May 9, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D. C. 20549
Attention: Filing Desk
RE: Harbor Fund
Supplement to Prospectus and Statement of Additional
Information
File No. 33-5852 and File No. 811-4676
Gentlemen:
Enclosed for filing on behalf of Harbor Fund (the "Trust")
pursuant to the Securities Act of 1933, as amended and Rule
497(e) thereunder and the Investment Company Act of 1940, as
amended, is one copy of the Supplement to the Prospectus and
Statement of Additional Information, both dated March 1, 1997.
If you have any questions or comments concerning the
foregoing or the attached, please contact the undersigned at
(419) 247-5209 .
Sincerely,
Karen Brenner Wasil
Regulatory and Legal
Compliance Manager
kbw
Enclosure
cc: Mr. Ronald C. Boller
Ms. Constance L. Souders
Elaine Hartnett, Esq.
<PAGE>
HARBOR FUND
Harbor Growth Fund
Supplement to the Prospectus and Statement of Additional
Information
dated March 1, 1997
Effective May 2, 1997, Harbor Fund's Board of Trustees on behalf
of Harbor Growth Fund appointed Emerging Growth Advisors, Inc., a
registered investment adviser ("Emerging Growth"), as the Fund's
subadviser. Mr. Peter S. Welles, the President of Emerging
Growth, will provide portfolio management services to the Fund.
Since 1992, Mr. Welles has been providing investment advisory
services to private accounts and pension accounts. Prior to
1996, Mr. Welles was a general partner of Emerging Growth
Partners, L.P., an investment limited partnership. As of the
close of business on May 1, 1997, no portfolio management
services will be provided to the Fund by Nicholas-Applegate
Capital Management.
The appointment of Emerging Growth as the Fund's subadviser will
not result in any change to the advisory fee that the Fund pays
to its adviser, Harbor Capital Advisors, Inc. ("Harbor Capital").
Harbor Capital pays the subadvisory fee to Emerging Growth from
its own assets; the Fund has no obligation to pay the subadvisory
fee. Harbor Capital pays a subadvisory fee to Emerging Growth as
follows: 1.00% of the Fund's average net assets up to $5
million; 0.75% on the next $20 million of such assets; and 0.50%
on such assets over $25 million.
The discussion in the Prospectus on page 11 under the caption
"Harbor Growth Fund" is deleted and the following is added:
Harbor Growth Fund seeks long-term growth of capital by investing
primarily in common stocks, the earnings and security prices of
which are expected to grow at a rate above that of the overall
market. Under normal market conditions, the Fund intends to
invest substantially all, but at least 65% of its total assets in
a diversified portfolio of equity and equity-related securities
of approximately 40 stocks of companies with market
capitalization or estimated revenues of not more than $500
million at the time of initial investment. In selecting
companies for the Fund, Emerging Growth examines the company's
business characteristics looking for those companies with
favorable prospective financial and long-term growth dynamics
where management is committed to improving the company's earnings
at an above average growth rate. The companies in which the Fund
invests include those with new and innovative products or
services.
The Fund's policy of investing in a small number of stocks
exposes the Fund to the risk that a substantial decrease in the
value of a stock may cause the net asset value of the Fund to
fluctuate more than if the Fund were invested in a greater number
of stocks. In exceptional market circumstances or to preserve
the Fund's compliance with the Securities and Exchange
Commission's policies on industry concentration and issuer
diversification, the Fund may invest in more than 40 stocks.
For temporary defensive purposes as determined by the Subadviser,
the Fund may invest all or a portion of its assets in cash or
cash equivalents, such as obligations of banks commercial paper
and short-term obligations. The Subadviser does intend to engage
in short selling. The Fund may occasionally invest in foreign
securities.
The Fund may enter into repurchase agreements, purchase
securities on a when-issued or forward commitment basis and lend
portfolio securities. For additional information about the
securities in which the Fund invests and the management
techniques the Subadviser employs to manage the Fund including
short sales, see "Description of Securities and Investment
Techniques" in the Prospectus.
Emerging Growth Advisors, Inc. is located at 401 E. Pratt Street,
Suite 211 Baltimore, Maryland 21202. Emerging Growth Advisors,
Inc. hereby replaces all references to Nicholas-Applegate Capital
Management except for references to actual subadvisory fees paid
to Nicholas-Applegate.
May 5, 1997
