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GMO launches global equities fund

The global manager has launched an Australian vehicle for its $13.5 billion flagship quality-focussed global equities strategy.

The new trust will be open to local wholesale investors.

It draws upon the GMO Quality Strategy, which has been running since February, 2004 and is managed by long-standing GMO portfolio managers Tom Hancock, Ty Cobb and Anthony Hene.

It has returned 9.15% p.a. since inception to S&P 500's 9.23% and MSCI World's 7.29%, as at August end. For the last three calendar years, the portfolio beat both the benchmarks.

Nearly 45% of the portfolio was invested in 10 stocks: Apple, Microsoft, Alphabet, UnitedHealth Group, Accenture, Coca-Cola, Oracle, Johnson & Johnson, Facebook and Medtronic.

Geographically, 83% of its holdings are from United States, followed by 4.1% in United Kingdom, 3.6% in Switzerland, 3.5% in Germany and 2.8% in Taiwan.

The biggest sectors were IT (about 36% of the portfolio), health care (24.3%) and communication services and consumer discretionary (both over 11%).

"Over our 40 year history, GMO has learnt that investing in top quality companies with durable business models, high returns on capital, and secular growth drivers tends to provide superior risk-adjusted returns to investors over the long run," Hancock said.

"In today's market environment, where great uncertainty is creating significant opportunities from price dislocations and volatility, we are pleased to be launching the GMO Quality Trust in Australia. We believe our balanced approach provides investors with exposure to quality stocks on both the defensive and growth ends of the spectrum that can help to endure a long downturn while simultaneously being able to do well as the recovery begins."

GMO offers an emerging markets trust and two global systematic macro strategies in Australia.

Read more: GMO
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