GMO TRUST
Supplement dated March 1, 1996
to
Prospectus dated January 1, 1996
Effective March 1, 1996 the Manager has voluntarily undertaken to reduce
its management fee and to bear certain expenses of the Fund until further notice
to the extent that the Fund's total annual operating expenses (excluding
brokerage commissions, extraordinary expenses (including taxes) and transfer
taxes) would otherwise exceed 0.95% of the Fund's average daily net assets.
Attached hereto is revised Expense Information that shows the impact of
this agreement to reduce expenses.
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PELICAN FUND
EXPENSE INFORMATION
The following information is designed to help investors understand the
various costs and expenses that investors in the Fund bear directly and
indirectly. The expenses are based on annual expenses for the Fund's fiscal year
ended February 28, 1995 but have been restated to reflect the fee reduction
decribed in footnote 2, which is effective March 1, 1996. The table also
includes a hypothetical illustration of the amount of operating expenses that
would be incurred by an investor who purchases $1,000 of shares of the Fund and
who redeems the investment at the end of the periods shown. The examples are not
representations of past or future expenses, and actual expenses may be larger or
smaller than those shown.
SHAREHOLDER TRANSACTION EXPENSES:
Maximum Sales Load Imposed on Purchases None
Maximum Sales Load Imposed on Reinvested Dividends None
Deferred Sales Load None
REDEMPTION FEES: 1 None
EXCHANGE FEES: None
ANNUAL FUND OPERATING EXPENSES:
(as a percentage of average net assets)
Management Fee 0.75%2
Other Operating Expenses 0.20%
TOTAL FUND OPERATING EXPENSES: 0.95%2
1 In order to discourage frequent large movements of money that might
disrupt the Fund and adversely affect shareholders, the Fund may charge a
redemption fee of 0.50% to corporate or institutional investors who make large
redemptions over short periods. See "How to Redeem Shares".
2 The Manager has voluntarily undertaken to reduce its management fee
and to bear certain expenses with respect to the Fund until further notice to
the extent that the Fund's total annual operating expenses (excluding brokerage
commissions, extraordinary expenses (including taxes), and transfer taxes) would
otherwise exceed 0.95% of the Fund's average daily net assets. Absent such
waiver, management fees for the Fund would be 0.90% and Total Fund Operating
Expenses would be 1.10%.
EXAMPLE:
You would pay the following expenses on a $1,000 investment, if you
assume a 5 percent annual return (with or without a redemption at the end of
each time period):
One Year $ 10
Three Years $ 30
Five Years $ 53
Ten Years $ 117
The example in the table above is for informational purposes only.
Actual expenses of the Fund may vary significantly from the expenses assumed
above.
