Summary

• In the first quarter of 2026, the Harbor Mid Cap Fund returned 3.27%, outperforming its benchmark, the Russell Midcap® Index, which returned 1.29%.
• Strength of performance was generally broad-based across sectors and reflected a combination of favorable stock selection and sector positioning.
• Shares of Albemarle Corporation gained approximately 27% during the quarter as investor sentiment improved following a prolonged period of lithium price correction through 2024–2025.
• Akamai Technologies shares gained more than 30% during the first quarter, following a strong fourth quarter earnings report where revenue grew 7% year over year.
• East West Bancorp shares declined just over 4% during the quarter, driven primarily by broader macro and sector sentiment rather than company-specific fundamentals.

Beyond geopolitical developments, the quarter reflected a continuation of the more measured market environment that began in late 2025, as investors recalibrated valuations and placed greater emphasis on earnings durability, cash-flow generation, and balance sheet strength. -