The GMO Core Plus Bond Fund seeks to generate total return in excess of that of the Bloomberg Barclays U.S. Aggregate Index. The Fund invests across global fixed income and currency markets rather than just within the U.S.-dollar fixed income market segments contained in the benchmark.
GMO constructs the portfolio by combining a benchmark replication process with active overlay strategies. To replicate the benchmark, we use quantitative methods for trading strategies as well as security and sector selection. Our overlay strategies are model-based and actively managed in global rate and currency markets, using market-based, macroeconomic, and fundamental inputs in conjunction with proprietary research to evaluate and identify investment opportunities.