.49
$12.38
$13.90
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.27
0.28
0.07
0.24
0.17
Net realized and unrealized gain/(loss) on investments
(2.91)
4.91
(0.82)
0.35
(1.50)
Total from investment operations
(2.64)
5.19
(0.75)
0.59
(1.33)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.28)
(0.17)
(0.37)
(0.10)
(0.09)
Distributions from net realized capital gains
(0.82)
—
—
(0.38)
(0.10)
Total distributions
(1.10)
(0.17)
(0.37)
(0.48)
(0.19)
Net asset value end of period
12.65
16.39
11.37
12.49
12.38
Net assets end of period (000s)
$30,387
$9,559
$5,525
$19,408
$8,213
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(16.94)%
45.95% 
(6.36)%
5.23% 
(9.71)%
Ratio of total expenses to average net assets^
1.11
1.17
1.37
1.24
1.07
Ratio of net expenses to average net assetsa
0.88
0.88
0.88
0.88
0.87
Ratio of net investment income/(loss) to average net assetsa
2.04
1.79
0.64
1.98
1.19
Portfolio turnover
23
43
39
178
53
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019k
2018
Net asset value beginning of period
$16.33
$11.34
$12.46
$12.34
$13.87
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.29
0.20
0.06
0.15
0.11
Net realized and unrealized gain/(loss) on investments
(2.97)
4.93
(0.85)
0.40
(1.49)
Total from investment operations
(2.68)
5.13
(0.79)
0.55
(1.38)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.23)
(0.14)
(0.33)
(0.05)
(0.05)
Distributions from net realized capital gains
(0.82)
—
—
(0.38)
(0.10)
Total distributions
(1.05)
(0.14)
(0.33)
(0.43)
(0.15)
Net asset value end of period
12.60
16.33
11.34
12.46
12.34
Net assets end of period (000s)
$436
$487
$333
$356
$309
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(17.25)%
45.44% 
(6.65)%
4.90% 
(10.06)%
Ratio of total expenses to average net assets^
1.44
1.50
1.70
1.57
1.40
Ratio of net expenses to average net assetsa
1.21
1.21
1.21
1.21
1.20
Ratio of net investment income/(loss) to average net assetsa
2.12
1.30
0.49
1.25
0.76
Portfolio turnover
23
43
39
178
53
See page 147 for notes to the Financial Highlights.
 
135
 
 
Institutional Class
2022
2021
2020
2019k
2018
$16.39
$11.37
$12.49
$12.37
$13.90
 
 
 
 
 
0.32
0.24
0.09
0.19
0.15
(2.97)
4.95
(0.86)
0.40
(1.50)
(2.65)
5.19
(0.77)
0.59
(1.35)
 
 
 
 
 
(0.27)
(0.17)
(0.35)
(0.09)
(0.08)
(0.82)
—
—
(0.38)
(0.10)
(1.09)
(0.17)
(0.35)
(0.47)
(0.18)
12.65
16.39
11.37
12.49
12.37
$93,640
$49,419
$25,716
$25,758
$50,358
 
 
 
 
 
(17.00)%
45.87% 
(6.48)%
5.25% 
(9.83)%
1.19
1.25
1.45
1.32
1.15
0.96
0.96
0.96
0.96
0.95
2.32
1.53
0.76
1.60
1.05
23
43
39
178
53
  
 
Investor Class
2022
2021
2020
2019k
2018
$16.32
$11.34
$12.45
$12.34
$13.86
 
 
 
 
 
0.23
0.18
0.04
0.13
0.10
(2.92)
4.93
(0.84)
0.40
(1.48)
(2.69)
5.11
(0.80)
0.53
(1.38)
 
 
 
 
 
(0.23)
(0.13)
(0.31)
(0.04)
(0.04)
(0.82)
—
—
(0.38)
(0.10)
(1.05)
(0.13)
(0.31)
(0.42)
(0.14)
12.58
16.32
11.34
12.45
12.34
$1,140
$1,962
$398
$428
$619
 
 
 
 
 
(17.29)%
45.25% 
(6.76)%
4.70% 
(10.08)%
1.55
1.61
1.82
1.69
1.52
1.32
1.32
1.33
1.33
1.32
1.66
1.16
0.36
1.10
0.73
23
43
39
178
53
136
Financial Highlights
 
HARBOR LARGE CAP VALUE FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$23.23
$17.11
$16.33
$14.37
$14.87
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.26
0.19
0.18
0.18
0.17
Net realized and unrealized gain/(loss) on investments
(3.16)
6.62
0.76
2.17
(0.13)
Total from investment operations
(2.90)
6.81
0.94
2.35
0.04
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.22)
(0.17)
(0.16)
(0.16)
(0.13)
Distributions from net realized capital gains
(0.61)
(0.52)
—
(0.23)
(0.41)
Total distributions
(0.83)
(0.69)
(0.16)
(0.39)
(0.54)
Net asset value end of period
19.50
23.23
17.11
16.33
14.37
Net assets end of period (000s)
$1,326,142
$1,472,349
$655,562
$457,908
$313,721
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(12.82)%
40.62% 
5.80% 
16.92% 
0.18% 
Ratio of total expenses to average net assets^
0.64
0.64
0.64
0.65
0.64
Ratio of net expenses to average net assetsa
0.61
0.61
0.61
0.61
0.60
Ratio of net investment income/(loss) to average net assetsa
1.26
0.90
1.08
1.19
1.12
Portfolio turnover
24
13
26
11
15
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$23.21
$17.11
$16.33
$14.36
$14.84
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.19
0.13
0.13
0.14
0.13
Net realized and unrealized gain/(loss) on investments
(3.14)
6.59
0.75
2.17
(0.15)
Total from investment operations
(2.95)
6.72
0.88
2.31
(0.02)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.15)
(0.10)
(0.10)
(0.11)
(0.05)
Distributions from net realized capital gains
(0.61)
(0.52)
—
(0.23)
(0.41)
Total distributions
(0.76)
(0.62)
(0.10)
(0.34)
(0.46)
Net asset value end of period
19.50
23.21
17.11
16.33
14.36
Net assets end of period (000s)
$3,228
$3,941
$11,502
$12,195
$15,460
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(13.06)%
40.05% 
5.42% 
16.60% 
(0.23)%
Ratio of total expenses to average net assets^
0.97
0.97
0.97
0.98
0.97
Ratio of net expenses to average net assetsa
0.94
0.94
0.94
0.94
0.93
Ratio of net investment income/(loss) to average net assetsa
0.92
0.64
0.78
0.91
0.84
Portfolio turnover
24
13
26
11
15
See page 147 for notes to the Financial Highlights.
 
137
 
 
Institutional Class
2022
2021
2020
2019
2018
$23.23
$17.11
$16.33
$14.37
$14.87
 
 
 
 
 
0.25
0.18
0.17
0.17
0.16
(3.17)
6.61
0.76
2.17
(0.13)
(2.92)
6.79
0.93
2.34
0.03
 
 
 
 
 
(0.20)
(0.15)
(0.15)
(0.15)
(0.12)
(0.61)
(0.52)
—
(0.23)
(0.41)
(0.81)
(0.67)
(0.15)
(0.38)
(0.53)
19.50
23.23
17.11
16.33
14.37
$751,476
$1,049,830
$880,755
$761,262
$605,040
 
 
 
 
 
(12.90)%
40.52% 
5.72% 
16.83% 
0.11% 
0.72
0.72
0.72
0.73
0.72
0.69
0.69
0.69
0.69
0.68
1.17
0.84
1.02
1.12
1.05
24
13
26
11
15
  
 
Investor Class
2022
2021
2020
2019
2018
$23.46
$17.28
$16.48
$14.49
$14.99
 
 
 
 
 
0.17
0.10
0.11
0.12
0.11
(3.18)
6.68
0.76
2.19
(0.14)
(3.01)
6.78
0.87
2.31
(0.03)
 
 
 
 
 
(0.12)
(0.08)
(0.07)
(0.09)
(0.06)
(0.61)
(0.52)
—
(0.23)
(0.41)
(0.73)
(0.60)
(0.07)
(0.32)
(0.47)
19.72
23.46
17.28
16.48
14.49
$26,880
$31,192
$23,527
$35,622
$45,548
 
 
 
 
 
(13.15)%
39.96% 
5.32% 
16.39% 
(0.27)%
1.08
1.08
1.09
1.10
1.09
1.05
1.05
1.06
1.06
1.05
0.81
0.47
0.67
0.79
0.70
24
13
26
11
15
138
Financial Highlights
 
HARBOR MID CAP FUND
 
Retirement Class
Institutional Class
Year Ended October 31,
2022
2021
2020f
2022
2021
2020f
Net asset value beginning of period
$14.52
$10.57
$10.00
$14.51
$10.56
$10.00
Income from Investment Operations
 
 
 
 
 
 
Net investment income/(loss)a,e
0.09
0.05
0.05
0.09
0.04
0.04
Net realized and unrealized gain/(loss) on investments
(1.84)
3.93
0.53
(1.85)
3.93
0.53
Total from investment operations
(1.75)
3.98
0.58
(1.76)
3.97
0.57
Less Distributions
 
 
 
 
 
 
Dividends from net investment income
(0.05)
(0.03)
(0.01)
(0.04)
(0.02)
(0.01)
Distributions from net realized capital gains
(0.27)
—
—
(0.27)
—
—
Total distributions
(0.32)
(0.03)
(0.01)
(0.31)
(0.02)
(0.01)
Net asset value end of period
12.45
14.52
10.57
12.44
14.51
10.56
Net assets end of period (000s)
$67,079
$37,135
$5,148
$21,105
$23,710
$5,411
Ratios and Supplemental Data (%)
 
 
 
 
 
 
Total returnb
(12.36)%
37.61% 
5.86%c
(12.43)%
37.54% 
5.75%c
Ratio of total expenses to average net assets^
0.92
0.93
2.28d
1.00
1.01
2.36d
Ratio of net expenses to average net assetsa
0.80
0.80
0.80d
0.88
0.88
0.88d
Ratio of net investment income/(loss) to average net assetsa
0.65
0.40
0.54d
0.64
0.27
0.46d
Portfolio turnover
42
11
9c
42
11
9c
See page 147 for notes to the Financial Highlights.
 
139
 
 
Investor Class
2022
2021
2020f
$14.44
$10.54
$10.00
 
 
 
0.04
(0.01)
0.01
(1.84)
3.91
0.53
(1.80)
3.90
0.54
 
 
 
—*
—*
—*
(0.27)
—
—
(0.27)
—*
—*
12.37
14.44
10.54
$834
$949
$455
 
 
 
(12.72)%
37.00% 
5.42%c
1.36
1.38
2.73d
1.24
1.24
1.25d
0.28
(0.06)
0.07d
42
11
9c
140
Financial Highlights
 
HARBOR MID CAP VALUE FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$24.97
$16.83
$20.82
$21.39
$23.33
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.49
0.42
0.43
0.48
0.50
Net realized and unrealized gain/(loss) on investments
(1.18)
8.21
(3.73)
0.47
(1.52)
Total from investment operations
(0.69)
8.63
(3.30)
0.95
(1.02)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.35)
(0.49)
(0.54)
(0.37)
(0.33)
Distributions from net realized capital gains
—
—
(0.15)
(1.15)
(0.59)
Total distributions
(0.35)
(0.49)
(0.69)
(1.52)
(0.92)
Net asset value end of period
23.93
24.97
16.83
20.82
21.39
Net assets end of period (000s)
$43,591
$56,156
$29,897
$102,945
$103,552
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(2.80)%
51.99% 
(16.55)%
5.53% 
(4.75)%
Ratio of total expenses to average net assets^
0.81
0.81
0.82
0.80
0.79
Ratio of net expenses to average net assetsa
0.77
0.78
0.80
0.77
0.76
Ratio of net investment income/(loss) to average net assetsa
2.00
1.78
2.39
2.39
2.15
Portfolio turnover
9
18
4
11
24
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$25.24
$16.98
$20.98
$21.52
$23.47
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.41
0.34
0.36
0.42
0.43
Net realized and unrealized gain/(loss) on investments
(1.20)
8.31
(3.77)
0.48
(1.54)
Total from investment operations
(0.79)
8.65
(3.41)
0.90
(1.11)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.25)
(0.39)
(0.44)
(0.29)
(0.25)
Distributions from net realized capital gains
—
—
(0.15)
(1.15)
(0.59)
Total distributions
(0.25)
(0.39)
(0.59)
(1.44)
(0.84)
Net asset value end of period
24.20
25.24
16.98
20.98
21.52
Net assets end of period (000s)
$3,291
$3,828
$4,945
$18,508
$42,557
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(3.14)%
51.53% 
(16.85)%
5.19% 
(5.06)%
Ratio of total expenses to average net assets^
1.14
1.14
1.15
1.13
1.12
Ratio of net expenses to average net assetsa
1.10
1.11
1.13
1.10
1.08
Ratio of net investment income/(loss) to average net assetsa
1.67
1.46
1.98
2.08
1.83
Portfolio turnover
9
18
4
11
24
See page 147 for notes to the Financial Highlights.
 
141
 
 
Institutional Class
2022
2021
2020
2019
2018
$24.97
$16.83
$20.82
$21.38
$23.33
 
 
 
 
 
0.47
0.40
0.40
0.47
0.49
(1.18)
8.21
(3.73)
0.47
(1.54)
(0.71)
8.61
(3.33)
0.94
(1.05)
 
 
 
 
 
(0.33)
(0.47)
(0.51)
(0.35)
(0.31)
—
—
(0.15)
(1.15)
(0.59)
(0.33)
(0.47)
(0.66)
(1.50)
(0.90)
23.93
24.97
16.83
20.82
21.38
$242,004
$355,431
$277,767
$520,629
$714,309
 
 
 
 
 
(2.88)%
51.87% 
(16.64)%
5.48% 
(4.85)%
0.89
0.89
0.90
0.88
0.87
0.85
0.86
0.88
0.85
0.83
1.93
1.71
2.25
2.33
2.09
9
18
4
11
24
  
 
Investor Class
2022
2021
2020
2019
2018
$24.93
$16.80
$20.78
$21.31
$23.23
 
 
 
 
 
0.39
0.32
0.34
0.39
0.40
(1.18)
8.20
(3.74)
0.48
(1.53)
(0.79)
8.52
(3.40)
0.87
(1.13)
 
 
 
 
 
(0.24)
(0.39)
(0.43)
(0.25)
(0.20)
—
—
(0.15)
(1.15)
(0.59)
(0.24)
(0.39)
(0.58)
(1.40)
(0.79)
23.90
24.93
16.80
20.78
21.31
$28,355
$32,097
$26,785
$58,928
$82,539
 
 
 
 
 
(3.20)%
51.26% 
(16.94)%
5.08% 
(5.20)%
1.25
1.25
1.27
1.25
1.24
1.21
1.22
1.25
1.22
1.20
1.57
1.36
1.89
1.95
1.71
9
18
4
11
24
142
Financial Highlights
 
HARBOR SMALL CAP GROWTH FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$19.95
$15.91
$13.18
$14.39
$15.08
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.01)
(0.07)
(0.04)
(0.01)
(0.05)
Net realized and unrealized gain/(loss) on investments
(3.94)
5.41
3.25
1.56
0.82
Total from investment operations
(3.95)
5.34
3.21
1.55
0.77
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
—
—
—
Distributions from net realized capital gains
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
Total distributions
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
Net asset value end of period
11.78
19.95
15.91
13.18
14.39
Net assets end of period (000s)
$311,509
$399,174
$348,997
$281,603
$306,026
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(23.72)%
34.40% 
24.93% 
16.23% 
5.11% 
Ratio of total expenses to average net assets^
0.80
0.79
0.81
0.80
0.79
Ratio of net expenses to average net assetsa
0.79
0.78
0.80
0.80
0.79
Ratio of net investment income/(loss) to average net assetsa
(0.11)
(0.37)
(0.27)
(0.12)
(0.33)
Portfolio turnover
75
71
95
74
99
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$17.80
$14.36
$11.98
$13.39
$14.17
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
(0.05)
(0.12)
(0.08)
(0.05)
(0.09)
Net realized and unrealized gain/(loss) on investments
(3.43)
4.86
2.94
1.40
0.77
Total from investment operations
(3.48)
4.74
2.86
1.35
0.68
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
—
—
—
—
Distributions from net realized capital gains
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
Total distributions
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
Net asset value end of period
10.10
17.80
14.36
11.98
13.39
Net assets end of period (000s)
$648
$965
$866
$395
$769
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(24.00)%
33.91% 
24.49% 
15.87% 
4.76% 
Ratio of total expenses to average net assets^
1.13
1.12
1.14
1.13
1.12
Ratio of net expenses to average net assetsa
1.12
1.11
1.13
1.12
1.11
Ratio of net investment income/(loss) to average net assetsa
(0.44)
(0.69)
(0.62)
(0.44)
(0.65)
Portfolio turnover
75
71
95
74
99
See page 147 for notes to the Financial Highlights.
 
143
 
 
Institutional Class
2022
2021
2020
2019
2018
$19.84
$15.84
$13.13
$14.35
$15.06
 
 
 
 
 
(0.03)
(0.08)
(0.05)
(0.03)
(0.06)
(3.91)
5.38
3.24
1.57
0.81
(3.94)
5.30
3.19
1.54
0.75
 
 
 
 
 
—
—
—
—
—
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
11.68
19.84
15.84
13.13
14.35
$595,476
$721,405
$633,535
$440,553
$400,389
 
 
 
 
 
(23.81)%
34.29% 
24.87% 
16.18% 
4.97% 
0.88
0.87
0.89
0.88
0.87
0.87
0.86
0.88
0.87
0.86
(0.19)
(0.45)
(0.35)
(0.20)
(0.40)
75
71
95
74
99
  
 
Investor Class
2022
2021
2020
2019
2018
$16.60
$13.47
$11.28
$12.79
$13.62
 
 
 
 
 
(0.06)
(0.13)
(0.08)
(0.06)
(0.11)
(3.14)
4.56
2.75
1.31
0.74
(3.20)
4.43
2.67
1.25
0.63
 
 
 
 
 
—
—
—
—
—
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
(4.22)
(1.30)
(0.48)
(2.76)
(1.46)
9.18
16.60
13.47
11.28
12.79
$7,031
$8,648
$6,811
$6,670
$7,076
 
 
 
 
 
(24.05)%
33.84% 
24.32% 
15.81% 
4.58% 
1.24
1.23
1.26
1.25
1.24
1.23
1.23
1.25
1.24
1.23
(0.55)
(0.81)
(0.71)
(0.57)
(0.77)
75
71
95
74
99
144
Financial Highlights
 
HARBOR SMALL CAP VALUE FUND
 
Retirement Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$45.11
$31.65
$33.55
$33.60
$36.16
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.18
0.12
0.21
0.21
0.17
Net realized and unrealized gain/(loss) on investments
(3.38)
13.54
(1.59)
2.84
(1.98)
Total from investment operations
(3.20)
13.66
(1.38)
3.05
(1.81)
Less Distributions
 
 
 
 
 
Dividends from net investment income
(0.08)
(0.20)
(0.20)
(0.15)
(0.06)
Distributions from net realized capital gains
(2.36)
—
(0.32)
(2.95)
(0.69)
Total distributions
(2.44)
(0.20)
(0.52)
(3.10)
(0.75)
Net asset value end of period
39.47
45.11
31.65
33.55
33.60
Net assets end of period (000s)
$600,143
$599,016
$300,473
$230,861
$155,036
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(7.16)%
43.19% 
(4.22)%
10.98% 
(5.18)%
Ratio of total expenses to average net assets^
0.80
0.79
0.80
0.80
0.79
Ratio of net expenses to average net assetsa
0.79
0.78
0.80
0.80
0.79
Ratio of net investment income/(loss) to average net assetsa
0.46
0.27
0.67
0.67
0.45
Portfolio turnover
15
17
17
27
22
  
 
 
Administrative Class
Year Ended October 31,
2022
2021
2020
2019
2018
Net asset value beginning of period
$44.72
$31.41
$33.30
$33.36
$35.97
Income from Investment Operations
 
 
 
 
 
Net investment income/(loss)a,e
0.05
(0.02)
0.10
0.11
0.06
Net realized and unrealized gain/(loss) on investments
(3.35)
13.42
(1.57)
2.82
(1.98)
Total from investment operations
(3.30)
13.40
(1.47)
2.93
(1.92)
Less Distributions
 
 
 
 
 
Dividends from net investment income
—
(0.09)
(0.10)
(0.04)
—
Distributions from net realized capital gains
(2.36)
—
(0.32)
(2.95)
(0.69)
Total distributions
(2.36)
(0.09)
(0.42)
(2.99)
(0.69)
Net asset value end of period
39.06
44.72
31.41
33.30
33.36
Net assets end of period (000s)
$9,177
$11,962
$10,082
$6,537
$7,253
Ratios and Supplemental Data (%)
 
 
 
 
 
Total returnb
(7.45)%
42.72% 
(4.54)%
10.59% 
(5.50)%
Ratio of total expenses to average net assets^
1.13
1.12
1.13
1.13
1.12
Ratio of net expenses to average net assetsa
1.12
1.11
1.13
1.12
1.11
Ratio of net investment income/(loss) to average net assetsa
0.13
(0.04)
0.32
0.35
0.16
Portfolio turnover
15
17
17
27
22
See page 147 for notes to the Financial Highlights.
 
145
 
 
Institutional Class
2022
2021
2020
2019
2018
$45.07
$31.63
$33.53
$33.57
$36.14
 
 
 
 
 
0.15
0.09
0.18
0.19
0.15
(3.38)
13.52
(1.58)
2.84
(2.00)
(3.23)
13.61
(1.40)
3.03
(1.85)
 
 
 
 
 
(0.04)
(0.17)
(0.18)
(0.12)
(0.03)
(2.36)
—
(0.32)
(2.95)
(0.69)
(2.40)
(0.17)
(0.50)
(3.07)
(0.72)
39.44
45.07
31.63
33.53
33.57
$1,493,462
$2,023,164
$1,350,681
$1,346,098
$1,149,857
 
 
 
 
 
(7.22)%
43.11% 
(4.33)%
10.91% 
(5.28)%
0.88
0.87
0.88
0.88
0.87
0.87
0.86
0.88
0.87
0.86
0.38
0.20
0.59
0.60
0.40
15
17
17
27
22
  
 
Investor Class
2022
2021
2020
2019
2018
$43.72
$30.71
$32.56
$32.68
$35.29
 
 
 
 
 
0.01
(0.06)
0.07
0.08
0.01
(3.28)
13.12
(1.55)
2.75
(1.93)
(3.27)
13.06
(1.48)
2.83
(1.92)
 
 
 
 
 
—
(0.05)
(0.05)
—
—
(2.36)
—
(0.32)
(2.95)
(0.69)
(2.36)
(0.05)
(0.37)
(2.95)
(0.69)
38.09
43.72
30.71
32.56
32.68
$38,722
$64,544
$51,370
$57,931
$70,819
 
 
 
 
 
(7.56)%
42.56% 
(4.67)%
10.48% 
(5.60)%
1.24
1.23
1.25
1.25
1.24
1.23
1.23
1.25
1.24
1.23
0.01
(0.15)
0.23
0.24
0.03
15
17
17
27
22
146
Financial Highlights
 
*
Less than $0.01
^
Percentage does not reflect reduction for credit balance arrangements.
a
Reflects the Adviser’s waiver, if any, of its management fees and/or other operating expenses
b
The total returns would have been lower had certain expenses not been waived during the periods shown.
c
Unannualized
d
Annualized
e
Amounts are based on average daily shares outstanding during the period.
f
For the period December 1, 2019 (inception) through October 31, 2020
g
Effective September 1, 2021, the Fund changed its name and Harbor Capital Advisors, Inc. was appointed by the Board of Trustees to manage the Fund’s assets based
upon model portfolios provided by multiple non-discretionary subadvisors.
h
For the period June 1, 2018 (inception) through October 31, 2018
i
For the period March 1, 2019 (inception) through October 31, 2019
j
Effective August 22, 2018, the Board of Trustees appointed Marathon Asset Management Limited as subadviser to Harbor International Fund.
k
Effective May 23, 2019, the Board of Trustees appointed Cedar Street Asset Management LLC as subadvisor to Harbor International Small Cap Fund.
l
Effective February 2, 2022, the Fund’s name changed from Harbor Bond Fund to Harbor Core Plus Fund and the Board of Trustees appointed Income Research+Management
as the subadvisor to the Fund.
m
The net investment income ratio includes dividends and interest income and related tax compliance fee and interest expense, from foreign tax reclaims and interest
received by the Fund. The ratios of total expenses to average net assets include the tax compliance fee and related interest expense due to this receipt of foreign tax
reclaims and interest income by the Fund. For the year ended October 31, 2020, the ratios of net expenses to average net assets including tax compliance fee for the
Retirement Class, Institutional Class, Administrative Class, and Investor Class were 1.49%, 1.64%, 1.53%, and 1.98%, respectively.
 
147
Fund Details
 
Share prices are available on our website at harborcapital.com after 7:00 p.m. Eastern time or by calling 800-422-1050 during normal business hours.
Other Harbor funds managed by the Advisor are offered by means of separate prospectuses. To obtain a prospectus for any of the Harbor funds visit our website at harborcapital.com or call 800-422-1050 during normal business hours.
 
FUND
NUMBER
TICKER
SYMBOL
 
HARBOR Funds
Harbor Capital Appreciation Fund
2512
HNACX
Retirement Class
2012
HACAX
Institutional Class
2212
HRCAX
Administrative Class
2412
HCAIX
Investor Class
Harbor Convertible Securities Fund
 
 
2534
HNCVX
Retirement Class
2034
HACSX
Institutional Class
2234
HRCSX
Administrative Class
2434
HICSX
Investor Class
Harbor Core Bond Fund
 
 
2543
HCBRX
Retirement Class
2043
HACBX
Institutional Class
Harbor Core Plus Fund
 
 
2514
HBFRX
Retirement Class
2014
HABDX
Institutional Class
2214
HRBDX
Administrative Class
Harbor Disruptive Innovation Fund
2519
HNMGX
Retirement Class
2019
HAMGX
Institutional Class
2219
HRMGX
Administrative Class
2419
HIMGX
Investor Class
Harbor Diversified International All Cap Fund
2538
HNIDX
Retirement Class
2038
HAIDX
Institutional Class
2238
HRIDX
Administrative Class
2438
HIIDX
Investor Class
Harbor Global Leaders Fund
2530
HNGIX
Retirement Class
2030
HGGAX
Institutional Class
2230
HRGAX
Administrative Class
2430
HGGIX
Investor Class
Harbor International Fund
2511
HNINX
Retirement Class
2011
HAINX
Institutional Class
2211
HRINX
Administrative Class
2411
HIINX
Investor Class
Harbor International Core Fund (formerly, Harbor Overseas Fund)
2544
HAORX
Retirement Class
2044
HAOSX
Institutional Class
2244
HAOAX
Administrative Class
2444
HAONX
Investor Class
Harbor International Growth Fund
2517
HNGFX
Retirement Class
2017
HAIGX
Institutional Class
2217
HRIGX
Administrative Class
2417
HIIGX
Investor Class
148
Fund Details
FUND
NUMBER
TICKER
SYMBOL
 
HARBOR Funds— continued
Harbor International Small Cap Fund
2539
HNISX
Retirement Class
2039
HAISX
Institutional Class
2239
HRISX
Administrative Class
2439
HIISX
Investor Class
Harbor Large Cap Value Fund
2513
HNLVX
Retirement Class
2013
HAVLX
Institutional Class
2213
HRLVX
Administrative Class
2413
HILVX
Investor Class
Harbor Mid Cap Fund
2546
HMCRX
Retirement Class
2046
HMCLX
Institutional Class
2246
HMCDX
Administrative Class
2446
HMCNX
Investor Class
Harbor Mid Cap Value Fund
2523
HNMVX
Retirement Class
2023
HAMVX
Institutional Class
2223
HRMVX
Administrative Class
2423
HIMVX
Investor Class
Harbor Small Cap Growth Fund
2510
HNSGX
Retirement Class
2010
HASGX
Institutional Class
2210
HRSGX
Administrative Class
2410
HISGX
Investor Class
Harbor Small Cap Value Fund
2522
HNVRX
Retirement Class
2022
HASCX
Institutional Class
2222
HSVRX
Administrative Class
2422
HISVX
Investor Class
 
Updates Available
For updates on the Harbor Funds following the end of each calendar quarter, please visit our website at harborcapital.com.
149
  
 
[THIS PAGE INTENTIONALLY LEFT BLANK]
150
 
 
(Lighthouse Logo)
 
For more information
For investors who would like more information about the Funds, the following
documents are available upon request:
Annual/Semi-Annual Reports
Additional information about the each Fund’s investments is available in the Funds' annual and semi-annual reports to shareholders. The annual report contains a discussion of the market conditions and investment strategies that significantly affected each Fund’s performance during its last fiscal year.
Statement of Additional Information (SAI)
The SAI provides more detailed information about each Fund and is incorporated into this prospectus by reference and therefore is legally part of this prospectus.
This prospectus is not an offer to sell securities in places other than the United States, its territories, and those countries where shares of a Fund are registered for sale.
Investment Adviser
Harbor Capital Advisors, Inc.
111 South Wacker Drive, 34th Floor
Chicago, IL 60606-4302
312-443-4400
Distributor
Harbor Funds Distributors, Inc.
111 South Wacker Drive, 34th Floor
Chicago, IL 60606-4302
312-443-4600
Shareholder Inquiries
P.O. Box 804660
Chicago, IL 60680-4108
800-422-1050
Obtain Documents
Free copies of the annual and semi-annual reports, the SAI, and other information about the Funds are available: 
(Globe Icon)
 
harborcapital.com
(Phone Icon)
 
800-422-1050
 
Harbor Funds
P.O. Box 804660
Chicago, IL 60680-4108
Investors may get text-only copies: 
(Globe Icon)
 
sec.gov
(Envelope Icon)
 
[email protected] (for a fee)
Trustees & Officers 
Charles F. McCain
Chairman, President & Trustee
Scott M. Amero
Trustee
Donna J. Dean
Trustee
Robert Kasdin
Trustee
Kathryn L. Quirk
Trustee
Douglas J. Skinner
Trustee
Ann M. Spruill
Trustee
Landis Zimmerman
Trustee
Erik D. Ojala
Chief Compliance Officer
John M. Paral
Treasurer
Kristof M. Gleich
Vice President
Gregg M. Boland
Vice President and
AML Compliance Officer
Richard C. Sarhaddi
Vice President
Lora A. Kmieciak
Vice President
Diane J. Johnson
Vice President
Diana R. Podgorny
Secretary
Lana M. Lewandowski
Assistant Secretary
Investment Company Act File No. 811-4676
FD.P.0323