GMO TRUST

                       SUPPLEMENT DATED MARCH 26, 2004 TO
       GMO TRUST STATEMENT OF ADDITIONAL INFORMATION DATED JUNE 30, 2003,
                          AS AMENDED JANUARY 30, 2004


GMO EMERGING MARKETS FUND

Effective immediately, the following non-fundamental investment restriction for
GMO Emerging Markets Fund is added to the list of non-fundamental investment
restrictions under "Investment Restrictions -- Non-Fundamental Restrictions:"

         (7) With respect to the Emerging Markets Fund only, for so long as any
         investor in the Fund is an Undertaking for Collective Investment in
         Transferable Securities subject to the European Communities
         (Undertaking for Collective Investment in Transferable Securities)
         Regulations 2003, as amended (the "UCITS Regulations"), hold
         investments in collective investment undertakings (as such term is used
         in the UCITS Regulations) in excess of 10% of the Fund's net assets.

In addition, the sentence immediately following the list of non-fundamental
investment restrictions under "Investment Restrictions -- Non-Fundamental
Restrictions:" is replaced in its entirety by the following:

         Except as indicated above in Fundamental Restriction (1) and
         Non-Fundamental Restriction (7), all percentage limitations on
         investments set forth herein and in the Prospectus will apply at the
         time of the making of an investment and shall not be considered
         violated unless an excess or deficiency occurs or exists immediately
         after and as a result of such investment.