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.
Will WARAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable WARAX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the WARAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of WARAX’s parent organization’s priorities and whether they’re in line with investors’ interests.