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Rule 497(e)
File Nos. 2-98772
811-4347
GMO TRUST
SUPPLEMENT DATED AUGUST 2, 1999
TO
GMO TRUST PROSPECTUS DATED JUNE 30, 1999
Effective August 2, 1999, each of the GMO World Equity Allocation Fund,
GMO Global (U.S.+) Equity Allocation Fund, GMO Global Balanced Allocation Fund
and GMO U.S. Sector Fund may invest in shares of the GMO Intrinsic Value Fund
(the "Intrinsic Value Fund"), a series of GMO Trust.
Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") is the investment
manager for the Intrinsic Value Fund, which commenced operations in August 1999.
The Intrinsic Value Fund seeks long-term capital growth through investment in
equity securities. The Fund's current benchmark is the Russell 1000 Value Index,
and the Fund invests primarily in equity securities of companies chosen from the
Russell 1000 Index, emphasizing large capitalization equity securities. The Fund
may also use derivatives. The most significant risks of an investment in the
Intrinsic Value Fund include Market Risk (including Equity Securities Risk and
Value Securities Risk) and Derivatives Risk (see "Summary of Principal Risks" in
the GMO Trust Prospectus for a description of these risks). The Intrinsic Value
Fund is currently offered pursuant to a separate Prospectus and Statement of
Additional Information, copies of which are available free of charge from GMO
upon request (call collect at (617) 346-7646). For more information about the
Intrinsic Value Fund, including the Fund's fees and expenses, strategies, the
risks noted above and other principal risks of an investment in the Fund, please
refer to the Fund's Prospectus and Statement of Additional Information.
