GMO recently disclosed a significant allocation shift in GMO Benchmark-Free Allocation, cutting equity exposure from a 58% target weight on April 30, 2020, to a 25% target weight on May 15, 2020. The team made this cut based on its belief that the runup in developed equity markets from the March 23 bottom assumes a swift and orderly economic recovery, which the team believes is a less-than-guaranteed outcome. GMO Benchmark-Free Allocation's remaining equity exposure is concentrated in emerging-markets equities, which the team views as still significantly undervalued.
GMO Benchmark-Free Allocation III GBMFX
NAV / 1-Day Return
26.07
/
0.31
%
Total Assets
6.7 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.
0.880%
Expense Ratio
0.880%
Fee Level
Average
Longest Manager Tenure
17.37
years
Category
US Fund World Allocation
Investment Style
Large ValueCredit Quality / Interest Rate Sensitivity
—Status
Open
TTM Yield
3.46%
Turnover
10%
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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.
GMO Slashes Equity Exposure After Dramatic Stock Market Runup; Ratings Unchanged
