Fund Evaluator:
GMO Asset Allocation Bond VI (GABFX)
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Best Performing in Miscellaneous Fixed Income Over the Last Year
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Fund Details
GMO Asset Allocation Bond VI Overview
GMO Asset Allocation Bond VI (GABFX) is an actively managed Taxable Bond Miscellaneous Fixed Income fund. GMO launched the fund in 2009.
The investment seeks total return in excess of that of its benchmark, the FTSE 3-Month Treasury Bill Index. Under normal circumstances, the fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds. The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by investing in derivatives (e.g., a futures contract, swap contract, forward currency contract, or option). The fund may invest up to 100% of its assets in below investment grade bonds.
About GMO Asset Allocation Bond VI (GABFX)
There are 2 members of the management team with an average tenure of 9.51 years: John Thorndike (2019), Ben Inker (2014). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and FTSE Treasury Bill 3 Mon USD index with a weighting of 100%. GMO Asset Allocation Bond VI has 14 securities in its portfolio. The top 10 holdings constitute 180.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
GMO Asset Allocation Bond VI is part of the Fixed Income global asset class and is within the Taxable Bond fund group. GMO Asset Allocation Bond VI has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 178.9% (178.9% domestic bond, 0.0% foreign bond and 0.0% convertible bond). GMO Asset Allocation Bond VI has -78.5% of the portfolio in cash.
Assets Under Management
The fund has $120 million in total assets, which is below the $716 million average for the Miscellaneous Fixed Income category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
GABFX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The GMO Asset Allocation Bond VI expense ratio is below average compared to funds in the Miscellaneous Fixed Income category. GMO Asset Allocation Bond VI has an expense ratio of 0.37%, which is 41% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. GMO Asset Allocation Bond VI has a portfolio turnover rate of 95%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 109% for the Miscellaneous Fixed Income category.
Recently, in the month of August 2026, GMO Asset Allocation Bond VI returned 0.3%, which earned it a grade of C, as the Miscellaneous Fixed Income category had an average return of 0.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
GMO Asset Allocation Bond VI has a trailing yield of 2.95%, which is below the 5.72% category average. The fund normally distributes its income semi-annually and its capital gains semi-annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
GMO Asset Allocation Bond VI Grades
Year to date, the fund has returned -7.0%, 9.0 percentage points worse than the category, which translates into a grade of F. The fund has returned -5.0% over the past year (grade of F), -1.1% over the past three years (grade of F) and -4.1% per year over the past five years (grade of F) and 0.2% per year over the past 10 years (grade of F).
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GABFX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| GABFX Return (NAV) | 0.3% | -2.9% | -5.0% | -1.1% | -4.1% | 0.2% |
| GABFX Grade | C | F | F | F | F | F |
| +/- Category | -0.1% | -3.2% | -9.9% | -7.8% | -5.9% | -2.7% |
| Miscellaneous Fixed Income Avg | 0.5% | 0.3% | 4.9% | 6.7% | 1.8% | 2.9% |
| GABFX Tax Cost Ratio | na | na | 1.1% | 1.5% | 1.3% | 1.1% |
GABFX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| GABFX Return (NAV) | -7.0% | 8.8% | -11.7% | 8.4% | -14.9% | 1.3% | 11.3% | 8.0% | 0.8% | 2.4% | -0.1% |
| GABFX Grade | F | B | F | C | D | C | A | C | C | F | F |
| +/- Category | -9.0% | 1.4% | -17.7% | -0.2% | -4.6% | -0.8% | 5.3% | -0.7% | 0.3% | -2.6% | -4.3% |
| Miscellaneous Fixed Income Avg | 2.0% | 7.5% | 6.0% | 8.6% | -10.2% | 2.2% | 6.0% | 8.7% | 0.4% | 5.0% | 4.1% |
| Risk Measures | |
| Standard Deviation: | 15.7% |
| Total Risk Index: | 1.29 - Above Average |
| Category Risk Index: | 3.11 - High |
| Category Risk Grade: | F (102% Rank) |
| Beta: | 2.76 |
| R-Squared: | 96% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.0% |
| Dividend Distribution: | Semi-Annually |
| Cap Gains Distribution: | Semi-Annually |
| Total Assets: | $120 Mil |
| Fund Total Assets: | $ 120 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 95% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 11.8 years | |||
| Average Tenure: 9.5 years | |||
| Managers (Year): Inker Ben (2014), Thorndike John (2019) | |||
Portfolio Composition (as of 2/28/26)
| # of Holdings: | 14 |
| % in Top 10 Holdings: | 180.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 178.9% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | -0.4% |
| Cash: | -78.5% |
Purchase Information
| Fund Family: | GMO |
| Phone Number: | 617-346-7646 |
| Website: | www.gmo.com |
| Status: | Open |
| Inception Date: | March 18, 2009 |
| Min. Initial Purchase: | $300,000,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.37% ( Rating : Below Avg ) |
| Category Average Expense Ratio (%): | 0.26% |
| Share Class: | GMO Asset Allocation Bond VI |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
