August 26, 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 August 26, 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.
HARBOR FUND
Supplement to Prospectus dated March 1, 1997
The shareholders of Harbor Fund met and approved the
following changes. These changes are effective October 1,
1997:
Each Fund's investment objective is non-fundamental. This
means that the Harbor Fund Board of Trustees may approve a
change in a Fund's objective without further approval by
shareholders of that Fund. If the Board approves such a
change, that Fund's shareholders will receive notice of
the change.
Harbor International Growth Fund only: The Fund is no
longer permitted to concentrate up to 40% of its total
assets in the securities of companies in any one of three
designated industries: pharmaceutical, banking and
telephone companies. The Fund is subject to the following
policy with respect to the concentration of its
investments:
The Fund may not invest 25% or more of its total assets in
the securities of one or more issuers conducting their
principal business activities in the same industry
(excluding the U.S. Government or any of its agencies or
instrumentalities).
Harbor Value Fund only: The Fund's non-fundamental
investment objective is long-term total return with an
emphasis on current income. The Fund seeks to achieve its
investment objective by investing in dividend-paying
common stock.
The Board of Trustees met and approved the following
change, effective August 26, 1997:
Harbor Bond Fund only: The Fund is permitted to invest up
to and including 15% of the Fund's total assets in
corporate debt securities that are not investment grade
but are rated B or higher by Moody's Investors Service,
Inc. or Standard & Poor's Rating Group.
Supplement dated August 26, 1997
HARBOR FUND
Supplement to Statement of Additional Information dated
March 1, 1997
The shareholders of Harbor Fund met and approved the
following fundamental investment restrictions for the
Funds. The changes are effective on October 1, 1997.
Each Fund may not:
1. with respect to 75% of the total assets of the Fund,
purchase the securities of any issuer if such purchase
would cause more than 5% of the Fund's total assets (taken
at market value) to be invested in the securities of such
issuer, or purchase securities of any issuer if such
purchase would cause more than 10% of the total voting
securities of such issuer to be held by the Fund, except
obligations issued or guaranteed by the U.S. Government,
it agencies or instrumentalities;
2. borrow money, except (a) the Fund may borrow from
banks (as defined in the Investment Company Act) or
through reverse repurchase agreements in amounts up to 33
1/3% of its total assets (including the amount borrowed),
(b) the Fund may, to the extent permitted by applicable
law, borrow up to an additional 5% of its total assets for
temporary purposes, (c) the Fund may obtain such credit as
may be necessary for the clearance of purchases and sales
of portfolio securities, and (d) the Fund may engage in
transactions in mortgage dollar rolls which are accounted
for as financings. Harbor Money Market Fund is not
permitted to invest in reverse repurchase agreements and
mortgage dollar rolls accounted for as a financing;
3. act as underwriter of the securities issued by
others, except to the extent that the purchase of
securities in accordance with a Fund's investment
objective and policies directly from the issuer thereof
and the later disposition thereof may be deemed to be
underwriting;
4. invest 25% or more of its total assets in the
securities of one or more issuers conducting their
principal
business activities in the same industry (excluding the
U.S. Government or any of its agencies or
instrumentalities). Harbor Money Market Fund may invest
more than 25% of its total assets in the securities of
banks and bank holding companies, including certificates
of deposit and bankers' acceptances;
5. issue senior securities, except as permitted under
the
Investment Company Act, and except that Harbor Fund may
issue shares of beneficial interest in multiple series or
classes;
6. purchase, hold or deal in real estate, although the
Fund may purchase and sell securities that are secured by
real estate or interests therein, securities of real
estate investment trusts and mortgage-related securities
and may hold and sell real estate acquired by the Fund as
a result of the ownership of securities;
7. generally may not invest in commodities or commodity
contracts, except that the Fund may invest in currency and
financial instruments and contracts that are commodities
or commodity contracts which are not deemed to be
prohibited commodities or commodities contracts for the
purpose of this restriction;
8. make loans to other persons, except loans of
portfolio
securities and except to the extent that the purchase of
debt obligations and the entry into repurchase agreements
in accordance with such Fund's investment objectives and
policies may be deemed to be loans;
Notwithstanding the investment policies and restrictions
of a Fund, a Fund may invest its assets in an open-end
management investment company with substantially the same
investment objective, policies and restrictions as the
Fund. The Harbor Fund Board of Trustees approved the
following non fundamental investment restrictions, also
effective October 1, 1997:
Each Fund may not:
1. purchase securities on margin (but a Fund may obtain
such short-term credits as may be necessary for the
clearance of purchase and sales securities);
2. make short sales of securities, except as permitted
under
the 1940 Act;
3. invest more than 15% (10% in the case of Harbor Money
Market Fund) of the Fund's net assets in illiquid
investments including repurchase agreements maturing in
more than seven days, securities which are not readily
marketable and restricted securities not eligible for
resale pursuant to Rule 144A under the Securities Act of
1933;
4. invest in other companies for the purpose of
exercising
control or management;
5. for purposes of fundamental investment restriction no.
4, telephone companies are considered to be a separate
industry from water, gas or electric utilities; personal
credit finance companies and business credit finance
companies are deemed to be separate industries; wholly-
owned finance companies are considered to be in the
industry of
their parents if their activities are primarily related to
financing the activities of their parents; and privately
issued mortgage-backed securities collateralized by
mortgages insured or guaranteed by the U.S. Government, its
agencies or instrumentalities do not represent interests in
any industry.
Supplement dated August 26, 1997
