Fund Evaluator:
GMO High Yield I (GMOZX)
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Best Performing in High Yield Bond Over the Last Year
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Fund Details
GMO High Yield I Overview
GMO High Yield I (GMOZX) is an actively managed Taxable Bond High Yield Bond fund. GMO launched the fund in 2023.
The investment seeks total return in excess of that of its benchmark, the Markit iBoxx USD Liquid High Yield Index. Under normal circumstances, the fund invests directly and indirectly (e.g., through derivatives and ETFs) at least 80% of its assets in high yield 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.
About GMO High Yield I (GMOZX)
There are 2 members of the management team with an average tenure of 5.78 years: Joe Auth (2018), Rachna Ramachandran (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 Markit iBoxx Liquid High Yield TR USD index with a weighting of 100%. GMO High Yield I has 114 securities in its portfolio. The top 10 holdings constitute 193.4% 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 High Yield I is part of the Fixed Income global asset class and is within the Taxable Bond fund group. GMO High Yield I has 7.9% 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 132.3% (124.4% domestic bond, 7.9% foreign bond and 0.0% convertible bond). GMO High Yield I has 10.9% of the portfolio in cash.
Assets Under Management
The fund has $821 million in total assets, which is below the $545 million average for the High Yield Bond 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.
GMOZX 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 High Yield I expense ratio is average compared to funds in the High Yield Bond category. GMO High Yield I has an expense ratio of 0.47%, which is 49% lower than its category average, making the fund expense ratio grade a A. 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 High Yield I has a portfolio turnover rate of 160%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 71% for the High Yield Bond category.
Recently, in the month of June 2026, GMO High Yield I returned 0.3%, which earned it a grade of B, as the High Yield Bond 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 High Yield I has a trailing yield of 5.57%, which is below the 6.26% 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 High Yield I Grades
Year to date, the fund has returned 1.9%, 0.0 percentage points worse than the category, which translates into a grade of C. The fund has returned 5.8% over the past year (grade of B), 8.8% over the past three years (grade of B) and 4.7% per year over the past five years (grade of A).
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GMOZX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| GMOZX Return (NAV) | 0.3% | 2.6% | 5.8% | 8.8% | 4.7% | na |
| GMOZX Grade | B | B | B | B | A | na |
| +/- Category | 0.1% | 0.2% | 0.1% | 0.7% | 0.9% | na |
| High Yield Bond Avg | 0.2% | 2.4% | 5.7% | 8.1% | 3.8% | 5.1% |
| GMOZX Tax Cost Ratio | na | na | 2.2% | 3.1% | na | na |
GMOZX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| GMOZX Return (NAV) | 1.9% | 9.3% | 7.7% | 12.8% | -8.1% | 4.9% | 5.4% | 14.2% | na | na | na |
| GMOZX Grade | C | A | C | B | A | C | C | B | na | na | na |
| +/- Category | -0.0% | 1.4% | 0.1% | 0.9% | 1.9% | -0.2% | 0.1% | 1.2% | na | na | na |
| High Yield Bond Avg | 1.9% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.3% | 13.0% | -2.7% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 4.5% |
| Total Risk Index: | 0.37 - Low |
| Category Risk Index: | 1.13 - High |
| Category Risk Grade: | F (88% Rank) |
| Beta: | 0.69 |
| R-Squared: | 72% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 5.6% |
| Dividend Distribution: | Semi-Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $134 Mil |
| Fund Total Assets: | $ 1 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 160% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 8.2 years | |||
| Average Tenure: 5.8 years | |||
| Managers (Year): Auth Joe (2018), Ramachandran Rachna (2023) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 114 |
| % in Top 10 Holdings: | 193.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 7.9% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 124.4% |
| Foreign Bond: | 7.9% |
| Convertible Bond: | 0.0% |
| Other: | -43.2% |
| Cash: | 10.9% |
Purchase Information
| Fund Family: | GMO |
| Phone Number: | 617-346-7646 |
| Website: | www.gmo.com |
| Status: | Open |
| Inception Date: | April 13, 2023 |
| 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 (%): | 0.47% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | GMO High Yield VI |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
