Overview

The GMO Benchmark-Free Allocation Strategy seeks to generate positive total return by allocating dynamically across asset classes, free from the constraints of traditional benchmarks. Over a complete market cycle, the Strategy seeks annualized returns of 5% (net of fees) above the Consumer Price Index and annualized volatility (standard deviation) of 5-10%.

The philosophy that underlies all of GMO’s Asset Allocation investment strategies is the belief that, at times and in the short term, the pricing of asset classes can deviate from true intrinsic value, but mean reverts to appropriate valuation levels over the long term. GMO’s proprietary 7-Year Asset Class Forecasts form the foundation of our investment process, providing a framework to assess the return opportunity embedded in different asset classes. We use that insight to allocate to what we believe are the most attractively priced asset classes. GMO’s Asset Allocation approach is flexible, not pre-determined by static allocations or benchmark-related ranges, constrained only by our unwillingness to overpay for an asset. We also seek to add value through security selection within both traditional and alternative asset classes.

Facts

Performance

Documents

Literature

Fact Sheet Download
Product Primer Download
GIPS Compliant Presentation Download
GIPS Composite Descriptions Download
Download All Download

Downloads

Performance Download
Portfolio Composition Download
Download All Download

Commentary & Attribution

Commentary - Monthly Download
Commentary - Quarterly Download
Annual Letter Download
Market Review Download
Attribution - Monthly Download
Attribution - Quarterly Download
Attribution - YTD Download
Download All Download

Risks

Risks associated with investing in the Strategy may include Management and Operational Risk, Market Risk - Equities, Non-U.S. Investment Risk, Market Risk - Fixed Income Investments, and Derivatives and Short Sales Risk.