Rule 497(e)
                                                               File Nos. 2-98772
                                                                        811-4347

                                    GMO TRUST
                              PROSPECTUS SUPPLEMENT
                             DATED DECEMBER 19, 1995
                                       TO
                       PROSPECTUS DATED SEPTEMBER 18, 1995


         The GMO  International  Core Fund may be available  through a broker or
dealer who may charge a transaction  fee for purchases and  redemptions  of that
Fund's  shares.  If shares  of the Fund are  purchased  directly  from the Trust
without the intervention of a broker or dealer,  no such charge will be imposed.
This change is effective on the date hereof.

        Each of the GMO  Core  Fund,  GMO  Tobacco-Free  Core  Fund,  GMO  Value
Allocation Fund, GMO Growth  Allocation  Fund, GMO U.S. Sector  Allocation Fund,
GMO  Core II  Secondaries  Fund and GMO  Fundamental  Value  Fund  (collectively
referred to on page 1 of the Prospectus as the "Domestic  Equity Funds") may buy
exchange traded or over-the-counter  put and call options,  sell (write) covered
options and enter into futures  contracts  and options on futures  contracts for
hedging and risk  management.  For greater detail  concerning  these  practices,
please refer to "Description  and Risks of Fund Investment  Practices -- Futures
and Options" at page 30 in the Prospectus.  This change is effective on the date
hereof.



                                                                     Rule 497(e)
                                                               File Nos. 2-98772
                                                                        811-4347

                                    GMO TRUST
                 STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT
                             DATED DECEMBER 19, 1995
                                       TO
          STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 18, 1995


         The non-fundamental policy restriction of the Funds stated in paragraph
(c) on page 8 of GMO  Trust's  Statement  of  Additional  Information  has  been
removed,  effective on the date hereof.  The  non-fundamental  policy previously
restricted  the ability of certain  Funds to write,  purchase or sell options on
particular  securities.  The  removal  of  this  restriction  is  being  made in
conjunction with a change to GMO Trust's  Prospectus dated September 18, 1995 by
a Prospectus Supplement dated December 19, 1995, to reflect that each of the GMO
Core Fund, GMO  Tobacco-Free  Core Fund, GMO Value  Allocation  Fund, GMO Growth
Allocation  Fund, GMO U.S. Sector  Allocation Fund, GMO Core II Secondaries Fund
and  GMO  Fundamental  Value  Fund  (collectively  referred  to on page 1 of the
Prospectus  as the  "Domestic  Equity  Funds")  may now buy  exchange  traded or
over-the-counter  put and call options,  sell (write)  covered options and enter
into futures  contracts  and options on futures  contracts  for hedging and risk
management.