FILED PURSUANT TO RULE 497(e)
July 16, 1997
Dear GMO Client:
Two sentences were inadvertently omitted from the description of the
Domestic Bond Fund in the Investment Objectives and Policies section in the GMO
Trust's Prospectus dated June 30, 1997. Accordingly, under the heading Domestic
Bond Fund on page 47, please amend the second paragraph by adding the following
after the second sentence:
To the extent permitted by the 1940 Act, the Fund may also invest in
securities of other investment companies. As a shareholder of an investment
company, the Fund may indirectly bear service fees which are in addition to the
fees the Fund pays to its own service providers.
We apologize for the omission.
Grantham, Mayo, Van Otterloo & Co. LLC
