(PUB) Investing 2016

4

Data through September 30, 2016 FINRA members: For internal or institutional use only. Harbor Capital Appreciation Instl

Ticker HACAX

Yield 0.1%

Total Assets $25,397 mil

Mstar Category Large Growth

Benchmark 1: Russell 1000 Growth TR USD Benchmark 2: S&P 500 TR USD Morningstar Analyst Rating 09-30-16 Œ

Investment Style Equity

Historical Profile Return Risk Rating Above Avg Above Avg QQQQ Above Avg

7 7 7 7 7 7 7 7

Growth of $10,000

20.0

Investment Values of Fund Investment Values of Benchmark 1

15.0

Morningstar Pillars Process

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

10.0

Performance

People Parent

Performance Quartile (within Category)

) ( & & ) & * & ( & ) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 09-16 33.35 37.31 23.30 32.97 36.72 36.90 42.52 56.69 58.52 60.81 61.35 2.33 12.25 -37.13 41.88 11.61 0.61 15.69 37.66 9.93 10.99 0.89 -6.74 0.44 1.31 4.67 -5.10 -2.03 0.43 4.18 -3.12 5.32 -5.12 -13.47 6.76 -0.13 15.42 -3.45 -1.50 -0.31 5.27 -3.76 9.61 -6.95 0.22 0.37 0.42 0.37 0.23 0.12 0.46 0.11 0.08 0.08 0.00 2.11 11.88 -37.55 41.51 11.37 0.49 15.23 37.55 9.85 10.91 0.89 0.07 0.12 0.16 0.09 0.08 0.04 0.17 0.05 0.05 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.73 3.77 4.11 0.00 0.67 0.67 0.68 0.70 0.70 0.68 0.68 0.68 0.67 0.68 0.64 0.25 0.38 0.47 0.40 0.24 0.14 0.20 0.35 0.11 0.12 0.17 85 54 21 21 82 24 43 17 53 4 85

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 09-30-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

19.08 -6.87 5.62 -1.23 15.69 6.91 2.35 12.38 11.94 37.66 -0.12 4.59 1.91 3.26 9.93 5.55 2.88 -5.44 8.09 10.99

.

71

69

82

72

68

53

41

48

34

37

7,939 8,348 5,039 7,957 9,749 11,115 15,081 20,516 22,329 24,466 22,273

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 06-30-16 Total Stocks: 60 Share change since 03-31-16

-5.49 -1.31 8.16

— —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets 23.88 6.13 22.56 4.38 8.98 4.03 7.18 3.54 — 2.86 5.12 2.72 -20.51 2.68 — 2.43 -9.02 2.43 15.54 2.40 3.35 2.31 — 2.31 5.77 2.27 10.53 2.14 -14.99 2.10 -12.72 2.08

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

Y Amazon.com Inc Y Facebook Inc A

Cnsmr Cyc Technology Technology Finan Svcs Technology Finan Svcs Hlth Care Cnsmr Cyc Technology Technology Technology Technology Technology Cnsmr Cyc Cnsmr Cyc Hlth Care Hlth Care Cnsmr Cyc Hlth Care

1 Yr 3 Yr 5 Yr

9.05

3 Mo 6 Mo

8.16 3.58 4.31 6.75 1.53 0.35 9.05 -4.71 -6.38 11.28 -0.55 0.12 15.99 -0.61 -0.38 8.68 -0.17 1.44 7.54 0.19 0.39

11 10,816 33 10,675 70 10,905 17 13,779 29 20,999 21 22,985 29 29,742

High QQQQ

11.28 15.99

+Avg +Avg +Avg

Y Apple Inc

+Avg QQQ

1 Yr

Visa Inc Class A

Avg QQQQ

10 Yr Incept

8.68

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

T Tencent Holdings Ltd Y MasterCard Inc A

11.17

T Bristol-Myers Squibb Comp

Other Measures

Standard Index

Best Fit Index

Industria De Diseno Texti

Alpha

-0.8 1.11

-1.0 1.04

Salesforce.com Inc Adobe Systems Inc

Beta

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

R-Squared

77

92

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

9.90

11 19 14

1.24 0.77 0.41

31 26 21

Y Alphabet Inc A Y Alphabet Inc C T Microsoft Corp

15.11

Standard Deviation

13.70 11.28

8.23

Mean

Sharpe Ratio

0.84

Y O'Reilly Automotive Inc

Potential Capital Gain Exposure: 42% of assets

Y Nike Inc B

Morningstar's Take by David Kathman, CFA 09-30-16 Harbor Capital Appreciation has seen a dramatic shift in its fortunes over the past two years. In 2015, it was one of the best-performing funds in the large-growth Morningstar Category, posting double-digit returns in a tough year, thanks to big gains by its Internet and healthcare holdings. It has been a different story in 2016, as the fund has struggled to stay in positive territory and ranksnearthecategory'sbottomdecilethroughtheyear's first nine months. Such short-term slumps are no reason to be too concerned, though, as the fund still features an excellent long-term record under veteran manager Sig Segalas. It still earns a Morningstar Analyst Rating of Gold. Segalashas ledthis fund formorethan25yearsusing a fairly traditional growth strategy, one that's disciplined but also flexible when necessary. Along with comanager Kathleen McCarragher, he looks for companies that are growing faster than the S&P 500 benchmark, especially those with strong revenue growth driven by unit sales rather than price increases. Fundamentals such as strong balance sheets are also important, as are solid competitive advantages that will allow a company to

Celgene Corp

T Shire PLC ADR

— 2.04 — 2.02

maintain its growth into the future. Segalas and his team don't ignore price, but it's not a primary concern, so the fund'saveragevaluations tend tobehigher than the large- growth category averages. This strategy results in a portfolio that tends to be heavy in technology, Internet, and healthcare stocks-- primarily big, established names that still have significant growth potential, such as top holdings Amazon AMZN and Facebook FB. Many of these stocks can be volatile in the short term, which accounts for the fund's ups and downs of the past couple of years. Amazon and Facebook were among the prominent holdings whose big gains drove the fund's great 2015 returns, but those stocks have all cooled off to varying degrees in 2016, and that, combined with a market favoring the type of high-yielding stocks that this fund doesn't own, accounts for its underperformance. But the fund has trounced its peers over Segalas' 26-year tenure, and it remains a standout among large-growth funds.

T Alibaba Group Holding Ltd

T Allergan PLC Y Netflix Inc

-26.30 1.95

Comm Svcs -13.84 1.87

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 55.2 Large 34.1 Mid 10.7 Small 0.0 Micro 0.0 Avg $mil: 82,205

Value Blend Growth

Large Mid Small

37.77 1.31 0.19 0.06 30.56 1.65 7.02 1.37 0.00 0.00 41.44 0.93 3.43 0.80 2.28 3.56 4.83 0.38 30.90 1.15 20.79 0.78 5.25 0.56 15.54 0.90 0.00 0.00

Value Measures

Rel Category

Price/Earnings 27.29

1.17 1.25 1.26 1.18 0.69 1.14 1.93 1.46 1.63 1.01

Price/Book Price/Sales

4.89 3.06

Price/Cash Flow 15.33 Dividend Yield % 0.91

Growth Measures

% Rel Category

Long-Term Erngs 13.55

Book Value

14.43 10.51

Composition - Net

Sales

Cash 2.1 Stocks 97.9 Bonds 0.0 Other 0.0 Foreign 13.2 (% of Stock)

Address:

Harbor Funds

Minimum Purchase: Min Auto Inv Plan:

$50000 Add: — IRA: $50000

Cash Flow 18.10 Historical Erngs 12.00

Chicago, IL 60606-4302

— Add: —

800-422-1050

Sales Fees:

No-load

Web Address:

www.harborfunds.com

Management Fee:

0.60%

Profitability

%

Inception:

12-29-87

Actual Fees:

Mgt:0.60% Dist:—

Return on Equity Return on Assets

22.89

Advisor:

Harbor Capital Advisors Inc Jennison Associates LLC

Expense Projections: 3Yr:$218 5Yr:$383 10Yr:$862

9.57

Subadvisor:

Income Distribution:

Annually

Net Margin

14.45

A

ß ® Mutual Funds

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