A tried and tested management team that has invested through numerous boom and bust cycles helms GMO Benchmark Free, but missteps in recent years have dampened some conviction in their approach, resulting in a downgrade of the Process Pillar to Average from Above Average. The fund’s three cheapest share classes retain their Morningstar Analyst Rating of Bronze, but the most expensive share class has been downgraded to Neutral.
GMO Benchmark-Free Allocation III GBMFX
NAV / 1-Day Return
26.23
/
0.34
%
Total Assets
5.3 Bil
Adj. Expense Ratio
Adjusted Expense Ratio excludes certain variable investment-related expenses, such as interest from borrowings and dividends on borrowed securities, allowing for more consistent cost comparisons across funds.
0.960%
Expense Ratio
0.960%
Fee Level
Above Average
Longest Manager Tenure
18.51
years
Category
World Allocation
Investment Style
Large ValueCredit Quality / Interest Rate Sensitivity
—Status
Open
TTM Yield
2.46%
Turnover
20%
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will GBMFX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable GBMFX’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the GBMFX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of GBMFX’s parent organization’s priorities and whether they’re in line with investors’ interests.
Missteps in 2020 highlight this strategy’s risks.
