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Fund Times

Harbor International Under Review After Subadvisor Swap

The replacement of longtime subadvisor Northern Cross with Marathon Asset Management will result in a capital gains distribution estimated to be more than a third of net asset value.

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 Harbor International's (HAINX) Morningstar Analyst Rating is Under Review after the family replaced longtime subadvisor Northern Cross with Marathon Asset Management.

Harbor acted after years of heavy redemptions and mediocre performance from a formerly revered management team. The fund has suffered a staggering $27.4 billion in estimated outflows over the past three years through July 2018. Although the Northern Cross management team contributed to the fund's outstanding results in the 1990s and 2000s, it has struggled to reach those lofty heights since former lead manager Hakan Castegran died in October 2010. Since then, the fund's 5.3% annualized gain edged the MSCI ACWI ex USA Index's 5.1% through July 2018 but lagged the foreign large-blend Morningstar Category average's 5.5%.

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Kevin McDevitt does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.