The GMO Tax-Managed International Equities Fund seeks to generate high after-tax total return by investing primarily in non-U.S. equities. The Fund’s benchmark is the MSCI EAFE (After-Tax) Index.
The Fund’s investment approach is grounded in the Systematic Equity team’s belief that, in the short term, equity markets exhibit exploitable inefficiencies as a result of irrational investor actions, the imperfect flow of information, and the participation of non-economic actors, while in the long term returns are ultimately driven by economic reality. The Fund aims to take advantage of this inefficiency by utilizing a multi-factor valuation model in conjunction with other methods, such as cross-asset signals and corporate alerts, to identify mispriced equity securities. The Fund’s portfolio management process seeks to maximize expected alpha net of costs, including transaction costs and taxes.