High Yield Fund

Skip

Start Investing Download Fact Sheet

Management

Joe Auth

Head of Developed Fixed Income, Portfolio Manager

Mr. Auth is the Head of GMO's Developed Fixed Income team and a portfolio manager for the team’s products. Mr. Auth is a partner of the firm. He is the lead portfolio manager for the Opportunistic Income and High Yield strategies and heads the Structured Products team as well. Prior to joining GMO in 2014, he was a portfolio manager for the Harvard Management Company. He was also a Research Director at Standish Mellon Asset Management. Mr. Auth earned his bachelor's degree in Government and History from Connecticut College and his MBA from the University of Connecticut. He is a CFA charterholder.

Rachna Ramachandran

Portfolio Manager

Ms. Ramachandran is a portfolio manager for GMO’s High Yield Strategy. She is a member of GMO’s Structured Products and High Yield teams, also contributing research focused on macro credit. Prior to joining GMO in 2019, Ms. Ramachandran held numerous positions at Bank of America Merrill Lynch most recently as a Director in Credit Trading, covering macro and quantitative credit strategy. Previously at Bank of America Merrill Lynch she held positions as a credit portfolio strategist and a credit derivatives strategist. Ms. Ramachandran earned her BE in electronics and telecommunications from the University of Mumbai and her MS in financial mathematics from City University of London.

Overview

The GMO High Yield Fund seeks to generate total return in excess of that of its benchmark, the Markit iBoxx USD Liquid High Yield Index, by applying a systematic, factor-based approach to portfolio construction. It is designed to capture alpha from top-down sources of risk premia, taking advantage of structural market inefficiencies, while maintaining a liquid portfolio. Our top-down, data-driven approach (in what is still largely a fundamentally managed asset class) brings a unique perspective that allows us to allocate capital across a range of high yield instruments in an effort to achieve optimal risk-adjusted returns in excess of the Fund’s benchmark.

Facts

Doc Table
Fund Inception Date	June 25, 2018
CUSIP	362014532
Benchmark	Markit iBoxx USD Liquid High Yield
Fund Total Assets as of 30/11/2024	$132mm USD

Share Class VI

Inception Date	June 25, 2018
Ticker Symbol	GHVIX
CUSIP	362014532
NAV as of 20/12/2024	16.64
Net Expense Ratio ¹	0.46
Gross Expense Ratio ²	0.52
Minimum Investment Size	$300mm in Fund / $750mm in GMO

¹ Net Expense Ratio reflects the reduction of expenses from fee reimbursements. The fee reimbursements will continue until at least June 30, 2025. 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, 2024.

Performance

Table Caption
	1-Year	3-Year	5-Year	ITD
High Yield Fund	16.19	4.19	4.96	5.65
Markit iBoxx USD Liquid High Yield	15.55	3.04	4.06	4.66

Inception Date: June 25, 2018

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.

Table Caption
	QTD	YTD	1-Year	3-Year	5-Year	ITD
High Yield Fund	5.23	8.08	16.19	4.19	4.96	5.65
Markit iBoxx USD Liquid High Yield	5.38	7.78	15.55	3.04	4.06	4.66

Inception Date: June 25, 2018

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.

Table Caption
	QTD	YTD	1-Year	3-Year	5-Year	ITD
High Yield Fund	5.35	8.45	16.72	4.68	5.47	6.17
Markit iBoxx USD Liquid High Yield	5.38	7.78	15.55	3.04	4.06	4.66

Inception Date: June 25, 2018

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.

Table Caption
	MTD	QTD	YTD	1-Year	3-Year	5-Year	ITD
High Yield Fund	1.57	0.55	8.68	12.40	4.75	4.90	5.59
Markit iBoxx USD Liquid High Yield	1.18	0.61	8.44	12.57	3.72	4.02	4.63

Inception Date: June 25, 2018

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.

Table Caption
	MTD	QTD	YTD	1-Year	3-Year	5-Year	ITD
High Yield Fund	1.61	0.63	9.13	12.91	5.24	5.42	6.11
Markit iBoxx USD Liquid High Yield	1.18	0.61	8.44	12.57	3.72	4.02	4.63

Inception Date: June 25, 2018

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.

Calendar
	High Yield Fund	Markit iBoxx USD Liquid High Yield
2023	12.95	12.89
2022	-8.03	-10.74
2021	4.99	4.48
2020	5.47	4.66
2019	14.33	14.65
2018	-0.70	-2.30

Inception Date: June 25, 2018

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.

Calendar
	High Yield Fund	Markit iBoxx USD Liquid High Yield
2023	13.46	12.89
2022	-7.58	-10.74
2021	5.52	4.48
2020	6.02	4.66
2019	14.91	14.65
2018	-0.44	-2.30

Inception Date: June 25, 2018

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.

Documents

Literature

Fact Sheet		Download
Prospectus		Download
Summary Prospectus		Download
Statement of Additional Information		Download
Download All		Download

Downloads

Performance		Download
Portfolio Composition		Download
Holdings		Download
Semi-Annual Financial Statements and Other Information		Download
Holdings - Public		Download
Holdings - Enhanced		Download
Download All		Download

Commentary & Attribution

Commentary Quarterly		Download
Download All		Download

Investor Information

Annual Report		Download
Semi-Annual Report		Download
NAVs and Distributions		Download
Distribution Dates		Download
Distribution Estimates		Download
Tax-Related Distribution Information		Download
Download All		Download

Document Library

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, including annualized returns and annualized volatility. (2) Market Risk - Fixed Income Investments: The market price of a fixed income investment can decline due to a number of market-related factors, including rising interest rates and widening credit spreads or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments). (3) Credit Risk: The risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner.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.