Harbor Capital Advisors Launches Its First ETFs; Managed by Scientific Fixed Income Specialist BlueCove
September 20 2021 - 10:00AM
Business Wire
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
About Harbor
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.
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