With more than $47 billion in assets under management (AUM), Harbor Capital Advisors manages assets for Harbor Funds and for corporate pension plans. The Chicago firm uses a “manager of managers” approach, meaning it delegates market research and portfolio construction to subadvisors.
The firm does not work offer financial planning or customized portfolio consulting. For personal financial services, use SmartAsset’s matching tool. It recommends up to three local financial advisors based on your individual circumstances.
Harbor Capital Advisors Background
Harbor Capital formed in 1983 to manage the pension plan and retirement plan assets of Owens-Illinois, its parent company at the time. Today, the firm is a wholly owned subsidiary of ORIX Corporation, a global financial services firm based in Tokyo.
What Types of Clients Does Harbor Capital Advisors Accept?
Harbor Capital advises Harbor Funds, an investment company, and Harbor Capital Group Trust for Defined Benefit Plans, a collective investment vehicle.
Harbor Capital Advisors Minimum Account Size
Harbor Capital’s account minimum requirements depend on the type of account you open and the fund you invest in. For institutional class accounts, the minimum is $50,000 for for each fund except Strategic Markets and Fixed Income Funds, both of which have a $1,000 minimum. For investor class accounts, the minimum is $2,500 for non-retirement accounts and $1,000 for IRAs.
Services Offered by Harbor Capital Advisors
As stated earlier, Harbor Capital’s main line of business involves providing investment management services to the Harbor Funds and the Harbor Capital Group Trust for Defined Benefit Plans. The Harbor Funds, a family of no-load mutual funds that include target-date funds, are open to individual investors.
Harbor Capital Advisors Investment Philosophy
Harbor Capital sets the objectives and strategies for its funds and then hires sub-advisors to carry them out. Following the firm’s policies and guidelines, each sub-advisor is responsible for making day-to-day investment decisions, including the timing and manner of securities to be purchased or sold. The firm monitors and evaluates the performance of its subadvisors.
Fees Under Harbor Capital Advisors
Harbor Funds and the Group Trust pay Harbor Capital an advisory fee that is based on a percentage of net assets under management (AUM). Harbor Funds does this for all of its funds except the target-date ones, which are invested in the other Harbor Funds. Harbor Capital doesn’t publish its fee schedules.
What to Watch Out For
Beyond providing access to its mutual funds through IRA and regular accounts, Harbor Capital doesn’t offer advisory services to individuals. So if you’re seeking customized portfolio management or help with such things as estate planning, college savings plans or preparing for retirement, this firm is not the right fit.
Harbor Capital had no legal or disciplinary event in the past 10 years to report in its most recent filings with the Securities and Exchange Commission (SEC). For the latest disclosure information, you can access the firm’s Form ADV on the SEC’s Investment Advisor Public Disclosure website.
Opening an Account With Harbor Capital Advisors
You can open a regular account on its website at https://www.harborfunds.com/docs/new_acct_app.pdf or an IRA account at https://www.harborfunds.com/docs/ira_adpt_app.pdf. Alternately, you call the firm at (312) 443-4400.
Where Is Harbor Capital Advisors Located?
Harbor Capital is located at 111 South Wacker Drive, 34th Floor, Chicago, Illinois 60606-4302.
All information was accurate as of the writing of this article.
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