The GMO Tax-Managed International Equities Strategy seeks to generate high after-tax total return by investing primarily in non-U.S. equities. The Strategy's benchmark is the MSCI EAFE (After-Tax) Index.
The Strategy’s investment approach is grounded in the Systematic Equity team’s belief that, in the short term, equity markets exhibit exploitable inefficiencies as a result of irrational investor actions, the imperfect flow of information, and the participation of non-economic actors, while in the long term returns are ultimately driven by economic reality. The Strategy aims to take advantage of this inefficiency by utilizing a multi-factor valuation model in conjunction with other methods, such as cross-asset signals and corporate alerts, to identify mispriced equity securities. The Strategy’s portfolio management process seeks to maximize expected alpha net of costs, including transaction costs and taxes.
Risks associated with investing in the Strategy may include Market Risk - Equities, Non-U.S. Investment Risk, Management and Operational Risk, Currency Risk, and Illiquidity Risk.