Person looking at computer screen

Global Asset Allocation Fund

  • Vehicle Mutual Fund
  • Asset Class Multi-Asset Class

Overview

The GMO Global Asset Allocation Fund seeks to achieve a total return greater than that of its benchmark of 65% MSCI All Country World Index and 35% Bloomberg Barclays U.S. Aggregate Index, over a complete market cycle, by allocating dynamically across asset classes.

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. We also seek to add value through security selection within both traditional and alternative asset classes.

Facts

Doc Table
Fund Inception Date June 28, 1996
Fund Total Assets as of 2/28/2019 $1.9bn USD
Benchmark GMO Global Asset Allocation Index

Share Class III

Inception Date October 22, 1996
Ticker Symbol GMWAX
CUSIP 362007171
NAV as of 3/22/2019 31.58
Net Expense Ratio 1 0.56
Gross Expense Ratio 2 0.57

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
Global Asset Allocation Fund -7.26 4.27 1.92 6.20
GMO Global Asset Allocation Index -6.00 5.14 3.80 7.60
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

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

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year
Global Asset Allocation Fund -6.44 -7.26 -7.26 4.27 1.92 6.20
GMO Global Asset Allocation Index -7.82 -6.00 -6.00 5.14 3.80 7.60
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

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

Table Caption
QTD YTD 1-Year 3-Year 5-Year 10-Year
Global Asset Allocation Fund -6.32 -6.80 -6.80 4.78 2.41 6.69
GMO Global Asset Allocation Index -7.82 -6.00 -6.00 5.14 3.80 7.60
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

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

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year
Global Asset Allocation Fund 0.74 6.32 6.32 -1.96 7.58 2.96 7.92
GMO Global Asset Allocation Index 1.72 7.32 7.32 0.78 8.98 5.03 9.75
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

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

Table Caption
MTD QTD YTD 1-Year 3-Year 5-Year 10-Year
Global Asset Allocation Fund 0.77 6.40 6.40 -1.48 8.10 3.46 8.42
GMO Global Asset Allocation Index 1.72 7.32 7.32 0.78 8.98 5.03 9.75
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

Year Ending December 31 (USD, %)

Calendar
Global Asset Allocation Fund GMO Global Asset Allocation Index
2018 -7.26 -6.00
2017 15.73 16.45
2016 5.64 6.17
2015 -4.27 -1.13
2014 1.31 4.87
2013 12.54 13.59
2012 10.40 12.07
2011 1.67 -1.90
2010 7.38 11.05
2009 22.39 24.48
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

Year Ending December 31 (USD, %)

Calendar
Global Asset Allocation Fund GMO Global Asset Allocation Index
2018 -6.80 -6.00
2017 16.28 16.45
2016 6.14 6.17
2015 -3.80 -1.13
2014 1.81 4.87
2013 13.07 13.59
2012 10.88 12.07
2011 2.10 -1.90
2010 7.82 11.05
2009 22.87 24.48
  • Global Asset Allocation Fund 1
  • GMO Global Asset Allocation Index

Inception Date: October 22, 1996

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 Performance information prior to June 30, 2002, was achieved prior to a change in the Funds principal investment strategies. From its inception until June 28, 2002, the GMO Global Asset Allocation Fund was named the GMO World Equity Allocation Fund and was benchmarked against the MSCI All Country World Index, primarily investing in equities. On June 28, 2002, the Fund changed principal investment strategies.

Management

Inker_Ben

Ben Inker

Head of Asset Allocation

Mr. Inker is head of GMO’s Asset Allocation team and a member of the GMO Board of Directors. He joined GMO in 1992 following the completion of his B.A. in Economics from Yale University.  In his years at GMO, Mr. Inker has served as an analyst for the Quantitative Equity and Asset Allocation teams, as a portfolio manager of several equity and asset allocation portfolios, as co-head of International Quantitative Equities, and as CIO of Quantitative Developed Equities.  He is a CFA charterholder.

Documents

Downloads

Performance
Portfolio Composition
Holdings
Holdings - Exploded
Holdings - Enhanced
Download All

Commentary & Attribution

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

Investor Information

Annual Report
Semiannual Report
NAVs and Distributions
Summary Distribution (Prior Year) GMO Trust
Download All

Risks

Risks associated with investing in the Fund may include: (1) Management and Operational Risk: The risk that GMO's investment techniques will fail to produce desired results. (2) Market Risk - Equities: The market price of equities may decline due to factors affecting the issuing companies, their industries, 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 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.