Fund Evaluator:

Harbor Ares Systematic Cnvrt Scs Ins Overview

Harbor Ares Systematic Cnvrt Scs Ins (HACSX) is an actively managed Allocation Convertibles fund. Harbor Capital Advisors Inc launched the fund in 2011.

The investment seeks to maximize total returns (i.e., current income and capital appreciation). Under normal market conditions, the fund invests at least 80% of its net assets, plus borrowings for investment purposes, in a diversified portfolio of convertible securities. It invests primarily in U.S. dollar denominated securities, including those of foreign issuers; however, the fund may invest in securities denominated in other currencies.

About Harbor Ares Systematic Cnvrt Scs Ins (HACSX)

There are 3 members of the management team with an average tenure of 3.33 years: Michael Harper (2023), Benjamin Brodsky (2023), Benoy Thomas (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US Convts exMand TR USD index with a weighting of 100%. Harbor Ares Systematic Cnvrt Scs Ins has 148 securities in its portfolio. The top 10 holdings constitute 18.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Harbor Ares Systematic Cnvrt Scs Ins is part of the Hybrid Securities global asset class and is within the Allocation fund group. Harbor Ares Systematic Cnvrt Scs Ins has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 2.3%. There is 0.0% allocated to foreign stock, and 11.3% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.6% (0.6% domestic bond, 0.0% foreign bond and 83.4% convertible bond). Harbor Ares Systematic Cnvrt Scs Ins has 2.4% of the portfolio in cash.

Assets Under Management

The fund has $23 million in total assets, which is below the $220 million average for the Convertibles category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

HACSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Harbor Ares Systematic Cnvrt Scs Ins expense ratio is above average compared to funds in the Convertibles category. Harbor Ares Systematic Cnvrt Scs Ins has an expense ratio of 0.71%, which is 36% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Harbor Ares Systematic Cnvrt Scs Ins has a portfolio turnover rate of 160%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 109% for the Convertibles category.

Recently, in the month of June 2026, Harbor Ares Systematic Cnvrt Scs Ins returned 0.1%, which earned it a grade of D, as the Convertibles category had an average return of 0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Harbor Ares Systematic Cnvrt Scs Ins has a trailing yield of 1.78%, which is above the 1.71% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Harbor Ares Systematic Cnvrt Scs Ins Grades

Year to date, the fund has returned 21.2%, 2.8 percentage points better than the category, which translates into a grade of B. The fund has returned 36.4% over the past year (grade of A), 19.9% over the past three years (grade of A) and 8.8% per year over the past five years (grade of A) and 10.8% per year over the past 10 years (grade of D).

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