Harbor Commodity Real Return Strategy Fund (HACMX)

The following Harbor Commodity Real Return Strategy fund is sub advised by PIMCO (Pacific Investment Management Company LLC). This Harbor fund is categorized as commodities broad basket fund. This alternative fund has become popular with the rising of commodities price. This fund is essentially very similar to PIMCO fund, PIMCO Commodity Real Return Strategy Fund (Ticker: PCRAX), except its lower fee. This fund is part of no load mutual fund (i.e. no sales load).

Harbor Commodity Real Return Strategy Fund (Ticker: HACMX)

The Harbor Commodity Real Return Strategy Fund is looking for maximum real return, consistent with prudent investment management. This fund invests in commodity-linked derivative instruments. These instruments backed by a portfolio of inflation-indexed securities and other fixed-income instruments. There is also a possibility of investing in preferred and common stocks, as well as investing in convertible securities of issuers in commodity-related industries. Around 30% of its asset is invested in securities with foreign denominated currencies. This non-diversified fund may also invest in U.S. dollar denominated securities of foreign issuers.

Fund Details

Harbor fund

• Fund Inception Date: September 2008
• Ticker Symbol: HACMX
• CUSIP: 411511397
• Beta (3yr): N/A
• Net Assets: $282 million
• Category: Commodities Broad Basket
• Yield: 0.77%
• Capital Gains:  N/A
• Number of Years Up: 4 years
• Number of Years Down: 4 years

updated on May 2017

Mihir Worah is the lead manager of this fund; Worah has managed this fund since the fund’s inception in September 2008. The fund requires $1,000 min initial investment to invest in brokerage and IRA account. There is no minimum subsequent investment needed. There is no 12b1 fee for investing in this fund. This is a no sales-load fund as well. HACMX has 0.94% of annual expense ratio. This fund has a 12.68% of year-to-date return. It has returned 39.07% over the past one year. This fund has returned a 30.59% in 2009 and 23.53% in 2010. The other class of this best fund is the Administrative Class (ticker: HCMRX).

• Fund Manager: Mihir P. Worah, Jeremie Banet and Nicholas J. Johnson
• Beta (3yr): 0.94
• Expense Fee: 0.94%
• Min to Invest: 1,000
• Capital Gains: N/A
• Turnover rate: 1,069%

This broad basket commodities fund can be purchased from a limited of 28 brokerages only. They are Pershing FundCenter, Schwab Institutional, JPMorgan, Vanguard, RBC Wealth Management-Advisory Eligible, ETrade No Load Fee, Raymond James, Wells Fargo Advisors MF Advisory, Firstrade, Scottrade TF, TD Ameritrade Retail, etc.

Fund Performance

You can find the Harbor Commodity Real Return Strategy Fund (HACMX) performance for the past years:

• Year 2017: -2.89% (YTD)
• Year 2016: 14.57%
• Year 2015: -25.78%
• Year 2014: -18.63%
• Year 2013: -14.93%

HAMCX has a high annual holdings turnover. By May 2011, it has recorded an annual turnover of 390%, while the average for the category is only 136.24%. The top sectors allocations as of March 2011 are U.S. Government Obligations (81.9%), Corporate Bonds & Notes (20.9%), Asset-backed Securities, Collateralized Mortgage Obligations, Foreign Government Obligations, Mortgage Pass-through, Bank Loan Obligations, Convertible Bonds and Options. There are 125 bonds in its fund portfolio. The weighted average duration is 2.27 years, and the weighted average maturity is 4.31 years. The top benchmark economic sectors include energy sector (34.3%), grains (18.8%), industrial metals (16.5%), precious metals (14%), softs (7.8%), livestock (5.9%), and vegetable oil (2.8%).

Investing in this Harbor fund involves risks such as

• Commodity risk
• Fixed income security risk
• Subsidiary risk
• Interest rate risk
• Credit risk
• Prepayment risk
• Selection risk
• Derivatives risk
• Foreign securities risk
• Short sales risk
• Non diversification risk
• Mortgage risk

Pros:

• It has good track record
• No sales load

Disclosure: No Position

Note: This mutual fund was part of Kip 25 before.