GMO Emerging Country Debt Fund

Frequently Asked Questions About GMCDX

What does GMCDX invest in?

The fund's main strategy involves investing in external debt, which refers to obligations denominated in foreign currencies, issued by sovereign entities and state-backed organizations in emerging economies. Typically, at least 80% of its total assets are allocated, through direct holdings or indirect exposure, to debt securities economically connected to developing nations.

What is the expense ratio of GMCDX?

GMO Emerging Country Debt Fund (GMCDX) charges an expense ratio of 0.62%. This is the annual fee deducted from fund assets to cover management and operations.

What is the duration of GMCDX?

Effective duration measures GMCDX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. GMCDX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of GMCDX?

GMCDX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of GMCDX?

Yield to maturity (YTM) is the total return you'd earn from GMCDX if every bond in the portfolio is held to maturity at the current price. GMCDX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.

How big is GMCDX?

GMO Emerging Country Debt Fund (GMCDX) is one share class of a fund that manages $2.08B across all of its share classes (GMDFX reports the same total). Our data does not carry the assets of this share class alone. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.