Harbor Capital Advisors, the Toldeo, Ohio-based manager of the Harbor Funds, has changed the sub-advisor on its Harbor International Growth Fund, according to documents filed with the Securities and Exchange Commission last Friday.
Effective Dec. 1, Mastholm Asset Management replaces Jennison Associates as the funds sub-adviser. The reason for the change is poor performance, said Jim Williams, president of Harbor Capital. The $595 million International Growth Fund had a return of 25.5% in 2000 and is down 38.4% so far this year, according to Morningstar.
"Jennsion was the original sub-advisor in 1993, and for the first six years the product was a four- or five-star fund," Williams said. "The performance has just really fallen off the last couple of years and the change is in the best interest of the shareholders."
Mastholm, who has taken over as sub-adviser, was closed to new investors, but agreed to open up for Harbor, Williams said. Securing Mastholm as management was another important reason for the change.
"The first couple of times we called them they said they were closed, but we were relentless," Williams said.
Mastholm co-manages the Masters Select International fund and the Managers Funds, but did not manage any mutual funds on its own until now. The firm handles primarily institutional accounts.
Jennison will remain as sub-advisor on the Harbor Capital Appreciation fund. Harbor Capital, which does not manage any of its own assets, has been happy with the management of that fund, Williams said.