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Emerging Country Debt Fund

  • Vehicle Mutual Fund
  • Asset Class Fixed Income

Overview

The GMO Emerging Country Debt Fund’s objective is total return in excess of that of its benchmark, the J.P. Morgan Emerging Markets Bond Index Global (EMBIG). The Fund invests primarily in external debt of sovereigns and quasi-sovereigns.

GMO’s Emerging Country Debt team focuses on bottom-up issue selection, seeking to find issues with similar default characteristics but better long-term total return potential than the issues in EMBIG. We believe that our approach provides long-term, value-oriented clients with the best chance for total return in this asset class and differentiates us from other emerging debt managers who focus on economic forecasting, market timing, and other macro/top-down approaches.

Facts

Doc Table
Fund Inception Date April 19, 1994
Fund Total Assets as of 10/31/2019 $4.3bn USD
Benchmark J.P. Morgan EMBI Global +

Share Class III

Inception Date April 19, 1994
Ticker Symbol GMCDX
CUSIP 362007270
NAV as of 11/11/2019 27.73
Net Expense Ratio 1 0.54
Gross Expense Ratio 2 0.54
Purchase Premium 0.75%
Redemption Fee 0.75%
Minimum Investment Size $5mm 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

Quarter-End as of September 30, 2019(USD, %) | Emerging Country Debt Fund-III

Table Caption
1-Year 3-Year 5-Year 10-Year ITD
Emerging Country Debt Fund 7.27 3.47 4.92 9.44 13.69
J.P. Morgan EMBI Global + 10.74 3.84 5.10 6.51 9.86
J.P. Morgan EMBI Global 10.74 3.84 5.10 6.51 9.92
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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

If certain expenses were not reimbursed, performance would be lower. Transaction costs, if any, are paid to the fund to offset the cost of portfolio transactions to invest or raise cash.

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.

Quarter-End as of September 30, 2019(USD, %) | Emerging Country Debt Fund-III

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Emerging Country Debt Fund 0.77 10.99 8.90 3.99 5.23 9.61 13.75
J.P. Morgan EMBI Global + 1.34 12.08 10.74 3.84 5.10 6.51 9.86
J.P. Morgan EMBI Global 1.34 12.08 10.74 3.84 5.10 6.51 9.92
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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.

Quarter-End as of September 30, 2019(USD, %) | Emerging Country Debt Fund-III

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Emerging Country Debt Fund 0.91 11.42 9.47 4.54 5.80 10.22 14.39
J.P. Morgan EMBI Global + 1.34 12.08 10.74 3.84 5.10 6.51 9.86
J.P. Morgan EMBI Global 1.34 12.08 10.74 3.84 5.10 6.51 9.92
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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.

Month-End as of October 31, 2019(USD, %) | Emerging Country Debt Fund-III

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Emerging Country Debt Fund 0.32 0.32 11.35 12.15 4.73 5.07 9.40 13.72
J.P. Morgan EMBI Global + 0.37 0.37 12.50 13.69 4.48 4.83 6.54 9.84
J.P. Morgan EMBI Global 0.37 0.37 12.50 13.69 4.48 4.83 6.54 9.90
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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 October 31, 2019(USD, %) | Emerging Country Debt Fund-III

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Emerging Country Debt Fund 0.37 0.37 11.84 12.74 5.29 5.64 10.01 14.35
J.P. Morgan EMBI Global + 0.37 0.37 12.50 13.69 4.48 4.83 6.54 9.84
J.P. Morgan EMBI Global 0.37 0.37 12.50 13.69 4.48 4.83 6.54 9.90
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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.

Year Ending December 31 (USD, %) | Emerging Country Debt Fund-III

Calendar
Emerging Country Debt Fund J.P. Morgan EMBI Global + J.P. Morgan EMBI Global
2018 -5.91 -4.61 -4.61
2017 12.48 9.32 9.32
2016 13.86 10.19 10.19
2015 0.02 1.23 1.23
2014 5.98 5.53 5.53
2013 -1.18 -6.58 -6.58
2012 26.73 18.54 18.54
2011 7.50 8.46 8.46
2010 25.64 12.04 12.04
2009 50.17 28.18 28.18
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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.

Year Ending December 31 (USD, %) | Emerging Country Debt Fund-III

Calendar
Emerging Country Debt Fund J.P. Morgan EMBI Global + J.P. Morgan EMBI Global
2018 -5.41 -4.61 -4.61
2017 13.08 9.32 9.32
2016 14.47 10.19 10.19
2015 0.58 1.23 1.23
2014 6.56 5.53 5.53
2013 -0.61 -6.58 -6.58
2012 27.52 18.54 18.54
2011 8.14 8.46 8.46
2010 26.37 12.04 12.04
2009 50.98 28.18 28.18
  • Emerging Country Debt Fund
  • J.P. Morgan EMBI Global +
  • J.P. Morgan EMBI Global

Inception Date: April 19, 1994

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

Vandersteel_Tina

Tina Vandersteel

Head of Emerging Country Debt

Ms. Vandersteel is the head of GMO’s Emerging Country Debt team. Prior to joining GMO in 2004, she worked at J.P. Morgan in fixed income research developing quantitative arbitrage strategies for emerging debt and high yield bonds. She began her career at Morgan Guaranty Trust, attending Morgan Finance Program #18, before establishing her career in emerging debt. Ms. Vandersteel earned her B.A. in Economics from Washington & Lee University. She is a CFA charterholder.

Documents

Literature

Fact Sheet
Prospectus
Statement of Additional Information
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Downloads

Performance
Portfolio Composition
Holdings
Holdings - Exploded
Holdings - Enhanced
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Commentary & Attribution

Commentary - Monthly
Commentary - Quarterly
Attribution - Quarterly
Attribution - YTD
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Investor Information

Annual Report
Semiannual Report
NAVs and Distributions
Summary Distribution (Prior Year) GMO Trust
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Risks

Risks associated with investing in the Fund may include: (1) Credit Risk: The risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. (2) Market Risk - Fixed Income: The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity due to market uncertainty about the value of a fixed income investment (or class of fixed income investments). In addition, the market prices of emerging country sovereign and quasi-sovereign debt instruments can decline due to uncertainty about their credit quality and the reliability of their payment streams. (3) Illiquidity Risk: Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices. 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.

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