Fund Evaluator:
GMO Opportunistic Income I (GMOLX)
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Best Performing in Securitized Bond - Diversified Over the Last Year
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Fund Details
GMO Opportunistic Income I Overview
GMO Opportunistic Income I (GMOLX) is an actively managed Taxable Bond Securitized Bond - Diversified fund. GMO launched the fund in 2019.
The investment seeks capital appreciation and current income. The fund invests primarily in securitized credit securities. It also may invest in other fixed-income instruments, including, without limitation, bonds and other similar instruments issued or guaranteed by the U.S. government and its agencies and instrumentalities, by non-U.S. governments and their agencies and instrumentalities and by private sector entities. The fund's allocation of its assets into various asset classes within the fixed income market will depend on the views of GMO as to the best value relative to what is currently available in the market.
About GMO Opportunistic Income I (GMOLX)
There are 2 members of the management team with an average tenure of 7.47 years: Joe Auth (2015), Ben Nabet (2023). 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 Bloomberg US Scrtzd MBS ABS CMBS TR USD index with a weighting of 100%. GMO Opportunistic Income I has 321 securities in its portfolio. The top 10 holdings constitute 57.5% 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 Opportunistic Income I is part of the Fixed Income global asset class and is within the Taxable Bond fund group. GMO Opportunistic Income I has 6.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 2.6%. 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 98.9% (92.1% domestic bond, 6.9% foreign bond and 0.0% convertible bond). GMO Opportunistic Income I has 2.3% of the portfolio in cash.
Assets Under Management
The fund has $406 million in total assets, which is below the $547 million average for the Securitized Bond - Diversified 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.
GMOLX 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 Opportunistic Income I expense ratio is above average compared to funds in the Securitized Bond - Diversified category. GMO Opportunistic Income I has an expense ratio of 0.70%, which is 29% lower than its category average, making the fund expense ratio grade a B. 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 Opportunistic Income I has a portfolio turnover rate of 277%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 361% for the Securitized Bond - Diversified category.
Recently, in the month of July 2026, GMO Opportunistic Income I returned -0.1%, which earned it a grade of B, as the Securitized Bond - Diversified category had an average return of -0.7%. 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 Opportunistic Income I has a trailing yield of 4.76%, which is below the 5.10% category average. The fund normally distributes its income monthly.
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 Opportunistic Income I Grades
Year to date, the fund has returned 1.2%, 0.1 percentage points better than the category, which translates into a grade of C. The fund has returned 3.8% over the past year (grade of D), 5.5% over the past three years (grade of D) and 3.6% per year over the past five years (grade of B) and 4.0% per year over the past 10 years (grade of B).
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GMOLX 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 |
|
| GMOLX Return (NAV) | -0.1% | 0.2% | 3.8% | 5.5% | 3.6% | 4.0% |
| GMOLX Grade | B | B | D | D | B | B |
| +/- Category | 0.6% | 0.2% | -0.8% | -0.6% | 1.5% | 1.4% |
| Securitized Bond - Diversified Avg | -0.7% | -0.0% | 4.6% | 6.2% | 2.1% | 2.6% |
| GMOLX Tax Cost Ratio | na | na | 1.9% | 2.3% | 2.0% | na |
GMOLX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| GMOLX Return (NAV) | 1.2% | 6.3% | 5.8% | 6.9% | -2.3% | 2.6% | 3.1% | 3.7% | 3.9% | 6.3% | 5.0% |
| GMOLX Grade | C | F | C | C | B | C | C | F | A | A | B |
| +/- Category | 0.1% | -1.9% | 0.1% | 0.3% | 7.1% | 0.8% | 1.8% | -3.4% | 2.0% | 2.1% | 2.0% |
| Securitized Bond - Diversified Avg | 1.1% | 8.1% | 5.7% | 6.6% | -9.3% | 1.8% | 1.3% | 7.2% | 1.9% | 4.2% | 3.1% |
| Risk Measures | |
| Standard Deviation: | 1.7% |
| Total Risk Index: | 0.14 - Low |
| Category Risk Index: | 0.39 - Low |
| Category Risk Grade: | A (18% Rank) |
| Beta: | 0.28 |
| R-Squared: | 90% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 4.8% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | |
| Total Assets: | $1264 Mil |
| Fund Total Assets: | $ 407 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 277% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 11.5 years | |||
| Average Tenure: 7.5 years | |||
| Managers (Year): Auth Joe (2015), Nabet Ben (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 321 |
| % in Top 10 Holdings: | 57.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 6.9% |
Portfolio Allocation |
|
| Domestic Stock: | 2.6% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 92.1% |
| Foreign Bond: | 6.9% |
| Convertible Bond: | 0.0% |
| Other: | -3.8% |
| Cash: | 2.3% |
Purchase Information
| Fund Family: | GMO |
| Phone Number: | 617-346-7646 |
| Website: | www.gmo.com |
| Status: | Open |
| Inception Date: | November 5, 2019 |
| Min. Initial Purchase: | $ 0 |
| 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 (%): | 0.70% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | GMO Opportunistic Income VI |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
