CHICAGO--(BUSINESS WIRE)--Harbor Capital Advisors, Inc. ("Harbor"), an asset manager that curates a suite of actively-managed ETFs, mutual funds, and collective investment trusts, is excited to formally share that at the end of December, the firm has added the Harbor Osmosis International Resource Efficient and Harbor Emerging Markets Resource Efficient ETFs (Tickers: EFFI and EFFE) to its growing lineup of ETF offerings.
EFFI and EFFE are managed by Osmosis Investment Management (subadvisor) a London-based, privately owned boutique investment manager founded in 2009. Across its strategies, the firm seeks attractive risk-adjusted returns, while offering the potential for reduced environmental (carbon, water, and waste) footprints relative to their benchmarks. All portfolios are ex-tobacco and aligned with UN Global Compact Principles for social and governance safeguarding.
Osmosis leverages its proprietary MoRE (Model of Resource Efficiency) quantitative model to drive stock selection. This seeks to provide diversified portfolios of high-quality, resource-efficient companies from the overall international equity universe of companies based in non-U.S. developed markets. Osmosis is deeply rooted in environmentally oriented investing.
“Finding specialized boutiques with a distinct alpha edge is what we live and breathe at Harbor, and I believe we have found another strong partner to add to our line-up of managers. EFFI and EFFE offer differentiated, alpha-seeking approaches to international equity investing while aiming to meaningfully lower the portfolio’s carbon, water, and waste footprint compared to their benchmarks, the MSCI World ex USA and MSCI Emerging Markets Indices, respectively,” said Kristof Gleich, President & CIO at Harbor Capital Advisors.
Gleich added, “We believe that the combination of alpha with the potential for a reduced environmental footprint is compelling and in demand in the marketplace.”
EFFI may be appropriate as a core international equity allocation, and EFFE may be appropriate as a core emerging markets allocation, especially for investors looking to target alpha with a positive environmental impact. They have a total expense ratio of 55 and 78 basis points, respectively.
About Harbor Capital
Harbor Capital Advisors is an asset manager with an AUM of $63.1 billion as of September 30, 2024, and is known for prudently curating a suite of active ETFs, mutual funds, and collective investment trusts from boutique managers. Advisors looking for distinct and differentiated investment options for their clients’ portfolios often connect with our obsession with finding what we believe are the best and most bold solutions that have the potential to produce compelling risk-adjusted returns. For more information, visit www.harborcapital.com.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a Harbor fund before investing. To obtain a summary prospectus or prospectus for this and other information, visit harborcapital.com or call 800-422-1050. Read it carefully before investing.
Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETF is new and has limited operating history to judge.
EFFE: There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Large cap stocks may underperform compared to small or mid cap stocks, which may lead the Fund to lag funds focused on smaller caps, while mid cap stocks carry added risks like illiquidity and higher volatility than those of large companies. The Fund's investments in foreign securities, particularly emerging markets, expose it to higher risks than funds investing only in the U.S., including currency risk, which may negatively impact its value if foreign currencies fluctuate against the U.S. dollar. There is no guarantee that the Subadvisor’s resource efficiency strategy will accurately provide exposure to resource efficient companies and the Fund may outperform or underperform other funds that invest in similar asset classes but employ different investment styles. The Subadvisor relies on company data for Resource Efficiency Scores but can't guarantee its accuracy or completeness, especially in emerging markets. The Fund utilizes a quantitative model and there are limitations in every quantitative model. There can be no assurances that the strategies pursued or the techniques implemented in the quantitative model will be profitable, and various market conditions may be materially less favorable to certain strategies than others.
EFFI: There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Large cap stocks may underperform compared to small or mid cap stocks, which may lead the Fund to lag funds focused on smaller caps, while mid cap stocks carry added risks like illiquidity and higher volatility than those of large companies. The Fund's investments in foreign securities expose it to higher risks than Funds investing only in the U.S., including currency risk, which may negatively impact its value if foreign currencies fluctuate against the U.S. dollar. There is no guarantee that the Subadvisor’s resource efficiency strategy will accurately provide exposure to resource efficient companies and the Fund may outperform or underperform other funds that invest in similar asset classes but employ different investment styles. The Subadvisor relies on company data for Resource Efficiency Scores but does not guarantee its accuracy or completeness. The Fund utilizes a quantitative model and there are limitations in every quantitative model. There can be no assurances that the strategies pursued, or the techniques implemented in the quantitative model will be profitable, and various market conditions may be materially less favorable to certain strategies than others.
The Subadvisor considers certain Environmental, Social and Governance (ESG) factors in evaluating company quality which may result in the selection or exclusion of securities for reasons other than performance and the Fund may underperform relative to other funds that do not consider ESG factors.
The MSCI World ex USA Index is an unmanaged index that captures large and mid-cap representation across 22 of 23 Developed Markets countries, excluding the United States. The index covers approximately 85% of the free float-adjusted market capitalization in each country. The MSCI Emerging Markets Index is an unmanaged index that captures large and mid-cap representation across Emerging Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice or a recommendation to purchase a particular security.
Alpha is a measure of risk (beta)-adjusted return.
A basis point is one hundredth of 1 percentage point.
Osmosis Asset Management, U.S. LLC. is the subadvisor to the Harbor Osmosis International Resource Efficient and Harbor Emerging Markets Resource Efficient ETFs.
Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.