<PAGE> 1
GMO TRUST
SUPPLEMENT DATED MARCH 2, 2000 TO
GMO TRUST PROSPECTUS DATED JUNE 30, 1999
AS REVISED DECEMBER 31, 1999
The GMO Global Properties Fund ceased operations on February 29, 2000.
Notwithstanding the references to this Fund in the GMO Trust Prospectus, shares
of this Fund are no longer available to investors.
<PAGE> 2
GMO TRUST
SUPPLEMENT DATED FEBRUARY 18, 2000 TO
GMO TRUST STATEMENT OF ADDITIONAL INFORMATION DATED JUNE 30, 1999 (AS
REVISED)
GMO TAX-MANAGED FUNDS STATEMENT OF ADDITIONAL INFORMATION DATED JUNE 30, 1999
(AS REVISED)
PELICAN FUND STATEMENT OF ADDITIONAL INFORMATION DATED JUNE 30, 1999 (AS
REVISED)
Effective immediately, the following non-fundamental investment
policies have been eliminated for the Funds of GMO Trust (the "Trust") noted
below:
FOR ALL GMO TRUST FUNDS
Notwithstanding the policies set forth for each Fund in this Statement
of Additional Information, the following non-fundamental investment policy has
been eliminated for each Fund:
"The Fund will not own other Funds of GMO Trust."
ALL INTERNATIONAL EQUITY FUNDS
Notwithstanding the policies set forth for each International Equity
Fund in this Statement of Additional Information, the following non-fundamental
investment policy has been eliminated for each of the Trust's International
Equity Funds:
"The aggregate absolute face value of all currency forward, currency
futures and currency swap contracts (without regard to sign and
assuming no offset of long and short positions, and counting both
components of any contract for differences) will not exceed 50% of the
fund's assets."
ALL FIXED INCOME FUNDS
Notwithstanding the policies set forth for each Fixed Income Fund in
this Statement of Additional Information, the following non-fundamental
investment policy has been eliminated for each of the Trust's Fixed Income
Funds:
"The net long exposure of the fund, including direct investments in
securities and long derivative positions, will not exceed 100% of the
fund's net assets."
GMO GLOBAL HEDGED EQUITY FUND ONLY
Notwithstanding the policies set forth for the Global Hedged Equity
Fund in this Statement of Additional Information, the following non-fundamental
investment policy has been eliminated for the Global Hedged Equity Fund:
"Except for U.S. government securities, shares of other investment
companies, cash, money market instruments and shares of Underlying
Funds, the fund will not invest in any one security to an extent
greater than 5% over the security's weighting in the fund's benchmark."
-1-
