SIFI Profile
The Harbor Scientific Alpha Income ETF is an actively-managed fund that primarily focuses on investing in a diverse array of fixed income instruments. This includes traditional fixed income securities as well as derivatives such as credit default swaps and U.S. Treasury futures. The funds strategy involves utilizing these instruments to generate income while managing risk associated with various credit exposures.
In addition to direct investments in fixed income securities, the fund may also employ exchange-traded funds (ETFs) to manage overall portfolio exposures and enhance diversification. This approach allows the fund to efficiently adjust its exposure to different sectors or credit qualities, leveraging the liquidity and flexibility offered by ETFs. The fund's investment strategy also encompasses securities from foreign issuers, including bonds from emerging markets, which can offer higher yields and further diversification opportunities.
A significant portion of the Harbor Scientific Alpha Income ETFs assets may be allocated to below investment-grade corporate bonds, often referred to as "high yield" or "junk" bonds. These investments, along with unrated securities deemed equivalent in credit quality by the subadviser, BlueCove Limited, are selected for their potential to provide higher returns. The fund's ability to invest in these higher-risk securities is balanced by its use of various risk management techniques, including credit derivatives and futures contracts.
BlueCove Limited, the fund's subadviser, employs a thorough analysis process to identify investment opportunities within the fixed income market. This process includes assessing the creditworthiness of issuers, market conditions, and economic trends to make informed investment decisions. The fund is designed for investors seeking higher income through exposure to a broad range of fixed income assets while accepting the risks associated with high yield and emerging market investments.
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