MutualFundWire.com: GMO Celebates a $1B-AUM First Foray

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Wednesday, August 14, 2024

GMO Celebates a $1B-AUM First Foray

The team at a 47-year-old, $66-billion-AUM (as of June 30), value equity asset manager in Massachusetts are celebrating a big milestone for one of their newest ventures.

Scott Louis Hayward
Grantham, Mayo, Van Otterloo LLC
CEO, Board Member

On Monday, Scott Hayward, CEO of GMO [profile], and Tom Hancock, head of the GMO's focused equity team, revealed that the Boston-based fund firm's inaugural ETF, the GMO U.S. Quality ETF (QLTY on the NYSE Arca, Inc.) recently reached ten-figure territory by surpassing $1 billion in AUM. That's up over $400 million in less than four months.

QLTY is a series of the 2023 ETF Series Trust II, and its inception date was November 13, 2023 (i.e. about nine months ago). GMO partnered with Goldman Sachs' ETF Accelerator platform on the launch, which is GMO's first foray into the ETF space.

The actively managed ETF comes with an expense ratio of 50 basis points. GMO serves as investment advisor. And the PM team, since inception, includes: Ty Cobb, portfolio manager on the focused equity team; Anthony Hene, PM on the focused equity team; and Hancock himself.

The GMO team confirms that they are looking into adding more ETFs down the line, too.

"Clients are seeking quality amid rising uncertainties and questions about valuation in some parts of the market," Hayward states. "GMO is committed to offering innovative investment solutions in the structures that best address their needs."

Hancock adds that QLTY's success "is indicative of the clear differentiation between [GMO's] fundamental approach to investing in high-quality equities and passive strategies."

QLTY's other service providers include: ACA's Foreside Fund Officer Services, LLC as chief compliance officer provider; Foreside Fund Services, LLC as distributor; Morgan, Lewis & Bockius LLP as counsel; PricewaterhouseCoopers LLP as independent accounting firm; and State Street Bank & Trust Company as administrator, custodian, dividend disbursing agent, securities lending agent, and transfer agent.

Printed from: MFWire.com/story.asp?s=67780

Copyright 2024, InvestmentWires, Inc.
All Rights Reserved