GMO Emerging Country Debt Fund
Actively managed bond fund
As of its 2026 Q2 report, GMO Emerging Country Debt Fund held 288 positions with $2.27B in net assets. Its ten largest holdings made up 20.4% of the fund. The GMCDX share class costs 0.62% a year. Over the 12 months to May 2026, GMCDX returned 26.8%, with dividends reinvested. In 2026 Q2 it added 56 new positions and exited 48.
Total return in excess of that of its benchmark, the J.P. Morgan EMBI Global Diversified.
The fund seeks to outperform the J.P. Morgan EMBI Global Diversified by investing primarily in hard currency debt of emerging-market sovereigns, quasi-sovereigns, and corporates, selected through fundamental analysis of country credit quality, issuer creditworthiness, and individual bond characteristics. The manager also uses derivatives—including currency forwards, interest rate and credit swaps, and options—to manage duration, currency exposure, and credit risk; the fund may at times hold gross exposure exceeding net assets through these positions. Because performance depends substantially on the performance of assets underlying its derivatives even though the fund may not own those assets, returns can diverge materially from the benchmark based on derivative positioning.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
Nomura Fixed Income Securities Private Ltd. | 3.97% | $90.00M | — |
PETROLEOS MEXICANOS 7.69% · due 2050-01-23 | 3.54% | $80.36M | — |
PETROLEOS DEL PERU SA 5.63% · due 2047-06-19 | 1.83% | $41.58M | — |
Bahrain Government International Bonds 6.00% · due 2044-09-19 | 1.72% | $39.08M | — |
Republic of South Africa Government International Bonds 5.75% · due 2049-09-30 | 1.66% | $37.75M | — |
Argentina Republic Government International Bonds 4.13% floating · due 2046-07-09 | 1.65% | $37.42M | — |
Turkiye Government International Bonds 5.75% · due 2047-05-11 | 1.59% | $36.12M | — |
ELECTRICIDAD DE CARACAS 0.00% · due 2018-04-10 | 1.54% | $34.94M | — |
Ecuador Government International Bonds 6.90% · due 2035-07-31 | 1.51% | $34.31M | — |
UNITED MEXICAN STATES 5.63% · due 2114-03-19 | 1.41% | $31.88M | — |
The 200 largest of 288 holdings, with the share counts as filed, open with a free account.
What the fund is made of
Percentages are of fund net assets. Rounding, liabilities and short positions can make totals differ from 100%.
| Bonds | 94.45% |
| Cash & short-term | 2.70% |
| Other | 0.74% |
| Derivatives | 0.20% |
| Securitized | 0.20% |
Derivatives are shown at market value, not notional exposure.
How it has done
GMCDX share class · total returns with dividends reinvested
Volatility over the last 12 months: 6.72%. Past returns are a record, not a forecast.
The 3 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.62% | +26.77% | +74.50% | +46.57% | -3.62% | |
| 0.57% | +26.82% | +74.79% | +47.06% | -3.62% | |
| 0.53% | +26.85% | +74.98% | — | -3.62% |
These classes hold the same portfolio, so the 0.48pp spread over 3 years is the cost difference between them — roughly 0.16pp a year — not a difference in what they own.
Fees & fund details
GMO Emerging Country Debt Fund is an actively managed bond fund.
- Asset class
- Bonds
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- High yield
- Rate sensitivity
- Intermediate duration
- Expense ratio, by class
- 0.53% – 0.62%· GMCDX 0.62%
- Portfolio turnover
- 41.00% a year · as of 2026 Q2
Turnover is how much of the portfolio was replaced in a year.
Classified from what the fund holds, not from its name · 2026 Q2. The summary is a paraphrase of the prospectus; the objective is verbatim.
What changed this quarter
Positions that entered or left the fund since its previous filing. Positions that were only resized are not listed.
56 new· the largest 8
48 exited· the largest 8
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 79.5% |
| Floating rate | 12.4% |
| Zero-coupon or unclassified | 8.1% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 5.5% |
| 1-3y | 3.9% |
| 3-5y | 13.0% |
| 5-10y | 27.5% |
| 10y+ | 50.2% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Interest rates | 50% |
| Credit spreads | 50% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| High yield | +4.04 yr |
| Investment grade | +2.45 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 1 yr | 0.45 yr | 7% |
| 5 yr | 1.37 yr | 21% |
| 10 yr | 3.17 yr | 48% |
| 30 yr | 1.56 yr | 24% |
3 mo is NEGATIVE (-0.01 yr) — a deliberate hedge at that point on the curve, so it is not part of the band above.
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.33 yr | 5% |
| 5 yr | 1.04 yr | 16% |
| 10 yr | 3.21 yr | 49% |
| 30 yr | 1.91 yr | 29% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | -0.01 | +0.00 | -0.00 | $889 | -$284 |
| 1 yr | +0.45 | +0.04 | +0.28 | $9.9k | $64.1k |
| 5 yr | +1.37 | +0.26 | +0.78 | $58.6k | $177.7k |
| 10 yr | +3.17 | +1.22 | +1.99 | $275.9k | $451.4k |
| 30 yr | +1.56 | +0.92 | +0.98 | $209.9k | $223.5k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Duration contribution in years, summing to the fund's 6.55 yr.
This is where the fund's rate exposure sits, not its currency risk — most international bond funds hedge the currency back to dollars, and the size of those hedges is not in the filing. Tenors are also summed across curves, so a 5-year JPY point and a 5-year USD point are added together.
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