GMO

GMO’s U.S. Quality ETF (NYSE: QLTY) has surpassed $1 billion in assets under management since launching in November 2023! “Reaching $1 billion less than one year after the launch of QLTY illustrates that clients are seeking quality amid rising uncertainties and questions about valuation in some parts of the market. GMO is committed to offering innovative investment solutions in the structures that best address their needs,” said Scott Hayward, Chief Executive Officer of GMO GMO’s expansion into ETFs offers a structure that aligns with investors seeking tax-advantaged and operationally efficient access to long-running, institutional-grade GMO strategies, which the firm will continue to deliver with the same focus and conviction over the long term. Read our press release: https://ow.ly/bpsW50SYwvP For more information on QLTY including risks and expenses: https://ow.ly/b8co50SYwvQ

“Today, there are a lot of things worth owning, but you wouldn’t own that much of them in a traditional 60/40.” Ben Inker, Co-Head of GMO Asset Allocation, recalls how overvalued stocks were at the height of the Tech Bubble, which gave 60/40 portfolios unattractive forward-looking expected returns in 1999. But, as Ben told GMO clients at our 1999 Conference, not everything was overpriced. Investors just needed to be willing to look different from the traditional 60/40. Today, there are parallels. Ben sees the best relative asset allocation opportunity in 35 years, but once again investors need to be willing to look different to access it. GMO’s dynamic, valuation-sensitive asset allocation approach is designed to do just that and is currently dialing into opportunities in non-U.S. equities, deep value stocks, and long value/short growth exposures. Read about Ben’s views on today’s opportunities in his latest Insights: https://bit.ly/3zKDfev  

Deborah Ng, Head of ESG and Sustainability at GMO, will be presenting next week at #PRIinPerson in Toronto. Principles for Responsible Investment's conference will bring together 2,000 industry leaders to learn, engage, and discuss progressing global action on sustainable finance. Learn more about the event: https://ow.ly/7Fwc50TEaBh #sustainablefinance #responsibleinvesting

“For now, the main conclusion is that hard and local currency EMD is a place with demonstrated high alpha potential, which we believe itself can be a reason to allocate” GMO's Emerging Country Debt team explains in their latest White Paper, “The What-Why-When-How Guide to Owning Emerging Debt.” https://ow.ly/F4wA50TBHaw Institutional Investor highlights GMO's recent research in an article titled, “GMO Sends a Reminder: The Emerging-Market-Debt Switch Should Always Be On,” discussing the team's argument that with the passing of a pandemic and war-related defaults, now could be the time to invest. Read the article by Institutional Investor here: https://ow.ly/Babm50TBHay

Valuation-sensitive multi-asset class strategies, which shift allocations during extreme valuation environments, can help investors avoid bubbles and capitalize on dislocations. By dialing into three current market dynamics – relatively cheap non-U.S. equities, extreme dislocation among deep value stocks, and historically wide spreads between value and growth – we’re building portfolios with some of the highest forecasted relative and absolute returns we’ve ever seen. https://bit.ly/4eiSkmy

Efforts to mitigate the impacts of climate change are creating investment opportunities in the solutions and technologies needed to help us reduce reliance on emissions-intensive activities. Today, we are thrilled to announce the launch of GMO Horizons, a global equity strategy reflecting the view that the world economy is transitioning to a lower carbon future and that this process will create growth opportunities across all sectors. Horizons manages total emissions risk while investing in companies with substantial green revenues. We consider reported scope 1 direct emissions and GMO’s proprietary Indirect Emissions model, which measures the emissions generated throughout a company’s entire value chain. The green revenues in Horizons are derived from activities such as renewable and low-carbon energy, energy storage, material inputs for climate technologies, energy efficiency, and climate technologies, as well as in industries such as sustainable agriculture, water, and circular economy. We are excited to bring this new investment solution to GMO clients, which we believe offers the power and flexibility to achieve a variety of net-zero and sustainability objectives in addition to strong risk-adjusted returns. Learn more about GMO Horizons: https://bit.ly/3ZDqgWi

We are pleased to share our latest Sustainability and Responsible Investing Report, a report which demonstrates how we are integrating ESG considerations into our investment approach and our commitment to sustainability and diversity, equity, and inclusion. With Climate Week NYC kicking off this week, we believe now more than ever how important it is to support efforts to fight climate change and collaborate with industry peers to influence sustainable change for the investment industry. Read about our commitment in our latest report, here: https://bit.ly/3Xy2CIh

“When I joined the firm in 2017, our goal was to provide access to our capabilities to the wealth space, in addition to our traditional institutional client base,” Scott Hayward, GMO's Chief Executive Officer, recently told Asian Private Banker. “So, we launched numerous funds that made our capabilities available to wealth platforms, both in the region and globally,” Scott continued. During a recent trip to the region, Scott caught up with Asian Private Banker to discuss GMO’s approach to the wealth space and how we are building partnerships across Asia. Read more here: https://ow.ly/oEmN50TrLXS

As GMO celebrates its 30th anniversary managing emerging debt this year, we offer our comprehensive guide to emerging debt markets. Given the tumultuous recent events – a global pandemic, defaults, repricing of interest rates, relentless strength in the U.S. dollar – we’ll focus on the Why as a starting point. Then we’ll dive into the proliferating How, covering strategies and vehicles. For the When, we’ll give a quick overview of our Quarterly Valuation Update publication. Finally, we’ll relegate the What to the end for those looking for a more detailed introduction to the asset class, including terminology, market structure, associated benchmarks, and an overview of GMO’s history managing EMD. Read the latest by the GMO Emerging Country Debt team: https://bit.ly/3Tzntty

Tom Hancock, Head of GMO Focused Equity and lead portfolio manager of GMO’s Quality Strategy, will appear on CNBC’s The Exchange with Kelly Evans today between 1 and 2 pm ET. Don’t miss their conversation to hear Tom’s latest views! Learn more about GMO’s Quality Strategy: https://ow.ly/avre50Tofwk