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U.S. Small Cap Value Fund

  • Vehicle Mutual Fund
  • Asset Class Equities

Overview

The GMO U.S. Small Cap Value Equity Fund seeks to generate total return in excess of its benchmark, the Russell 2000 Value Index, by investing primarily in equities of U.S. companies that are included in the Russell 2000 Index or whose market capitalization at the time of investment is less than that of the 1000 largest publicly held companies.

The Fund’s investment approach is grounded in the Global 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.

Facts

Doc Table
Fund Inception Date July 2, 2019
Fund Total Assets as of 7/31/2019 $405mm USD
Benchmark Russell 2000 Value

Share Class VI

Inception Date July 2, 2019
Ticker Symbol GCAVX
CUSIP 36256V874
NAV as of 8/16/2019 19.17
Net Expense Ratio 1 0.47
Gross Expense Ratio 2 0.57
Minimum Investment Size $300mm in Fund / $750mm in GMO

1 Net Expense Ratio reflects the reduction of expenses from fee reimbursements. The fee reimbursements will continue until at least June 30, 2020. Elimination of this reimbursement will result in higher fees and lower performance.

2 Gross Expense Ratio is equal to the Funds Total Annual Operating Expenses set forth in the Funds most recent prospectus dated June 30, 2019.

Performance

Month-End as of July 31, 2019(USD, %)

Table Caption
MTD QTD YTD ITD
U.S. Small Cap Value Fund 1.80 1.80 1.80 1.80
Russell 2000 Value 0.72 0.72 0.72 0.72
  • U.S. Small Cap Value Fund
  • Russell 2000 Value

Inception Date: July 02, 2019

Returns shown for periods greater than one year are on an annualized basis.

Net of all fees and expenses after reimbursement by the Manager, but not transaction costs, if any. If certain expenses were not reimbursed, performance would be lower.

Performance data quoted represents past performance and is not indicative of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data provided herein.

Month-End as of July 31, 2019(USD, %)

Table Caption
MTD QTD YTD ITD
U.S. Small Cap Value Fund 1.84 1.84 1.84 1.84
Russell 2000 Value 0.72 0.72 0.72 0.72
  • U.S. Small Cap Value Fund
  • Russell 2000 Value

Inception Date: July 02, 2019

Returns shown for periods greater than one year are on an annualized basis.

Gross of fees, expenses and transaction costs, if any. If these fees, expenses and costs were included, performance would be lower.

Performance data quoted represents past performance and is not indicative of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data provided herein.

Management

Harris_Simon

Simon Harris

Head of Global Equity (interim)

Mr. Harris is the interim head of GMO’s Global Equity team. In his decades at GMO, Simon has had extensive portfolio management, quantitative research, and team leadership experience including as the head of the UK Equity team prior to its merger with Global Equity. Previously, he also served as co-CEO of GMO UK Ltd. Prior to joining GMO in 1989, he earned his BSc in Mathematics from The City University (London). Mr. Harris is a Fellow of The Chartered Institute for Securities & Investment.

White_Josh

Josh White

Portfolio Manager

Dr. White is a quantitative analyst for GMO’s Global Equity team. Prior to joining GMO in 2015, he worked at Acadian Asset Management as a senior vice president working on quantitative research and portfolio management across much of their product line. Previously, he worked at the SEC where, in addition to other responsibilities, he was involved with disclosure and governance issues. Dr. White earned his A.B. in Economics from Harvard University and his Ph.D. in Business Economics from Harvard University.

Documents

Literature

Prospectus
Summary Prospectus
Statement of Additional Information
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Downloads

Performance
Portfolio Composition
Holdings
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Investor Information

NAVs and Distributions
Distribution Dates
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Risks

Risks associated with investing in the Fund may include those as follows. (1) Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer or its industry or the economy and equity markets generally. (2) Management and Operational Risk: The risk that GMO's investment techniques will fail to produce desired results. (3) Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, lack the competitive strength of larger companies, have inexperienced managers or depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations. For a more complete discussion of these risks and others, please consult the Fund's prospectus.

Disclosures

An investor should consider the fund’s investment objectives, risks, charges and expenses before investing. This and other important information can be found in the fund’s prospectus. Read the prospectus carefully before investing. Please see prospectus above.

The GMO Trust funds are distributed in the United States by Funds Distributor LLC. GMO and Funds Distributor LLC are not affiliated.