Harbor Capital Advisors to enter ETF market with scientific fixed income strategies

Harbor Capital Advisors is planning to bring two fixed income strategies to market this year in the form of exchange-traded funds (ETFs), with both products expected to be available in the autumn, upon completion of the registration process. 

These offerings are the first ETF products from Harbor, which currently offers, through its subadvisory relationships, an array of mutual funds and collective investment trusts.

“Harbor is excited to launch its first ever ETFs, providing advisers and investors more ways to access exclusive investment management solutions to achieve their long-term investment goals," says Kristof Gleich, President and Chief Investment Officer, Harbor.

The two ETF strategies to be launched by Harbor are:

Harbor Scientific Alpha High-Yield ETF – Seeks total return through a structured investment process that utilises a proprietary model-based framework in the security selection of below investment-grade (high-yield) bonds. The subadviser’s portfolio optimisation process seeks to maximise total returns while minimising expected risk and transaction costs.

Harbor Scientific Alpha Income ETF – Seeks total return through a structured investment process that utilises a proprietary model-based framework in the security selection of both investment-grade and below investment-grade (high-yield) bonds. The subadviser’s optimisation process seeks to maximise total returns while minimising expected risk and transaction costs.

“We are enthusiastic about Harbor’s first two entries into the ETF market and look forward to their launch slated for this September. As we continue to pursue vehicle agnostic solutions to meet our clients’ needs, we are excited to deliver more choice to our investors. Partnering with a world class boutique like BlueCove is an excellent example of how we are moving to provide active, innovative, differentiated and disruptive investment approaches that address growing investor needs,” says Gleich.

The investment strategies for the two ETFs will be subadvised by BlueCove Limited (BlueCove). BlueCove is a new scientific asset management firm founded in 2018 that brings together a group of leading fixed income industry investment and engineering professionals, with the specific purpose of researching and developing state-of-the-art scientific investment processes applicable to fixed income investment management.