http://www.sec.gov/Archives/edgar/data/793769/000119312515389490/d39381d497.htm
497 1 d39381d497.htm HARBOR FUNDS
Harbor Fixed Income Funds
Supplement to Prospectus dated March 1, 2015
Harbor High-Yield Bond Fund
The following information regarding Shenkman Capital Management, Inc., the subadviser for Harbor High-Yield Bond Fund, will be changing effective January 1, 2016:
Mark Flanagan, one of the six co-portfolio managers for Harbor High-Yield Bond Fund, will be retiring from Shenkman Capital Management, Inc. at the end of 2015. Mark Shenkman, Eric Dobbin, Justin Slatky, Steven Schweitzer and Robert Kricheff will continue to serve as co-portfolio managers for the Fund following Mr. Flanagan’s retirement using the same team-based approach with Mr. Dobbin remaining the lead portfolio manager of the Fund.
November 27, 2015
Harbor Emerging Markets Debt Fund
Harbor Funds’ Board of Trustees has determined to liquidate and dissolve Harbor Emerging Markets Debt Fund. The liquidation of the Fund is expected to occur on April 29, 2015. The liquidation proceeds will be distributed to any remaining shareholders of the Fund on the liquidation date.
Shareholders may exchange shares of the Fund for another Harbor fund, or redeem shares out of the Fund, in accordance with Harbor’s exchange and redemption policies as set forth in the Fund’s prospectus, until the date of the Fund’s liquidation.
Because the Fund will be liquidating, effective immediately a redemption fee will no longer be applied to the redemption of any shares out of the Fund.
In order to ready the Fund for liquidation, the Fund’s portfolio of investments will be transitioned prior to the planned liquidation date to one that consists of all or substantially all cash, cash equivalents and debt securities with remaining maturities of less than one year. As a result, shareholders should no longer expect that the Fund will seek to achieve its investment objective of maximizing total return.
Because the Fund will be liquidating, the Fund is now closed to new investors. The Fund will no longer accept additional investments from existing shareholders beginning on April 22, 2015.
March 6, 2015

I don't see most taxable bond funds as yielding enough (with sufficient stability) to be particularly useful these days for income. For income, it seems the idea is to generate a steady reliable cash flow without eating into principal. That would limit me to A grade or better, and (on average) intermediate term bonds.
BBB may be "investment grade" but there's a reason why it's not called A-. There's a significant jump in risk between letters. Intermediate term because long bonds don't offer enough of an increase in yield to be worth the risk - especially in a low (and likely rising) interest rate environment. Short term bonds simply pay too little.
So one winds up with funds like Fidelity Investment Grade Bond (FBNDX). SEC yield a tad under 3%. (I use SEC yield because it incorporates both the coupon payments and the decline, if any, in principal; that's something you need to watch for in a longer term investment.)
Compare that with a strategy of combining a MMA (1%) with broadly diversified equity funds. The latter should return a couple of percent above bonds (expecting 5%-6% over time is not unreasonable). This approach comes with more volatility, which is why one uses the MMA for cash - this needs to be much larger than the proverbial emergency fund. Over time, as the equity market does well, one sells shares and moves to cash. When the equity market swoons, one draws from the MMA.
Plusses are an expected higher average rate of return than a bond portfolio, and lower taxes (the dividends and cap gains from the equity funds will be taxed less than the bond fund alternative). Just as you wrote. Minuses are that this requires closer monitoring and a tolerance for greater volatility on paper.
You can throw in some munis to give more stability and another source of income in case you're queasy about selling lots of equity at one time (when the market is up, to replenish the MMA).
As interest rates go up, one might make more use of bond funds for income, but I don't see them helping much right now. (Multisector, junk, etc. are different - but one invests in them much as one invests in equity - for total return and diversification - and this is why they wind up in nontaxable accounts.)
In short, one can make a barbell out of the "three bucket" strategy, discarding the middle bucket as dead weight.

>>>Right. I just never think about munis. No tax advantage for me.<<<
I trade them in my IRA as well as my taxable. Last year some were up in the 19% range, this year only 4%. Tax advantage or no tax advantage it increases your nest egg at those % gains.

Crash, that's the first I've heard of PRSNX in a while ... owned it once, right out of its gate, when I had quite a bit of $ with Price. It was known as Strategic Income then; did they change the investment strategy, or just the name? Looks about mid-pack for global FI, which is okay- it's the category that hasn't been so hot for a while, and maybe won't be for at least a while longer.
Most of the ones I have on a watchlist (which I admit I'm failing to watch very much) are in the 0-1% range ytd, which means a few percent capital loss. The last global bond funds I owned were PFORX last year and, in 2013, GBOAX.lw, which hasn't budged much off zero since I sold it. Of the funds on the watchlist, PYGFX has done a little better; haven't studied it but might be worth a look.
I agree with heezsafe about DODLX - an unsuccessful fund in an unsuccessful category. Run away!
Last thought in a random post: I wonder if the Pimco $ funds (PFORX, PGBIX) might make another run if the Fed moves in Dec. and gooses the US$.
Best, AJ

John Browne actually sounded intelligent and adroit and adept today. I see he's with Euro Pacific Capital. That's uncle Peter's outfit. Strange bedfellows, eh?
http://video.cnbc.com/gallery/?video=3000459876&play=1
https://en.wikipedia.org/wiki/John_Browne_(Conservative_politician)

http://www.sec.gov/Archives/edgar/data/1355064/000158064215005368/actinv497stkr.htm
497 1 actinv497stkr.htm 497
Catalyst Activist Investor Fund
(the “Fund”)
a series of Mutual Fund Series Trust
Supplement Dated November 24, 2015
to the Prospectus Dated November 1, 2015
The Board of Trustees of the Mutual Fund Series Trust has concluded, based on the recommendation of the Fund’s adviser, Catalyst Capital Advisors LLC, that it is in the best interests of the Fund and its shareholders that the Fund cease operations. The Board has determined to close the Fund and redeem all outstanding shares on December 21, 2015 (“Liquidation Date”).
Effective immediately, the Fund will not accept any new investments and will no longer pursue its stated investment objective. The Fund will begin liquidating its portfolio and will invest in cash equivalents until all shares have been redeemed. Any capital gains will be distributed as soon as practicable to shareholders and reinvested in additional shares, unless you have previously requested payment in cash. Shares of the Fund are otherwise not available for purchase.
Current shareholders of the Fund may, consistent with the requirements set forth in the Prospectus, exchange their shares into shares of the same class of other funds in the Catalyst family of funds at any time prior to the Liquidation Date.
ANY SHAREHOLDERS WHO HAVE NOT REDEEMED OR EXCHANGED THEIR SHARES OF THE FUND PRIOR TO DECEMBER 21, 2015 WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OR ACCOUNT OF RECORD. If you have questions or need assistance, please contact the Fund at 1-866-447-4228.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of a redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.
This Supplement and the existing Prospectus and the Statement of Additional Information dated November 1, 2015, provide relevant information for all shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information dated November 1, 2015 have been filed with the Securities and Exchange Commission, are incorporated by reference and can be obtained without charge by calling the Funds toll-free at 1-866-447-4228 or by writing to 17605 Wright Street, Omaha, Nebraska 68130.

The one problem I have is he not doing tax loss harvesting with shld. I as a rule do not reinvest distributions. I also have hsgfx losses so I will take fairs gains

Fairholme says it accrued $2-billion in gains from AIG, and 99% of the distribution was taxable at long-term rates, but I wonder what the real/actual return was for shareholders.
Mr. Berkowitz also sold about 60% of his Bank of America holdings.
After watching his Fannie Mae & Freddie Mac play, it seemed to have intellectual merit, but fighting the government is akin to spitting in the wind.
If my memory serves, he began accumulating Sears at over $100 a share 10 years ago. SHLD is around $20, now. That's alot of opportunity lost.
Lately, his filings show he picked up Canadian Natural Resources, because of depressed oil and gas prices. And always into financials, Berkowitz has returned to a favorite of his, Citigroup. He also recently bought IBM.
Despite his critics, few can argue that Bruce has followed his ("ignore the crowd) convictions, and Ben Graham's words of wisdom.:
"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."
***
Now, his once $20 billion FAIRX is under $5-billion. It will be interesting to see if he regains his footing as a value investor, rather than a gunslinger.

FAIRX was down 2.72% in 2014 (compared to +13% for the S&P 500), and just a bit more than flat this year (compared to +2% for S&P). So folks who bought into FAIRX during the last two years are probably not feeling all that "successful" with the tax bill.
I sold FAIRX in the beginning of 2012. I was going to kick myself for missing out on some big gains with FAIRX -- but just checked the chart, and FAIRX is actually still significantly below the S&P 500 since I sold. Looks like the second half of 2014 really took the steam out its recovery.
Of course, when I sold FAIRX, I didn't put the money into an S&P 500 index fund either. I'd say that's where the real mistake was.

FYI: (Click On Article Title At Top Of Gogle Search)
The $4.8 billion Fairholme Fund said it expects to pay out between $11 to $11.75 a share in capital gains on Dec. 11, equal to 32% to 34% of the fund’s net asset value as of Friday.
Regards,
Ted
https://www.google.com/#q=Fund’s+Successful+Bet+on+AIG+Triggers+a+Big+Tax+Bill+for+Investors+

Shadow...yes, I am quite sure Bruce is happy as a clam that AIG generated significant gains. He failed to mention why those gains needed to be harvested however. This points out a clear risk for a hyper-concentrated fund which is unable to balance gains with losses to cover liquidations.
I'm thinking your comment was tongue in cheek though.
press

According to Fairholme PDF, the payout was due to:
"... We are pleased that our investment in AIG generated over $2 billion in gains for shareholders and are optimistic for similar outcomes in the current portfolio holdings based on our estimates of their potential full value..."
Turner Emerging Growth will have another large payout year again with at least $13 for this year besides the $26+ payout from last year. I plan to sell it prior to record date and buy back in after payout since I will have a smaller gain on sale than than I would with another large CG payout. Since there is no loss being recognized, it is not an issue.

I received my first yearend mutual fund capital gain distribution this week from Thornburg Strategic Income (TSIAX) in the amount of 2.74 cents per share with a payout date of 11/19/2015. I anticipate receiving about a 3% capital gain distribution on the equity side of my portfolio. If this materializes, then the total distribution (interest, dividends, capital gains) received will be north of 5% on current valuation and better than 6% on amount invested. Thus far, this year, I have been able to have competitive performance with my portfolio's benchmark (The Lipper Balanced Index). Times are now tough for us yield seekers as I can remember my portfolio easily paid out better than 8% ten years ago.

FYI: Call it “the year of mimicking dangerously.”
A handful of mutual funds and exchange-traded funds seek to emulate such leading investors as hedge-fund manager William Ackman of Pershing Square Capital Management. Most of these funds are down 5% or more for 2015, and some have lost at least 10% over the past three months as the embattled drug company Valeant Pharmaceuticals International . and other holdings of top investors have tumbled
Regards,
Ted
http://blogs.wsj.com/moneybeat/2015/11/20/can-you-pick-the-guys-who-pick-the-guys-who-pick-the-best-stocks/tab/print/

FYI: (Click On Article Title at Top Of Google Search)
This is the time of year when mutual fund investors in taxable accounts need to be on the lookout for mandatory year-end capital-gains and dividend distributions. Most, but not all, fund companies put out distribution estimates in the fall, though many don’t go out of their way to tell investors about an impending payout—and the taxes they trigger.
On the whole, investors probably won’t see the same kind of distributions as last year, when funds paid out some $633 billion, according to the Investment Company Institute. Still, a choppy market doesn’t mean that investors aren’t going to be slapped with an unwanted distribution and subsequent tax bill.
Regards,
Ted
https://www.google.com/#q=Mutual+Fund+Distributions:+The+Profit+and+the+Peril+barron's

Here's my response to RSIVX, In My Schwab I R A
Was a $5000.minimum @ Schwab now $100 (see Ted's post here;" Schwab Slashes Minimums On OneSource NTF Mutual Funds"http://www.mutualfundobserver.com/discuss/discussion/comment/71575/#Comment_71575)
PTIAX Buy $100.00 Reinvest Dividends and Capital Gains
Trade Date 11/23/2015
http://www.ptiafunds.com/images/website/documents/fund-documents/ptiax_factsheet.pdf
Another "steady eddie" monthly payer to look @
SCLDX
http://scoutinv.com/resources/documents/literature/factsheet/low-duration-bond-fund-factsheet.pdf?c=1448065575921

Old_Joe thanks for the compliment but I am not a valued information resource here if only because I am too out of the box especially when it comes to the conventional wisdom on compounding one's nest egg. One reason for that is in my 20s and 30s I was more destitute and impoverished than anyone here. So it required a different mindset to get to where I am now. I've been in a lot of forums in my day and what I like about this one above the others is (save for one) it's real down to earth traders/investors who actually are growing their capital over time. I have but one major complaint and voicing it would just antagonize a lot of posters here who I like and respect.

FYI: Bill Gross turned to derivatives to make a big bet on emerging-market debt after taking the helm of a Janus Capital Group Inc. fund more than a year ago. One thing he didn’t let stop him: regulatory guidelines that lay out how much fund managers should use them.
Regards,
Ted
http://www.bloomberg.com/news/articles/2015-11-20/gross-doesn-t-let-sec-guidelines-stand-in-way-of-big-bond-bets

The anti-Berkowitz case is very clear. The pro-case is: great record in the past; huge personal stake in his funds (he owns over a third of FAAFX); high conviction; not an index hugger.
If I could do it again, I wouldn't have invested with him, but I invested early enough that I'm sitting on big capital gains in a taxable account. When the market as a whole gets near to what I think is a top (I still think we're at least a year away) I will sell, hope for the market to drop, then probably move into an index fund.
In 2010 there was no manager out there who looked better than Berkowitz: he'd beat the S&P by something like 10 points a year over the past decade, he'd avoided the worst of the 2008-9 crash, he had major skin in the game, tax efficient, etc... And now he's majorly underperformed since.
Maybe SHLD will eventually rebound and he'll look like a genius. I hope so.
But I'm increasingly thinking that to chase a star manager is to chase a mirage.

http://www.sec.gov/Archives/edgar/data/889188/000119312515380610/d12979d497.htm
497 1 d12979d497.htm 497 FOR FORWARD FUNDS
FORWARD FUNDS
Supplement dated November 18, 2015
to the
Summary Prospectus for Investor Class and Institutional Class Shares of the Forward Tactical Enhanced
Fund, Summary Prospectus for Class A, Class C and Advisor Class Shares of the Forward Tactical
Enhanced Fund, Forward Funds Investor Class and Institutional Class Prospectus and Forward Funds Class A,
Class B, Class C and Advisor Class Prospectus, each dated May 1, 2015, each as supplemented, and Forward Funds Statement of Additional Information dated November 3, 2015
NOTICE OF LIQUIDATION OF FORWARD TACTICAL ENHANCED FUND
On September 22, 2015, the Board of Trustees of Forward Funds (the “Trust”), including all of the Trustees who are not “interested persons” of the Trust (as that term is defined in the Investment Company Act of 1940, as amended), approved the liquidation of the Forward Tactical Enhanced Fund (the “Fund”), a series of the Trust. The Fund will be liquidated pursuant to a Board-approved Plan of Liquidation on or around December 23, 2015 (the “Liquidation Date”). On the Liquidation Date, the Fund will distribute pro rata to its respective shareholders of record all of the assets of the Fund in complete cancellation and redemption of all of the outstanding shares of beneficial interest, except for cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s books on the Liquidation Date, including, but not limited to, income dividends and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the officers of the Trust deem appropriate.
IN LIGHT OF THE PLANNED LIQUIDATION, SHARES OF THE FORWARD TACTICAL ENHANCED FUND WILL NO LONGER BE OFFERED TO NEW INVESTORS OR EXISTING INVESTORS (EXCEPT THROUGH REINVESTED DIVIDENDS) OR BE AVAILABLE FOR EXCHANGES FROM OTHER FUNDS OF THE TRUST.
****
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPP TACT ENH LIQ 11182015