Harbor Capital Advisors, Inc. (“Harbor”), a premier multi-manager investment firm offering access to specialized expertise across a range of investment strategies and vehicles, today announced the launch of its first ETFs – the Harbor Scientific Alpha Income ETF (NYSE:SIFI) and the Harbor Scientific Alpha High-Yield ETF (NYSE:SIHY).
- The Harbor Scientific Alpha Income ETF is an actively managed multi-sector fixed income strategy that seeks total return with an objective to provide competitive total returns and income to investors through employing a structured investment process that utilizes a proprietary model-based framework in the asset allocation and security selection of both investment-grade and below investment-grade (high-yield) bonds. Additionally, SIFI employs a tactical derivative overlay that provides a potential added source of returns. SIFI has an expense ratio of 0.50%
- The Harbor Scientific Alpha High-Yield ETF is an actively managed fixed income strategy that seeks total return with an objective to provide total returns in excess of its benchmark (ICE BofA US High Yield Index) through employing a structured investment process that utilizes a proprietary model-based framework in the security selection of below investment-grade (high-yield) bonds. SIHY has an expense ratio of 0.48%
“Harbor is excited to launch its first ever ETFs, providing advisers and investors more ways to access exclusive investment management solutions to help them achieve their long-term investment goals,” said Kristof Gleich, President and Chief Investment Officer, Harbor.
BlueCove Limited (“BlueCove”), the subadviser to the new ETFs, is a scientific asset management firm founded in 2018 that brings together leading fixed income industry investment and engineering professionals, with the specific purpose of researching and developing state-of-the-art scientific investment processes applicable to fixed income investment management.
“As we continue to pursue vehicle agnostic solutions to meet our clients’ needs, we are excited to deliver greater choice to our investors. Partnering with a world class boutique like BlueCove is an excellent example of how we are moving to provide active, innovative, differentiated and disruptive investment approaches that address the growing needs of our clients and investors,” said Gleich.
“We are pleased to partner with Harbor to introduce these two exciting ETFs to the marketplace. SIFI and SIHY offer cost aware solutions to gaining access to differentiated, actively managed, and scientifically driven fixed income exposure in the multi-sector and high-yield bond categories,” said Alex Khein, Co-Founder and Chief Executive Officer, BlueCove.
Key Features of Scientific Fixed Income Investing
Active scientific investing offers investors a clearly differentiated alternative to both passive and traditional active discretionary strategies by benefiting from significant breadth and the application of insights that are otherwise difficult to capture.
- Can potentially improve returns by mitigating cognitive and behavioral biases that may compromise traditional discretionary investment strategies
- Applies market tested insights across a large set of instruments and markets
- Harnesses large datasets to help create innovative sources of alpha
- Applies modern portfolio construction techniques by targeting consistent risk-adjusted returns while mitigating transaction costs
- Has the potential to offer low correlations to traditional discretionary strategies while helping remove unwanted market exposures
- Allows for adaptation to changes in market behavior by transparently attributing performance
Harbor offers a diverse family of cost-aware investment solutions managed by institutional-caliber firms. We source talented investment teams to manage portfolios and apply a rigorous fiduciary oversight program to monitor their performance and investment decisions. Harbor had combined assets under management of approximately $64 billion as of June 30, 2021. For more information, visit harborfunds.com.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST. FOR PROSPECTUS OR SUMMARY PROSPECTUS WITH THIS AND OTHER INFORMATION ABOUT THE FUND, PLEASE VISIT OUR WEBSITE AT WWW.HARBORFUNDS.COM.
All investments involve risk including the possible loss of principal. 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. There is a greater risk that the Funds will lose money because they invest in below investment-grade fixed income securities and unrated securities of similar credit quality (commonly referred to as “high-yield securities” 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. Because the Funds may invest in securities of foreign issuers, an investment in the Funds 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 government bodies of other countries and less stringent investor protection and disclosure standards of foreign markets.
The ICE BofA US High Yield Index is an unmanaged index that tracks the performance of below investment grade U.S. Dollar-denominated corporate bonds publicly issued in the U.S. domestic market. All bonds are U.S. dollar denominated and rated Split BBB and below. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
Foreside Fund Services, LLC is the Distributor of the Harbor Scientific Alpha High-Yield ETF and the Harbor Scientific Alpha Income ETF.
BlueCove Limited is a third-party subadviser to the Harbor Scientific Alpha Income ETF and the Harbor Scientific Alpha High-Yield ETF.