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Name

As of 06/01/2026

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

GMO Alternative Allocation Fund

GAAGX | Fund

$18.40

$804 M

4.99%

$0.92

2.59%

Vitals

YTD Return

1.2%

1 yr return

13.8%

3 Yr Avg Return

6.5%

5 Yr Avg Return

2.8%

Net Assets

$804 M

Holdings in Top 10

61.4%

52 WEEK LOW AND HIGH

$18.4
N/A
N/A

Expenses

OPERATING FEES

Expense Ratio 2.59%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover N/A

Redemption Fee N/A

Min Investment

Standard (Taxable)

$0

IRA

N/A

Fund Classification

Fund Type

Open End Mutual Fund

Name

As of 06/01/2026

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

GMO Alternative Allocation Fund

GAAGX | Fund

$18.40

$804 M

4.99%

$0.92

2.59%

GAAGX - Profile

Distributions

  • YTD Total Return 1.2%
  • 3 Yr Annualized Total Return 6.5%
  • 5 Yr Annualized Total Return 2.8%
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio 0.06%
DIVIDENDS
  • Dividend Yield 5.0%
  • Dividend Distribution Frequency SemiAnnual

Fund Details

  • Legal Name
    GMO Alternative Allocation Fund
  • Fund Family Name
    GMO Mutual Funds
  • Inception Date
    Sep 04, 2019
  • Shares Outstanding
    N/A
  • Share Class
    I
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Ben Inker

Fund Description

The Fund seeks annualized returns of 4% (net of fees) above cash (FTSE 3-Month Treasury Bill Index) over a complete market cycle by obtaining long and/or short exposures to a variety of investment styles (“Styles”) across the following asset groups: stocks, equity indices, bonds, interest rates, currencies and commodities (“Asset Groups”). The Fund’s long and short exposures to Styles and Asset Groups depend on GMO’s evaluation of investment opportunities. The Fund will pursue exposure to Styles and Asset Groups through a variety of underlying strategies. The Styles typically employed by the Fund are:Value: Value strategies seek to identify opportunities to buy assets that appear inexpensive and sell assets that appear expensive based on fundamental measures related to price, seeking to capture the tendency for relatively inexpensive assets to outperform relatively expensive assets. The Fund will seek to buy assets that GMO believes are relatively inexpensive and sell those that GMO believes are relatively expensive. Examples of value strategies include using price-to-earnings and price-to-book ratios for selecting stocks.Quality: Quality strategies favor investments that exhibit relatively higher quality characteristics. GMO believes a high quality company generally to be a company that has an established business that will deliver a high level of return on past investments and that will use cash flows to make investments with the potential for a high return on capital or to return cash to shareholders through dividends or share buybacks. An example of a quality strategy is seeking long exposure to high quality companies and/or short exposure to low quality companies that GMO believes to be of low quality.Carry: “Carry” is typically defined as the return of an asset assuming that market conditions or valuations stay the same. Carry strategies favor investments with higher yields over those with lower yields, seeking to capture the tendency for higher-yielding assets to provide higher returns than lower-yielding assets. An example of carry measures includes selecting currencies and bonds based on interest rates.Momentum: Momentum strategies favor investments that have performed relatively well over those that have underperformed over the medium-term (i.e., one year or less), seeking to capture the tendency that an asset’s recent relative performance will continue in the near future. Examples of momentum measures include simple price momentum for selecting stocks and price- and yield-based momentum for selecting bonds.Volatility: Volatility is a statistical measurement of the dispersion of returns of an asset, as measured by the annualized standard deviation of its returns. Historically, the average implied volatility of index options has exceeded the realized volatility of the underlying index. This difference represents the volatility premium, or market participants’ willingness to pay for protection against losses when volatility suddenly increases. An example of a volatility strategy is selling or writing put options (hedged or unhedged) on various equity and credit indices.Trend: Trend strategies seek to capture the historical tendency of an asset’s recent (relative or absolute) performance to continue into the future. The Fund may have both long and short positions in different assets depending on their respective price and/or economic trends. An example of a trend measure is using short-term prices (e.g., prices over a one- to three-month period) to select an equity index.Event-Driven: Event-driven strategies seek to benefit from movements in equity prices in connection with material corporate events, such as merger and acquisition transactions, corporate restructurings, and other transaction types and regulatory events.  Where GMO believes a material corporate event is likely to occur (or not occur), the Fund may take long and/or short positions in equities of companies that are the subjects of such corporate events.The Fund’s Styles may change over time and the allocation of Fund exposures to and among the Styles and Asset Groups will also change over time. GMO does not expect the Fund’s performance to be highly correlated with that of traditional equity market indices. GMO does not manage the Fund to, or control the Fund’s risk relative to, any securities index or securities benchmark, and GMO does not expect the Fund’s performance to be highly correlated with that of traditional equity or fixed income market indices. The Fund typically has gross investment exposure in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to higher risk of loss than if the Fund were not leveraged. GMO does not seek to achieve a particular volatility level or range for the Fund but expects the Fund’s typical volatility to be between 4% and 12%. The Fund at times may have substantial exposure to a single Style, asset class, sector, country, region, issuer, or currency and companies with similar market capitalizations. The Fund is not restricted in its exposure to any particular Style, Asset Group or market and may invest in securities of companies of any market capitalization.In seeking to achieve its investment objective, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives, which may include options, futures, forward currency contracts, and swap contracts. The Fund may lend its portfolio securities.The Fund gains exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive any management or other fees for its services to the subsidiary. The subsidiary invests primarily in commodity-related derivatives (such as over-the-counter swaps on commodity indices) and fixed income investments but also may invest in any other investment in which the Fund is permitted to invest directly. References in this Prospectus to actions taken by the Fund refer to actions taken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives (such as swaps on commodity indices).The Fund also may invest in money market funds unaffiliated with GMO and directly in the types of investments typically held by money market funds.
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GAAGX - Performance

Return Ranking - Trailing

Period GAAGX Return Category Return Low Category Return High Rank in Category (%)
YTD 1.2% -73.0% 19.4% 89.61%
1 Yr 13.8% -9.1% 86.9% 82.91%
3 Yr 6.5%* -9.5% 16.2% N/A
5 Yr 2.8%* -4.9% 14.4% N/A
10 Yr N/A* -0.9% 7.5% N/A

* Annualized

Return Ranking - Calendar

Period GAAGX Return Category Return Low Category Return High Rank in Category (%)
2025 5.5% -22.7% 305.1% 72.22%
2024 -5.7% -9.8% 27.3% N/A
2023 0.7% -20.8% 10.9% N/A
2022 2.4% -12.4% 29.4% N/A
2021 -9.0% -10.5% 15.8% N/A

Total Return Ranking - Trailing

Period GAAGX Return Category Return Low Category Return High Rank in Category (%)
YTD 1.2% -73.0% 19.4% 89.61%
1 Yr 13.8% -13.4% 86.9% 75.64%
3 Yr 6.5%* -9.5% 16.2% N/A
5 Yr 2.8%* -5.3% 14.4% N/A
10 Yr N/A* -0.9% 7.5% N/A

* Annualized

Total Return Ranking - Calendar

Period GAAGX Return Category Return Low Category Return High Rank in Category (%)
2025 14.6% -22.7% 305.1% 72.22%
2024 -2.8% -9.8% 27.3% N/A
2023 5.8% -20.8% 10.9% N/A
2022 3.4% -8.4% 29.4% N/A
2021 -5.4% -10.2% 18.0% N/A

NAV & Total Return History

GAAGX - Holdings

Concentration Analysis

GAAGX Category Low Category High GAAGX % Rank
Net Assets 804 M 1.5 M 5.01 B 24.35%
Number of Holdings 1604 4 4478 27.56%
Net Assets in Top 10 460 M -398 M 2.55 B 23.67%
Weighting of Top 10 61.44% 13.1% 100.0% 36.70%

Top 10 Holdings

  1. U.S. Treasury Floating Rate Notes 13.93%
  2. REPO DAIWA 12.69%
  3. U.S. Treasury Floating Rate Notes 9.33%
  4. Uniform Mortgage-Backed Security, TBA 7.56%
  5. TXNM Energy Inc 3.44%
  6. GMO US Treasury Fund 3.34%
  7. Chart Industries Inc 2.97%
  8. Pan American Silver Corp 2.84%
  9. Comerica Inc 2.71%
  10. Electronic Arts Inc 2.65%

Asset Allocation

Weighting Return Low Return High GAAGX % Rank
Stocks 		56.39% -3.75% 97.95% 66.43%
Bonds 		30.20% -326.45% 6347.80% 10.60%
Other 		15.01% -21.53% 148.54% 62.19%
Cash 		3.78% -6278.21% 410.43% 72.44%
Preferred Stocks 		0.16% -0.12% 46.97% 34.63%
Convertible Bonds 		0.00% 0.00% 87.92% 67.14%

Stock Sector Breakdown

Weighting Return Low Return High GAAGX % Rank
Technology 		23.05% 0.00% 39.58% 50.39%
Healthcare 		17.20% 0.00% 45.63% 71.65%
Industrials 		15.49% 0.00% 21.45% 90.55%
Financial Services 		13.56% 0.00% 59.28% 38.58%
Communication Services 		10.94% 0.00% 21.78% 0.39%
Consumer Cyclical 		5.04% 0.00% 29.09% 95.67%
Real Estate 		4.55% 0.00% 51.26% 75.98%
Utilities 		3.89% 0.00% 9.23% 50.79%
Energy 		2.95% 0.00% 100.00% 3.94%
Basic Materials 		1.94% 0.00% 27.46% 40.94%
Consumer Defense 		1.38% 0.00% 13.62% 75.59%

Stock Geographic Breakdown

Weighting Return Low Return High GAAGX % Rank
US 		39.78% -8.85% 91.88% 77.74%
Non US 		16.60% -19.62% 42.11% 26.15%

Bond Sector Breakdown

Weighting Return Low Return High GAAGX % Rank
Securitized 		13.32% 0.00% 56.83% 14.49%
Government 		11.00% 0.00% 84.29% 4.59%
Cash & Equivalents 		3.78% 0.27% 100.00% 86.22%
Derivative 		2.32% 0.00% 88.81% 43.82%
Corporate 		0.12% 0.00% 87.73% 69.61%
Municipal 		0.00% 0.00% 27.33% 38.87%

Bond Geographic Breakdown

Weighting Return Low Return High GAAGX % Rank
US 		29.72% -126.19% 6311.18% 14.84%
Non US 		0.48% -382.37% 121.02% 15.19%

GAAGX - Expenses

Operational Fees

GAAGX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 2.59% 0.29% 31.15% 68.35%
Management Fee 0.95% 0.00% 2.50% 43.11%
12b-1 Fee N/A 0.00% 1.00% N/A
Administrative Fee N/A 0.01% 0.30% N/A

Sales Fees

GAAGX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.50% 5.75% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

GAAGX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

GAAGX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover N/A 0.00% 491.00% 83.47%

GAAGX - Distributions

Dividend Yield Analysis

GAAGX Category Low Category High GAAGX % Rank
Dividend Yield 4.99% 0.00% 4.56% 24.38%

Dividend Distribution Analysis

GAAGX Category Low Category High Category Mod
Dividend Distribution Frequency SemiAnnual Annually Quarterly Annually

Net Income Ratio Analysis

GAAGX Category Low Category High GAAGX % Rank
Net Income Ratio 0.06% -2.51% 6.83% 34.89%

Capital Gain Distribution Analysis

GAAGX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

View More +

GAAGX - Fund Manager Analysis

Managers

Ben Inker

Start Date

Tenure

Tenure Rank

Apr 17, 2019

3.12

3.1%

Mr. Inker, Co-Heads of the Division, is the director of asset allocation. Mr. Inker has been responsible for overseeing the portfolio management of GMO's asset allocation portfolios since 1996. Mr. Inker joined Grantham, Mayo, Van Otterloo & Co. LLC in 1992 following the completion of his B.A. in Economics from Yale University. He is a CFA charterholder.

Matt Kadnar

Start Date

Tenure

Tenure Rank

Apr 17, 2019

3.12

3.1%

Mr. Kadnar has been a member of GMO’s Asset Allocation Team since 2005.

B.J. Brannan

Start Date

Tenure

Tenure Rank

Apr 17, 2019

3.12

3.1%

Mr. Brannan has been responsible for overseeing the portfolio management of Alternative Allocation Fund since 2019.

John Thorndike

Start Date

Tenure

Tenure Rank

Oct 01, 2021

0.66

0.7%

John Thorndike joined TAS in 2004. Prior to joining TAS, Mr. Thorndike was an analyst in the investment office of Bowdoin College.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.02 17.37 4.48 1.67

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