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Core Plus Bond Fund

  • Vehicle Mutual Fund
  • Asset Class Fixed Income

Overview

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.

Facts

Doc Table
Fund Inception Date April 30, 1997
Fund Total Assets as of 7/31/2019 $649mm USD
Benchmark Bloomberg Barclays U.S. Aggregate

Share Class III

Inception Date April 30, 1997
Ticker Symbol GUGAX
CUSIP 362008609
NAV as of 8/16/2019 22.74
Net Expense Ratio 1 0.48
Gross Expense Ratio 2 0.64
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 June 30, 2019(USD, %) | Core Plus Bond Fund-III

Table Caption
1-Year 3-Year 5-Year 10-Year ITD
Core Plus Bond Fund 9.85 3.67 3.34 6.69 5.34
Bloomberg Barclays U.S. Aggregate 7.87 2.32 2.95 3.90 5.16
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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 June 30, 2019(USD, %) | Core Plus Bond Fund-III

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Core Plus Bond Fund 3.61 7.07 9.85 3.67 3.34 6.69 5.34
Bloomberg Barclays U.S. Aggregate 3.08 6.11 7.87 2.32 2.95 3.90 5.16
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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 June 30, 2019(USD, %) | Core Plus Bond Fund-III

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Core Plus Bond Fund 3.71 7.28 10.29 4.10 3.76 7.13 5.77
Bloomberg Barclays U.S. Aggregate 3.08 6.11 7.87 2.32 2.95 3.90 5.16
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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 July 31, 2019(USD, %) | Core Plus Bond Fund-III

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Core Plus Bond Fund -0.05 -0.05 7.02 9.71 3.42 3.31 6.35 5.32
Bloomberg Barclays U.S. Aggregate 0.22 0.22 6.35 8.08 2.18 3.05 3.75 5.15
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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, %) | Core Plus Bond Fund-III

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Core Plus Bond Fund -0.01 -0.01 7.27 10.15 3.84 3.73 6.78 5.74
Bloomberg Barclays U.S. Aggregate 0.22 0.22 6.35 8.08 2.18 3.05 3.75 5.15
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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, %) | Core Plus Bond Fund-III

Calendar
Core Plus Bond Fund Bloomberg Barclays U.S. Aggregate
2018 2.11 0.01
2017 4.45 3.54
2016 1.37 2.65
2015 -1.55 0.55
2014 9.54 5.97
2013 0.49 -2.03
2012 9.98 4.22
2011 8.76 7.84
2010 13.27 6.54
2009 21.70 5.93
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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, %) | Core Plus Bond Fund-III

Calendar
Core Plus Bond Fund Bloomberg Barclays U.S. Aggregate
2018 2.53 0.01
2017 4.87 3.54
2016 1.80 2.65
2015 -1.14 0.55
2014 9.98 5.97
2013 0.90 -2.03
2012 10.41 4.22
2011 9.19 7.84
2010 13.72 6.54
2009 22.19 5.93
  • Core Plus Bond Fund
  • Bloomberg Barclays U.S. Aggregate

Inception Date: April 30, 1997

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

Hotra_Jason

Jason Hotra

Co-Head of Developed Rates & FX

Mr. Hotra is engaged in portfolio management for GMO’s Developed Rates & FX team. Prior to joining GMO in 2015, he was a Portfolio Manager at Convexity Capital Management. Previously, he was a Director at Sowood Capital Management. Mr. Hotra earned his B.S. in Management Science with an option in Finance from Massachusetts Institute of Technology.

Jones_Greg

Greg Jones

Co-Head of Developed Rates & FX

Dr. Jones is engaged in portfolio management and leads the quantitative research effort for GMO’s Developed Rates & FX team. He joined GMO in 2007 following the completion of his Ph.D. in Physics from Harvard University. Dr. Jones earned his B.S. in Mathematics and Physics from the University of Missouri, Columbia.

Documents

Literature

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
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Downloads

Performance
Portfolio Composition
Holdings
Holdings - Enhanced
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Commentary & Attribution

Commentary - Quarterly
Attribution - Quarterly
Attribution - YTD
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Investor Information

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

Risks associated with investing in the Fund may include those as follows. (1) Market Risk - Fixed Income Investments: The market price of a fixed income investment can decline due to a number of market-related factors, including rising interest rates and widening credit spreads or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments). (2) 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. (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.