Harbor Funds on Monday announced two new funds, the Harbor Emerging Markets Debt Fund, to be managed by Stone Harbor Investment Partners, and the Harbor Convertible Securities Fund, to be managed by Shenkman Capital Management.
The emerging markets debt fund will invest in fixed income securities tied to countries with emerging securities markets, with 50% of the portfolio exposed to U.S. dollar-denominated securities and 50% to local currency-denominated securities. The fund may invest in higher-risk, below-investment-grade securities and use a top-down approach to identifying emerging market countries they believe offer attractive investment opportunities.
“We are excited to partner with Stone Harbor on our first dedicated emerging markets fund,” said David G. Van Hooser, chairman and chief executive officer of Harbor Capital Advisors. “Stone Harbor has substantial experience investing in emerging markets, making them ideally suited to sub-advise this new fund.”
The Harbor Convertible Securities Fund will also invest primarily in securities below investment grade, but in companies that the manager believes have the potential for positive credit momentum and credit-rating upgrades and/or equity appreciation.
“We are excited to partner with Shenkman Capital on another fund offering,” Van Hooser added. “Shenkman Capital’s credit expertise and track record in the convertibles market makes them ideally suited to sub-advise the fund.”