GMOI Overview

International Stock Performance: In 2025, international stocks, particularly in export-driven countries like Korea and China, experienced strong gains, surpassing the performance of the S&P 500 despite high U.S. tariffs.

Future Market Outlook: There is potential for further rallies in non-U.S. markets in 2026, driven by decreasing interest rates and increasing corporate earnings.

Exploration Agreements: TotalEnergies SE has signed significant exploration agreements in September, including a Production Sharing Contract for offshore blocks PPL 2000 and PPL 2001 in Nigeria, where it holds an 80% stake, and the Nzombo exploration permit offshore the Republic of the Congo with a 50% interest.

Strategic Focus: The company aims to enhance its exploration portfolio with high-impact, drill-ready prospects that promise low-cost and low-emissions developments, aligning with its strategy to strengthen hydrocarbon production, particularly in Nigeria, which contributes significantly to its output.

Launch of New ETF: GMO has introduced the GMO Systematic Investment Grade Credit ETF (INVG), which utilizes a factor-based quantitative approach to invest in U.S. investment grade corporate credit, aiming to generate alpha through various investment factors.

Investment Strategy and Goals: The ETF is designed for investors seeking systematic exposure to high-quality corporate credit while minimizing risk, leveraging GMO's expertise in quantitative investing and credit analysis to maximize risk-adjusted returns.

Joint Venture License: TotalEnergies and RGE's joint venture, Singa Renewables, has received a conditional license from Singapore’s Energy Market Authority to import 1 GW of renewable power from Indonesia, along with plans for a subsea interconnector to facilitate this electricity import.

Project Development: The partners have signed a co-investment agreement to build a hybrid renewable power plant in Indonesia's Riau Province, which will include a solar farm and energy storage system, contributing to Singapore's net zero emissions goal by 2050.

TotalEnergies Mero-4 Production Launch: TotalEnergies has commenced oil production from the Mero-4 project in Brazil's Santos Basin, enhancing its total capacity to 770,000 barrels per day across five FPSOs, contributing significantly to the company's production growth strategy.

Market Response and Future Outlook: Following the announcement, TotalEnergies shares rose by 1.59% in premarket trading, reflecting investor confidence in the project's potential for robust free cash flow and low-emission oil production.