Fund Evaluator:
GMO Strategic Opportunities Allc III (GBATX)
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Best Performing in Miscellaneous Allocation Over the Last Year
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Fund Details
GMO Strategic Opportunities Allc III Overview
GMO Strategic Opportunities Allc III (GBATX) is an actively managed Allocation Miscellaneous Allocation fund. GMO launched the fund in 2005.
The investment seeks total return greater than that of its benchmark, the GMO Strategic Opportunities Allocation Index, an internally maintained composite index computed by GMO, consisting of 75% MSCI World Index and 25% Bloomberg U.S. Aggregate Index. The fund invests a significant portion of its assets in shares of other series of GMO Trust (collectively, the “underlying GMO Funds”), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and the Alternative Funds. The fund may invest in derivatives and effect short sales directly or through its investment in underlying GMO Funds.
About GMO Strategic Opportunities Allc III (GBATX)
There are 2 members of the management team with an average tenure of 14.14 years: John Thorndike (2019), Ben Inker (2005). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: MSCI World NR USD index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. GMO Strategic Opportunities Allc III has 23 securities in its portfolio. The top 10 holdings constitute 89.8% 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 Strategic Opportunities Allc III is part of the Allocation global asset class and is within the Allocation fund group. GMO Strategic Opportunities Allc III has 48.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 27.2%. There is 44.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 44.6% (40.9% domestic bond, 3.7% foreign bond and 0.0% convertible bond). GMO Strategic Opportunities Allc III has -20.0% of the portfolio in cash.
Assets Under Management
The fund has $72 million in total assets, which is below the $676 million average for the Miscellaneous Allocation 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.
GBATX 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 Strategic Opportunities Allc III expense ratio is high compared to funds in the Miscellaneous Allocation category. GMO Strategic Opportunities Allc III has an expense ratio of 0.91%, which is 8% lower than its category average, making the fund expense ratio grade a C. 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 Strategic Opportunities Allc III has a portfolio turnover rate of 31%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 18% for the Miscellaneous Allocation category.
Recently, in the month of July 2026, GMO Strategic Opportunities Allc III returned 1.9%, which earned it a grade of A, as the Miscellaneous Allocation category had an average return of -0.2%. 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 Strategic Opportunities Allc III has a trailing yield of 4.29%, which is above the 3.08% category average. The fund normally distributes its income semi-annually and its capital gains 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 Strategic Opportunities Allc III Grades
Year to date, the fund has returned 14.2%, 8.5 percentage points better than the category, which translates into a grade of A. The fund has returned 28.2% over the past year (grade of A), 16.6% over the past three years (grade of A) and 9.8% per year over the past five years (grade of A) and 9.2% per year over the past 10 years (grade of A).
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GBATX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| GBATX Return (NAV) | 1.9% | 5.1% | 28.2% | 16.6% | 9.8% | 9.2% |
| GBATX Grade | A | A | A | A | A | A |
| +/- Category | 2.1% | 3.4% | 16.5% | 6.0% | 4.7% | 3.3% |
| Miscellaneous Allocation Avg | -0.2% | 1.7% | 11.6% | 10.6% | 5.1% | 5.9% |
| GBATX Tax Cost Ratio | na | na | 4.6% | 3.1% | 3.8% | 2.8% |
GBATX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| GBATX Return (NAV) | 14.2% | 24.8% | 5.5% | 17.3% | -11.2% | 12.4% | 4.8% | 19.6% | -9.5% | 19.3% | 7.5% |
| GBATX Grade | A | A | F | B | A | B | D | A | F | A | B |
| +/- Category | 8.5% | 11.0% | -4.1% | 5.2% | 3.0% | -0.1% | -2.4% | 2.0% | -5.5% | 7.4% | 0.3% |
| Miscellaneous Allocation Avg | 5.7% | 13.8% | 9.6% | 12.1% | -14.2% | 12.5% | 7.2% | 17.6% | -4.0% | 11.9% | 7.1% |
| Risk Measures | |
| Standard Deviation: | 9.1% |
| Total Risk Index: | 0.75 - Below Average |
| Category Risk Index: | 1.16 - Above Average |
| Category Risk Grade: | D (68% Rank) |
| Beta: | 0.86 |
| R-Squared: | 78% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | na |
| Yield: | 4.3% |
| Dividend Distribution: | Semi-Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $72 Mil |
| Fund Total Assets: | $ 73 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 31% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 21.2 years | |||
| Average Tenure: 14.1 years | |||
| Managers (Year): Inker Ben (2005), Thorndike John (2019) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 23 |
| % in Top 10 Holdings: | 89.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 48.1% |
Portfolio Allocation |
|
| Domestic Stock: | 27.2% |
| Foreign Stock: | 44.4% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 40.9% |
| Foreign Bond: | 3.7% |
| Convertible Bond: | 0.0% |
| Other: | 3.8% |
| Cash: | -20.0% |
Purchase Information
| Fund Family: | GMO |
| Phone Number: | 617-346-7646 |
| Website: | www.gmo.com |
| Status: | Open |
| Inception Date: | May 31, 2005 |
| Min. Initial Purchase: | $1,000,000 |
| 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 (%): | 0.91% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | GMO Strategic Opportunities Allc III |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
