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Opportunistic Income Series Fund

  • Vehicle Mutual Fund
  • Asset Class Fixed Income

Overview

The GMO Opportunistic Income Series Fund seeks capital appreciation and current income by investing in what we believe are the most attractively priced sectors and securities in the structured finance marketplace. We believe that the marketplace’s complexity, periods of challenging past performance, and very high number of discrete investment opportunities create considerable potential for alpha generation.   

GMO approaches the market without what we feel are uneconomic constraints or mandates, such as asset class, credit rating, duration, or yield targets. This gives us the ability to concentrate our focus and analysis solely on what we feel are the best investments from a pure risk/return perspective. We feel this approach will provide superior investment performance over the long term.

Facts

Doc Table
Benchmark Bloomberg Barclays U.S. Securitized+

Share Class R6

CUSIP 380132860
Net Expense Ratio 1 0.63
Gross Expense Ratio 2 0.64

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, %) | GMO Opportunistic Income Series Fund Class R6

Table Caption
1-Year 3-Year 5-Year ITD
Opportunistic Income Series Fund 4.80 4.85 4.07 5.17
Bloomberg Barclays U.S. Securitized+ 7.93 3.19 2.16 1.55
  • Opportunistic Income Series Fund 1
  • Bloomberg Barclays U.S. Securitized+

Inception Date: October 03, 2011

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.

1 The inception date above refers to the inception date of the GMO Opportunistic Income Funds predecessor fund. Class R6 shares were first offered on December 16, 2018. The GMO Opportunistic Income Series Fund is a feeder fund investing substantially all of its assets in shares of a corresponding master fund (i.e., a corresponding GMO Trust fund). Performance data quoted for GMO Opportunistic Income Series Fund reflects the performance data of the corresponding GMO Trust master fund and its predecessor fund re-stated to reflect the fees and expenses associated with GMO Opportunistic Income Series Fund.

Quarter-End as of September 30, 2019(USD, %) | GMO Opportunistic Income Series Fund Class R6

Table Caption
QTD YTD 1-Year 3-Year 5-Year ITD
Opportunistic Income Series Fund 1.19 3.55 4.80 4.85 4.07 5.17
Bloomberg Barclays U.S. Securitized+ 1.40 5.77 7.93 3.19 2.16 1.55
  • Opportunistic Income Series Fund 1
  • Bloomberg Barclays U.S. Securitized+

Inception Date: October 03, 2011

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.

1 The inception date above refers to the inception date of the GMO Opportunistic Income Funds predecessor fund. Class R6 shares were first offered on December 16, 2018. The GMO Opportunistic Income Series Fund is a feeder fund investing substantially all of its assets in shares of a corresponding master fund (i.e., a corresponding GMO Trust fund). Performance data quoted for GMO Opportunistic Income Series Fund reflects the performance data of the corresponding GMO Trust master fund and its predecessor fund re-stated to reflect the fees and expenses associated with GMO Opportunistic Income Series Fund.

Month-End as of October 31, 2019(USD, %) | GMO Opportunistic Income Series Fund Class R6

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year ITD
Opportunistic Income Series Fund 0.25 0.25 3.81 4.60 4.80 4.15 5.14
Bloomberg Barclays U.S. Securitized+ 0.35 0.35 6.14 8.98 3.27 2.22 1.58
  • Opportunistic Income Series Fund 1
  • Bloomberg Barclays U.S. Securitized+

Inception Date: October 03, 2011

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.

1 The inception date above refers to the inception date of the GMO Opportunistic Income Funds predecessor fund. Class R6 shares were first offered on December 16, 2018. The GMO Opportunistic Income Series Fund is a feeder fund investing substantially all of its assets in shares of a corresponding master fund (i.e., a corresponding GMO Trust fund). Performance data quoted for GMO Opportunistic Income Series Fund reflects the performance data of the corresponding GMO Trust master fund and its predecessor fund re-stated to reflect the fees and expenses associated with GMO Opportunistic Income Series Fund.

Year Ending December 31 (USD, %) | GMO Opportunistic Income Series Fund Class R6

Calendar
Opportunistic Income Series Fund Bloomberg Barclays U.S. Securitized+
2018 3.86 0.99
2017 6.25 2.51
2016 4.98 1.11
2015 1.52 0.41
2014 4.30 0.35
2013 5.60 0.40
2012 11.73 0.82
2011 -0.20 0.15
  • Opportunistic Income Series Fund 1
  • Bloomberg Barclays U.S. Securitized+

Inception Date: October 03, 2011

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.

1 The inception date above refers to the inception date of the GMO Opportunistic Income Funds predecessor fund. Class R6 shares were first offered on December 16, 2018. The GMO Opportunistic Income Series Fund is a feeder fund investing substantially all of its assets in shares of a corresponding master fund (i.e., a corresponding GMO Trust fund). Performance data quoted for GMO Opportunistic Income Series Fund reflects the performance data of the corresponding GMO Trust master fund and its predecessor fund re-stated to reflect the fees and expenses associated with GMO Opportunistic Income Series Fund.

Management

Auth_Joe

Joe Auth

Head of Structured Products

Mr. Auth is engaged in portfolio management for GMO’s Structured Products team. Prior to joining GMO in 2014, he was a Portfolio Manager for the Harvard Management Company. Previously, he was a Research Director at Standish Mellon Asset Management. Mr. Auth earned his B.A. in government and history from the Connecticut College and his M.B.A. from the University of Connecticut. He is a CFA Charterholder.

Documents

Literature

Fact Sheet - Class PS
Fact Sheet - Class R6
Prospectus
Statement of Additional Information
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Downloads

Performance
Portfolio Composition
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Commentary & Attribution

Commentary - Quarterly
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Risks

Risks associated with investing in the Fund may include those as follows. (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. The market price of a fixed income investment will normally decline due to the issuer's, guarantor's, or obligor's failure to meet its payment obligations or in anticipation of such failure. (2) Market Risk - Asset-Backed Securities: The market price of asset-backed securities, like that of other fixed income investments with complex structures, can decline for a variety of reasons, including market 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. 

Each GMO Series Trust Fund is a feeder fund investing substantially all of its assets in shares of a corresponding GMO Trust Fund (i.e., a master fund). Under the master-feeder structure, each GMO Series Trust Fund's sole portfolio holding, other than cash, is shares of the corresponding GMO Trust Fund.

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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