GMO Launches GMO Emerging Markets Debt Total Return Fund

New fund offers an alternative to benchmark-relative investing, managed by GMO’s deeply experienced EM Debt team.

BOSTON – GMO, a global investment manager known for its long-term, valuation-oriented strategies, today announced the launch of the GMO Emerging Markets Debt Total Return Fund (GMVJX). The Fund builds upon the more than 30-year track record of the GMO Emerging Country Debt team, with their long-term, top performance. It integrates GMO’s hard and local debt capabilities1,2 in a mutual fund format focused on a specific return objective that isn’t anchored to benchmark composition.

The GMO Emerging Markets Debt Total Return Fund is a natural extension of the team’s unique investing style. The Fund will seek to achieve a return in excess of Secured Overnight Financing Rate (SOFR)+3%, rather than returns relative to hard currency or local currency benchmarks.

"As one of the earliest dedicated investment managers in the asset class, we are excited to expand our differentiated emerging debt offerings to include a Total Return fund," said Tina Vandersteel, Portfolio Manager and Head of GMO’s Emerging Country Debt Team. "Benchmark-relative investing isn't for everyone, particularly when benchmarks can be volatile or their characteristics and valuations change over time. Given our alpha-oriented, valuation-based style, we're comfortable reframing the problem around outcomes. SOFR+3% is a useful outcome for a broad client audience."2

The GMO Emerging Country Debt team, founded in 1994, is composed of sovereign, corporate, local market, and security relative value specialists with significant experience in the asset class. Reflective of the broadest opportunity set, the team has skills across the credit spectrum, including distressed and defaulted issuers, as well as local markets experience that spans core and frontier local markets3.   Unique among peers, the team emphasizes security selection alpha more prominently, approaching country, currency, and interest-rate market selection in more relative value terms with tighter risk control parameters.  The team manages $10 billion across benchmark-relative and absolute return strategies.

More information about GMO investment strategies is available at www.gmo.com. 

About GMO

Global investment manager GMO, established in 1977, brings together focused expertise within its investment teams, industry-leading research, and client solutions and service to advance clients' goals. Privately owned and renowned for conviction in a valuation-based, long-term investment philosophy, GMO serves sophisticated institutions, financial intermediaries, and families, and managed $84 billion as of June 30, 2026. The firm is headquartered in Boston, with offices in London, Sydney, Amsterdam, Singapore, and Tokyo (representative office).

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1GMO ranks in the top decile of the eVestment Hard Currency Debt universe over the 1-, 3-, 5-, and 10-year periods ending March 31, 2026. GMO ranks in the top decile of the eVestment Local Currency Debt universe over the 3-, 5-, and 10-year periods, and in the 11th percentile over the 1-year period, ending March 31, 2026. Source: eVestment
2There is no guarantee the fund will achieve its investment objective.
3Core is emphasized in traditional benchmarks and tend to be larger, more liquid issues, more open economies, with better institutional access to local markets. Frontier markets tend to be much smaller, with less access and are often not represented well in established EM indices.
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 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); and (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 and other risks, please consult the Fund's Prospectus
An investor should carefully 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.  To obtain a prospectus please visit www.gmo.com.  Read the prospectus carefully before investing.
The GMO Trust funds are distributed in the United States by Funds Distributor LLC. GMO and Funds Distributor LLC are not affiliated.