GMO TRUST

Item 77L


For Fixed Income Funds

Effective  March 1, 2000,  the Funds adopted the provisions of the revised AICPA
Audit  and  Accounting  Guide for  Investment  Companies  and  began  amortizing
premiums  and  discounts  on debt  securities  using the daily  effective  yield
method.  Prior to March 1, 2000, the Funds (except  Short-Term  Income Fund) did
not  amortize   premiums,   and  certain  discounts  were  amortized  using  the
straight-line  method.  The cumulative  effect of this accounting  change had no
impact on total net assets for each Fund, but resulted in a reclassification  of
the  components of net assets as of March 1, 2000,  based on securities  held by
the Funds as of that date.  The statement of changes in net assets and financial
highlights  for prior  periods have not been  restated to reflect this change in
policy.