(PUB) Investing 2016

23

November 2016

Morningstar FundInvestor

Data through October 31, 2016 FINRA members: For internal or institutional use only. Harbor Small Cap Value Instl

Ticker HASCX

Yield 0.3%

Total Assets $761 mil

Mstar Category Small Blend

Benchmark 1: Russell 2000 TR USD Benchmark 2: S&P 500 TR USD Morningstar Analyst Rating 10-17-16 ´

Investment Style Equity

Historical Profile Return Risk Rating Above Avg Average QQQQ Above Avg

6 8 6 6 6 6 6 6

20.0

Growth of $10,000

15.0

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

10.0

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

Performance

People Parent

Performance Quartile (within Category)

) * * ) ) & ( ( & * & 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10-16 21.44 19.90 13.26 16.34 19.59 20.00 22.34 25.66 26.70 24.74 27.27 10.66 -1.44 -32.89 23.78 20.36 2.38 14.16 35.60 7.88 -3.66 10.23 -7.71 0.13 0.89 -3.39 -6.50 6.56 -2.19 -3.22 2.98 0.75 4.06 -5.14 -6.93 4.10 -2.69 5.29 0.27 -1.84 3.21 -5.81 -5.04 4.36 0.10 0.44 0.28 0.54 0.46 0.27 1.08 0.22 0.23 0.35 0.00 10.56 -1.88 -33.17 23.24 19.89 2.11 13.08 35.38 7.65 -4.01 10.23 0.02 0.10 0.05 0.07 0.08 0.05 0.22 0.05 0.06 0.09 0.00 0.49 1.11 0.04 0.00 0.00 0.00 0.27 4.41 0.91 0.89 0.00 0.83 0.83 0.85 0.88 0.88 0.86 0.86 0.84 0.84 0.85 0.86 0.19 0.44 0.40 0.50 0.39 0.31 0.97 0.45 0.33 0.38 0.52 86 45 27 82 87 6 64 68 10 35 12

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 10-31-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

8.80 -5.19 5.28 5.12 14.16 12.00 2.84 8.98 8.04 35.60 1.68 2.38 -4.87 8.94 7.88 4.42 -1.47 -11.21 5.46 -3.66

.

27

14

16

18

12

12

14

22

13

19

1,906 1,381

653

649

611

548

490

535

717

799

739

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 09-30-16 Total Stocks: 56 Share change since 06-30-16

2.83 3.07 6.52

— —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets 12.46 3.41 -9.04 3.11 21.27 3.10 -1.14 2.98 24.64 2.82 19.82 2.71 17.39 2.48 35.95 2.41 68.97 2.39 59.91 2.34 -5.06 2.33 4.74 2.27 27.42 2.27 -14.53 2.19 38.78 2.19 44.19 2.18 31.21 2.16 -9.51 2.04 3.18 2.01

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

Y Global Payments Inc

Industrl Industrl

1 Yr 3 Yr 5 Yr

8.18 6.30

3 Mo 6 Mo

-0.15 1.84 1.52 6.90 0.77 2.84 8.18 4.07 3.67 6.30 2.18 -2.54 12.67 1.16 -0.90 6.34 0.38 -0.36

10 9,985 11 10,690 8 10,818 6 12,012 21 18,156 32 18,483

Y Snap-on Inc

Avg QQQQQ Avg QQQQ

High

Y The Valspar Corp

Basic Mat

12.67

+Avg

1 Yr

Y Hexcel Corp

Industrl

Avg QQQ

10 Yr Incept

6.34 9.78

Avg

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

Y Monolithic Power Systems

Technology Technology Technology Technology Technology Hlth Care Finan Svcs Finan Svcs Hlth Care Basic Mat Industrl

Y Entegris Inc

Y EnerSys

Other Measures

Standard Index

Best Fit Index

— — — — —

Y Franklin Electric Co Inc Y Advanced Energy Industrie

Alpha

-3.2 1.14

1.4

Beta

0.99

Tax Analysis

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

Y Coherent Inc Y Centene Corp

R-Squared

75

95

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

4.25

10 17 22

1.93 1.24 0.77

47 45 26

11.27

Standard Deviation

14.09

Y Raymond James Financial I Y Reinsurance Group of Amer Y The Scotts Miracle Gro Co Y Mueller Water Products, I Y Mednax Inc

5.52

Mean

6.30 0.50

Sharpe Ratio

Potential Capital Gain Exposure: 36% of assets

Morningstar's Take by Christopher Franz 10-17-16 Harbor Small Cap Value features a long-tenured manager and strong research process. It is subadvised by a team at Atlanta-based Earnest Partners that's run the fund since its December 2001 inception. The managers have delivered consistent and attractive risk-adjusted returns and benefit from a proven team. This fund earns a Morningstar Analyst Rating of Bronze. The fund is led by Paul Viera, CEO and founder of Earnest Partners. Viera founded the firm in 1998, following stops at Invesco and Bankers Trust. Earnest is privately held with eight total partners. Viera owns more than 50% of the firm. He is supported by a deep investment team that totals 11, including Viera. It makes investment decisions collaboratively. An 80% majority is required to take action, although Viera retains the final say on portfolio construction. The group uses a proprietary model to narrow their investment universe. It divides an investable universe of 2,000 stocks into 36 clusters based on shared financial characteristics or how a given stock responds to different financial forces. Then the team evaluates current market trends and macroeconomic conditions, highlighting the

Industrl

Y Littelfuse Inc

Technology

types of stocks or clusters that typically respond well. This tapers the field to around 150 high-conviction ideas. The team then dives in for deep, fundamental research. The resulting portfolio almost always lands in the small-blend section of the Morningstar Style Box. Viera typically owns 60 stocks, with around 25% of assets in the top 10 positions. Viera and his team focus on the long term,withportfolio turnoveroften less than20%peryear, well below the small-blend Morningstar Category average of 63%. Viera and team have posted strong returns dating back to the fund’s December 2001 inception. Its annualized return of 10.0% outpaces the 8.6% and 7.9% returns of the Russell 2000 Value Index and average peer, respectively. This top-quintile peer performance is strong ona risk-adjustedbasisaswell,withanattractiveupside/ downside-capture ratio versus both the fund’s bogy and average peer.

Y Molina Healthcare Inc Y WGL Holdings Inc

Hlth Care

Utilities

R Catalent Inc

Hlth Care

— 1.92

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 0.0 Large 0.0 Mid 31.4 Small 59.4 Micro 9.2 Avg $mil: 3,159

Value Blend Growth

Large Mid Small

32.24 0.73 6.51 1.14 3.81 0.31 19.55 1.14 2.37 0.26 52.38 1.47 1.94 1.67 4.71 1.74 20.20 1.41 25.53 1.46 15.39 0.77 1.17 0.31 10.47 0.86 3.75 0.94

Value Measures

Rel Category

Price/Earnings 20.12

1.07 1.19 1.16 1.05 0.79 0.93 1.23 4.04 1.77 1.34

Price/Book Price/Sales

2.23 1.21

Price/Cash Flow 7.66 Dividend Yield % 1.32

Growth Measures

% Rel Category

Long-Term Erngs 10.95

Book Value

4.08 6.62

Composition - Net

Sales

Cash 2.9 Stocks 97.1 Bonds 0.0 Other 0.0 Foreign 0.0 (% of Stock)

Address:

Harbor Funds

Minimum Purchase: Min Auto Inv Plan:

$50000 Add: — IRA: $50000

Cash Flow 12.30 Historical Erngs 6.83

Chicago, IL 60606-4302

— Add: —

800-422-1050

Sales Fees:

No-load

Web Address:

www.harborfunds.com

Management Fee:

0.75%

Profitability

%

Inception:

12-14-01

Actual Fees:

Mgt:0.75% Dist:—

Return on Equity Return on Assets

14.05

Advisor:

Harbor Capital Advisors Inc

Expense Projections: 3Yr:$277 5Yr:$481 10Yr:$1069

4.80 8.44

Subadvisor:

Earnest Partners LLC

Income Distribution:

Annually

Net Margin

A

ß ® Mutual Funds

©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past performance is no guarantee of future results.Access updated reports at www.morningstar.com . To order reprints, email reprints@morningstar.com