Harbor Funds Names PIMCO to Manage New Unconstrained Bond Fund

CHICAGO, April 1 /PRNewswire/ -- Harbor Funds today announced the addition of the Harbor Unconstrained Bond Fund to its lineup of no-load mutual funds. The new fund, which commences operations today, is managed by Pacific Investment Management Company LLC (PIMCO).

The Harbor Unconstrained Bond Fund may be suitable for investors seeking longer-term total return from a diversified portfolio free of traditional benchmark constraints.  The Fund allows for significant investment discretion to invest in a broad range of fixed-income securities without significant limitations to specific sectors or types of instruments.  The significant investment discretion and the absence of benchmark constraints increases the Fund's potential for volatility in performance, particularly over shorter time periods. The Harbor Unconstrained Bond Fund has an investment minimum of $1,000.

The Fund will be managed by Chris Dialynas, a managing director of PIMCO. Mr. Dialynas joined PIMCO in 1980 and is a senior member of the firm's investment strategy group. Based in Newport Beach, Calif., PIMCO is one of the world's leading fixed-income fund management companies.

Because the portfolio manager employs an unconstrained investment approach, the Harbor Unconstrained Bond Fund may involve significant exposure in areas of the global bond markets that entail greater risks.  For example, high-yield, or below investment grade, securities carry a higher degree of credit risk, and may be speculative and more volatile.  Investing in emerging markets may entail risk due to foreign economic and political developments.  Also, foreign currency exposure can entail significant volatility, and this may be amplified with the currencies of developing countries.  Other risks also apply, which are outlined in the Fund's prospectus.  

The Harbor Funds lineup of actively managed no-load mutual funds had combined net assets of  $49.8 billion as of March 31, 2010. Each Harbor fund is managed by an institutional investment firm chosen by Harbor Capital Advisors, Inc. because of its experience in a specific asset class.

Investors should consider the Fund's investment objectives, risks, fees and expenses carefully before investing.  For this and other important information, please obtain a prospectus by calling 800-422-1050 or visiting www.harborfunds.com and read it carefully before investing.  

Distributed by Harbor Funds Distributors, Inc.

SOURCE Harbor Funds