Grantham Mayo Van Otterloo (GMO) Australiahas had its Australian and international equities capabilities lauded byAssirtwith the research house branding the quantitative manager’s strength in these areas as “very strong”.
“They have taken a very well thought-out, common sense approach to the development of the quantitative models that drive its investment processes. This quantitative approach ensures that the investment process is applied consistently at all times,” Assirt investment analyst Jody Fitzgerald says.
Assirt also deems GMO “strong” in Australian small caps, asset allocation and emerging markets, and competent in the areas of business management and operational capability.
The ratings house finds the fund manager’s business planning to be informal and oriented around product performance. Though it believes business planning is not overly structured, appropriate consideration is given to issues such as resource allocation and product focus.
Assirt adds that a more formal business plan will perhaps also aid the manager in developing its business.
“The calibre of GMO’s investment professionals provides them with a competitive advantage in managed funds investing,” Fitzgerald says.
“The manager’s culture is different to most mainstream fund managers. It is best described as an academic environment with a commercial edge. This culture has assisted GMO in successfully attracting and retaining a deep pool of intellectual talent [though] a potential challenge for the business going forward will be retaining this culture as the business grows.”
