GMO

At GMO, an experienced and stable investment cohort leads a distinct, research-driven approach. It maintains an Above Average Parent rating.

GMO is known for its seven-year asset-class forecasts grounded on values reverting to long-run averages. The fullest expression of those forecasts is the GMO Benchmark-Free Allocation strategy that launched in 2003. Because its bold and often contrarian views can remain out of favor for prolonged periods, the firm has historically marketed primarily to institutional clients, but it is prudently expanding its offerings for retail investors. For instance, since launching its first exchange-traded fund in 2023, the firm has grown that stable to a handful of valuation-based equity strategies. In 2025, it added an emerging-markets ex-China ETF to its lineup, building on a sibling open-end fund launched in 2021.

Broader business ventures reflect the firm's deep research and long-term thinking, too. After years of work on the investment potential in higher quality, undervalued Japanese companies, GMO acquired boutique Japanese equity manager Usonian and launched a cobranded strategy in 2020. Furthermore, most of GMO's strategies are attractively priced compared with peers.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, GMO (Branding Name ID: BN000008VZ), is covered by Morningstar Manager Research.