The investment platform at Harbor was established more than 35 years ago through the selection of external boutique managers instead of internal portfolio management. The organization bases its mutual fund design and portfolio diversification on its external boutique manager selection model.
The company starts its process by locating boutique investment managers who focus on particular worldwide markets through established investment methods. The team performs complete manager due diligence through method verification and achievement assessment instead of relying on manager self-reported data. The selection process for managing Harbor mutual funds requires teams to fulfill specific criteria. It tracks its investment strategies continuously to verify that the actual results match their originally set targets. Managers are replaced if the investment strategies do not perform, or if market conditions require different expertise. This combination of factors at Harbor establishes it as a dependable investment option.
We have chosen three Harbor mutual funds —Harbor International Core Investor (HAONX), Harbor Mid Cap Value Investor (HIMVX) and Harbor Convertible Securities Investor (HICSX) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Harbor International Core Investor fund invests in a diversified portfolio of non-U.S. equity securities. HAONX subadvisor employs an active, quantitative investment strategy to manage its holdings.
Brendan O. Bradley has been the lead manager of HAONX since March 1, 2019. Most of the fund’s holdings were in companies like Roche Holding AG (3.3%), Novo Nordisk A/S (3.2%) and BNP Paribas SA (2.3%) as of July 30, 2025.
HAONX’s 3-year and 5-year annualized returns are 20.5% and 14.3%, respectively. Its net expense ratio is 1.21%. HAONX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Harbor Mid Cap Value Investor fund seeks long-term total return. HIMVX invests primarily in equity securities, principally common and preferred stocks of companies with market capitalizations in the approximate range of $1 billion to $10 billion at the time of initial investment.
Josef Lakonishok has been the lead manager of HIMVX since Sept. 30, 2004. Most of the fund's holdings were in companies like State Street Corp (1.8%), The Bank of New York Mellon Corp (1.6%) and The Kroger Co. (1.6%) as of July 31, 2025.
HIMVX’s 3-year and 5-year annualized returns are 13.1% and 15.7%, respectively. Its net expense ratio is 1.21%. HIMVX has a Zacks Mutual Fund Rank #2.
Harbor Convertible Securities Investor fund invests most of its assets in a diversified mix of convertible securities.
Benjamin Brodsky has been the lead manager of HICSX since March 1, 2023. Most of the fund’s holdings were in companies like MicroStrategy Inc. (4.9%), The Boeing Co. (2.8%) and Wells Fargo & Co. (2.4%) as of July 30, 2025.
HICSX’s 3-year and 5-year annualized returns are 14.8% and 8.2%, respectively. Its net expense ratio is 1.07%. HICSX has a Zacks Mutual Fund Rank #2.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
