July 26, 2002 -- Harbor Fund said it plans to merge the $75-million Harbor Funds International Fund II (HAIIX) into its $3.96-billion Harbor Funds International Fund (HAINX), adding that the two portfolios have "similar investment strategies."
James LaTorre, president of Summit International Investments Inc., who has managed International Fund II since its inception, will continue as a co-manager of the International Fund with Hakan Castegren, president of Northern Cross Investments Ltd. Castegren has been lead manager of the International Fund since its inception in 1987.
Harbor said the two fund have been managed in "similar value-oriented styles" and have many of the same holdings. International II began operations in 1996 during a period when the International fund was closed to new investors. The International fund was subsequently reopened to new investors in May 2000.
For the 12-month period ended June 30, International II fell 7.31% and the International fund gained 1.65% The average stock fund that invests internationally lost 10.06% over that period.
Following completion of the proposed merger, which is subject to shareholder approval, Harbor will have 13 actively managed no-load mutual funds, including 10 equity funds and three fixed-income funds