Summary

• During the first quarter, the Harbor Large Cap Value Fund (Institutional Class) returned –2.21%, underperforming its benchmark, the Russell 1000® Value Index, which returned 2.10%, and outperforming the –4.33% return of the S&P 500 Index.
• The Fund's underperformance relative to the benchmark was primarily driven by security selection, particularly in Information Technology.
• Allocation effects were modestly positive overall, although an underweight in Energy detracted, as the sector was the strongest performer.

Subadvisor (since 05/25/2012):

Aristotle Capital Management, LLC

Portfolio Manager(s):

Gregory D. Padilla

Howard Gleicher

Benchmark 1 Name: Russell 1000® Value Index

Investment Philosophy:

The Harbor Large Cap Value Fund (HAVLX) invests primarily in equity