Harbor Funds said that the new fund seeks to maximize total return by investing primarily in fixed income securities that are tied economically to countries with emerging securities markets.
According to the Harbor, the fund may invest in emerging market securities denominated in either US dollars or local currencies, but will generally seek to maintain a target weighting of 50% of the fund’s portfolio exposed to US dollar denominated securities and 50% to local currency denominated securities.
The portfolio managers will use a ‘top-down’ approach to identify emerging market countries they believe provide more attractive investment opportunities and then select individual investments from within those countries based upon their view of securities they believe offer the highest potential returns based upon the amount of credit, interest rate, liquidity, and other risks present.
Harbor Capital Advisors chairman and CEO David Van Hooser said that Stone Harbor has substantial experience investing in emerging markets, making them ideally suited to subadvise this new fund.
Peter Wilby, chief investment officer of Stone Harbor Investment Partners, along with Stone Harbor portfolio managers Pablo Cisilino, James Craige, Thomas Flanagan, David Oliver, and Christopher Wilder, will serve as portfolio managers of the fund.
