New Harbor ETF: OSEA

BenWP

Anybody know anything about C Worldwide Asset Management, the portfolio advisor for Harbor’s international ETF, OSEA? I linked what info Harbor provides on the fund’s site. I’m interested because of recent forecasts that favor developed international and developing country stocks over the next 10 years. OSEA seems to be invested in large familiar European companies, judging from the top 10 holdings. Schwab’s FNDF is on my radar also. My international exposure is low at present.

https://www.harborcapital.com/investment-teams/c-worldwide-asset-management

Sven

Here is a snap shot of Bengt Serger, the fund manager, and a global fund (
C WorldWide Global Equities 1A ) he co-manages.

https://citywire.com/wealth-manager/manager/bengt-seger/d14658?periodMonths=60&sectorID=3745

Can’t comment much beyond the annual performance.

The Harbor ETF is concentrated, top 10 holdings approximate 50% of the ETF. Harbor in general does a good job pick active managers serving as subadvisors and don’t hesitate to replace them. In the past, I had good experience with Haken Castegren managing the international fund before his passing.

TheShadow

Here is an August 17, 2022 SEC Filing.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1860434/000119312522222953/d377230d485bpos.htm

Search for "The Subadviser" section.

msf

HAINX did well with Castegren, but after he was gone, Harbor stuck with Northern Cross for another seven years (2011 - 2018). Harbor wasn't quick to pull the trigger here, as outflows and poor returns piled up.

The firm was axed from the fund following what Harbor referred to as ‘a sustained period of underperformance.’

The fund had lagged its benchmark, the MSCI EAFE NR, in every calendar year from 2013 to 2017, according to Lipper data, although was ahead for the year [2018] at the time of the termination.
...
The fund had also experienced outflows with investors pulling money in every quarter from the last three months of 2014 onward. In total, over that time to the end of Q2 2018, the fund suffered net outflows of $28.9 billion, according to data from Lipper.

https://citywire.com/pro-buyer/news/boston-pm-shuts-shop-months-after-losing-20bn-subadvisor-spot/a1188410

Harbor similarly stuck with PIMCO as manager of HABDX for seven years after Gross left in 2014. Here that perseverance made sense. Despite the outflows, the fund turned in solid if not earth-shattering performance over that period.

The fund suffered heavy outflows in October 2014 following Gross’s abrupt exit from Pimco and has seen money leave in the vast majority of months since then. Over the last five years [through 2021], it has returned an annualized 4.43%, ahead of the Morningstar Intermediate Core-Plus Bond category average 4.12% and the Bloomberg US Universal’s 4.0%.

https://citywire.com/pro-buyer/news/harbor-drops-pimco-from-1-6bn-bond-fund/a1592923

BenWP

Thank you for that useful stuff.

WABAC

Why do people think foreign looks best over the next ten years? Valuations? I've heard that for years now.

Seems to me there are a lot of headwinds from inflation, and collateral damage from the war in Europe. Neither of those has a predictable end point.

That being said. I do own some IHDG and FYLD just in case. ;>)

Observant1

WABAC said:

Why do people think foreign looks best over the next ten years? Valuations? I've heard that for years now.

Seems to me there are a lot of headwinds from inflation, and collateral damage from the war in Europe. Neither of those has a predictable end point.

That being said. I do own some IHDG and FYLD just in case. ;>)

Some pundits have been touting foreign stocks in recent years.
There is currently plenty of negative sentiment for foreign equities due to macro headwinds.
I don't know if foreign stocks will finally outperform US stocks over the next decade.
Since I don't know the outcome, foreign equity allocation is maintained as somewhat of a hedge.
From a performance perspective, foreign exposure increased my 2000 - 2009 ("lost decade") portfolio returns.
However, foreign stocks have really underperformed since then.