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Foreign Small Companies Fund

  • Vehicle Mutual Fund
  • Asset Class Equities

Overview

The GMO Foreign Small Companies Fund seeks to generate high total return greater than that of the S&P Developed ex-U.S. Small Cap Index by investing primarily in non-U.S. developed market equities.

The Fund’s investment approach is grounded in the Global 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 Fund 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.

Facts

Doc Table
Fund Inception Date January 4, 1995
Fund Total Assets as of 2/28/2019 $18mm USD
Benchmark S&P Developed ex-U.S. Small Cap

Share Class III

Inception Date June 30, 2000
Ticker Symbol GMFSX
CUSIP 362008617
NAV as of 3/22/2019 10.43
Net Expense Ratio 1 0.77
Gross Expense Ratio 2 0.90
Purchase Premium 0.50%
Redemption Fee 0.50%

1 Net Expense Ratio reflects the reduction of expenses from fee reimbursements. The fee reimbursements will continue until at least June 30, 2019. 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, 2018.

Performance

Quarter-End as of December 31, 2018(USD, %)

Table Caption
1-Year 3-Year 5-Year 10-Year ITD
Foreign Small Companies Fund -23.24 0.07 -0.90 8.68 9.05
S&P Developed ex-U.S. Small Cap -18.41 3.88 2.78 10.00 6.55
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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 Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Quarter-End as of December 31, 2018(USD, %)

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Foreign Small Companies Fund -17.02 -22.47 -22.47 0.40 -0.70 8.79 9.09
S&P Developed ex-U.S. Small Cap -16.56 -18.41 -18.41 3.88 2.78 10.00 6.55
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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 Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Quarter-End as of December 31, 2018(USD, %)

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Foreign Small Companies Fund -16.81 -21.48 -21.48 1.32 0.18 9.73 10.03
S&P Developed ex-U.S. Small Cap -16.56 -18.41 -18.41 3.88 2.78 10.00 6.55
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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.

1 The Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Month-End as of February 28, 2019(USD, %)

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Foreign Small Companies Fund 0.95 8.61 8.61 -14.34 6.53 0.19 11.79 9.40
S&P Developed ex-U.S. Small Cap 2.59 10.93 10.93 -9.89 10.35 4.10 13.11 6.97
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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 Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Month-End as of February 28, 2019(USD, %)

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year ITD
Foreign Small Companies Fund 1.04 8.80 8.80 -13.20 7.51 1.09 12.77 10.34
S&P Developed ex-U.S. Small Cap 2.59 10.93 10.93 -9.89 10.35 4.10 13.11 6.97
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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.

1 The Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Year Ending December 31 (USD, %)

Calendar
Foreign Small Companies Fund S&P Developed ex-U.S. Small Cap
2018 -22.47 -18.41
2017 30.36 32.37
2016 0.14 3.78
2015 6.18 5.92
2014 -10.17 -3.42
2013 28.25 26.06
2012 22.57 18.55
2011 -15.25 -14.49
2010 24.83 21.96
2009 44.58 45.07
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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 Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Year Ending December 31 (USD, %)

Calendar
Foreign Small Companies Fund S&P Developed ex-U.S. Small Cap
2018 -21.48 -18.41
2017 31.15 32.37
2016 1.00 3.78
2015 7.09 5.92
2014 -9.40 -3.42
2013 29.33 26.06
2012 23.61 18.55
2011 -14.51 -14.49
2010 25.88 21.96
2009 45.79 45.07
  • Foreign Small Companies Fund 1
  • S&P Developed ex-U.S. Small Cap

Inception Date: January 04, 1995

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.

1 The Foreign Small Companies Fund commenced operations as a registered investment company on June 30, 2000. Prior to that date, the Fund was operated as a portfolio of a private investment pool with investment objectives, policies and guidelines that were substantially the same as those of the Fund. Performance information for the periods prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code. Had the pool been subject to these restrictions, its performance may have been adversely affected.

Prior to June 30, 2017, the Fund was managed by a different investment team pursuant to a different investment strategy, which reduces the relevance of the performance information shown for periods prior to June 30, 2017.

Management

Constable_Neil

Neil Constable

Head of Global Equity

Dr. Constable is the head of GMO’s Global Equity team. Previously at GMO, he was the head of quantitative research and engaged in portfolio management for the Global Equity team’s quantitative products. Prior to joining GMO in 2006, he was a quantitative researcher for State Street Global Markets and a post-doctoral fellow at MIT. Dr. Constable earned his B.S. in Physics from the University of Calgary, his Master’s in Mathematics from Cambridge University, and his Ph.D. in Physics from McGill University.

Documents

Downloads

Performance
Portfolio Composition
Holdings
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Commentary & Attribution

Commentary - Quarterly
Commentary - Annual
Market Review
Attribution - Monthly
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: (1) Small Company Risk: The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations. (2) Market Risk - Equities: The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares. (3) Non U.S. Investment Risk: The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. markets are less stable, smaller, less liquid, and less regulated than U.S. markets, and the cost of trading in those markets often is higher than it is in U.S. markets. For a more complete discussion of these risks and others, please see 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.