Harbor International Fund (HIINX)

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Investing internationally is very popular nowadays. International stock funds usually investing in foreign companies outside the US. These companies may be located around the world like Europe (UK, France, Germany, Italy, etc), Japan, Australia, Emerging Markets (Brazil, China, Russia, India, Indonesia, etc), Korea, Singapore, and so forth. The world economy itself is around 45% US and 55% non US.

This international equity funds can be part of any investor’s portfolio either for long term or short term. The following article will discuss about one of the top international stock funds in Kiplinger 25 Best Mutual fund, Harbor International Investor Fund. As one of the best fund, this fund is also highly rated by Morningstar. This fund has provided a consistent above average performance for its investor. Details can be found below. If you are interested in other best mutual funds, please check my main page for details.

Harbor International Investor Fund (Ticker: HIINX)

The investment in Harbor International Fund is seeking for total return in long term period of time from the capital growth. The primary net assets investment of this fund is in common and preferred stocks of foreign companies. With the total of minimum 65% of the net assets, the investment focuses in foreign companies with market capitalization above $1 billion.

This fund invests in at least 10 countries throughout the world, including emerging market countries. The main consideration of countries selection is the stability in economics and political regimes.

HIINX Fund Facts

    Harbor International Fund (HIINX)
  • Fund Inception Date: November 2002
  • Ticker Symbol: HIINX (Investor Class)
  • CUSIP: 411511645
  • Beta (3yr): 1.09
  • Rank in Category: 5 (ytd)
  • Category: Foreign Large Blend
  • Type: Stock fund
  • Numbers of Years Up: 7
  • Numbers of Years Down: 1
As updated on 4/30/2011
This HIINX fund has returned 15.39% over the past one year and 10.31% over the past decade. The 5-year average return is around 5.34%. The best 1-year return was in December 2003 (40.34%) and the worst experience was in 2008 (-42.86%). This fund has 4-star rating from morning star and has an average of 4.00% of year-to-date return. The average annual total returns since inception is 14.06%. The return on equity rate is 12.28%, a bit higher compared to the MSCI EAFE (ND) Index (11.06%).

Edward E. Wendell, Jr, Norther Cross llc advisor, is the lead manager for this Harbor International Fund. The minimum balance to invest in this fund is $2,500 for brokerage account and $1,000 for IRA account. There is no minimum subsequent investment needed. The annual expense ratio of this fund is 1.16%. Should you interest in investing in this fund, please keep in mind that there is a 0.25% of 12b1 fee, but there is no sales load. The other class tickers of this fund are HAINX (Institutional Class) and HRINX (Admin Class).

You can purchase HIINX from 100 brokerages including Schwab Institutional, Td Ameritrade, T. Rowe Price, Merrill Lynch, etc.

Top Harbor FundAs of March 31, 2011, this HIINX fund has 71 holdings. The top 10 holdings are Atlas Copco, Novo Nordisc AS, Linde AG, British American Tobacco, Compagnie Financiere Richemont, Petroleo Brasileiro, Xstrata, Banco Bradesco, Schneider Electric and Fanuc Corporation. The annual holdings turnover as of Oct 2010 is 14.00% with the average in the category of 69.26%. The top 3 economic sectors for this fund are Financials (24.5%), Industrials (15.2%) and Consumer Staples (14.3%). The top 5 country allocations for this fund are France, United Kingdom, Switzerland, Sweden, and Brazil.

Investing Risk

Investing in this fund involves investment risks such as:
  • Market risk: Depending upon the overall stock market, the company stocks may decline in value due to unfavorable earning report and other adverse event
  • Value style risk: Value oriented investing style may underperform other equity funds
  • Selection risk: Advisor and subadvisor’s judgment could be incorrect about value and potential growth of specific stocks
  • Foreign securities risk: Political, economy, foreign government can influence the market direction
  • Emerging market risk: more volatile from other stocks. High risk may translate into high reward

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